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Iraq: measures to strengthen the role of private banks

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Iraqi banking community considered that the Committee on Economic Affairs in the Council of Ministers resolutions relating to the support of the private banking sector, is «legislator window that can be private banks adopted to enhance its contribution to the revitalization of the economy, especially if developed credit capacity of the private banking sector, in order to activate the project financing and lending to small and medium specifically of them. »

The head of the Iraqi private banks association meek Nuri al-Handal told to «life», a representative of the Association of the Economic Commission, which adopted decisions, move as «in the right direction, which coincides with a critical phase in which the private banking sector is going through, and where they need to strengthen the confidence in him , in the form allows him to develop his role at the level of the state and society opportunities. »

And confirmed the existence of «a need to expand banking activity to include the different regions in Iraq, to ​​support the increase of bank density desired rates taking care to create a banking units effective, can meet the requirements to provide more-than-expected to widen banking products, in the event of activation of the decisions of the Economic Committee and responding to its content and objectives ».

It did not lose sight of the need to «take into account the principle of focusing on quality management as a step towards the adoption of international standards and keep pace with global development in the sector». Economic reforms

Handal He pointed out «very optimistic private banks exit of the Iraqi economy from the current crisis, especially in case I did the steps related to economic reforms, and in the forefront the need to include the banking sector, which is supporting the development of the financial arm». In this area, he pointed to «support the Iraqi Central Bank to raise the level of performance of the banking sector». He stressed «the need for legislation and laws are in the goal of creating an effective partnership between the state and the private sector».

Among the resolutions issued by the Council of Ministers of the Economic Commission, a recommendation to grant the public sector companies the option to deposit their money and open their accounts in private banks, as well as the deposit of their employees' salaries and distributed through these banks.

Added to the approval of the gradual implementation of the deposit of the employees and retirees of the Chambers of central funding salaries in private banks, taking into account the need to provide branches, to provide services to the beneficiaries of this system and to make sure the situation of banks in coordination with the Central Bank. The Committee approved the private banks instruments issuing validation and acceptance by government departments and public companies, with a commitment to provide adequate balances in their accounts with the Central Bank of Iraq and the lack of exposure, and claim the Ministry of Finance and the Central Bank has adopted the resolution on the opening of letters of credit to the private banks up to ten million dollars without going to «Trade Bank of Iraq».

Cooperation between the two sectors

The Committee also agreed that the deposit banks «Iraq» and «good», part of their money with private banks to employ in investment projects, as well as the «TBI» open credit lines with private banks and under the supervision of the Central Bank of Iraq, and to accept the letters of guarantee issued by banks own.

It features the Iraqi banking system 54 banks including 7 government, including an Islamic one newly established, as well as 23 banks special ones commercially 9 Muslim, and 15 branches of Arab and foreign banks and institutions are some of the banking business, including 24 money transfer company, and about 200 belonging to the banks foreign exchange company or deal with banks, as well as four companies to secure loans and to finance small and medium enterprises, and electronic banking services and smart card. In addition, A. Branch also continued to private banks scattered in the provinces and employs 10 thousand employees. And witness the private sector has deteriorated significantly after 2003, because of government support lifting him what led to most of the laboratories and factories stopped working due to their inability to compete with imported goods are not subject to large fees

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