Iraq’s CBI lending initiative directed about $1.69 billion toward large investment projects during 2025. The funding formed part of a broader four-trillion-dinar program launched by the Central Bank of Iraq. The initiative aims to expand financing for businesses, investment projects, and individuals.
The Central Bank said total loans under the program reached around 4.195 trillion dinars in 2025. That amount equals approximately $3.2 billion based on the reported exchange rate. The financing covered both investment activities and personal lending.
Large projects received the biggest portion of the available financing. Projects valued above one billion dinars secured around 2.211 trillion dinars. That figure equals approximately $1.69 billion in financing.
Commercial and industrial activities received most of the funding allocated to large projects. The financing could support companies seeking to expand production and commercial operations. It also provides businesses with additional access to capital for investment and development.
Small projects received about 249.6 billion dinars under the initiative. The amount equals roughly $190.5 million. Smaller businesses received financing across several sectors, including services, industry, agriculture, and trade.
The distribution shows a broad approach to supporting economic activity. Larger projects received substantial funding because of their scale and investment requirements. Meanwhile, smaller businesses gained access to financing across different parts of the economy.
The initiative also included financing for individuals and entrepreneurs. The CBI provided about 5.6 billion dinars in concessional personal loans. The program also supported projects connected to entrepreneurship.
The Central Bank said the overall financing figure could increase. Additional lending to other sectors could raise the total amount distributed through the initiative. This could expand the program’s impact on investment and private-sector activity.
The CBI lending initiative comes as Iraq continues efforts to strengthen private-sector financing. Greater access to credit can help companies expand operations and create employment. It can also support investment in sectors beyond the country’s dominant oil industry.
Recent banking data shows that the private sector already holds a significant share of Iraq’s outstanding credit. Central Bank figures showed that private businesses accounted for nearly 65% of total bank credit at the end of May 2026.
Private-sector borrowers held around 47.329 trillion dinars in outstanding credit. Total bank credit stood at approximately 73.173 trillion dinars. The figures highlight the growing importance of private businesses within Iraq’s banking system.
However, overall lending has faced some weakness. Bank lending declined for the third consecutive month in May. Bank deposits also recorded a similar decline during the period.
The trend presents a challenge for policymakers seeking to increase economic activity. Businesses need reliable access to financing to maintain investment and expansion. Lower lending levels could limit opportunities for companies that depend on bank credit.
The CBI lending initiative could therefore play an important role in supporting investment during this period. Large projects can generate demand for workers, suppliers, equipment, and services. Smaller businesses can also benefit when larger investments create new commercial opportunities.
The focus on commercial and industrial projects could support Iraq’s efforts to diversify economic activity. Stronger industrial production could reduce reliance on imported goods over time. Increased private investment could also help create more sustainable sources of employment.
At the same time, effective lending requires careful monitoring. Banks must ensure that financing reaches productive projects with sustainable business models. Responsible lending can reduce financial risks while improving the broader economic impact.
The Central Bank’s latest figures show that billions of dinars are already moving toward investment activities. Large projects remain the main beneficiaries of the program. Smaller businesses and entrepreneurs are also receiving targeted support.
As additional financing becomes available, the initiative could reach more sectors. Agriculture, services, trade, and manufacturing all have opportunities to benefit from expanded credit. Such diversification could strengthen Iraq’s private economy.
For now, the CBI lending initiative represents a major source of investment financing in Iraq. Its impact will depend on how effectively borrowers use the funds. Continued access to productive credit could help support business growth and economic diversification.