President of the Association of Iraqi Private Banks Wadih al-Hanalal «Economy News» Banks
Economy News Baghdad
The President of the Association of Iraqi private banks, Wadih al-Hanal, on Wednesday, that the time is appropriate to activate the initiative of the Central Bank of “trillion dinars” for the support of small and medium enterprises .
Al-Hantal said in his speech during the workshop “one-trillion-dollar initiative to support small and medium enterprises” held in the city of Erbil and attended by “economy News”, the reason for non-activation of the initiative at the time of launch due to the existence of a window selling the currency, which banks were making profits from it, “When the interest rate was set at 4% to lend to the market there was another source of profit, the window of the currency, but the recent profits ended is left to banks only lending .”
He pointed out that “banks lend from their deposits at a greater interest or Murabaha greater than 4% so when it comes to the initiative of the Central Bank, which is determined by 4% do not use it, because it has funds and can lend .
The head of the Association of Iraqi Private Banks, suggested reconsidering the interest rate and leaving the market is to determine the interest rate and the recent competition will be between banks .
Al-Hanalal thanked the Kurdistan Bank for sponsoring the initiative of the trillion dollar initiative and stressed the encouragement of the Association of Iraqi Private Banks for such activities in the coming stages .