Tuesday 27 January 2015
The Iraqi Central Bank decided Tuesday to support commercial banks to five trillion dinar budget financing in six trillion dinars.
The Bank said in a statement it had received "alsumaria news" copy that "in line with the functions of the Central Bank and its responsibility in supporting development and stimulate the Iraqi economy, the Central Bank's Board of Directors approved the proposals made by the Bank's management, including support for specialized commercial banks liquidity of $ 5 trillion dinars to lending to industrial and agricultural real estate and housing loans to support economic activity and employment."
The Bank said it "Decides also that the financing of General State cut pushed through $ 6 trillion dinar run through 50% of commercial bank reserves deposited with the Central Bank of Iraq", adding that "also decides to buy back the bonds from the secondary market where the Central Bank will buy about 5 trillion dinars as the first phase of those bonds."
The Bank said that "the actions taken by the Reserve Bank did not negate the Central Bank of Iraq".
And Advisor to the Prime Minister for Economic Affairs Mohammed Saleh, in appearance (25 December 2014) that laikord Government if low budget Iraq General indicating the direction to activate development banks balance sheets and housing funds.
The new law on the Central Bank of Iraq no. 56 of 2004 despite the objection of private banks on some articles, however, granting autonomy to the Central Bank in managing monetary policy in Iraq.
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