Lenders rip off small Iraqi businesses
Moneylenders are taking advantage of small business owners looking to expand their enterprises in Iraq, where support from banks is almost nonexistent.
BAGHDAD — In order to expand his men's shoe business, Mohammed Jizani had to borrow $100,000 from a loan shark. As is common in such cases, he was forced to pay the lender $4,000 a month in interest until the final payment on his debt.
Jizani, who owns four shops in Baghdad, imports most of the goods he sells from Turkey. He tried to get a loan from local banks, but lacked sufficient collateral. Even the feasibility study he prepared to outline the profits he expected from his business proved useless.
