Izdihar_News_Archives

30 June 2007 - As part of its expansion plan, the Al-Aman Iraqi indigenous microfinance institution, established in Kirkuk by the USAID-funded IZDIHAR project, opened a second office inside the main market of the city in May 2007. Al-Aman itself trained three new loan officers, and the new office has already received five funding applications and disbursed one loan.

“The opening of the new office is our response to the demands of the community. It will be serving small businesses from the same sectors as the main office – trade and services. We expect the loan applications submitted to the office to increase by ten applications each month,”said Hussien Abdul Kareem, Al-Aman’s Executive Director.

The microfinance institution started operations on July 15, 2006, with an initial loan capital of $250,000, granted by the USAID Mission in Iraq through IZDIHAR. Since then it has awarded 138 loans – of which 34 were disbursed to women-owned businesses. By the end of April 2007, four loans were fully repaid. Al-Aman aims at awarding 350 loans this year and maintaining a 100% repayment rate.

Iraqi Microfinance Industry Reaches Historic Benchmarks

25 June 2007 - The vibrant microfinance industry in Iraq reached several historical benchmarks in May, illustrating the energy and determination of the indigenous and international microfinance institutions that have been operating in the country.

The total number of loans disbursed by the five existing microfinance institutions (MFIs) since the inception of the activities surpassed 50,000 (actual number = 50,142). The total value of loans disbursed exceeded $100 million (actual amount was $103,673,489). In May alone, the value of the loans disbursed in one single month topped $5 million (actual amount was $5,650,350). The total number of active clients benefiting from microfinance loans went beyond 18,000 to reach 18,611.

“Our work makes a difference. The microfinance loans, albeit small, are helping people start or expand businesses that enable them to provide for their families”, said the Executive Director of Al-Aman, an indigenous institution based in Kirkuk.

The network of active microfinance institutions – two indigenous and three international – is currently covering 17 Iraqi governorates. Plans are in place for a new indigenous institution to be established soon in Al-Qaim (Al-Anbar governorate) with the support of the USAID-funded IZDIHAR project.

The Business Community in Sulaymania Welcomes the ICBG Loan Guarantee Program

24 June 2007 - Over 100 business people and government representatives from Sulaymania received with great interest the information session organized / hosted by the Board of the Iraqi Company for Bank Guarantees (ICBG) on June 11th at the Sulaymania Palace Hotel. The participants welcomed the increased access to funding and the development opportunities that local businesses will enjoy through expansion of the ICBG activities in the Kurdistan Region. ICBG was established by 11 Iraqi private banks with technical assistance from the USAID-funded IZDIHAR project.

The Chairman of the ICBG, who is also the Chairman of Ashur International Bank, delivered a presentation on the ownership, objectives, operational achievements and projected activities of the ICBG to support the provision of increased access to bank loans for small and medium enterprises (SMEs) throughout all of Iraq. The presentation included details on the ICBG loan guarantee program, a breakdown of the guarantees approved to date, by economic sectors and governorates, and future training programs for the ICBG participating banks. So far, the ICBG approved 20 guarantees covering loans that amount to over $400,000.

The audience that packed the conference room consisted of representatives of the Kurdistan Ministry of Finance, the Kurdistan branch of the Central Bank of Iraq, members of the Chamber of Commerce and Industry, management and staff from the private banks operating in Sulaymania, the Office of the Registrar of Companies in Kurdistan, various Trade and Industry Associations, management from microfinance Institutions operating throughout Iraq and other private sector representatives.

“It is very encouraging that ICBG guarantees up to 75% of the loans and focuses on the cash flow rather than collaterals. This facility will help us develop our businesses”, said one of the businessmen from Sulaymania. “We are very pleased to have the ICBG representatives here informing us about the opportunities that this initiative brings about for small and medium size enterprises”, said the Deputy Chairman of the Sulaymania Chamber of Commerce. The Chamber and the Ministry of Finance of the Kurdistan Region both participated in the preparation of the information session.

“Over the past two years, the USAID-funded IZDIHAR project has supported Iraqi banks in developing modern lending methodologies and sound banking practices through its activities”, said IZDIHAR’s Chief of Party. “This information session illustrates our commitment to promoting cash flow-based lending and to boosting access to funding for small and medium size enterprises.”

For more information on the activities of the Iraqi Company for Bank Guarantees please visit www.icbg-iq.com.

Iraqi Professional Accountants and Students Complete Course on International Auditing Standards

19 June 2007 - The final exam of the course on Auditing Methods, Methodology and Standards brought to a successful completion a nation-wide training initiative undertaken by the USAID-funded IZDIHAR project – to further update the auditing skills of Iraqi accounting professionals and students.

Over eight hundred participants – approximately 30% of whom are female - enrolled in the course, which was organized in cooperation with seven local chapters of the Iraq’s leading professional association for accounting professionals and ten universities from all over Iraq. Some of the locations are situated in challenging areas. Still, the overall attendance was high – 90% on average for the course, and a similar percentage for the final exam.

The course started in February and ended in late April. It consisted of sixty hours of classroom instruction and two examinations – mid-term and final. The trainers were all Iraqi professionals and academics who benefited from prior training from IZDIHAR. The trainers participated in the preparation of the mid-term exam, where a “bank of questions” was built from materials supplied by lecturers from all governorates.

“The quality of the course and of the additional materials was good and very good”, said one of the trainers. “The participants gained useful information about international auditing standards. The graduates who are governmental employees may get a promotion, while the others will have a better chance to get a job. In Tikrit, for instance, when somebody applies for a job with the General Commission for Taxes, he / she should be a graduate of this course. In addition, participants had a chance to make new friends and enrich their social life."

All attendees received an Auditor's Toolkit, which contains practical audit programs, internal control questionnaires and other materials that can be used in a number of professional contexts. “The course helped me and gave me a lot”, said a participant, adding “I liked it because I learned a lot about accounting, auditing and financial statements and records”.

This initiative followed on a previous training organized by IZDIHAR that was equally well received – a course on International Accounting Standards. Both were meant to bring the professional standards of Iraqi accountants and auditors in line with modern standards and international best practice.

Iraqi Small Business Development Centers Focus on Empowering Women

31 May 2007 - Through its popular course on "How to Start-up or Improve a Business", a Small Business Development Center (SBDC) in Kirkuk is helping empower Iraqi women to assume new economic and social roles as private entrepreneurs.

“61 women, out of a total number of 59 trainees, participated in this course since we launched it in December 2006. Empowering women is one of our core objectives”, explains the Center’s Executive Director.

The SBDC in Kirkuk is not the only center which has placed women empowerment at the core of its small business development courses. The Iraqi Association of Securities Dealers (IASD) follows closely, with 46 female participants out of a total of 117. “In our latest course, half of the participants were women, all of them representing the less fortunate part of society - widows and unemployed mothers. We were very impressed with their positive and grateful attitude towards this training and our efforts in organizing it”, said IASD's Executive Director.

The Small Business Center in Tal’Afar, a small city where the community adheres to strict gender norms, ran a course for women only. Emboldened by this initiative, one of the nine participants pledged to establish a new organization that would focus on training and education activities for women.

At the end of April, the five SBDCs had offered the course to 566 Iraqis, of whom 184 (approximately 33%) were women. “We trust that by including women in our courses we have been making a significant contribution to boosting their entrepreneurial spirit”, said the Executive Director of the “Women Empowerment Organization” from Erbil, which has also been running the Small Business Development course.

The USAID-funded IZDIHAR project identified five existing regional associations and assisted in upgrading their capacity to allow them to act as Small Business Development Centers. The mission of the SBDCs is to better prepare Iraqis to start or expand their own businesses and to gain access to capital through microfinance institutions (MFIs) and banks. The SBDC concept builds on the experience of existing business associations and business centers, particularly those which have excellent links in their communities with MFIs and local banks.

Iraq Reaches Historic Milestone in Negotiating Acession into the WTO

29 May 2007 - Iraq’s bid to fully reconnect with the global trade system after decades of isolation reached a historic milestone on May 25th, when the first meeting of the Working Party on Iraq convened in Geneva at the headquarters of the World Trade Organization (WTO).

The Trade Minister of Iraq, Mr. Abed Falah al-Sudani, hailed the meeting as a success and as a major step in his country’s efforts to restore its position within the international community. ''Iraq's membership in the WTO sends a positive signal to the people of Iraq that they are welcomed back and that the world really cares about their welfare,'' said al-Sudani.

In the two days leading to the event, the Iraqi delegation held bilateral meetings with 12 WTO Members including the US, EU, Vietnam, Morocco, Egypt, Jordan, United Arab Emirates, Taiwan and Canada. Telephone contacts were also made with China. The meetings were positive and supportive of Iraq’s accession.

The WTO Members that attended the meeting raised questions related to Iraq’s investment law, the intellectual property regime, privatization and Iraq’s progress and plans for bringing its domestic legislation into compliance with WTO treaties and rules. The Iraqi delegation gave on-the-spot replies to all questions raised while noting that further elaboration may be provided in the written replies to be submitted later.

The participants noted that a possible timeline for the next Working Party Meeting could be early 2008. By then, the Iraqi delegation will have to present responses to the written questions raised by WTO members, submit a legislative action plan and prepare accession documents on Agriculture, Trade in Services, Technical Barriers to Trade, Sanitary and Phytosanitary Measures and Intellectual Property.

The first Working Party meeting is a major milestone in a process that started in early 2004, when Iraq applied for WTO membership. Since 2005, the USAID Mission in Iraq has provided comprehensive assistance to the Government of Iraq in the WTO accession process through IZDIHAR, in the areas of capacity building, legislation, development of a customs tariff and preparation of WTO accession documents. “This is a huge step forward for Iraq”, commented Baljit Vohra, IZDIHAR’s Chief of Party. “There is much to be done. Accession negotiations are complex and take time, but we are confident that this very good start will lead to a successful reintegration of Iraq in the global trade community.”

USAID-Sponsored Conference in Amman Focuses on Future of Iraqi Banking Industry

5 April 2007 – Iraqi banking industry leaders and international banking experts gathered in Amman, Jordan April 4-5 for the first Iraqi Banking and Finance Conference, Banking in Iraq: The 21st Century Challenge.

Over 200 delegates attended the two-day conference, organized by the United States Agency for International Development (USAID) through its IZDIHAR Private Sector Growth and Employment Generation and Economic Governance II projects.

Conference participants included representatives from the Central Bank of Iraq, Government of Iraq agencies, regulators, Iraq private and state owned banks, regional and international banking groups, non-bank financial institutions, bank training and certification organizations, banking experts and international donors.

In his opening remarks, USAID/Iraq Deputy Mission Director Mike Harvey affirmed, “Support to the banking sector is a specific priority for USAID and this conference demonstrates our commitment to this important foundation of the Iraqi economy.”

Mr. Harvey also mentioned that USAID is proud to be associated with the Iraqi Company for Bank Guarantees, which is already achieving its objectives of providing cash-flow based loan guarantees to small and medium enterprises in Iraq.

Daniel Weygandt, Economic Minister-Counselor at the U.S. Embassy in Baghdad, remarked: ”This event is the first time that Iraqi public and private sector representatives along with regional and international partners have come together to discuss the current status and challenges facing the development of the financial services industry in Iraq.”

During the plenary sessions participants took stock of global and regional banking developments and their implications for the Iraqi banking industry post April 2003. Topics discussed include:

Iraqi monetary policy;
Regulation and supervision of the banking industry;
Rehabilitation of the state owned banks;
Development of the private banking sector, introducing new banking products and services;
Improvements to the payments, check processing and clearing systems;
Development of a bankers association, banker training and certification organization; and
The need for banks to adopt international financial reporting standards.

Deliberations from the plenary sessions will be compiled in a recommendations paper for distribution to policy makers, regulators, donors, conference partners and interested parties.

“This Iraq Banking and Finance Conference was the starting point for all stakeholders as they move towards building a banking industry in Iraq that is well positioned for the challenges of the 21st Century,” commented Baljit Vohra, Chief of Party of the USAID-funded IZDIHAR project, at the conclusion of the conference.

Newly Trained Iraqi Loan Officers To Expand Microfinance Services in Baghdad

20 March 2007 - As a future loan officer of an indigenous microfinance institution based in Baghdad, Manar, a 27-year-old female, has an ambition: to assist in the economic development of her country. "Microfinance loans are new to our country and will help people start and develop businesses and live a better life, after 35 years of oppression", explains Manar.

Manar is one of 18 proud graduates of the Microfinance Basics course organized by IZDIHAR, a USAID-funded program focused on private sector development. Like Manar, her colleagues – who come from different neighborhoods of Baghdad - are keen to support small businesses from their districts with much needed capital.

"Microfinance loans target poor people from our communities who cannot access bank loans – blacksmiths, tailors, carpenters, etc. Our roles will be very helpful, as the loan recipients will be able to earn income for themselves and their families", says another graduate.

"You are the most important people in Iraq now", Kent Larson, USAID Mission Liaison Officer for the Baghdad Provincial Reconstruction Team, told the new graduates. “There are a lot of people looking for jobs, but they can only get them if we build businesses. And this is what you will be doing as loan officers.”

Ten of the eighteen graduates will immediately start working as loan officers for the Baghdad-based microfinance institution, which has been operating since August 2006 and is currently covering two city districts – Karrada and Mansour.

With the new staff, the institution will expand its network and offer microfinance loans in eight of Baghdad’s nine districts. It plans to soon cover the entire capital and perhaps extend operations nationwide.

IZDIHAR developed this local microfinance institution in close cooperation with the US Military, which provided operating capital and identified potential loan officers to course organizers.

"We have been working with partners across Iraq to provide microfinance loans to small businesses, as part of our support for private sector development", said Greg Howell, USAID’s Global Development Alliance Advisor.

"With so much business conducted in Baghdad, we hope to expand the availability of microfinance loans to illustrate our strong commitment to economic growth and job creation in the city."

Government Officials and Businesspeople Look Forward to Iraq's Accession to the WTO

20 March 2007 – Government officials and businesspeople in Kurdistan learned more about export promotion and the World Trade Organization (WTO) agreement on technical barriers to trade through a recent training event organized by the USAID-funded IZDIHAR program and the local Chambers of Commerce in Erbil and Sulaymaniah.

Forty-five participants attended the meetings, bound by the common belief that Iraq’s accession to the WTO will open new markets for Iraqi exports while protecting Iraq’s domestic market against unfairly priced or sub-standard imports.

Topics included WTO structure and the accession process; the benefits of WTO membership; technical standards for goods and services; export procedural and compliance requirements; international practices; and potential export sectors and markets.

According to one participant, "The information I got on export laws and the part regarding the Harmonized System is very useful to me personally, as I am planning to establish a textile export business." The Harmonized System is an international system of classification that describes imported / exported articles and provides the applicable duty rates.

"I learned a lot about establishing an export business, market research and market access," said another. "I have a better understanding now of the technical barriers to trade, as well as of the WTO dispute settlement mechanism," commented a third.

The session on Technical Barriers to Trade followed up on draft legislation submitted to the Central Organization for Standardization and Quality Control (COSQC). The legislation will be discussed in the Iraqi parliament in the coming months.

USAID and Iraqi Company for Bank Guarantees Sign $5 Million Grant Agreement

12 March 2007 - In February, USAID and the Iraqi Company for Bank Guarantees (ICBG) signed a grant agreement under which USAID will provide $5 million (USD) to the ICBG to supplement its loan-guarantee fund. The agreement was formalized at ICBG's second General Assembly meeting of shareholders. USAID's IZDIHAR program provides technical assistance to the ICGB and to Iraqi private banks.

Incorporated in March 2006 with operations beginning in November 2006, the ICBG guarantees loans - ranging from $5,000 to $250,000 - issued by its member banks to small- and medium-sized enterprises (SMEs) in sectors such as manufacturing, services and trade. With the recent addition of Emerald Bank in Erbil, the ICBG has expanded to 12 members. To date, the company has approved 10 guarantees, totaling $187,000.

According to Christian Hougen, Director of the Economic Growth office at USAID/Iraq, “The SME sector in Iraq has historically been deprived of access to formal sources of credit due to the prohibitive levels of collateralization required. The grant provides them with an opportunity to develop and grow.”

In addition to signing the supplemental grant agreement, the ICBG elected a new Board of Directors through a transparent nomination and closed balloting process. The Board represents management from five of the leading private banks.

“The ICBG's fair and transparent election process reflects the corporate governance procedures that it has adopted pursuant to international best practices," said IZDIHAR's Chief of Party, Baljit Vohra.

The outgoing Chairman reported to the Assembly on the significant achievements of the ICBG during the first year of operations. These include:

Participating bank agreements with eleven Iraqi private banks.
A bank officer training program, designed and implemented in conjunction with IZDIHAR, which has trained 400 Iraqi bank officers to date.
The development of operational capabilities, systems and policy manuals to ensure the proper functioning of the institution.
A Memorandum of Understanding with the Jordanian Loan Guarantee Corporation (JLGC) for mutual cooperation and agreement at an operational level on marketing, technological and training activities. To date, 24 Iraqi participating bank officers have attended on-the-job training JLGC offices.
An MOU with distributors of agricultural equipment, generators and light commercial vehicles to assist SME operators in obtaining financing for up to five years through the ICBG participating bank network.

“We are proud of the achievements of our company, which has been operating under very challenging circumstances," said the newly elected Chairman of the ICBG. "The pipeline of loan guarantee applications is significant and will help us exceed our business plan projections. We expect to expand our outreach, as another four banks stand ready to sign the participating bank agreement."

Iraqi Delegation Prepares for the Opening of Formal World Trade Organization Accession Talks

8 March 2007 - Seventeen members of Iraq’s National Committee and WTO Unit, which coordinate the country’s WTO accession effort at the inter-ministerial level, prepared for the opening of the World Trade Organization (WTO) accession negotiations and the convening of the first WTO Working Party meeting in Geneva in a four-day workshop organized in February by the USAID IZDIHAR project.

Two WTO experts were brought in to assist in the training activity, which culminated in a full-scale simulation of the Working Party (WP) meeting. Workshop participants included the core negotiating team which will travel to Geneva to conduct the meeting.

The workshop began with a detailed walk-through of the Working Party process, covering such issues as the protocol to be followed, opening statements, advice on the composition of Iraq’s delegation, appointing Iraq’s spokesman for the WP meeting, procedures, timelines and tactics. The discussion moved on to the substance and issues likely to be raised in the first meeting.

These preparations led to the central event of the workshop – a full-scale, mock Working Party meeting, designed to approximate as closely as possible the procedures, content and duration of a real meeting. The simulation included a Chairman conducting the WP proceedings, and each IZDIHAR adviser taking on the role of key WTO members, including the US and the EU.

Questions and comments for the Iraqi delegation had been prepared in advance covering all aspects of Iraq’s trade and legal regime, such as intellectual property, customs, agriculture, technical barriers to trade, privatization, and constitutional make-up. The delegation was subjected to six hours of intensive questioning. The workshop ended with an interactive evaluation of the mock WP session. Strengths, weaknesses and tactics were discussed, drawing upon the experiences from the session.

While certain weaknesses were identified, there was broad agreement that the Iraqi delegation will be able to successfully conduct the first WP meeting. Dr. Tamam Al-Ghul, former Jordanian Minister for social development, who previously led Jordan’s WTO accession efforts for five years, stated that she was truly impressed at the performance of the Iraqi delegation. Mr. Paolo Vergano, a Senior WTO Lawyer from Brussels who has assisted in numerous WTO accessions, noted that in his view the Iraqi team performed better than other WTO accession delegations at a comparable stage.

Local Iraqi Organizations Establish Small Business Development Centers

6 March 2007 - An Iraqi institution located in a central governorate is working with the USAID IZDIHAR project to develop a Small Business Development Center (SBDC) to help Iraqi entrepreneurs start-up their own businesses and obtain the financial services they need to sustain them.

Recently, the center provided an integrated, five-day course for local businesspeople, conducted by local trainers that graduated from “Training of Trainers” programs organized by the project. Five women and eight men attended the training, which included sessions on business planning, marketing, cash flow and loan applications. At the end of the program, participants were able to create a business plan that will help them operate their businesses more effectively and facilitate access to capital.

According to one female participant, who owns and runs a pastry shop: "Initially I hesitated to participate. Now I feel that it has been very helpful and I must change the way I run my business. I have to analyze the market and define my objectives accordingly, to build a trademark for my products, prepare a cash flow statement and a budget."

Another participant - a man who runs a business in aluminum processing - returned to the center two days after the end of the course to revise his business plan, saying: "I want to develop my factory and I trust that preparing a good plan will help a lot in obtaining the bank loan that I need."

As news about the course spread quickly through the community, another fourteen local entrepreneurs registered for a second five-day course at the center.

The USAID IZDIHAR project has assisted five Iraqi institutions, located in different governorates, in establishing such centers. The activity of the SBDCs builds on the experience of existing business associations and/or business centers, particularly those who have excellent links with microfinance institutions and banks. The optimistic energy that the centers are pouring into their communities along with the helpful services they offer are being greeted with substantial interest by local entrepreneurs.

Iraqi Women Advocate for Increased and Effective Role in Business

12 February 2007 - In late January, over 60 enthusiastic women representing NGOs, businesses and government packed into the Al Rasheed Hotel for "Women in Business: A Promise for Economic Progress," a conference organized by the USAID IZDIHAR project.

Participants engaged in a lively debate over access to small business loans, NGO registration processes, gender equality, business planning, microfinance and related issues relevant to Iraqi women entrepreneurs.

Encouraging women to seek entrepreneurship as a means to economic self-sufficiency, an IZDIHAR senior advisor who delivered the keynote speech said, "For women, business ownership represents power, potential, promise and progress."

A defining moment in the conference came during the presentation by the executive director of the a small business development center in Hilla. She shared her experiences running an association that provides consulting and training for local business people.

A top advisor to the State Ministry for Women Affairs made a passionate plea for an increased and effective presence of Iraqi women in business. She emboldened women to look at increasing their participation in the bidding and contracting process. She reminded attendees, "Don’t be intimidated! Start your business now."

In a presentation on micro-credit, an IZDIHAR expert on microfinance isses gave an overview of the microfinance industry in Iraq. She introduced the audience to the five microfinance institutions (two of them indigenous) currently operating in Iraq and informed participants about various technical aspects such as rates and application process.

The presentation on NGO registration by the representative from the State Ministry of Civil Society sparked the liveliest moment of the conference. Following his presentation, the room erupted with questions relating to the difficulty of registration, the confusion swirling around existing laws and failure to implement recent laws.

At the conclusion of the conference, the IZDIHAR microfinance expert comments, "The event was engaging as there was a lot of dialogue with powerful and educated women who are not afraid to speak up. They spoke from their hearts and want to make changes in their lives, their families and their communities."

USAID IZDIHAR Project Helps Banks Modernize Lending Techniques

8 February 2007 - The introduction of credit officers in two Iraqi banks is strengthening customer relationships and streamlining loan processing for greater profitability.

Following technical assistance and training from the USAID IZDIHAR project, two Iraqi banks have introduced changes to establish more dynamic relationships with clients.

The banks recently created ‘credit officer’ positions that combine a set of professional responsibilities previously divided among several departments. The creation of these new positions represents a major shift in the relationship between bankers and their clients. Individual credit officers will be responsible for building loan portfolios, analyzing credit risks, recommending credit extensions, overseeing repayments, and serving as the borrower’s ‘relationship officer' for the lifetime of the loan.

This is a crucial step in moving towards cash-flow based lending. Through a number of courses and direct professional assistance, IZDIHAR has equipped credit officers with the tools required to discharge their new functions.

Both banks are founding shareholders and members of the Iraqi Company for Bank Guarantees (ICBG). Established with technical support from IZDIHAR, ICBG is a new institution created and owned by 11 Iraqi banks to facilitate access to funding for small and medium-sized local businesses and to support the development of a modern cash-flow-based small and medium-enterprise (SME) lending industry in Iraq.

The introduction of credit officers helps improve customer service by streamlining customer relationship responsibilities and by facilitating the smooth processing of the loan guarantee applications.

In addition, the move takes direct aim at a second goal of the ICBG – enhancing bank profitability – by focusing credit officers on building sound, profitable SME loan portfolios.

Credit Analysis Training Builds SME Lending Capacity of Iraqi Banks

21 January 2007 - The USAID IZDIHAR project has increased the capacity of nine private banks by training nineteen bank officers in Managerial Accounting and Credit Analysis. This thirteen-day course further advanced IZDIHAR’s comprehensive program to build the capacity of Iraqi private banks and enable them to make loans based on the principles of cash-flow based lending techniques.

In attendance were four bankers that IZDIHAR identified as potential trainers for future credit analysis courses. These individuals received extra attention during the course and were asked to present parts of case studies and lead small group sessions. After performing especially well in the course, one of the attendees returned to his office at the headquarters of a local bank and trained six additional colleagues in the skills he developed through the training seminar.

Managerial Accounting and Credit Analysis provides students with the skills required to read and analyze balance sheets and income statements, prepare ratio analyses, and derive cash flows. In addition, the course drills participants in preparing pro-forma financial statements and cash flow projections by using a largely exercise- and case-study-based approach.

Among the principal objectives of the course is to provide Iraqi bankers with the analytical skills required to substitute a more objective, numbers-driven credit approval process for the current model, which relies almost entirely upon the appraisal of collateral required to secure the loan. By using a cash-flow-based lending methodology, the banks open up the large SME (small and medium enterprise) market sector, potentially a major engine of economic development, and a sector previously unable to access bank credit. The course is delivered in Arabic and all course materials are in Arabic.

IZDIHAR has now trained a total of 75 bankers through this rigorous course, which is part of an extensive training program tailored to assist Iraqi banks in modernizing their lending techniques and upgrading the professional standards of their staff. The list of courses includes, among others: The Loan Officer Concept; Relationship Banking and Marketing; Goal Setting and Performance Planning; and Loan Documentation and Collateral.

Universities Launch Major Training Initiative on International Auditing Standards with Support from Professional Association

9 January 2007 - Ten universities in Iraq, in collaboration with seven local chapters of Iraq’s leading professional association for accounting professionals, are launching a major education initiative to introduce International Auditing Standards to Iraq. Approximately 800 students and accountants throughout Iraq will participate in the seminar over a two month period beginning early January 2007.

The professional association, a full member of the International Federation of Accountants and known throughout the region for the capacity-building services it provides to members, is helping to raise the standards of the accounting profession in Iraq while contributing to its own sustainability by organizing seminars and professional networking opportunities throughout the country.

The seminar on Auditing Methods, Methodology and Standards will consist of 20 sessions – three per week - totaling 60 hours of education. The training is equivalent to a college level class and is fully compliant with international education standards established by both the United Nations and the International Federation of Accountants. In addition to lectures and discussions, participants will be equipped with an “auditor’s toolkit” that includes audit programs, internal control questionnaires and other tools to assist them in professional auditing practices.

The training initiative builds on previous activities developed by the USAID-funded IZDIHAR project in co-operation with universities and the professional association. The courses will be delivered and overseen by professors who are graduates of the “Training of Trainers” activities organized by the project and follows on the successful completion of a course on International Accounting Standards attended by 429 students from eight universities.

The growing capacity of Iraqi universities to provide up-to-date accounting curricula and the widening circle of Iraqi accounting professionals familiar with international accounting and auditing standards is part of a sustained effort to improve the business environment in Iraq, expand the private sector and create new jobs.

Iraq Prepares to Start Negotiations with World Trade Organization

18 December 2006 - Iraq achieved an important procedural milestone towards its World Trade Organization (WTO) accession bid on December 15, when the WTO General Council formally accepted the country’s nominee for the chairmanship of the Working Party charged with Iraq’s accession process. Ambassador Claudia Uribe of Colombia will serve in this position.

WTO Director General Pascal Lamy hailed the successful agreement on the Chair for Iraq’s Working Party as an “important step in the process of anchoring Iraq in the multilateral trading system” and noted that “the appointment of the Chair… means that the negotiations can now start in earnest.”

This acceptance opens the door for formal face-to-face negotiations to begin in Geneva with Iraq’s WTO Partners at the first Working Party Meeting, which can now be scheduled. “We look forward to working with the Government of Iraq to prepare for the opening of direct talks with the WTO counterparts, which marks a significant phase in Iraq’s accession process”, commented IZDIHAR's Chief of Party.

IZDIHAR has been assisting the Government of Iraq throughout the process of meeting the procedural requirements for convening the first meeting of the Working Party, such as completing the Memorandum on Foreign Trade Regime (MFTR) and the written “questions and answers”. In addition, IZDIHAR is assisting the Government of Iraq to undertake broad-based legal and trade policy reforms related to its accession into the World Trade Organization.

The Iraq Company for Bank Guarantees Launches Operations

14 December 2006 - The first ever Iraqi-owned loan guarantee facility, the Iraq Company for Bank Guarantees Ltd (ICBG), officially commenced business operations in November 2006. SME loan applications presented for guarantee coverage review and appraisal in the first month of operations totaled US$450,000.

Using progressive lending methodologies and sound banking practices, ICBG’s professional staff is actively engaged in analyzing and processing eligible SME loan-guarantee applications from participating Iraqi Private Banks from the following sectors; Agriculture, Construction, Manufacturing, Services, Trade and Tourism. The loan volumes range between the ID equivalent of US$5,000 to US$250,000 for:

working capital loans up to 360 days in tenor; and
fixed asset loans from 1 to 5 years in tenor.

The ICBG was established with technical assistance from the USAID IZDIHAR project and support from the Central Bank of Iraq in recognition of the important role such a financing concept plays in developing the local lending market. ICBG is owned and capitalized by eleven Iraqi private banks with paid-in capital presently standing at US$3.7 million. Significant expressions of interest to join in the capitalization of the company have been received from three additional banks recently. Outreach to the remaining private banks continues, with the goal of formalizing an ongoing relationship with all 26 licensed banks in Iraq.

ICBG is fostering among the Iraqi private banks an SME lending capacity, to shift from an asset-based to a cash-flow-based lending methodology, and development of healthy corporate governance and loan administration practices.

As well, ICBG-guaranteed loans offered by participating banks are:

enhancing access to credit for eligible small medium and micro-sized companies;
increasing the ability of Iraq’s small and start-up businesses to grow and generate new jobs; and
assisting private banks to develop new market sectors.

The company provides guarantees to banks in Iraq and does not deal directly with SMEs. The Iraqi private banks handle the marketing, distribution, and administration of the guaranteed loans, and such loans are the financial assets of the banks. Certification is required from the presenting bank that due diligence and normal underwriting was completed in order to protect ICBG’s interests in accepting the risk of providing the guarantee on these loans.

The amount of the ICBG loan guarantees will vary with the risks that are ascertained, on a loan by loan basis. The guarantee applications submitted during the first year of operations may be granted coverage up to 75% of the approved loan amount, thereby ensuring that there be an incentive on the part of the banks to administer the loans properly because they have risk exposure. Accrued interest is guaranteed for a period not exceeding 90 days.

Small Business Development Centers Open in Four Provinces

7 December 2006 - To better prepare Iraqis to start-up their own businesses, the USAID-funded IZDIHAR project recently launched four regional Small Business Development Centers in the provinces of At-Ta’mim, Babil, Baghdad and Erbil. The centers offer business consulting and specialized courses on how to start-up a business. In addition, they provide links to microfinance institutions and banks.

The first course, How to Start-Up or Improve a Business, began in Hilla on November 24, 2006 and in the cities of Baghdad, Erbil and Kirkuk in early December.

IZDIHAR (which means prosperity in Arabic) provides business development assistance in Iraq by raising professional standards, supporting business associations, offering business management skills training, and as of November 2006, establishing and building the capacity of regional Small Business Development Centers to assist start-ups.

IZDIHAR Co-Hosts the Second Annual Kurdistan Trade Show

30 November 2006 - IZDIHAR and the Iraqi-American Chamber of Commerce recently co-hosted a high-profile trade and investment promotion event that stirred significant interest in the Kurdistan Region and attracted thousands of visitors. It was the Second Annual Kurdistan Trade Show, and the first time that Sulaymaniah hosted it.

The event was preceded by a one-day conference attended by some 400 people – businesspeople, government officials, and representatives of chambers of commerce. At this conference, IZDIHAR’s experts discussed issues related to foreign direct investment. IZDIHAR hosted a special evening event for the organizers, the foreign exhibitors and the leaders of the Sulaymaniah business community to discuss Iraq’s access into the World Trade Organization and the implications of the evolving global trading system on the Iraqi economy.

200 companies set up booths in the trade show, which was inaugurated by the Prime Minister of the Kurdistan Region, Mr. Nejervan Barazani. IZDIHAR represented the activities of the project, as well as the services of the Iraq Investment Promotion Agency (IIPA), the Iraq Trade and Information Center (ITIC) and the Iraq Company for Bank Guarantees (ICBG). All three organizations were established with the support of IZDIHAR and have benefited from the assistance of the project.

The representatives of the IIPA, ITIC and ICBG had an excellent chance to become acquainted with high officials of the government of Kurdistan Region and of Kurdistan’s Investment Board. They could also make a first-hand assessment of the business and investment conditions in the region. They got exposure to a broad array of traders doing business with, or in Iraq, as the participants in the Trade Show covered a broad spectrum of industries such as construction, motor vehicles, piping, electrical equipment, and telecommunications.

The high-level government officials that visited the booth – which included Prime Minister Barazani and several other members of the Cabinet – and the members of the business community were interested in learning more about the services that IZDIHAR, ICBG, IIPA and ITIC provide.

Summit Outlines Strategies for Microfinance Industry in Iraq

21 November 2006 - The Iraq National Microfinance Summit organized by the USAID-funded IZDIHAR project on November 14-15 turned Erbil for a couple of days into the capital of the microfinance industry in the country. Over 100 participants gathered in an intense and thorough debate over the role and importance of microfinance in economic development and job creation in Iraq. The audience included Iraqi and international microfinance practitioners, private sector partners, government officials, international financial institutions and representatives of USAID.

“The Summit for the first time brings together all the stakeholders to take stock of the industry as it exists today”, said IZDIHAR’s Chief of Party in the opening speech of the Summit. “Microfinance, as defined in Iraq, creates employment and self-employment opportunities. We look forward to the deliberations of this summit helping to outline a strategy for this sector that will lay the foundation for a thriving microfinance industry in Iraq”, said Mr. Vohra.

The event was organized in seven working sessions, with topics ranging from “Developing Local Iraqi Microfinance Institutions” to “Microfinance Practice” and “Strategies to Support the Iraqi Microfinance Industry”. The collegial and practical debates shed light on a wide range of issues. The presentations and the discussions illustrated the global trends in microfinance, clarified the specific traits of microfinance in Iraq, and highlighted the challenges and opportunities that the sector is facing.

"Given the unique environment in which microfinance institutions operate in Iraq, there are no real precedents to draw on for guidance. This Summit assisted donors in formulating practical programs with realistic expectations for microfinance in Iraq”, said a representative of the USAID Mission.

Visit our Resources/Events section for background information on
the first Iraq National Microfinance Summit.

Iraq National Microfinance Summit Sets Strategic Course for Microfinance Sector in Iraq

13 November 2006 - In November, IZDIHAR is bringing together for the first time, in one forum, supporters and practitioners of microfinance in Iraq. The “Iraq National Microfinance Summit” will enable information sharing among practitioners of the nascent indigenous microfinance sector and will foster greater awareness of international best practices.

The event will support the indigenous microfinance institutions and the international NGOs that have benefited from USAID grants through IZDIHAR and will facilitate an ample professional dialogue that will result in the development of a comprehensive “Iraq Microfinance Strategy”. The document will set the course for the future contribution of the microfinance sector to the development of Iraq.

Indigenous Microfinance Institution Reaches Out to Businesswomen

6 November 2006 - As part of its outreach efforts, a USAID-funded microfinance institution in Kirkuk organized four training sessions for local businesswomen to train them on microfinance in general and to familiarize them with lending procedures. The training was organized in cooperation with a local NGO which focuses on women’s issues.

Their combined efforts paid off: about 30 local women entrepreneurs attended the sessions and five of them submitted loan applications. “We are pleased to see such a positive reaction”, said the Executive Manager of the organization. “When we started the training they were against the idea of borrowing money to develop their businesses. Now they come and ask for loans”, said the manager.

The Loan Committee recently approved the third loan to a business operated by a woman and disbursed the money. As of October 16, the organization has awarded 27 loans totaling a portfolio of $ 68,569 since opening in August 2006.

The organization is one of three indigenous microfinance institutions that USAID has supported with training, technical assistance and grants for loan capital through the IZDIHAR project. USAID is also assisting three international NGOs which are providing microfinance loans in Iraq.

Iraq's Parliament Passes Crucial Investment Law

17 October 2006 - In a serious bid to attract investment in a highly competitive global environment, the Parliament of Iraq passed on October 10th a new investment law which opens the economy of the country to investors all over the world along with local and regional businesspeople.

The new law provides foreign investors with adequate legal protection and with the ability to repatriate capital and profit. It offers opportunities to apply for significant exemptions from taxes and duties for 10 years and possibly longer, and it highlights the need to facilitate the process of obtaining necessary licenses and permits.

“It is great to have the new law, which gives us a clear frame and solid ground for promoting investment in Iraq”, said a senior official at the Iraq Investment Promotion Agency (IIPA). “We are expecting positive reactions by foreign investors, who have been interested and enthusiastic about doing business in Iraq. It is very beneficial for our agency and for the country”, said the official.

The agency was established early this year with the support of the USAID-funded IZDIHAR project, which has also provided substantial technical assistance and counseling in the preparation of this crucial law. In a significant institutional development, the law establishes the National Commission for Investment (NCI), attached to the Office of the Prime Minister and headed by a Chairman with the rank of minister. NCI will be responsible for overseeing and executing Iraq’s investment policy.

Iraq Takes Major Step toward Opening Negotiations for Accession into the World Trade Organization

12 October 2006 - Recently, Iraq reached a new milestone in its ongoing bid for accession into the World Trade Organization (WTO) by submitting written responses to a host of questions raised by key members of the organization.

The questions focused on Iraq’s agricultural regime, customs and tariff policies, privatization, intellectual property protection and enforcement, technical barriers to trade, as well as efforts to ensure good governance and fight corruption. They addressed the current state of affairs as well as future intentions of the Iraqi government in terms of regulatory and capacity building reforms.

The submission of Iraq’s replies illustrates consistent progress and momentum towards WTO accession and reform of the trade policy regime, despite challenging circumstances. Since filing its application letter to join the world trade body in September 2004, the pace of Iraq’s progress to date has matched and in some cases exceeded that of previously acceded countries. The USAID-funded ZDIHAR project has contributed to this progress by providing training and technical assistance to Iraqi government officials focused on WTO accession. IZDIHAR worked with the ministries concerned and assisted in compiling and organizing the information needed for the responses.

This step is another milestone on the way to convening the first formal meeting of the WTO Working Party on Iraq’s accession in Geneva, which launches the negotiation process.

New Microfinance Organization Opens in Baghdad

1 October 2006 - In September, an independent new Iraqi microfinance institution (MFI) officially opened its doors for business. Supported by technical assistance to develop a business plan, recruit and train a Board and employees, and officially register, and by a $250,000 grant from Izdihar, the MFI will provide long-term access to a broad range of financial services to low-income individuals, households and business owners in a particularly dangerous area of Baghdad.

The mission of IZDIHAR’s program and of this new MFI is to help male and female micro entrepreneurs and business owners strengthen and expand their businesses, stabilize their incomes, create and sustain jobs, and contribute to the overall economic revitalization of Iraq. The MFI’s activities will address the need for broader access to credit and provide opportunities for a diverse range of business activities.

The main objectives are to:
• Increase access to financial services for micro and small businesses owners;
• Stimulate and promote women owned businesses;
• Create a financially sustainable organization.

IZDIHAR is assisting this organization to: develop transparent and efficient credit processes and procedures; provide loans with flexible terms and conditions; target both male and female clients; develop a geographic expansion strategy that targets new areas and a large number of working poor; build customer loyalty through good service and by developing products that meet demand; maintain a high repayment rate among borrowers and high portfolio quality to ensure program success and financial sustainability; charge fees that allow the program to sustain its operations; build local community support for microfinance services; recruit staff from the target/geographic area to ensure familiarity with the area, communities, clients and potential clients; obtain a thorough understanding and knowledge of the applicant’s background before providing loans; develop local staff capacity; build a relationship of mutual respect between employee and management to encourage employee loyalty and reduce employee turnover; implement a new incentive system to motivate loan officers to expand outreach activities while maintaining high repayment rate and portfolio quality; develop and maintain a comprehensive Management information system with capacity to keep track of a large database of disbursed loans; and continually develop and improve its products based on field experience, client needs and MFI best practices.

New Iraqi Microfinance Lenders Gain Practical Experience

25 August 2006 - Twelve management and staff members of two new Iraqi microfinance institutions (MFIs) recently attended a training program in Amman on microfinance fundamentals. The training laid the foundation for skills that will enable Iraqi staff to successfully operate their institutions to the benefit of small Iraqi businesses.

The program focused on designing and marketing MFI products, loan and credit processes, operational structures and customer service. The agenda also included field visits to small businesses and “hands-on” working sessions at two branches of the National Microfinance Bank of Jordan.

Developed with the technical assistance of the USAID-funded IZDIHAR project, the microfinance institutions will provide much needed capital to hundreds of Iraqi small entrepreneurs, helping them to grow their business and create new jobs.

Another indigenous Iraqi microfinance institution, based in Kirkuk, recently disbursed the first cash flow based loans to local small businesses. Several other MFIs are expected to start operation this fall.

According to IZDIHAR director Khalid Al-Naif, “the creation of indigenous microfinance institutions is crucial to the development of Iraqi small businesses. The loans they will provide will help in the development of the local economy and will generate hundreds of new jobs.”

New Microfinance Institution in Kirkuk Helps Small Businesses to Recover and Grow

Iraqi women entreprenuers meet with microfinance lender

Iraqi entrepreneurs meet with staff of new microfinance institution.

27 July 2006 – A pharmacy damaged in a terrorist incident in Kirkuk will be the first business to benefit from a new, indigenous microfinance organization established through a successful partnership between the USAID-funded IZDIHAR project, the US Military (MNC-I C9) and the Provisional Reconstruction Team (PRT) of Kirkuk.

A few months ago, a terrorist incident in Kirkuk destroyed most of the stock of a local pharmacy, leaving a family-owned business in shatters and depriving the community of much needed medication. The functioning of the pharmacy and its service to the community will soon be fully restored, as in mid-July the family took a loan - the equivalent of $3,000 in Iraqi dinars – to replenish the stock and rebuild the business. As small as it seems, the loan will have a big impact on the business and the community it serves.

Small businesses from Kirkuk and the neighboring area that would normally have difficulty obtaining bank loans may now be eligible to borrow small amounts of money to finance their operating expenses or purchase new equipment. At present, Iraqi banks typically require real estate as collateral, whereas the new microfinance institution provides loans based on cash flow.

Through IZDIHAR, a project for developing the private sector in Iraq, USAID granted the sum of $250,000 to form the microfinance institution’s initial loan capital and provided training for its staff. The loans - in the range of $2,000 to $5,000 - are geared toward working women entrepreneurs and are expected to create several hundred new jobs. In the first week of operation, the staff interviewed 13 applicants, approved three loans (one for a business owned by a woman) and closed two of them, which may generate nine jobs.

This pilot microfinance organization will serve as a model for two similar microfinance institutions located in Baghdad and Falluja that will start operating soon, and may inspire the banking sector to gradually move towards cash flow lending by demonstrating the benefits of lending to small businesses.

Trade and Commerce Leaders, Government Institutions Vow to Work Together to Promote Investment in Iraq

IZDIHAR official speaking with US Sec'y of Commerce Carlos Gutierrez

IZDIHAR official discusses the trade and investment promotion activities of USAID-funded Iraqi institutions with US Secretary of Commerce Carlos Gutierrez (right).

27 July 2006 – Several recently established Iraqi institutions focused on fostering foreign investment in Iraq presented their ideas and achievements to top Iraqi and American officials and industry leaders at a recent event in Baghdad sponsored by the American Chamber of Commerce.

Dignitaries at the event, entitled “Recent and Coming Advances in Communication and Trade”, included Iraqi Minister of Trade Abdul Falah Al-Sudani, US Secretary of Commerce Carlos Gutierrez, US Ambassador to Iraq Zalmay Khalilzad, Iraqi government officials and business representatives from a number of companies invested in the communications, IT and construction sectors in Iraq.

Presentations by the Iraq Investment Promotion Agency (IIPA), the Iraqi Trade Information Center and the Iraqi Association of Securities Dealers focused on past achievements and future plans. These organizations, with assistance from USAID’s IZDIHAR project, have played an active role in promoting Iraqi trade and investment interests in a number of high profile events, including the international “Rebuild Iraq” Fair in Amman and investment missions to Turkey.

“The event was a good opportunity to present ourselves and brief the US Secretary of Commerce, the Iraqi Minister of Trade and other officials on our activities. It was very encouraging to see that our presentation was met with great interest. It made us feel that our agency is important, viable and effective”, said a representative of the IIPA.

At the event, the American Chamber of Commerce and the USAID-funded IZDIHAR project, jointly committed to working together to forge close ties between US and Iraqi businesses.

US Military Supplements USAID Assistance to Microfinance Institutions

1 July 2006 - One of the Iraqi microfinance institutions established through the support of the USAID-funded IZDIHAR project recently signed an agreement with the US Military, which will provide the funding necessary to cover initial operating expenses.

The assistance will help to ensure the smooth functioning of the institution until revenue generated from the microfinance business enables it to fully cover its own costs. The initial loan capital base of the microfinance institution was established through a $250,000 grant from the USAID IZDIHAR project.

Erbil Business Associations Strengthened through Management Training

1 July 2006 - Representatives of several business associations in Erbil recently participated in a USAID-funded training program on association management and development. Thirty eight business representatives participated in the program, organized by USAID's IZDIHAR project. The program included training in marketing and communication.

Public Relations Training Builds Capacity of Iraqi Capital Markets Institutions

1 July 2006 - Ten employees of the Iraqi capital market institutions recently completed a two-month capacity building program in public relations organized by the USAID-funded IZDIHAR project. Participants learned how to write press releases, organize presentations and prepare information kits - skills that will be used to develop materials for marketing, education and awareness campaigns for their institutions and for the Iraqi capital market.

ISC Attends IOSCO Conference in Hong Kong

1 July 2006 - A delegation of the Iraq Securities Commission (ISC) recently attended the 31st annual conference of the International Organization of Securities Commissions (IOSCO) in Hong Kong. The conference gathered 650 securities market regulators and other professionals from more than 135 countries.

“Our participation in the conference gave us international recognition, which is very important for a young organization like ours”, said the Chairman of the ISC.

The Commission, which was established in 2004, has benefited from a regulatory capacity training program developed by the USAID-funded IZDIHAR project and has recently taken active steps towards IOSCO membership.

University Students Receive Training on International Accounting Standards

29 June 2006 - 412 university students in eight Iraqi governorates are participating in a specially-designed, two-month training course on International Accounting Standards. The course is part of a sustained effort by the USAID IZDIHAR project to bring the accounting curriculum of Iraqi universities up to date. The course complies with the educational standards set by the United Nations Committee on Trade and Development, which is the international best-practices repository.

Participants must pass a mid-term and a final exam in order to receive certificates recognizing their successful completion of the training course, which also includes ten hours of classroom time covering professional ethics issues. The course lecturers are successful graduates from an intensive “Training of Trainers” program supported by IZDIHAR and conducted by several of the leading accounting professors in the Middle East.

Microfinance Loans Flowing to Baghdadis

11 May 2006 – Entrepreneurial Baghdad residents soon will benefit from a USAID-funded $250,000 microfinance loan program designed to help develop or expand small businesses that create jobs in Iraq.

An Iraqi non-governmental organization will evaluate applicants and distribute the loans, typically up to $5,000, to Iraqis living in a community where many citizens are currently unemployed due to the dismantling of the former Iraqi army. The program also will focus its lending activities on providing business opportunities for women and other disadvantaged groups.

USAID’s private sector development project, IZDIHAR, is working with Civilian Military Operations officers of the Multi-National Force - Iraq (MNF-I) to provide support and training for the Iraqi microfinance organization.

The $250,000 microfinance loan capital is expected to result in at least 660 loans generating 330 new self-employment opportunities and more than 1,320 new jobs over the next 16 months.

Iraqi Association of Securities Dealers Moves to New Facility

11 May 2006 - The Iraqi Association of Securities Dealers recently completed the move to its new headquarters in central Baghdad.

Computers have arrived and are being set up in preparation for upcoming training courses. Capital markets experts from the USAID-funded IZDIHAR project are providing institutional development support and helping to build the capacity of the organization.

The Iraqi Association of Securities Dealers represents 51 brokerage companies that trade on the Iraq Stock Exchange, providing training, educational and professional assistance to its members.

Iraq Investment Promotion Agency Completes First Investment Mission to Turkey

1 May 2006 – Officials from the Iraq Investment Promotion Agency recently completed their first-ever investment mission to Turkey where they met with executives from more than 100 companies interested in investing in Iraq.

Just one month after opening its doors, the IIPA visited organizations in Istanbul, Izmir and Adana to establish cooperative relationships with major Turkish business associations and important chambers of commerce and industry. The mission was made possible with the assistance of investment promotion experts from the USAID-funded IZDIHAR project. IZDIHAR has been an active partner of the new agency by providing much-needed equipment, training and capacity building to the organization during the past year.

The Iraqi delegation met with many leading organizations, including the Turkish Businessmen’s and Industrialists’ Association, the Turkish Foreign Economic Relations Board, the Turkish-American Business Association, the American Business Forum in Turkey and the Association of Turkish Travel Agents. The group also met with many private companies and was pleased to learn that opportunities for investing in Iraq is a topic being widely discussed in Turkish business circles and in the local media. Iraq traditionally has been a major consumer of Turkish products of all kinds and companies in Turkey are looking forward to regaining their position in the market.

The Iraqis were eagerly received by the highest levels of the Turkish business and industrial community. Five organizations agreed to pursue investment opportunities in Iraq. The agency will be following up with them in the coming weeks. In addition, several chambers of commerce requested that the IIPA officials return to Turkey as soon as possible to speak with other companies interested in investing in Iraq.

The Iraqi Investment Promotion Agency is the lead promoter for foreign direct investments that can help reinvigorate the country’s economy and lead to new job growth in Iraq.

New Copyright Law Submitted to Iraqi Council of Ministers

27 April 2006 – A new Copyright Law was included in the draft of Iraq’s proposed Intellectual Property Law, which was submitted recently to the Council of Ministers for consideration.

The Copyright Law was developed by the Copyright Committee of Iraq’s Ministry of Culture with the assistance of experts from USAID’s IZDIHAR project.

The Copyright Law protects the rights of authors of literary and artistic works as well as the rights of performers, musicians, computer programmers and others over their own creations. The draft law is consistent with the provisions of the World Trade Organization’s agreement on trade-related aspects of intellectual property rights and is an important step in Iraq’s accelerated process of accession to the WTO.

TV Series Profiles Small Business Owners Finding Success in Iraq

Eighteen successful Iraqi businessmen were profiled on the prime time series, “Nahwa Al-Izdihar,” aired following the nightly economic news on Al-Iraqiya television.

2 April 2006 – Eighteen Iraqi small business owners from throughout the country were recently profiled in a three-week prime time series on Al-Iraqiya television.

The series, called “Nahwa Al-Izdihar,” which means “Toward Prosperity,” consisted of five-minute interviews following the nightly economic news with businessmen who are finding success in Iraq’s growing private sector and showing others that there is hope in the future.

When asked about the obstacles to doing business in Iraq today, a hotel owner with plans to open a new riverfront facility replied, “As you know, the bad security situation is the first obstacle. But my determination to serve my country’s people has helped me overcome these obstacles.”

“I was an employee for a long time,” said one businessman when asked about the differences between working in a government job and Iraq’s private sector. “I prefer the private sector in order to develop the country and urge its people to depend on themselves but not depend on the government.”

The head of an oil products distribution company offered advice for those who are thinking about establishing a business in Iraq. “I call on all our brothers who are now outside the country to return and start investing inside their mother country because the future will be here.”

Al-Iraqiya satellite television is one of the most popular channels in Iraq and can be seen throughout the country.

Training Center is All Business in Baghdad

22 March 2006 – A need for a central, accessible location in Baghdad to deliver training courses for businesspeople has blossomed into a growing partnership between the training center and its business association clients.

“It is a big success,” said the president of the International Negotiations Institute (INI) and a business association member. Before, we did not have access to a central meeting place for all types of training with computers and Internet connections. Now, we do.”

Through a grant from USAID’s IZDIHAR project, the Iraq Centre for Development & International Dialogue (CEDID) was able to purchase computers and install Internet broadband connections to link up with the international community. The Centre now offers two mid-size training rooms, a conference room for 80 people, and a bank of computers that can be used for training.

Businesspeople pay a small fee for each session they attend. The fee is then shared between the center and the business associations. This has encouraged active use of the new facility.

The training center also offers courses in computers, business association management, business management skills, accounting, and a variety of specialized economic reform topics to help businesspeople sharpen their talents so they can grow their businesses and generate new jobs in Iraq.

Modern Accounting Concepts Spreading throughout Iraq

21 March 2006 – Five thousand books filled with modern accounting concepts were delivered this week to Iraqi accountants throughout the country to help build a common body of knowledge regarding international accounting standards.

The Arabic-language books, comprising 120 titles on accounting, auditing, marketing, human resources, law and economics, were delivered to 26 locations, including 7 universities, a governmental organization, and 18 branches of the Iraqi Union of Accountants and Auditors (IUAA). Eighty percent of the recipients were located outside of Baghdad.

The books were selected based on the United Nations Committee for Trade and Development (UNCTAD) curriculum, which sets the international benchmarks for the education of accountants and auditors.

Funded by the USAID IZDIHAR project in coordination with the IUAA, the initiative will help Iraqi accountants access information in order to achieve certification in international accounting, which is needed to update their skills and for work with international companies.

Iraqi Trade Information Center Opens

16 March 2006 – The new Iraqi Trade Information Center is now open in Baghdad and ready to offer its services to Iraqi business organizations.

Iraq’s Minister of Trade and Minister of Industry and Minerals recently attended a grand opening for the facility, which is located at the Baghdad International Fairgrounds.

The USAID IZDIHAR project, which is helping to develop Iraq’s private sector, worked closely with the Ministry of Trade to create the new organization, providing support for renovations and office equipment as well as ongoing training for its staff.

Businesses are able to use the facility’s conference center, meeting rooms, Internet services, library, and training facilities and later this year will be able to access information online through the organization’s Web site.

In addition to providing a range of services to business and industry, the opening of the new Iraqi Trade Information Center is expected to help stimulate trade and create jobs in Iraq.

Iraq Investment Promotion Agency Opens

15 March 2006 – The Iraq Investment Promotion Agency recently opened for business at a renovated facility in central Baghdad and began its work to encourage domestic and international investment in the Iraqi economy.

The agency was created as the result of an agreement last summer between USAID and the Iraqi Ministry of Planning and Development, which signed on behalf of six ministries in the Government of Iraq.

USAID’s IZDIHAR project provided institutional support for the agency, equipment for the facility and training for its seven-person staff in how to manage the organization and promote investment in Iraq. Three Iraqi ministries – Planning and Development, Trade, and Industry & Minerals – supplied the initial staff for the agency.

With the launching of the new agency, Iraq has now joined the more than 160 other countries with similar organizations that compete for approximately $7 trillion annually in foreign direct investment worldwide. The work of the Iraq Investment Promotion Agency is to stimulate economic growth through investment in order to create new jobs in Iraq.

14 Iraqi Provinces to Benefit from USAID Microfinance Grants

9 March 2006 – USAID’s IZDIHAR project recently awarded $8.9 million in grants to three international non-governmental organizations (NGOs) to help build a sustainable microfinance industry in Iraq.

The grants, each for approximately $3 million, will help build the capacity of Iraqi microfinance institutions in 14 of Iraq’s 18 provinces. Two of the recipients already have existing operations in Iraq.

The NGOs will provide loans to start up or expand small businesses in order to create new jobs in Iraq. Microfinance loan amounts typically range from $250 up to $25,000 and enable low-income or otherwise disadvantaged individuals to access small amounts of credit that are not usually provided by banks.

As a result of the grants, the NGOs will train Iraqi institutions in management and credit practices so the local organizations can become sustainable and profitably manage the loan portfolios for years to come.

Newsletter Builds Capacity of Iraq’s Securities Dealers

20 February 2006 – The Iraqi Association of Securities Dealers (IASD) recently launched the first edition of the group’s monthly newsletter to its members, marking a milestone in the progress of the two-year-old organization.

With institutional development and capacity building support from USAID’s IZDIHAR project, the IASD is a professional association that represents 51 stock brokerage companies and provides education and training for its members who are an important part of Iraq’s securities industry.

“The publication of the first edition of the IASD Capital Markets Newsletter is an important step forward in building a unified and powerful professional community of securities dealers in our country,” announced IASD’s chairman in a message to newsletter readers.

The newsletter, which is published in Arabic, Kurdish and English, informs and educates stakeholders – brokerages, exchange-listed companies and government bodies – on the proper functioning of the capital market. It also empowers the professional community of securities dealers and the key market institutions - Iraq Securities Commission and the Iraq Stock Exchange - to advocate for laws that will effectively regulate the market and to implement international best practices in achieving transparency.

As an outreach effort of the IASD, the publication promotes communication among all Iraqi market participants, facilitates increased understanding of the securities industry and paves the way for modernization of Iraq’s capital market.

Training of Trainers Is Enhancing Auditing Skills in 15 Iraqi Governorates

Iraqi auditors upgrade their professional skills to international standards.

5 February 2006 – The USAID IZDIHAR project recently completed training 25 Iraqi Certified Public Accountants who will in turn train auditors to international standards throughout Iraq. The training took place in Amman, Jordan.

The newly trained trainers represent fifteen Iraqi governorates and will present courses later this year to hundreds of Iraqi auditors on topics related to the requirements of the International Federation of Accountants (IFAC). The IFAC standards have been adopted by the Iraqi Union of Accountants and Auditors and must be implemented by its membership in 2006.

Once it is rolled out across the country, the training will upgrade and enhance the professional skills of the Iraqi auditors and familiarize them with the industry’s code of ethics after years of isolation.

National Committee for Iraqi Dates Proposed at IZDIHAR Seminar

Workshop participants sample fine selection of dates

Restoring Iraq to a top position among date exporters was the focus of much discussion during a seminar organized by IZDIHAR.

30 January 2006 - The establishment of a National Committee for Iraqi Dates was proposed at a recent Baghdad seminar that brought farmers, producers, exporters and government officials together to try to find ways to revive the export of the fruit, which is considered one of the country’s national treasures.

“The date industry in Iraq went gradually and slowly downwards over the years. We need help and assistance, we need grants and machinery, so that we can compete on equal footing with other date exporters,” said one participant.

A representative from the Date Palm Department in Basra noted that he hoped the seminar would reveal “what the world market needs in terms of quality and packaging of the dates. We want to know if the way we do it is suitable for the market.”

Organized by the USAID-funded IZDIHAR project, the three-day seminar was attended by more than 70 private businessmen from the Iraqi date industry as well as several officials of the Ministry of Agriculture. They learned about the requirements of the global market for Iraq’s dates and discussed ways to increase its export.

The participants embraced several proposals formulated by an Iraqi businessman who suggested the establishment of a National Committee for Dates, formed by representatives of the private sector and government, to recommend legislation and develop a national strategy for this sector.

He also recommended the creation of a business association for the date industry to increase the knowledge of members on various technical and commercial matters and the establishment of laboratories to certify the quality of dates for export.

While the working sessions of the seminar were intense and well-focused, an exhibition of current products allowed the participants to taste and enjoy a fine selection of many of the 600 varieties that make up the pride of the Iraqi date industry.

Iraq Securities Commission Starts Work in New Headquarters

29 January 2006 – The Iraq Securities Commission recently relocated and started functioning in its new Baghdad headquarters building that was updated and equipped with the support of the USAID IZDIHAR project.

The Commission benefited from two IZDIHAR procurements, a significant amount of which was allocated to the development of a strengthened technology infrastructure including equipment and internet services. The funding also covered the design of the floor layout, painting, refurbishment and wiring.

With a professional staff of over 30 people, the Commission is responsible for regulating Iraq’s growing securities market. IZDIHAR is providing assistance to strengthen the skills of the staff in order for them to effectively manage the institution’s regulatory function.

Iraq Revives Publication of Leading Accounting Journal

Publication of Iraq's leading academic journal on accounting has resumed with assistance from USAID's IZDIHAR project.

23 January 2005 – Publication of Iraq’s leading academic journal on accounting recently has been revived