USAID provides credit for small and medium-sized businesses (30/09/05)

The US Agency for International Development (USAID) Economic Growth Program has partnered with Multinational Forces - Iraq to allow small and medium-sized businesses access to credit.

The deal uses USAID and the military

The microfinance program combines USAID's financial, technical and project management resources with the MNF-I Commander's Emergency Relief Program (CERP) funds. CERP allocates money to allow military commanders on the ground to immediately enhance the quality of life for Iraqi citizens.

"This partnership takes advantage of the core competencies of both the military and USAID," said the Infantry Division Captain tasked to the MNF-I, who works as a bank vice president in his civilian life.

On-the-ground military personnel will be assigned the task of identifying local membership organisations that will form the basis of a non-bank financial industry in communities outside of Baghdad.

Funds distributed to qualified membership organisations will become seed money in order to provide sustainable microfinance loans, typically $1,000 to $25,000, to small and medium-sized enterprises seeking capital to grow their business and generate new employment.

The USAID and military partnership is an important step in strengthening Iraq's private sector and creating sustainable jobs.

Source: PortalIraq