Iraq pledges $2.7 billion to stimulate economic growth

An aerial view of a part of the Iraqi capital, Baghdad. Photo: AFP Baghdad (IraqiNews.com) Iraqi Prime Minister Ali al-Zaidi directed on Sunday an executive funding package and measures totaling 3.5 trillion Iraqi dinars ($2.7 billion). The comprehensive economic program is tailor-made to increase market liquidity, finance important public projects, and help critical industries enduring economic hardship from regional oil trade disruptions. According to a statement released by the Prime Minister’s Office (PMO), one trillion Iraqi dinars (approximately $763 million) are redirected from existing Central Bank of Iraq (CBI) initiatives to bolster housing and construction development. Al-Zaidi ordered that at least another one trillion Iraqi dinars ($763 million) be used to enhance the liquidity of the Trade Bank of Iraq (TBI) and the Industrial Bank to finance industrial and production-related investments. An allocation of 500 billion Iraqi dinars (approximately $382 million) is designated for the prompt settlement of longstanding governmental debts owed to private contractors and agricultural farmers. A further investment of 500 billion Iraqi dinars (about $382 million) would bolster the national wealth fund, bringing its total balance to 1.5 trillion Iraqi dinars ($1,14 billion). The domestic package incorporates structural measures aimed at fostering public-private partnerships, as the Iraqi government aims to strengthen its financial infrastructure following the end of the international coalition’s mission in the country.