Still a difficult road in front of Iraqi private banks due to demand of them raise capital for the promotion of business at a time, still struggling for decades of domination of the government in order to win a piece of the sources of power enjoyed by the institutions run by the government.
In Iraq, there is a culture of poor credit, lack of modern banking systems and the dominance of the government and banks are all slowed the pace of development in the main financial sector for more than eight years since the US-led invasion toppled the government of Saddam Hussein.
Are still many Iraqis are concerned not laying on the righteousness of the fact that more business in the country is hungry for investments carried out by direct cash transactions, which adds an additional burden because of the security situation.
He says the economic peace Sumaisem «still here the remains of the central administration, which is still forcing the government departments and ministries to deal exclusively with government banks. As a result, all the deposits of banks go-governmental organizations. What is the benefit of the money goes from government to government? We need to develop the private sector ».
The United Iraqi private banks in 1964, according to what he says Executive Director of the Federation of Iraqi private banks Abdul Aziz Hassoun, paving the way for the dominance of the financial industry by the government banks.
After the UN imposed economic sanctions in 1991, the Private Banking business has returned once again to conduct its activities in Iraq. In the country the founding of the Organization of Petroleum Exporting there are seven state-owned banks and 23 private banks and eight private banks according to the Central Bank site on the net.
But most of your banking activity to provide specific services, deposit and lending profile. Two governments and two banks, Rafidain and Rasheed, a monopoly on almost all financial assets. Both banks undergoing restructuring to write off the debt accumulated after years of war and economic sanctions.
And Abdul Aziz al-Hassoun, who works his union, which is an independent organization to support the private banks, government banks that carry 87% of deposits in private banks, with 13% of the deposits.
He says the deposits in the banking sector government $ 30 trillion Iraqi dinars, while the deposits in private banks, 11 trillion Iraqi dinars.
Compared to the private banks 6 trillion dinars. According to the Central Bank of Iraq, there is no law to prevent from private banks to finance government projects, either through loans or by buying bonds.
However, the Ministry of Finance two years ago barred government institutions from dealing with private banks as a way to curb corruption and misuse of money. But the central bank is the move »unfair» to private banks, according to central bank advisor. Who says »should have government institutions, private banks the right to choose the good, not boycott all private banks. There are good private banks ».
The Ministry of Finance is currently in talks to help deepen the role of private banks in the financial system in response to requests from the World Bank and International Monetary Fund.
Fadel says the Prophet and Deputy Minister of Finance »They want us to turn our attention towards the private sector, so our plan is how to support the private banks in all fields».
And Iraq decided to refurbish its financial system in 2006 through the restructuring of the Rafidain and Rashid in particular, and the reorganization of the Directorate of Supervision at the Central Bank and private sector development.
Was approved by the World Bank and International Monetary Fund to help advise and implement the plan, although progress was being slowly.
The Bank of Iraq owes 28 billion U.S. dollars owed by external and internal, while the good bank debt amounted to billion. Most of the foreign debt accumulated by the government under Saddam Hussein ..
And part of the plan was developing a program for private banks to raise capital to be $ 213 million per month by the Bank in June 2013, which is expected to consolidate stability in the private sector.
In any case, officials in the industrial sector say it would help in raising the capital of private banks, there is a growing need to modernize the financial system to enter the Iraqi banking sector to the private banking business.
Fadel says the Prophet and Deputy Minister of Finance »that our banks lag behind the rest of the banks can not deal with the banks the world and with international banks for being an electronic system for Anmtlk».
The eight private banks are only offering the services of automatic payment machines and services credit cards. The international payments and the bank intermediary between the banks do not exist, which is a source of concern for foreign companies that want to invest in Iraq and contribute to the rebuilding ..
The Central Bank of Iraq is working with the U.S. Agency for International Development in order to create a single portal to mediate the banking and international payments.
He says peace Sumaisem «perception that foreign investors came to Iraq, carrying his money in a bag. We did not develop the banking system to ensure that the movement of capital and the flow will be managed the same way that managed in the rest of the world ».
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