Iraq private sector lending increased in the first quarter of 2025. The Central Bank of Iraq confirmed this steady growth in its latest report.
According to the data, loans to the private sector rose by 1.1%. Total lending reached IQD 44.1 trillion. This equals about $24.5 billion.
The growth in Iraq private sector lending shows rising demand for credit. Individuals and private projects now gain easier access to financing.
Compared to the last quarter of 2024, the lending level climbed from IQD 43.6 trillion. This steady increase points to gradual economic progress.
The Central Bank of Iraq explained that its policies focus on supporting private projects. It also aims to boost personal lending for home buying, small businesses, and more.
Many experts believe this rise in Iraq private sector will strengthen the economy. More loans help small companies grow and create jobs.
In addition, banks now compete to offer better loan terms. This trend improves access to financing for many people in Iraq.
The Central Bank continues to push for responsible lending. It monitors banks to ensure they follow clear credit rules.
Officials expect Iraq private sector lending to keep rising in the next few quarters. They also plan new programs to support entrepreneurship and business expansion.
Moreover, this lending growth may lead to higher consumer spending. It can also help fuel economic development in various sectors.
The Central Bank encourages people to use formal loans instead of relying on informal borrowing. This strategy reduces financial risks for borrowers.
With stable inflation and improved policies, lending conditions are expected to remain favorable. The private sector plays a key role in Iraq’s long-term recovery.
By increasing credit, the Central Bank hopes to support housing, trade, industry, and agriculture. These sectors will benefit from better financing options.
Overall, Iraq private sector lending shows positive signs. The gradual increase marks an important step for Iraq’s financial stability and economic future.