Government launches a maximum of 500 million dinars loans for small businesses

Issued and Prime Minister Haider al-Abadi Based on the first package of economic reforms and the unemployed, a decision to launch loans in the industrial, agricultural and housing area, which will be awarded in accordance with the instructions issued by the Central Bank and other banks. "

And stipulated that the crisis cell headed by Prime Minister Haider al-Abadi that "be granted a loan from the central bank for each specialist Bank (agricultural, industrial, real estate, and housing fund) for a period of five years, including a grace period for a period of 6 months, extendable to five years with the consent of the Board of Directors of the Bank and the Central Bank at the request of the borrower or the Fund, and stressed "the amounts distributed to banks and housing fund according to the following percentages: -

- 33% Industrial Bank.

- 33% of the Agricultural Bank.

- 17% Real Estate Bank.

- 17% of the housing fund.
He said the "banks ask the Central Bank of Iraq converter allocated to them in the form of payments as needed amounts, and open a current account for each bank to the Central Bank of Iraq special this loan, under the name of (the central bank loan account) under a contract with the Central Bank and to ensure the Ministry of Finance and the banks mentioned The Fund, urged "all borrowers to provide an insurance policy for a comprehensive project window until the payment of the last installment of the loan.

Projects have been classified in the loan covered by this specialized banks to the following: -

(A) small projects and lend a higher limit (500) five hundred million dinars.

(B) medium-sized enterprises and higher lending limit (3) three billion dinars.

(C) large agricultural and industrial projects and lend increased to about three (3) billion dinars provided it does not exceed the upper limit of twenty (20) billion dinars.

D - may be granted loans for agricultural and industrial large economically viable projects, up from the upper limit of twenty (20) billion dinars after taking approvals from the Economic Committee of the Council of Ministers or proposed by the lender.

They stressed the need for crisis cell "These loans are distributed to the provinces according to population ratios and rates of poverty, and as needed, explaining" what you stated above regulates the loan contract between banks and specialized housing fund with the Central Bank and Ministry of Finance to ensure.

And stipulated that the crisis cell on the need to "allocate the appropriate bank amounts of borrowed funds small, medium and large projects according to the needs of each province and in coordination with the Directorate General of Industrial Development at the Ministry of Industry for industrial loans and Planning and Monitoring Department of the Ministry of Agriculture for agricultural loans.

She stressed the need to be a student loan Iraqi company or natural person Iraqis, aged 22 years and over eligibility and full, indicating granted loans to meet acceptable collateral under domestic laws and regulations for each bank and as stated in paragraph (8) later, explaining "be the interest on the loans granted by the specialized banks and fund housing projects by 4% annually.

And Davc "A / be the length of the loan depending on what is included in the economic submitted feasibility by the borrower that does not exceed the term of the loan (5) years for industrial and agricultural loans and can increase the life of the loan by the lender to up period to 10 years and with the approval of the Central Bank.

B / The duration of mortgage loans to citizens according to the regulations and directives adopted by the Land Bank and the Housing Fund that does not exceed the term of the loan (5) years and can increase the length of the loan term up to 10 years and with the approval of the Central Bank.

"In the case of the reluctance of the borrower to repay the loan amount imposed on the borrower benefits Tojerih by the window instructions for each bank and the fund, and continued to" allocate the proportion of realized benefits of each bank and fund this program as rewards for employees on the program and supporting actors determined by the Board of Directors of each bank and the fund, according to objective criteria .

It showed that "the borrower submit a request to the concerned bank borrowings and fund housing attached to the priorities of the project and its location and vacation property and place it and its kind and nature of the project ... etc.

The requirements are divided according to the type of project;

A. (industrial and agricultural project): a feasibility study of a competent authority and verified bank demand and the completion of its requirements and must be enabled to work one window to complete the procedures no later than one month.

B - housing projects (the Land Bank and the Housing Fund): by lending procedures to secure guarantees and exchange with the introduction of the single window to facilitate the achievement and the lending units of housing for the citizens and not exclusively the housing investment projects.

(C) the bank to start giving approval within a period of 15 days if the prerogative of the Director General and (30) days if the validity of the Board of Directors at the completion of all the requirements of the loan.

(D) the granting of loans at the completion rate of not less than 20% of the project and if the borrower's request to be approved by the bank granting a loan before you start disbursement of the project can be to the bank to give initial approval to allocate the requested loan in exchange for the borrower a letter of guarantee of not less than 5% of the value of and confiscate the loan in the event of failure of the borrower to the implementation of the project by at least 20% over a period of 12 months from the approval of privatization and eliminating the need for the letter of guarantee from the borrower while access to the percentage of completion of 20% when the first installment of the loan disbursement.

ھ- disposal of loan amounts in cash to borrowers (the Land Bank and the Housing Fund) only provides collateral for open credits for purposes of production lines for the processing factories and equipment for agricultural projects in accordance with the foreign exchange rate set by the Central Bank according to the following mechanism: -

- The borrower provides the necessary guarantees 50% of the credit value (real estate, banking) and another 50% are covered to ensure the same project.

- Dependence for the manufacturer of the equipment may not be open exclusively to the opening credits and intermediate destinations.

- Provide shipping documents in the name of industrial or agricultural bank is not the clearance of goods without the approval of the two banks listed above and that they would stamp the bills of lading and other documents.

Third: powers

1. be granted the loan limit the amount of 500 million dinars from the prerogative of the Director General after the transaction legal and accounting aspects are met within a period of 15 fifteen days.

2. Mazad on the amount of 500 million dinars will be the prerogative of the Board of Directors and shall be referred to the Ministry in the Council Meeting Minutes and according to the law.

- Note Helms for granting loans in regards to the housing fund and in accordance with the law and instructions of the Fund's financial authorities.

- Higher Committee meets once a month found on the achievements and follow up the implementation rates of the loans and the completion of projects under the reports for the purpose.

- Introduces a Web site of this Committee to make complaints and publish a summary banks and fund loans granted under this initiative and achievement rates.

Fourth: Supplementary material

1. form a higher committee to oversee the functioning of lending on the orders of Prime Minister's Office and includes programs including representatives from the government agencies concerned and the Central Bank and representatives of the private sector (industrial, agricultural, housing).

2. in order to achieve transparency, both industrial and agricultural, housing bank is committed to publish a quarterly report on their websites or in the media and sends a copy of the report to the House of Representatives / the economic and investment commission and the Office of the Prime Minister and the Central Bank of Iraq and the report includes: number or the borrower Code, the loan amount, term of the loan, the project description, the province, the number of employees expected when the operation of the project and the purpose of the loan (new establishment, expansion, rehabilitation).