There is a plethora of obstacles to overcome when examining the aspects of financial stability in the Middle East, and Iraq in particular. Iraq has an institution called CHF Vitas Iraq geared towards restoring the economy and producing monetary growth in the nation.
Forming a Solid Foundation
“In Iraq, for example, only 11 percent of adults hold an account at a formal financial institution.” CHF Vitas Iraq is doing a tremendous job of, “offering financial services to families and the owners of micro and small businesses, and by supporting homeowners in home improvement and restoration.”
This type of commitment can not only better the lives of the individuals receiving credit access in Iraq, but can also provide the groundwork for an ever-changing economy in the future.
The work CHF Vitas Iraq has invested into the community is incredible. The organization continues to promote and support small businesses as well as supply aid to the region. “They are a subsidiary of Global Communities, which is a non-profit development organization that partners with local stakeholders across a range of topic areas.”
Micro-financing Changing Iraq’s Landscape
In fact, “since its inception, CHF Vitas Iraq has become the largest microfinance institution in Iraq with the largest market share, disbursed more than $1 billion in loan capital, grown an outstanding portfolio of more than $74 million (as of August 2017) and maintained a 98 percent on-time repayment record.”
With the assistance provided by this group, citizens are becoming increasingly stable and proud of themselves as they now have both the purpose and ability to follow their dreams. Aid and assistance comes at a great time for Iraq since they have been experiencing much conflict over the past several years.
The Overseas Private Investment Corporation is working to issue relief in the areas of Iraq that are dealing with the most conflict.
Positive Results of Credit Access in Iraq
There was a survey implemented in the region that represented credit access in Iraq for the population, and “the survey revealed a significant gap between Iraqi citizens who borrowed formally (4 percent) and those who did so informally (65 percent).”
When one notices the impact credit has on people’s lives, it allows a better understanding of how difficult it is to live without access to such a resource. Many Middle Eastern countries do not have a well-developed financial system, so with the ability for these loan companies to provide credit access in Iraq for a majority of the citizens, there can only be positive results on the monetary factors of the economy.
There is still much that needs to be accomplished for this country to become more stable in an economic aspect as well as maintain strength to persevere during conflict. But, if ISIS can be controlled and micro-finance loans can continue to be distributed in a proper manner, then credit access in Iraq will produce many opportunities for the citizens and hopefully lead to a stronger economic system.
– Matthew McGee
Photo: Wikimedia Commons