Tuesday 7 April 2009

Small US loans act as a catalyst for Iraqi business

There is still at least one place in the world where “credit” is not a dirty word: Iraq. In dusty shops and on basic farms across the country, fledgling microfinance projects are helping to revive an economy crippled by the Saddam-era preference for the public sector, a decade of international sanctions followed by six years of violence.

“I have increased my earnings and improved my family’s quality of life,” says Hamza Abid Ali, a grape-grower from Balad who has quintupled his income since taking out a $2,400 (€2,200, £2,000) loan from the Al-Baydaa Centre, a US-backed microcredit scheme.

“I was earning only 500,000 dinars [$432, €322, £292] from each donam [unit of land] on my vineyard,” says Mr Ali, a 33-year-old father of three.

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