Iraq has lost more than IQD10 trillion ($8bn) in unrepaid loans to businessmen and contractors over two decades, with only 1% of borrowed funds returned to state coffers, according to regulatory reports.

Since 2003, successive Iraqi governments encouraged private sector investment through massive lending programmes for infrastructure, electricity, energy and service projects, Al-Sumaria News reported on June 10.

Financial audits revealed repayment rates did not exceed 1% of total amounts, with the state effectively recovering "not a single dinar" from dozens of major loans, according to Financial Supervisory Board and Integrity Commission reports.

Ahmed Ismail Abdullah, chairman of Maas Holding Company, received a $1.2bn loan from the Trade Bank of Iraq under former director Hamdiya Al-Jaff to fund the Basmaya gas power plant.

Despite partial completion and limited operation, investigations revealed inflated construction costs with financial discrepancies exceeding $400mn between executed and received work.

The loan remains unpaid after more than 10 years, with Maas Holding refusing to provide detailed revenue statements for the project.

Saad Waheeb Al-Jubouri, owner of Raban Al-Safina Company, obtained multiple government bank loans totalling IQD850bn for service projects and contracts in southern and central Iraq.

After eight years, no tangible results appeared whilst the company failed to make any repayments and provided no real estate or financial guarantees covering the amounts.

Businessman Numayr Al-Uqabi secured approximately IQD300bn through multiple companies for contracting, agriculture and logistics projects after 2014.

Al-Uqabi presented paper projects but executed less than 10% whilst withdrawing full loan amounts, according to Integrity Commission reports.