Prohibited Loans Under ICBG

Prohibited Loans

Loan purposes ineligible for consideration under the ICBG Loan Guarantee program include the ‎following:

  1. Manufacture or sale of munitions.
  2. Manufacture or sale or trafficking of illegal drugs or narcotics.
  3. Operation of a casino or other entity involved in the gambling industry.
  4. Currency speculation
  5. Securities investment.
  6. Banking or insurance (with the exception of micro-finance institutions).
  7. Any activity illegal under Iraqi law or applicable international laws and ‎conventions.
  8. Loan proceeds may not be used to reschedule or retire existing debt of the ‎borrower to the bank or other lender.
  9. Assisting any project or activity that contributes to the violation of internationally ‎recognized workers rights, including safety at work, and rules and regulations in ‎force in Iraq.
  10. Loans whose terms are not in conformity with modern and generally-‎accepted credit criteria and prudent lending practices.
  11. Any activity that is illegal or environmentally hazardous or dangerous to human ‎health.
  12. Loans that violate Iraqi or international banking standards relating to money ‎laundering or the financing of terrorism.

Sample Loan Guarantee Application Agreement

PDF - 119.9 kb
Loan Guarantee Application