Iraq: Private banks, government appeals to lift restrictions on its activities

Posted by on Oct 28, 2013 | Leave a Comment

21/09/2013

Iraq has since more than ten years a the arms folded market economy countries Page economy Alawamra and bureaucratic central planning in the years preceding the change in 2003, or so it is on paper. But the reality tells another story.

The state is still the largest employer in Iraq, with her strategic sectors such as the oil industry and mineral resources, electricity and railways. Despite allowing the private sector to work in the banking sector, the State-owned banks accounted for the lion’s share of transactions and transfers, deposits and balances and bank loans.

This remains the contradiction exists between the stated policy of reliance on the private sector initiative to build the national economy and boost growth on the one hand and the continued state control of key economic sectors on the other.

With regard to the banking sector specifically, the government officials first to admit that this sector needs radical reform, especially as conditions in Iraq as it passed from the wars and isolation in the years bequeathed international sanctions banking sector lags behind developments in the work of banks.

Private banks are still saddled with restrictions prevent the takeoff to contribute to the development of the banking sector and expand the options available to the ordinary citizen and investor of banking products and services.
The government has promised to hold several amendments in this area to facilitate the work of private banks. But these banks departments confirms that what is promised by the government remained in the box promises and did not come into effect in practice.

Radio Free Iraq met with the president of the Association of Iraqi private banks Abdul Aziz Hassoun, who stressed that no harm in the presence of state banks and other civil that the relationship is unequal and not dysfunctional as it is now as provided by the government to protect the state banks, which account for 85 percent of assets, although It does not work as it is banks is a financial offices of the government, as described by Goldfinch.

And went goldfinch that the government imposes practically province on the banks, despite the progress made in its services generalized provisions of the 35 banks waged, identified with a limited number of banks failed note that with these banks capital equal to 8 billion dollars could be a start to be reckoned with in economic activity.

The Chairman of the Association of private banks Abdul Aziz Hassoun that the Iraqi Central Bank pumped every month six trillion Iraqi dinars paid salaries and agora for workers and that this money supply huge spend a consumer rather than encouraging owners to save for example, which dropped a relatively him ten years ago, despite the large increase in income .

Member of the Finance Committee in the House of Representatives Abdul Hussein al-Yasiri confirmed that a conference will be held on 28 and 29 September to listen to the demands of private banks and parliament is heading towards modify the basic material in the Banking Act to serve the interests of the private banking activity.

Yasiri said that the expected amendments to the Banking Act include substances that prevent private banks from direct investment, expressing hope that lets adjusted enter these banks sectors such as infrastructure projects and housing construction and electricity.

Economic expert on behalf of Jamil Antoine reviewed the history of private banks and positive role before nationalized in the mid-sixties, warning that restrictions on its activities today does not serve the national economy.

Suggested Bankers Ahleon to the formation of a committee of experts and specialists to reconsider the Iraqi banking sector as a whole to promote the incident and catch up with the developments in this sector.

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