Specialists: interest rates on loans should not exceed 3%
Monday 02 August 2021 48
Baghdad: Haider Al-Rubaie
Specialists in economic affairs called for the necessity of “adjusting the interest rate” on loans granted to citizens, especially those wishing to purchase housing units, while stressing that the interest imposed on loans is high, and constitutes an obstacle to many productive sectors, which loans can contribute to moving them. It is necessary to reduce it to reach 3%.
Despite the efforts made by Rafidain and Al-Rasheed Banks, which announced in earlier times that they reduced the interest rates on advances and loans granted to employees and citizens in general, to reach the limits of 5%,
but specialists see it as "high", stressing that the highest percentage of bankers' capital is governmental and not Interest rates should be so high.
The banking expert, Abdul Rahman Al-Sheikhly, criticized in an interview with “Al-Sabah” the measures taken by some banks to “repeat” the same percentages of interest imposed on loans on an annual basis, meaning that the interest remains the same on the remaining amount despite the borrower paying the installments he owes.
Al-Sheikhly pointed out that government banks should not impose high rates of profit on the loans they grant, given that a large proportion of their funds are “governmental” and therefore, their willingness to reduce interest rates will reflect positively on the overall economic movement in the country, and will move dozens of productive sectors..
He called for overcoming the obstacles facing borrowers, especially employees, facilitating the procedures for granting them loans, and working to expand granting them to small projects, provided that they are monitored by specialized committees, as well as to ensure the borrower's ability to pay.
Al-Sheikhly urged that all banks, governmental and private, should strive to attract "hoarded money in homes", pointing out that
this step would revive the development movement and increase the granting of loans to beneficiaries.
In turn, the economic affairs specialist, Basem Jamil Antoine, indicated that Iraq is currently going through a phase of recession and decline in development, which requires moving all the wheels that would confront this matter, pointing out that at the forefront of these measures is the increase in granting loans with low interest rates. .
Antoine called on government and private banks to “review their decisions regarding interest rates,” stressing “the need for those rates not to exceed a barrier of 3 percent, especially those granted for construction purposes, which are able to move about 25 productive sectors capable of raising development rates and eliminating unemployment.”.
Antoine praised the Prime Minister’s decision to distribute plots of land among the various segments of society, calling for “the need for this step to be accompanied by a government orientation to grant the beneficiary loans at reduced or no interest rates, so that he can build a residential house,”
stressing at the same time, “the importance of directing Loans are directed towards investment, encouraging production operations and moving the wheels of the private sector as well.