Central Bank of Iraq has stated that it is going to create a fund of the surplus funds for supporting and funding various projects of Iraq.
Muzher Mohammed Saleh, the deputy governor of the bank has said that the soon an amendment of the rules of the Iraqi bank is done; all the private banks that are somehow related to the special fund will help the construction and housing projects.
An economist in the Ministry of Finance, Mr. Hilal Al Ta’aan has asked for the passing of a new law on the domestic banks and modifies the Banking Act to make sure that the private banks will be able to take a more active role in the economic development of the country.
He has also added that the Banking Act No. 28 stops all the banks be it private or public to get associated with any other kind of financial activity apart from the banking business and that is why this law requires amendment and make sure that the private banks can also take a real and more helpful role in the development of the economy of the country by practicing financial activities other than banking. He has added further that it is amongst the activities of the banks of buy more money orders from the Ministry of Finance and gain profit from them. This is one of the most important ways of gaining as much profit as possible because the other fake serve departments are not capable of serve the economy of the country. There is a need for the private banks to raise the capital and this way they will be able to provide loans and advances and they can reenter the world of money, because all these banks are now allowed is to issue the decisions and control their personal goal or achieving profit.
CBI on the other hand is trying to use the development of the international bank in these banks of Iraq to create as much possible competitive environment and also help with the growth and developments of the banks. This way, Iraqi banks will be able to provide the best of services at the lowest of costs. This is a fact that has been reveled through the statement made by the deputy governor of CBI Muzher Mohammed Saleh. He has also added that Iraq is not all afraid to deal with such banks and get into the arena and provide all its services to the people of Iraq through loans and divers other facilities. Iraq needs to enter into such a development project so that the banking environment which is monopolistic will change a lot. He has also referred to the requirement for the amendment of laws and banking legislation and this way banks which are already backbones of the Iraqi economy will be allowed to play a far more active part in the economic development of the country.
Nahida Daini, the former member of the parliamentary committee of investment and economy has asked the CBI to get into the cooperative international development capital to help the people of the country by providing them with loans and advances. She has also added that, such banks will be able to cover the inability of the government to continue funding the housing loans which can benefit a lot of people. Indeed the interest rate will be pretty high but they will be able to substitute the government and the private banks in terms of facilitating and granting loans to the people. She has further added that the end of advance has created a lot of problems for the people at large because it has displaced the workforce that has been working with the construction and construction material along with the movement of the market, whereas the housing loans should be within the purview of the country and should help the reconstruction of the country.
Source [Al Mutmar]