The CEO of the Trade Bank of Iraq, Bilal Sabah Hussain, discusses the institution’s evolving role in financing Iraq’s industrial development, supporting cross-border trade and aligning with international standards to enhance the country’s economic stability and global competitiveness.
Q: How would you describe Trade Bank of Iraq’s (TBI’s) current strategic focus, and what role is the bank playing in Iraq’s broader economic development efforts?
Hussain: TBI is currently focused on implementing a comprehensive developmental strategy that strengthens its financial operations and aligns with the Iraqi government’s broader economic vision under Prime Minister Muhammad Shia’ Al-Sudani. The bank plays a vital role in enhancing liquidity, ensuring financial integrity and supporting international trade through instruments such as letters of guarantee (LGs) and letters of credit (LCs).
TBI’s strategy also includes securing international partnerships and sovereign guarantee agreements that promote industrial growth and job creation. Agreements with institutions like the Japan International Cooperation Agency (JICA) and Germany’s Euler Hermes are helping Iraqi companies meet global standards and access international financing. These efforts collectively position TBI as a cornerstone institution in Iraq’s journey toward financial stability and long-term economic development.
Q: Can you tell us more about the sovereign guarantee agreements TBI has facilitated on behalf of the Iraqi government, and what these mean for industrial and economic development?
Hussain: TBI has played a key role in supporting Iraq’s industrial and economic development by facilitating several sovereign guarantee agreements on behalf of the Iraqi government. These agreements are designed to back large-scale industrial projects that stimulate economic growth, create employment opportunities – particularly for the country’s youth – and enhance the overall quality of local industries.
One notable initiative includes a loan financing agreement worth approximately US$200mn with JICA, aimed at funding critical infrastructure and development projects. Additionally, TBI signed a memorandum of cooperation with Euler Hermes, one of the world’s leading export credit agencies. This partnership helps Iraqi companies improve their global competitiveness by adhering to international quality and financial standards, while also easing access to international credit and funding mechanisms. These sovereign-backed projects mark a significant step forward in Iraq’s push for economic diversification and sustainable development.
Q: In what ways is TBI helping Iraqi companies grow and become more globally competitive?
Hussain: TBI is actively supporting the growth and global competitiveness of Iraqi companies through multiple strategic initiatives. The bank’s strong performance in international trade finance, including approximately US$40mn in revenues from LCs and handling around US$15bn in outward remittances in 2024 alone, provides Iraqi companies with reliable financial instruments to support imports and exports. These services help businesses manage cross-border transactions efficiently and expand their presence in global markets.
By maintaining international compliance standards and offering tailored financial products to meet both corporate and individual client needs, TBI is equipping Iraqi enterprises with the tools and financial infrastructure needed to thrive in an increasingly competitive global economy.
Q: What steps has TBI taken to strengthen liquidity and manage financial risk?
Hussain: TBI has enhanced its internal financial auditing systems to align with international banking standards, and it has optimised the ratio of uncovered LGs in accordance with Fitch’s risk assessment criteria. These practices, combined with partnerships with reputable international banks and a credit rating of BBB- or higher from major agencies like Fitch, demonstrate TBI’s commitment to financial discipline and risk control.
These steps not only safeguard the bank’s financial stability but also reinforce trust among international partners and stakeholders in Iraq’s banking sector.
Q: How have your relationships with international banking partners evolved, and what impact have they had on TBI’s global standing and credit profile?
Hussain: TBI’s relationships with reputable international banking partners have significantly strengthened in recent years, playing a vital role in enhancing the bank’s global credibility and financial resilience. These partnerships have allowed TBI to expand its international operations, access global markets and offer more competitive financial products to its clients.
Through collaboration with leading global banks, TBI has been able to meet stringent international risk standards, which directly contributed to the bank’s earned credit ratings. This improved credit profile not only reflects the bank’s strong financial health but also boosts investor confidence and facilitates access to international financing.
These evolving partnerships have also supported TBI’s ability to provide large-scale financial services, such as facilitating billions in foreign remittances and providing international trade finance. In essence, TBI’s growing international footprint is both a result of and a contributor to its rising global standing.
Q: How would you characterise TBI’s recent performance in trade finance? What types of clients or sectors are driving demand for products like letters of credit and guarantees?
Hussain: TBI’s recent performance in trade finance has been notably strong, reflecting its pivotal role in supporting Iraq’s international commerce and economic rebuilding efforts. In 2024 alone, the bank generated approximately US$40mn in revenues from LCs and around US$11mn from LGs. This robust performance underscores TBI’s position as a key facilitator of both import and export activities.
Demand for trade finance products is being driven primarily by corporate clients involved in sectors such as construction, energy, infrastructure development and general trading. These sectors rely heavily on LCs and LGs to manage cross-border transactions, secure projects and meet contractual obligations with foreign suppliers and contractors. Additionally, TBI continues to serve individual clients and SMEs, helping them navigate complex international trade requirements through tailored financial solutions.
By ensuring compliance with international standards and maintaining strong liquidity and risk management frameworks, TBI has built a reputation for reliability and efficiency – factors that continue to attract business from across a broad spectrum of industries.
Q: What measures has the bank introduced to strengthen its compliance framework, particularly in areas such as anti-money laundering and counter-terrorism financing?
Hussain: TBI has taken significant steps to enhance its compliance framework by strengthening its auditing processes, especially regarding LGs. The bank’s anti-money laundering and counter-terrorism financing department conducts strict due diligence on all parties involved in transactions and verifies the sources of funds. This rigorous process ensures full compliance with applicable laws and regulations, which are enforced by the bank’s dedicated compliance department.
These measures are designed to maintain operational integrity, prevent illicit activities and align the bank’s practices with international standards in anti-money laundering and counter-terrorism financing.
Q: How is TBI supporting cross-border remittance flows, and what trends are you seeing in terms of client needs and transaction volumes?
Hussain: TBI is actively supporting cross-border remittance flows by facilitating substantial volumes of international financial transactions. In 2024, TBI processed approximately US$15bn in outward foreign remittances and US$3bn in inward foreign remittances, highlighting its critical role in enabling global money transfers for Iraqi clients, businesses and institutions.
Trends observed include increasing demand for reliable, transparent and compliant international transaction services, driven by Iraq’s expanding engagement in global trade and industrial development. TBI’s continued focus on compliance with international anti-money laundering and counter-terrorism financing standards ensures that cross-border transactions are conducted with integrity, building trust among clients and international partners alike.
Q: As you look ahead, what are your main priorities for TBI over the coming year, both in terms of financial performance and long-term impact?
Hussain: The strategic plan set for the TBI in the coming years includes enhancing profitability, increasing revenues and achieving high profit margins across the various operations and products offered by the bank.
In addition, TBI has an expansion plan to increase the number of its branches locally to cover all Iraqi governorates, as well as to expand its presence internationally.
TBI is also committed to developing its staff, enhancing their operational and executive capabilities, and providing training at the highest standards, which will positively contribute to the successful implementation of its strategic plan in the years ahead.
