EBRD makes $100m Investment in Iraq

By John Lee.

The European Bank for Reconstruction and Developmen (EBRD) has launched its first-ever investment in Iraq, providing a US$100 million trade finance facility to the National Bank of Iraq (NBI), the country's largest private bank.

The facility, extended under the EBRD's Trade Facilitation Programme (TFP), will support Iraq's import and export activity by enabling NBI to issue guarantees to confirming banks and provide cash advances for imports, exports and the domestic distribution of goods.

Christophe Michels, Managing Director of the Iraq Britain Business Council (IBBC), said:

"IBBC is delighted that our member NBI has concluded this important arrangement with EBRD. Both Organisations are well known to IBBC, and we have lobbied to encourage EBRD to enter Iraq. Here is the proof of confidence in the Iraq economy, its financial system and the clear opportunity for European investment across Iraq."

EBRD announces first investment in Iraq

The European Bank for Reconstruction and Development (EBRD) has launched its first investment in Iraq, providing a US$ 100 million trade finance facility to the National Bank of Iraq (NBI), the country's largest private bank.

This new trade finance limit will contribute to boosting the country's import and export activities. It will support the NBI's trade finance operations by issuing guarantees to confirming banks and offering cash advances for imports, exports and the local distribution of goods under the EBRD's Trade Facilitation Programme (TFP).

The facility will also promote greater trade integration in Iraq by extending guarantees and credit lines to mitigate political and commercial payment risks associated with international transactions undertaken by partner banks in the economies where the EBRD works.

The investment will improve access to finance for micro, small and medium-sized enterprises (MSMEs) and facilitate intra-regional trade. It will also help the NBI diversify its correspondent banking relationships and strengthen trade finance links with other EBRD countries of operation.

EBRD Head of Iraq, Catarina Bjorlin Hansen, said:

"We are proud to sign our first investment in Iraq and to partner with the National Bank of Iraq. This facility represents a major milestone in supporting the country's economy by expanding access to trade finance, fostering integration with international markets and strengthening the resilience of local businesses. We look forward to playing a key role in building robust financial institutions and promoting sustainable economic growth in Iraq."

Ayman Abu Dhaim, CEO of the National Bank of Iraq, said:

"This partnership with the EBRD marks a pivotal milestone in NBI's growth journey and in Iraq's broader financial landscape. Through this facility, we aim to strengthen the flow of trade, empower Iraqi businesses, especially MSMEs, and open new channels that connect Iraq to global markets with greater confidence and stability. It reflects our continued commitment to driving economic development and supporting Iraq's integration into the regional and international economy."

The EBRD TFP was launched in 1999 with the aim of promoting international trade between the economies in the Bank's regions, in the form of guarantees and short-term loans to selected participating banks and factoring companies.

The NBI is the largest private bank in Iraq and a universal bank with activities in retail, SME and corporate banking, trade finance, and treasury services. Established in 1995, it is majority-owned by the Capital Bank of Jordan, an EBRD client since 2015.

The EBRD began operations in Iraq in September 2025, focusing on the private sector to unlock access to finance, promote local businesses and foster sustainable, long-term growth, contributing to the transformation of the country's economy.

NBI signs strategic partnership with EBRD

The National Bank of Iraq (NBI) has signed a strategic partnership agreement with a European Bank valued at USD 100 million, marking a significant step toward strengthening international financial cooperation.

The signing ceremony was held in the presence of H.E. Dr. Ammar Al-Eithawi, Deputy Governor of the Central Bank of Iraq, as well as the Chairman of National Bank of Iraq, the agreement was formally signed by Mr. Ayman Abu Dhaim, CEO of NBI, and Ms. Catarina Bjorlin Hansen, Head of EBRD in Iraq.

The event was attended with representation from the Iraq Britain Business Council (IBBC), in addition to Sama Hammurabi Law Firm, the legal counsel to NBI. Several prominent banking figures and representatives of the Association of Iraqi Private Banks were also present.

This partnership reflects increasing confidence in the Iraqi banking sector and aims to enhance financing capabilities, support economic growth, and deepen cooperation between Iraqi and European financial institutions.

Dima Ghaith, Foreign Companies Manager NBI ' says ' This agreement marks an important milestone for NBI. It is the first of its nature in Iraq. The 100 million USD trade facility will enhance trade finance activities for NBI corporate and SME clients'

Christophe Michels MD of IBBC says 'IBBC is delighted that our member NBI have concluded this important arrangement with EBRD. Both Organisations are well known to IBBC, and we have lobbied to encourage EBRD to enter Iraq. Here is the proof of confidence in the Iraq economy, its financial system and the clear opportunity for European investment across Iraq.'

(Sources: EBRD / IBBC)