Which loans are most effective?
Sunday 22nd November 2020 88
In light of the fluctuating financial conditions that the country is going through due to the fluctuation of oil prices towards a retreat due to the Corona pandemic, which does not know when it will end, which bank loans are more beneficial? Consumer or developmental?
There are two types of loans launched by two government banks, Al-Rafidain and Al-Rasheed, at a time when the government is seeking, through its white paper, which has a remarkable and large title, is financial reform, and this means that the country's financial policy is the one responsible for implementing this aspect.
Does the Finance Ministry see feasibility in these loans during this particular critical period?
Come with me to trace the effects of these (consumer) loans on the reality of the country's economy and investigate these effects.
The first loan of 60 million dinars for the purchase of luxury cars will certainly help increase the import of cars in an unprecedented manner.
This means that the demand for foreign currency will increase and contribute to the depletion of part of it.
Add to the foregoing that the number of cars in Iraq exceeds the capacity of the already dilapidated roads, which seemed to be unassimilated to them in exchange for the severe congestion caused by these numbers of cars, which drains the time set for work in general, so as not to say job because time has no real value in Unfortunately, public functions, aside from the widespread use of auto fuel, its impact on the environment and its impact on public health.
There is another challenge to these loans that will lead to the doubling of social problems, how?
Since these loans are disbursed to employees whose salaries are settled in these banks, and the repayment of these loans depends on salaries, how will it address the problem of late payment of installments while Iraq is complaining about the problem of salary distribution among its employees due to the crisis.
The financial reform paper also hints that there is a serious and inevitable trend towards reducing salaries, and you can imagine the size of the problems that the employee will face in organizing the family budget.
Also, luxury cars are alluring, so they push teenagers from their children to pressure their parents to buy them and you can imagine the size of the expected problems.
The second loan relates to the second marriage and the subsequent social problems that affect the standard of living, and this is another matter that we refer to only as a warning.
However, we are not against the Iraqi citizen enjoying a luxury car, nor do we abstain from it, nor are we against solving the problem of our single sisters and widows at this critical time,
and here is a question that poses itself: Do we have a need to increase the size of the population in this complicated circumstance?
Let's return to the second part related to development loans.
The answer is clear from its title that it is definitely more economically feasible, because it reduces unemployment and diversification of income and preserves hard currency.
But it is said that there is a need for judgments on us, as citizens and as a government, to absorb the lesson and move forward with real financial reforms until this crisis resolves, and at that time they unleash consumer loans of course after repairing and expanding roads, and providing housing and a decent pension with more than one wife.
I apologize, this is the reality of the situation, but it is just an opinion, and you have the decision.