HC Deb 29 March 2004 vol 419 cc1158-9W
Mr. Gardiner

To ask the Secretary of State for International Development if his Department will undertake an assessment of(a) the benefits of establishing credit unions in Iraq and (b) changing existing banking legislation to that end. [163353]

Hilary Benn

DFID has no plans to undertake an assessment of the benefits of establishing credit unions in Iraq, nor of changes to the existing banking legislation.

We recognise the need to increase the availability of finance to small businesses in Iraq. For this reason DFID is providing a grant of US$15 million to the International Finance Corporation in support of its US$200 million Small Business Finance Facility. This facility will provide funds for loans to small businesses, and technical assistance to develop the skills of Iraqi banks in making such loans.

Tom Brake

To ask the Secretary of State for International Development what income status Iraq has for aid purposes. [163617]

Hilary Benn

Despite its current low income levels, Iraq is classified by the Organisation for Economic Cooperation and Development (OECD) Development Assistance Committee (DAC) as a Lower Middle-Income Country. Aid to Iraq is counted by the DAC as Official Development Assistance.

The World Bank estimates Iraq's per capita GDP in 2003 to have been between US$480 to $630; i.e. low enough to put it in the low income category. GDP is however expected to grow rapidly over the coming years. GDP per head was as high as US$3,600 in the early 1980s.

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