Economists call for reconsideration of the banking sector to activate the Iraqi economy and attract investment
Long-Presse / Karbala - Counting specialists, economists, on Sunday, that the legislative and financial obstacles highlighted the problems faced by the Iraqi banking sector, while criticizing the conflict of the implementation of the Iraqi Central Bank instructions between private and public banks, called for a reconsideration of the work of this sector and to find capable banking system to attract investment and management of the country's resources.
The director of the Euphrates Center for Development Studies strategy, Khaled Aerada, in an interview to the (long-Presse), said that "the Iraqi banking sector, private and public, are suffering real problems most notably the legislative and financial obstacles", it returned it necessary to "shed light on those barriers and treatment."
He Aerada, that "the proportion of foreign investment in Iraq is low and not exceeding the 2 percent of the total investment," ruling out "the possibility of activating the Iraqi economy and achieve sustainable development without capable of attracting investment and management of the financial resources of the country by about an integrated banking system."
He called on the Director of the Euphrates Center for Development and Strategic Studies, to "re-examine the work of the Iraqi banking sector and find solutions that reduce losses in the current financial crisis in the country."
For its part, Director of the Trade Bank of Iraq in Karbala, Uras Abdel-Nour, in an interview said to (the long-Presse), said that "the Iraqi banking sector suffers conflicts of implementation of the Central Bank of instructions between the private and public sectors", calling for "the unification of work between the banks and the private and public sector systems ".
In addition, said the economist, Ahmed Rehn, said in an interview to the (long-Presse), he said that "the Iraqi banking sector faces caused by the work environment risks, and the limited resources available to credit, as well as other administrative problems," noting that "banks suffer big debts are difficult to be restored increasing the size of the loss and reflect negatively on the interest rates. "
He added Rehn, that "banks independent economic entities councils departments and their capital, and it has to devise effective solutions to their problems and to convince the State by the possible application commensurate with their resources," pointing out that "the state can help in improving the banks conditions and improve their performance."
Meanwhile, the adviser said the National Investment Commission, Abdullah al-Bandar, in an interview to the (long-Presse), "The banking sector suffers many obstacles related to the banks themselves and their boards of directors and shareholders and limitations of the central bank imposed on both private without government".
He revealed al-Bandar, for "having problems legal Balaanaat and complaints from the money that is holding in banks and can not be disposed of," returned to "the banking sector's problems need to be radical solutions will not be identified, only direct meeting between decision-makers and concerned government agencies and the private sector."
He criticized the National Investment Commission adviser, "the Iraqi banking sector failure has led to the reluctance of many investors from entering the local market, and form a negative factor, plus the security and economic problems", calling for the need to "restructure the Iraqi banks."
The bankers and economies, carried in (15 May 2013), the Ministry of Finance and the Central Bank of Iraq responsible for the decline and the reality of local private banks, while the latter accused of encouraging Arab and Iranian banks on the Iraqi account.
The International Monetary Fund said in a report issued in (the 21st of March 2013), that an improvement in the financial sector, but stressed that it still needs to be greater by the central bank in the revision of monetary policy and strengthen banking supervision tools efforts, and to accelerate the restructuring of the banking system .
And the Iraqi banking system consists of 54 banks, including seven state-owned newly established Islamic one, and there are 23 private commercial banks, including Islamic nine. There are also 15 branches of foreign banks, and there are many institutions that do some banking, of which 34 money transfer company, and nearly 200 belonging to the banks foreign exchange company or deal with the banks, with the Loan Guarantee Company and to finance small and medium enterprises, with two companies for services of electronic banking and card Smart, in addition to nearly 800 branches and subsidiary banks spread over Iraqi provinces.