introduction

through specialized lending funds

Agricultural funds for the initiative aimed at supporting agriculture in general and provide the conditions and advances to enable the farmers and peasants to cover the costs of agricultural projects of plant, animal, including all agricultural purposes and had been increased by the amount of (600) billion dinars to support agriculture and the allocation of the amount of (288) billion dinars and deposit funds and specialized as follows: -

(28) billion in the fund to support livestock and cover the costs of these project and the operation as well as the "reconstruction of affected projects, covering advances 100% of the cost. (28) billion in support of mechanization and modern means of irrigation and to help farmers and peasants in the acquisition the Harvesters and fogging machines and and the drilling of artesian wells. and the amount of which (36) billion dinars to support include the establishment of palm groves and palm orchards and the development of the list. Earmarked an amount of (36) billion diners to add to the Fund of small farmers continued from mid-2004 and became the capital of the Fund (111) billion dinars, and serves all branches of agriculture that are not contained in specialized funds.

An amount of $ (120) billion dinars in the establishment of large investment projects that increase the costs of its creation (270) million and include projects for all livestock and plant and any project which is linked to agriculture. Administered by the Board of Directors of the specialized agricultural lending under the chairmanship of the Minister of Agriculture, the Director General, members of the Agricultural Bank of experts and professionals in the Agricultural Affairs, agricultural finance, and Implementing agencies for this projects in all branches of the bank with the addition of (60) Offices within the buildings of the in agriculture sectors.

For the purpose of granting loans to start own initiative funds been following the development of operational units within the organizational structure of the credit, as follows: --

1 - Unit Development Loan Fund livestock.

2 - Unit Development Loan Fund palm grove.

3 - Unit Fund loans and for the mechanization and irrigation techniques.

4 - Unit Fund loans of small farmers and peasants .

5 – Unit fund loans for major agricultural projects and investment.

In addition, support units had been formed and associated with the activity of the Office of the Director-General, as follows: -

1 - Unit of computers and statistics.

2 - The accounting unit.

3 - Unit of post.

Also a specialized appropriate staff that execute this task.

The ratio of funding for the projects (100%) of the estimated cost of the project to be funded. The disposal of 10% of the loan amount due and the remainder in the form of payments by the actual achievement of the project as a specific credit decision. The fee for the service to update all types of agricultural loans by 2% in order to avoid administrative costs. in case of non-implementation of the project will be useful to impose a punishment of no more than 21% of the loan amount disbursed as a preventive measure to encourage beneficiaries to use the loan amount for the purpose that which granted for and decided to do.

repaying the loans that granted is according to the type of project is putting under the consideration the legal age of the project as fellow : -

A - the creation of livestock and the rehabilitation of the affected projects is six equal annual instalments due after the first two years from the date of instalment.

B – establishing the livestock projects retrieve as tow annual recover.

C - retrieve the agricultural tractors loans as five equal annual instalments also the agricultural irrigation sprinklers are five annual instalments due after the first two years of disbursement of the loan.

D - loans of growing the palm groves retrieve as five annual instalments due after the first 7 years and the minimum of lending is about orchards (5 acres) and includes lending as well, the establishment of warehouses for the storage of dates.

The service and development loans recovered in four annual instalments due after the first two years.

E –it is the same procedures for retrieve the loans of the Fund of small farmers and peasants .

F - the duration of the retrieve of agricultural loans, for the major investment projects according to its purpose and the importance of the project and the decision of Board Directors that is a minimum amount of the loan (250.000.000) Two hundred and fifty million Iraqi Dinar.

VI: initiative funds had been called as (funds of agricultural soft loans )that managed by the management team as follows:

The authorization by the Council has the power to transfer funds within the same fund. As well as authorization to host specialized experts when needed.

A lending Committee had been formed from the fund's board, composed as follows: -

The duties of this Committee approved the loans that more than (50.000.000) fifty million dinars. To (100.000.000) One hundred million dinars.

And authorize the Director of the Agricultural Cooperative Bank approval of the loan about (50.000.000) Fifty million or below.