Supporting the Kurdistan Regional Government to Scale Sustainable MSME Finance

The Kurdistan Regional Government (KRG), through the Prime Minister’s Office and Ministry of Labor and Social Affairs (MoLSA), is leading efforts to strengthen the region’s financial ecosystem and expand access to finance for micro, small and medium-sized enterprises (MSMEs). Bloom II builds on the success of the Bloom pilot phase, which demonstrated that collateral-free lending can succeed when paired with effective risk management and technical assistance. The program supports broader banking sector reforms by developing scalable lending models that promote financial inclusion and mobilize both public and private capital.

The Kurdistan Regional Government engaged CrossBoundary Advisory to support the design, launch, and implementation of Bloom II, a flagship initiative to expand MSME finance and strengthen the region’s financial ecosystem. CrossBoundary is providing strategic and technical advisory services to develop a blended finance facility, mobilize domestic and international capital, strengthen the capacity of government, partner banks, and MSMEs, and establish scalable lending models that can evolve into a sustainable, private-sector-led financing vehicle.

• Designed the blended finance facility and implementation strategy for Bloom II, building on lessons from the pilot phase of the program
• Supporting the launch and implementation of Bloom II by providing operational support for lending rollout, loan pipeline development, credit evaluation, and disbursement coordination.
• Working with the Kurdistan Regional Government and partner banks to strengthen institutional capacity through implementation support, operational systems, staff training, and institutionalization of SME-focused units
• Engaging development finance institutions (DFIs), donors, and local financial institutions to mobilize development and commercial capital and design a standalone financing vehicle for MSME lending
• Developing governance arrangements, operational frameworks, and risk-sharing products to support a scalable, sustainable, private sector-led financing platform
• Helping establish lending models that reduce reliance on traditional collateral while strengthening the long-term delivery of SME finance