State-owned banks began “the largest lending operation” Is recovering economic sectors?


 
 

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Sunday   01    March   2015 2015
| | 07:28 07:28

Al-Hayat newspaper published an investigation into the inertia that accompanies economic sectors in Iraq, and Mufail that can result from the start of the biggest lending to the private sector policy of the government banks, 


the Iraqi state-owned banks, under the guidance of the government began to implement the largest lending operation for the benefit of the private sector, in a move to invest in stocks Big invoking the banks and trigger economic sectors almost stalled, and secure the return help overcome the suffocating financial crisis taking place in Iraq. 

The Iraqi government manages the three largest banks, is «rational» and «Iraq» and «Economy», in addition to the four sectoral banks are « Real Estate »and« agricultural »and« Industrial »and« Housing ». While the number of private banks rose to 28, and working alongside 10 Arab and foreign banks. 

announced «Trade Bank of Iraq» launch loans worth $ 10 million for artisans in all provinces. And confirmed its director general Hamdiya dry, «determined to help mitigate the financial crisis energies available to the Bank». She pointed out that «financial and security crises Khalafta and beyond slice of unemployment in the form directly or indirectly, prompting the bank to release loans to artisans». 

They pointed out that Iraq «characterized by the presence of craftsmen have good specifications but underfunded, and this logic will present the bank an amount up $ 10 million to be distributed to a group of those who will file for a loan in the bank branches scattered in a number of provinces in Iraq ». 

She explained that «the interest on the loan of up to 4%». It considered that it «will contribute to reducing the unemployment rate and the creation of a generation of artisans develop local industry, also drives the economy and the market». 

proceeded «Rafidain Bank» in granting loans to citizens to buy cars, and said the media office of the bank in a statement, b «continue granting loans to citizens to buy car installments in a number of branches », referring to« a select number of companies to exercise this activity ». And extends the installment period of five years. 

He believed President of the Iraqi Banking Association meek Handal, that «indicators in the banking sector appear acquisition of the three State-owned banks, about $ 30 billion, or 80 percent of the money in the country, and the rest is distributed among private banks and citizens, and faced with the need to exploit this currency bloc optimally. » 

He pointed out that «the currency bloc Dinars up to 37 trillion, and whether they belong to the government or citizens, mostly deposited in state banks because of previous instructions that prevented ministries deal with private banks». He explained that «make citizen fear of dealing with it, which impacted negatively on the nature of private sector activity to only work on simple transactions, such as foreign remittances and sell the dollar». 

, said an economic expert Chancellor in the House of Representatives Suhad al-Obeidi, «should have been the start of a move to exploit the available cash the banks for years like the rest of the States, which invests all of its holdings of cash to ensure the additional revenue is available to have ». 

and emphasized the need to «get out of the financial crisis by any means, that we begin again to reduce our dependence on a single source is the sale of petroleum». 

They pointed out that «Agricultural Bank» continuously in the campaign, as well as lending to farmers «Industrial Bank» through the Ministry of Industry for the benefit of Businessmen and Industrialists ». And announced «private banks support soon or disclosed in the area before the intervention is also in project lending, in order to move the market and domestic investment, and raising the per capita income level». She stressed that «the most important is to achieve rates of returns can reduce the dependence on oil». 

and the deletion of zeros from the Iraqi currency, a member of the parliamentary finance committee Masood Haider pointed out, to «keep the central bank on the implementation of this project, because it needs a profound study, due to the large impact on the currency and price, thus the market in general and the economy ». 

, said a source familiar with the central bank, that «Project replace the Iraqi currency and deleting three zeros of them, warmed to him since 2011, and completed the details, except the government and parliament approval». 

Not overlooked «some government agencies refused to start a replacement for fear of breaches, as happened in 2004, despite the fact that the situation is more disciplined». He also noted that «others feared for fluctuations in the market may reflect negatively on the lives of citizens». The source explained that the process will be implemented in phases in the case came substitution approval, which lasts two years and will not feel out of the citizen. »


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