Iraq Hosts Landmark Arab Guarantees Conference: Central Bank, ILO, and Regional Entities Focus on Credit Guarantees for Economic Growth

“Credit guarantees are essential to enhancing credit availability and fostering economic development,” Dr. Khalaf said.

The Eighth International Arab Guarantees Conference, hosted in Iraq for the first time, marked a pivotal moment for the region's financial and economic development. Organized by the Iraqi Company for Bank Guarantees (ICBG), the event brought together the Central Bank of Iraq (CBI), Arab guarantee entities, and Iraqi financial institutions to discuss the transformative role of credit guarantees in fostering economic growth, particularly for small and medium enterprises (SMEs).

Held against the backdrop of the recently launched National Lending Strategy by the CBI, the conference underscored Iraq's commitment to creating a robust financial ecosystem. Deputy Governor of the CBI, Dr Ammar Hamad Khalaf, highlighted the conference's significance in promoting collaboration and advancing a sustainable vision for the banking sector.

“Credit guarantees are essential to enhancing credit availability and fostering economic development,” Dr. Khalaf said. He revealed that the CBI has devised a comprehensive strategy to bolster the ICBG's capacity, including the establishment of a dedicated committee within the Private Banks League to oversee performance improvements.

ILO’s Role in Strengthening Credit Access

The International Labour Organization (ILO), a key participant in the event, emphasized its commitment to enhancing access to finance and supporting SME growth in Iraq. Through ongoing projects such as PROSPECTS (funded by the Netherlands), the Promotion of SME Development in Iraq (funded by KfW), and the Green Business Promotion Project (funded by the Italian Agency), the ILO aims to create a robust foundation for economic resilience and job creation.

“Credit guarantees are a pillar of economic growth and a catalyst for job creation, which aligns with the Decent Work Country Program in Iraq,” said Dr. Maha Kattaa, ILO Country Coordinator.

Discussions and Innovations

Panel discussions explored the integration of financial institutions and guarantee entities in conflict-affected regions, as well as innovations in credit guarantee frameworks. Marc Andre Hensel, KfW Office Manager in Iraq, underscored the importance of credit guarantees in mitigating banking risks and enhancing lending capabilities.

“Credit guarantees enable banks to lend more confidently and expand access to finance for SMEs,” Hensel said, emphasizing the role of guarantees in strengthening Iraq’s private sector.

Hussein Thamer, Director General of ICBG, introduced plans for the next phase of the organization, dubbed ICBG 2.0, in collaboration with the ILO’s SME development initiative. This new chapter aims to integrate advanced strategies and innovative frameworks to ensure greater financial inclusion and sustainable SME growth across Iraq.

A Path Toward Economic Stability

The conference highlighted the pivotal role of credit guarantees in fostering economic stability, particularly in conflict-affected areas. Participants stressed the need for regional collaboration and tailored interventions to support SMEs, recognizing them as engines of economic growth and job creation.

Looking Ahead

The event concluded with a call to action for all stakeholders to strengthen partnerships and align efforts to expand credit access, improve financial stability, and foster inclusive growth. With the National Lending Strategy serving as a guiding framework, Iraq is poised to create a thriving financial ecosystem that drives sustainable development and resilience.

The next edition of the Arab Guarantees Conference is expected to build on these discussions, further advancing the regional dialogue on credit guarantees and their role in shaping a prosperous economic future.