Saudi Fund for Development signs $ 10 million export finance deal with National Bank of Iraq
The Saudi Fund for Development (SFD) signed a $ 10 million export finance agreement with the National Bank of Iraq to provide credit facilities to the Iraqi lender.
The funding will help Iraqi companies purchase Saudi goods and services and help strengthen trade relations between the two countries, the SFD said in a statement on Sunday.
“This agreement reflects the kingdom’s close ties to Iraq, and our mutual desire to increase cooperation in several sectors. It is part of the 1.5 billion dollars allocated by the Saudi government to support reconstruction and development projects in Iraq, ”said SFD chief executive Sultan Abdulrahman Al-Marshad.
“Supporting stability in countries seeking to achieve sustainable economic and social development is one of the main priorities of the SFD and, through this agreement, we seek to ensure the prosperity of the two nations.”
Iraq is developing stronger trade ties as it tries to diversify an economy that relies almost entirely on oil revenues. The country’s economy shrank 10.1% last year, hit by the double blow of Covid-19 and low oil prices. A liquidity crisis triggered by its public sector wage burden and pension payment obligations also led the government to devalue its currency, the dinar, in December.
The agreement between the SFD and the National Bank of Iraq, owned by the Capital Bank in Jordan, will provide $ 10 million in the form of a revolving line of credit to Iraqi businesses, with repayment periods of up to 36 months, depending on the type of imports and the nature of the trade. funded.
“This line of finance will expand trade between Iraq and Saudi Arabia by providing credit facilities to Iraqi investors to import Saudi products and services at competitive prices. It will also increase the transport links between our two countries and boost the financial and commercial sectors, ”Capital Bank Chairman Basem Al-Salem said.