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