IFC, Iraq strengthen sustainable financing with new roadmap

Iraq and the International Finance Corporation (IFC), part of the World Bank Group, signed an agreement with the Central Bank of Iraq (CBI) to bolster sustainable financing in the country’s banking sector.

They introduced a seven-year Sustainable Finance Roadmap and an Environmental, Social, and Governance (ESG) Code to improve environmental and social risk management and promote sustainable banking practices.

The roadmap, spanning 2023 to 2029, aims to enhance Iraqi banks’ competitiveness by incorporating ESG standards into their strategies and investment decisions. This initiative also strengthens financial stability and aligns the sector with international benchmarks.

Ali Mohsen Ismail, Governor of the Central Bank of Iraq, emphasised the importance of ESG integration for attracting global investments and ensuring financial growth. Fawaz Bilbeisi, IFC’s Regional Manager, highlighted how the partnership enhances Iraq’s financial infrastructure and improves bank performance in accountability and risk management.

The ESG Code adheres to global best practices and Iraqi laws, designed in consultation with international organisations like the Basel Committee and the International Financial Reporting Standards Foundation. Since 2005, IFC has directed over $1.9 billion into Iraq, targeting sectors such as energy and telecoms, while launching advisory projects to stimulate private sector growth.

Attribution: IFC

Subediting: M. S. Salama