ERBIL, Kurdistan Region – The decline in job opportunities and increasing rate of unemployment has impelled the Iraqi government to allocate $1 billion to businesses initiatives in a bid to create job opportunities in the private sector.
Over the past three years, nearly 10 billion dinars out of the amount dedicated by the Central Bank have been lent for business initiatives by four private banks in the Kurdistan Region.
People who want to establish businesses can apply for short-term or long-term business loans with the amount depending on the magnitude of the business.
Shadi Faqe is the owner of a small business in Erbil, who benefitted from the federal government’s loan initiative for businesses.
“You have expectations and allocate some money for whatever you do. You realize that the funds you have dedicated for the job you have started are insufficient,” she said.
Now Fage runs a café-restaurant and has employed 18 people.
“I had some money and jewelry which I used to start my business. But it wasn’t adequate. That is why I thought about something else which would help me continue my business and that was a bank [loan],” Shadi added.
Faqe has paid back half of her loan and is looking to further develop her business.
The government’s move to help people set up their own businesses has made a difference in the lives of many. Creating job opportunities is a main condition for a private bank loan.
Hemile Gardi, the executive manager at Regional Trade Bank in the Kurdistan Region (RT Bank), has made most of these loans in the Kurdistan Region and is looking to issue more loans for business initiatives.
“We have issued 152 loans which have created more than 650 job opportunities. I aim to issue 10 billion [dinars in loans] and thereby create 1,500 employment opportunities for the people of Iraq and Kurdistan,” Gardi said.
The Kurdistan Region is emerging from several crises including the ISIS conflict, IDP influx, and global crash in oil prices.
With governmental reform to address a bloated public sector and diversifying its private sector, the Kurdistan Region hopes to return to the economic boom it experienced 10 years ago.
Reporting by Dlnia Rahman