Economist on bank loans: it is not feasible for a citizen and their interest is high
19 November 19: 11
Economist, Zia Al-Mohsen, on Saturday, considered the loans of state banks "not of economic feasibility" for citizens, while he stressed that
the interest rate of loans may approach 56%.
"When an Iraqi citizen goes to borrow from banks, he is going to relieve himself, but we note especially the government, that the interest it imposes on citizens is approaching 56%, "Al-Mohsen said in an interview with Al-maalouma agency. He added that
"any citizen trying to get a loan of 10 million dinars, he must repay the amount of 16 million and 600 thousand Iraqi dinars, which is a large amount for citizens". The Economist explained that
"citizens resort to loans for two reasons, either to
- meet a consumer need or
go in the process of establishing a project to increase income, which may provide value to the Iraqi economy, and therefore
when he sees such ratios and interest for loans, he refrains from that loan. He pointed out that
"there are a number of obstacles, including guarantees guaranteeing the granting of loans to some categories, such as employees and associates, and the salary of the sponsor must be high," considering
these loans "are not economically feasible for citizens".
Government banks such as Rafidain, from time to time, launch many financial loans with different amounts of interest at high rates, which may reach half the amount that a citizen may receive. Finished/25R