US Ex-Im Bank proposes $500 million trade facility for Iraq
The Export-Import Bank of the United States is proposing a $500 million trade facility with the new Trade Bank of Iraq, allowing Iraqis to use their own resources to finance the process, according to President and Chairman of the bank, Philip Merrill.
This trade facility would ensure that US companies would be able to receive payment for exports aimed at supporting Iraqi reconstruction efforts.
Merrill noted that Iraq could potentially generate $20 to $30 billion per year in oil exports to finance its development program but observed that this would require $20 to $30 billion in investment up-front.
"Ex-Im Bank can help spur private financial flows to Iraq with our trade financing, but more private capital will be needed, and that will require improvement in the security situation, legal framework, and banking system," asserted Merrill.
The US-led Coalition Provisional Authority (CPA) in Iraq established Trade Bank of Iraq (TBI) In July, with an authorized capital of $100 million. TBI is a separate government entity, independent of the Central Bank of Iraq. It provides financial and related services to facilitate the importation and exportation of goods and services to and from Iraq. — (menareport.com)
© 2003 Mena Report (www.menareport.com)