Iraq News
Economy

Iraq resumes small business loans in Ninawa

By Khalid al-Taie

A displaced Iraqi has his beard shaved at the Hammam al-Alil camp south of Mosul on May 25th. As displaced residents begin to return to Mosul, those who wish to start or revive small businesses such as barber shops are able to apply once more for government loans. [Ahmad al-Rubaye/AFP]

A displaced Iraqi has his beard shaved at the Hammam al-Alil camp south of Mosul on May 25th. As displaced residents begin to return to Mosul, those who wish to start or revive small businesses such as barber shops are able to apply once more for government loans. [Ahmad al-Rubaye/AFP]

The Iraqi government on August 1st reactivated a small business loan programme in Ninawa after a three-year hiatus while the "Islamic State of Iraq and Syria" (ISIS) was in control of swathes of the province.

About 3,000 residents are expected to benefit from the programme.

One potential beneficiary -- Harith Hammad, 42, of Mosul's al-Muthanna neighbourhood -- told Diyaruna he hopes to secure a loan to open a men's hair salon near his residence.

He used to work as a barber, he said, but was not able to continue his profession while ISIS was in control, as the group prohibited it.

"Today, I aspire to open a small shop," he said. "When the project grows, I can hire other barbers to work with me, and it can become our source of livelihood."

After ISIS overran northern Iraq in June 2014, the Ministry of Labour stopped dispensing soft loans to residents of Mosul and other cities in the province, said ministry spokesman Ammar Munem.

With this period at an end, people can once again apply for loans, he said.

Funds earmarked for loans

At present, Munem told Diyaruna, 24 billion Iraqi dinars ($21 million) have been earmarked for the small businesses loans programme.

The ministry will dispense individual loans of three to eight million Iraqi dinars ($2,577 to $6,872) to finance small business projects.

"Lending is subject to several conditions and procedures," Munem said, adding that the process will be eased for Ninawa residents who qualify.

"Our system stipulates that we dispense the loan amount to beneficiaries in two installments, but we will give the amount in a single payment to beneficiaries in Ninawa," he said.

Ninawa province residents can submit applications via the ministry's website: http://www.molsa.gov.iq/

The loans will be distributed to 3,000 beneficiaries from Ninawa, including 800 Mosul residents, said Atef Ahmad Abdul Amir, head of the Ministry of Labour's Department of Small Business Support.

Priority will be given to applicants who enrolled early in the loan programme and to displaced residents who have returned, he said, adding that applications will be considered based on academic qualifications and project feasibility.

Stimulating economic revival

"We want this programme to help residents work and participate in rebuilding their liberated cities," Abdul Amir said.

The loans are to be repaid in monthly installments over a five-year period which will begin one year after the money is received, he said.

Applications are open till October 1st.

"We have funds designated for the Ninawa lending programme, and if more funds are available, we will increase the number of borrowers," he said.

Ninawa provincial council member Abdul Rahman Wakka said the launch of the lending programme is "a right step taken at the right time".

"The re-introduction of loans will reduce unemployment," he told Diyaruna, as many residents lost their jobs due to the violence.

The loans also will serve as a catalyst for reconstruction and development, he said, stressing the need to accelerate the pace of reconstruction and reopen all government departments and banks in the province.

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