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Call for increased confidence in private financial institutions

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Call for increased confidence in private financial institutions

10/6/2018 12:00 am

In order to encourage the reality of work

Baghdad / Emad Al-Amara

The banking system in Iraq, and despite the importance of its institutions, but it was unable to create an atmosphere conducive to the revitalization of the private sector because of the constraints and procedures followed in these financial institutions as they were following the instructions and policies of the state; where we find that 90 percent of banking activity back to government banks at a time when absent The role of its own counterpart in supporting the economic activities of the private sector.

Small investors

The academic economist Dr. Ahmed Omar Al-Rawi explained to "Sabah" that most of the activity of government banks was allocated to finance the public sector, which was centralized in the management of its institutions, which prevented the benefit of those financial allocations by the private sector to invest in successful activities.

"The banking system continues to rely on complex mechanisms in its financing activities, as it is difficult for the private sector to meet the conditions required to obtain financing.

Therefore, the small investors, the majority, have not received the necessary financing for their investment activities. Difficult lending conditions that were followed by government banks."

He pointed out that "the banking system in Iraq was unable to finance large investments for lack of ability to do so, and remained active in short and short-term loans, which prevented the possibility of large investments by the private sector."

Directing resources

The banking system in Iraq consists of about 70 banks, including 7 government.

It also witnessed an expansion in the Islamic banking business, which has become consistent with the tendencies of a large segment of the public.

"There is a lot of talk about the need to adopt reform policies because of the major imbalances resulting from the mismanagement of resources and development, under the guidance of the International Monetary Fund, most developing countries, including Iraq, the adoption of reform policies that would direct resources towards targets that maximize benefits to society.

Is the distribution of resources according to market mechanism and openness to the outside world, especially in the field Investment.

private sector

In turn, between the academic economist Dr. Amr Hisham said that "the Iraqi economy, after the circumstances of the loss of its components and infrastructure, now in dire need to adopt reform policies to restore normal activity."

"The call to encourage the private sector was the first policy to be adopted to contribute to building the Iraqi economy," he said.

He added that "to achieve this call, the necessary legislative and institutional frameworks should be issued to encourage and attract private national investments, especially national smuggled funds."

Investment Law No. 13 of 2006 and its amendments is a fundamental step in building and creating an appropriate investment climate.

The Iraqi economy on a modern basis, and rebalancing the economic sectors by giving a greater role to the private sector in activities Economic."

Attracting investments

"The need for a series of economic and legal policies that help in creating an investment environment that encourages the national and foreign investor, and give him full confidence to ensure his rights through the most important measures, the existence of a national framework of laws and charters that form the ground to attract investment.

He stressed the importance of a national institutional framework to receive and encourage the movement of investments in Iraq and support the local or expatriate investor, and provide all forms of support required for the development of investment and reform of investment activities because of the multiplicity of investment departments in the ministries of the state, On the revival of national financial markets and raise awareness of the importance of investment in securities Finance".

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