issued CBI instructions lending amounts financing of small and medium-sized Enterprise Fund, which aims to achieve economic development through the launch of small and medium enterprises to run with outstanding skills workforce also found to lend, and allocates Central Bank a sum of money for the purpose of lending to such projects by contributing banks designated for that program.
included additional instructions according to a source at the Central Bank by the governor on the proposal of Director General of the banking and credit control Commissioner lender and the Director to increase the upper limit of the loan amount to 100 million dinars for projects with clear feasibility task and what percentage from 10 percent no more than an ad hoc for each bank, and increase the range of repayment of the loan to (5) years, and authorizes the bank not to compel the borrower to provide the guarantor discretion that does not meet the prescribed percentage of the guarantee amount (0.8%) eight milliseconds.
The source said the donor banks for loan applications are submitted to the General Directorate of financial operations and debt management for the purpose of conducting the necessary adjustments to do so in coordination with the General Directorate of accounts as the detent to the bank accounts. While stressing Ali Tariq, executive director of the Association of Iraqi private banks that the work of the Association mechanism is at this stage to clarify the instructions to banks to contribute until the application of high smoothly moving and achieves the highest degree of economic viability of the country.
He noted that the Association adopt a new program to clarify ensure the loan mechanism and the reality of small and medium-sized projects can it achieve the economic feasibility of the country and the beneficiary, especially that most of the economic blocs in the world achieved a renaissance through these projects, which is today a bond Industries great strategy.
He pointed out that the success of this experiment leads to address the many economic problems experienced by all the joints of the Iraqi economy in the forefront the problem of unemployment which I consulted widely and took their effects can accommodate on a large scale.
Going back to the central instructions, we find that this project targets the agricultural and industrial and commercial important sectors, as well as health and educational services sector and tourism.
The source said that the instructions were issued stating that the amount allocated for the project starting and including more than 1 trillion Iraqi dinars may be increased with the consent of the Board of Directors, indicating that interest rates and administrative margins on the loan amount (which check the Central Bank and participating banks and the guarantors of the loan does not increase the interest rate borne by the borrower (5.5 percent).
He pointed out that interest which meet in the bank no more than 4 percent rate, and the percentage collected by the guarantor of the loan does not exceed 0.8 percent, which does not interest met by the central bank for 0.7 percent rate increase (seven thousand) and the Governor may with the consent of the Board of Directors to increase or Loss ratios in accordance with the development of the project and the conditions of economic.
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