USAID-TijaraProvincial Economic Growth Program

IRAQI VULNERABLE GROUP SUPPORT (IVGS)

Making a better life for Iraq’s Disadvantaged People

GOAL AND OBJECTIVES FOR IVGS

Goal

• Help vulnerable Iraqi families including ethnic and religious minorities,

internally displaced persons (IDPs), widows, youth and people whose

livelihoods have been jeopardized from continuing threats and violence to

improve their economic security for responding to social and economic

shocks.

Objectives

• 900 vulnerable SME borrowers benefitting from $9 million disbursed by

ICF/SME and participating banks.

• 1,250 vulnerable borrowers benefiting from $3.75 million disbursed by

partner MFIs.

PHYSICAL LOCATION FOR IVGS

• Erbil;

• Ninawa;

• Dahuk;

• Sulaymaniyah;

• Kirkuk;

• Baghdad; and

• Salah ad Din.

PROGRAM APPROACH

USAID-Tijara works with private 5 commercial banks and 3

partner microfinance institutions (MFIs) to disburse loans to

establish, rehabilitate or expand small and medium-sized and

micro businesses to develop income generating activity in seven

provinces of Iraq.

IMPLEMENTATION STRATEGY

Identification and Selection of participating banks/MFIs;

Orientation of MFI/Bank Staff Members;

Identification and Selection of Target Beneficiaries;

Program Promotion and Outreach; and

Access to Finance.

Disadvantaged people loan client screening• Loan applicants from disadvantaged communities may be

sourced directly by banks or referred by NGOs, SBDCs

Religious Associations or NGOs either directly or through

Field Coordinators

• The applicants will have disadvantaged certification

• Copies of this confirmation of disadvantaged status to be

embedded in loan documentation alongside any other normal

I.D.

Loan File

•List of documents

The file is comprehensive and contains the following:

• Loan Application document including full name and I.D of the client , full

address of the enterprise, and purpose of the financing

• Client evidence of disadvantaged status - Identification cards (i.e IDP

Card, IVG Benefits Card, Letter of certification from religious authority,

from the NGOs

• Business License, where applicable.

Examples of I.D.

Loan Parameters

• Mandatory Co–Funding: Minimum 10% up to $10,000, minimum 20%

of entire loan $10,000+ to $15,000 and minimum 30% of entire loan

between $15,000+ and $20,000 (50% of entire loan exceeding $20,000)

• Tenor : as negotiated by client and bank; encouraged to extend

beyond two years. Grace period for repayments to be considered for

Start-Up or Restoration of businesses.

• Loan Pricing: Range is from a minimum of 7.00% (10% co-funded for

12 months) up to a maximum of 9.00% ( 30% co-funded beyond two

years).

IVGS PROGRAM RESULTS – SEPTEMBER 27, 2012

Number of Borrowers

IVGS BORROWERS BY RELIGIOUS AFFILIATION

Dahuk (687)

Ninawa (1034)

Kirkuk (142)

Erbil (373)

Sul. (439)

Baghdad (623)

Basrah (0)

Salah ad Din(30)

Number of Borrowers

Number of Borrowers 3,328

Total Disbursement (US$) $17,146,650

USAID Grant Disbursements $11,809,700

Grant Fund Recycled $4,233,783

Lender Network Co-Funding 1,103,167

Average Loan Size – Microfinance $3,113

Average Loan Size – SME Banking $10,370

% of Female Borrowers 25%

IVGS Survey Distribution

SN ProvinceIVGS Microfinance Loan Borrowers IVGS SME Bank Loan Borrowers

Total By

Province

Sample Size

Al-Thiqa BFF IED Total Mosul IME North Total [20%]

1 Ninawa 329 0 0 329 48 0 8 56 385 77.0

2 Dahuk 148 72 0 220 20 0 4 24 244 48.8

3 Erbil 63 28 0 91 6 54 13 73 164 32.8

4 Kirkuk 45 0 0 45 0 0 0 0 45 9

5 Sulaimaniyah 30 16 0 46 0 13 0 13 59 11.8

6 Salah ad Din 0 0 0 0 2 0 0 2 2 0.4

7 Baghdad 12 0 99 111 11 139 37 187 298 59.6

Total 627 116 99 842 87 206 62 355 1197

239.4Sample

Size

(20%)

125.4 23.2 19.8 168.4 17.4 41.2 12.4 71 239.4

IVGS Survey Distribution

SN Province

Sample Size

No of Person Days

OCTOBER NOVEMBER

[20%]13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9

1 Ninawa 77.0 25

2 Dahuk 49.0 17

3 Erbil 33.0 11

4 Kirkuk 9 3

5 Sulaymaniyah 12 4

6 Salah ad Din 2 2

7 Baghdad 60 20

Total 240 1 Month