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SFD has signed an export financing agreement with the National Bank of Iraq to provide credit facilities to help importers in Iraq
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The National Bank of Iraq a subsidiary of the Capital Bank Group
Iraqi importers who seek to import Saudi products and services are getting a $10-million leg-up from the Saudi Fund for Development.
After all, SFD has signed an export financing agreement with the National Bank of Iraq to provide credit facilities worth the aforementioned amount to help importers in Iraq.
The National Bank of Iraq a subsidiary of the Capital Bank Group.
An agreement in this regard was signed in Amman, Jordan, in the presence of SFD CEO Sultan Abdulrahman Al-Marshad, and Capital Bank Board of Directors Chairman Basem Khalil Al-Salem, along with senior officials from both sides.
Under the agreement, SFD will provide a $10-million revolving line facility to the National Bank of Iraq to finance 100 percent of Saudi exports to Iraq with a repayment period of up to 36 months, depending on the type of imports and the nature of the trade transactions, according to a statement from the fund.
Al-Marshad said the agreement was “part of an ongoing $1.5 billion that the Saudi government allocated to support reconstruction and development projects in Iraq.”
He added: “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 achieve prosperity for both nations. The agreement with the National Bank of Iraq is consistent with the Kingdom’s aim to diversify its national economy and increase its non-oil exports, will open new markets for Saudi producers, and it will stimulate the Iraqi commercial and financial sector.”
Al-Salem welcomed the new trade relations. The statement quoted him as saying: “This line of financing will expand trade between Iraq and Saudi Arabia by providing credit facilities for Iraqi investors to import Saudi products and services at competitive prices. It will also increase transport links between our two nations and stimulate the financial and commercial sectors.”
The agreement is the first in an ongoing program of economic regeneration between SFD and the National Bank of Iraq.
