The central bank deducts transfers of up to 9 trillion dinars to secure salaries … and it warns against borrowing

Time: 7/26/2020 08:40:18

{Baghdad: Al Furat News} The Director General of the Central Bank Accounting Department, Ihsan Shumran Al-Yasiri, revealed that the bank has deducted transfers of up to 9 trillion dinars to secure the salaries of the months of June and July, in order to bridge the difference between the oil resources and the amounts of salaries.

Al-Yasiri said in a press statement, “It is natural for the government to commit to providing pensions for those who have an obligation to it; employees, retirees, and those covered by social welfare and others, because the state views the matter with a view of legal, moral and technical commitment.”

He emphasized that “the central bank has contributed to solving the government’s financial bottlenecks on more than one occasion, especially since 2014 and until now,” stressing that “the central bank is not expected to fail the government with the powers it provided to financial facilitation.”

And between “the decline in oil prices leads to internal and external borrowing, and internal borrowing creates pressure on the central bank reserves, because the dinar that the government borrows will transfer indirectly to a demand on the dollar, which means the value of the bank’s currency.” The public was affected in general. ”

Al-Yasiri continued, “The Central Bank initiative to enhance banks’ liquidity to support development and operate the real sector is still continuing. This initiative has revived the economy and contributed to operating projects and operating the unemployed, and whenever there is a new expansion in the initiatives,”

He acknowledged, “The banking system suffers from the problem of non-performing loans that affected the liquidity of banks and their need to tighten the choice of customers,” noting that “the central bank has established a system of credit inquiries that prohibits the granting of loans to borrowers who have not fulfilled their obligations with their customers, including those who do not meet their obligations.”

Ammar Al-Masoudi


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