Trade Bank of Iraq (TBI) expects to double the value of public trade it finances on letter of credit (L/C) terms in the next few months according to the bank's president.

He anticipates that during the first six months of the new interim Iraqi government, TBI's will write around US$3.5 billion of business in response to demand.

Essential purchases

Established by the US-led occupation authority in December 2003 to help finance imports for the government, TBI has so far issued 400 L/Cs worth US$1.6 billion, Hussein Al-Uzri said.

The funds have so far been employed to finance purchases of essential goods, foodstuffs and equipment for the power and oil industries.

Insurance

The US, Australia, Japan and 13 European countries agreed in November 2003 to provide more than US$2 billion of insurance cover against non-payment for exports to Iraq.

The guarantees aim to encourage companies reluctant to take Iraqi risk to sell products and services in Iraq.

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