TBI believes that revitalizing the private sector is a key means of achieving a healthy, sustainable economy. It aims to continue extending its trade finance services, as well as project finance to private sector corporations.
TBI has agreed with private sector banks on the procedure to be adopted in its public sector L/C business sharing. During 2006, the Bank issued about US$ 21.8 million through chosen banks. The criteria for choosing each bank depended on its balance sheet, correspondent network and SWIFT connection as well as the capacity of its staff and its experience in issuing L/Cs.
Furthermore, TBI extended credit facilities to some private sector banks; such facilities constituted about 26.8% of TBI's total cash credit facilities.
Amongst other things, TBI is:
Example 1:
TBI, in support of the Government's initiative to revitalize the private sector, issued Letters of Credit for the import of commodities and goods by the private sector for onward sale to the Ministry of Trade. As for Letters of Guarantee (L/Gs) issued for the private sector, the total value of these L/Gs reached US$ 24.7 million, i.e. 9.3% of the total value of L/Gs issued during 2006.
Example 2:
TBI extended need-based credit facilities to part-finance the import of goods, commodities, equipment, medicines and technology by the private sector into Iraq. These included projects of national importance for the reconstruction and economic development of Iraq in the following sectors:
TBI has agreed with private sector banks on the procedure to be adopted in its public sector L/C business sharing. During 2006, the Bank issued about US$ 21.8 million through chosen banks. The criteria for choosing each bank depended on its balance sheet, correspondent network and SWIFT connection as well as the capacity of its staff and its experience in issuing L/Cs.
Furthermore, TBI extended credit facilities to some private sector banks; such facilities constituted about 26.8% of TBI's total cash credit facilities.
Amongst other things, TBI is:
- engaging in “business sharing” of public sector Letters of Credit with the private sector banks
- assisting the banks in expanding their correspondent networks
- facilitating the private sector's imports of commodities and goods
Example 1:
TBI, in support of the Government's initiative to revitalize the private sector, issued Letters of Credit for the import of commodities and goods by the private sector for onward sale to the Ministry of Trade. As for Letters of Guarantee (L/Gs) issued for the private sector, the total value of these L/Gs reached US$ 24.7 million, i.e. 9.3% of the total value of L/Gs issued during 2006.
Example 2:
TBI extended need-based credit facilities to part-finance the import of goods, commodities, equipment, medicines and technology by the private sector into Iraq. These included projects of national importance for the reconstruction and economic development of Iraq in the following sectors:
- Infrastructure
- Housing
- Hotels and Tourism
- Manufacturing
