EBRD provides $75 million facility to boost trade financing in Iraq

Baghdad (IraqiNews.com) — The European Bank for Reconstruction and Development (EBRD) is providing up to $75 million in trade financing to Iraq’s Al Mansour Bank for Investment, as the international lender steps up its assistance for the country’s private sector. The facility will increase Al Mansour Bank’s ability to finance Iraqi imports and exports, as well as link local enterprises to foreign markets, at a time when cross-border banking and trade financing remain constrained. The finance, provided under the EBRD’s Trade Facilitation Program, will comprise guaranties and cash advances aimed at reducing commercial and political payment risks in international transactions. Iraqi firms in agriculture, construction, manufacturing, and consumer products are likely to gain, with a focus on boosting financing choices for micro, small, and medium-sized enterprises. The arrangement should also assist Al Mansour Bank in expanding its partnerships with foreign correspondent banks, which is a critical component of Iraq’s overall attempt to modernize its banking industry and establish ties with the global financial system. Along with the $75 million credit, the EBRD will provide technical support and training in trade finance, compliance, fraud prevention, and risk management. Established in 2006, Al Mansour Bank is one of Iraq’s leading private banks, offering corporate and retail banking, treasury, and trade finance services via eight offices. Qatar National Bank Group is the primary stakeholder. The agreement comes less than a year after the EBRD started official operations in Iraq in September 2025. Since its inception, the organization has prioritized private-sector growth, boosting access to credit, and assisting Iraqi firms as Baghdad strives to diversify an economy still dominated by government expenditure and oil profits. The current facility is another step toward better integrating Iraqi banks and companies to foreign financial markets, as well as providing the necessary finance to increase private-sector trade.