The proposed lending mechanisms to support domestic production

8/11/2015 0:00

BAGHDAD - Hussein al-Tamimi Tgb
president of the National Business Council of Iraq said that the central bank initiative to allocate 5 trillion dinars to finance the sectoral banks step on the road to revitalization of the production process in the country, but this step requires adjusting mechanisms and priorities of the ratio of financial operation between these banks.

And the Chairman of the Board David Abdul Zayer that define the mechanisms of lending came within the government program of economic reform and support for the private sector, noting that the ratio of 80 percent of the allocation equally between industrial and agricultural banks it needs a pause quality during which determine the ratios according to the actual need of each sector, pointing to the importance of the revitalization sector Industrial production class basis on the agricultural sector, the percentage goes to the production aspects of specialized food industry for its importance in achieving food security.

He stressed Zayer the importance of the exclusion of agricultural activities, which included agricultural initiative so they can be allocated percentages to the food industry and based on local raw supplies in order to reduce imports of such Goods which drains hard currency.

Productivity of industries and between Zayer in an exclusive interview with Sabah aspects of the allocation for the agricultural sector, which includes agricultural crops converter such as canning fruits and vegetables and Industries jams, putty and dairy industries animal from poultry, fish and meat all canned kinds of wealth and massacres factories except animal husbandry.

Stressing the importance of the production industries are dependent on agricultural products and crops and livestock as raw materials for its industries and financing of mills and silos grain storage and Falbat rice and exception financing everything that went to agricultural initiative such as agricultural mechanization, sprayers and livestock and agriculture in general.

With select Zayer funding priorities of the old industrial enterprises for the purpose of replacement of production lines and development but the one which is under construction takes into consideration what permits by the Industrial Development and by import of goods readings regarding food except as stated in the Agricultural Bank, and construction materials and medicines under the roadmap set by the Commission and approved by the Industrial Bank to meet local needs and mitigation of import and limited to food projects primarily Baby food needs.

And on the construction materials noted the importance of supporting the priority lending to the construction industry and the requirements of modern building materials and packaging procedure of the homes of metal and electrical industries of the Ministry of Electricity requirements of materials and equipment for the purpose of reducing import and that can be manufactured in Iraq and electronics industries.

He suggested President of the Council need to be most industrial projects distributed in special industrial zones and new industrial cities for the purpose of correction to grant the loan procuring approvals from the municipality and the environment departments and the purpose of protecting the borrower from getting into trouble with those circles.

Regulation housing was addressed to the ratios housing sector pointing to the need to stop the housing indiscriminate financing and conversion of agricultural areas to the residential slums under the loans granted by these institutions and only lending to the beneficiary of this loan just who buys a dwelling unit residential investment projects that are within the investment law for the purpose of the organization of housing and the organization of the procurement process and marketing of these projects and in a way a regular because it has approvals from the basic design and contain infrastructure and ensure that Ncae new slums in cities without services and sizes reasonable and Sharing lending to the formal private housing.

He Zayer said the committee formed for this purpose and put mechanisms, including ensure the achievement of the objective of the loan and to ensure that the funds invest in is its location which is allocated for him a proposal that offers the borrower by the concerned bank loan application with the priorities of the project and the economic feasibility to the relevant bank is studying the application no later than (40) days and after obtaining the approval of the allocation of the loan amount on what feet of Protozoa and economic feasibility of the applicant of obtaining approval and the allocation of the amount, indicating that the applicant submit a letter of guarantee by at least 5 percent of the loan amount and given a period of (12) months and shall take effect from the date of notification of the approval of the compliment ratio of not less than 20 percent of the project and after the loan starts in the form of stages to ensure implementation of the project and is committed to the bank not to pay any amount in cash or by check or transfer for the purpose of project requirements and be a payment mechanism under exclusively documentary credit to the manufacturer directly and without an intermediary and presented to the Commission for the purpose of approval of the origins and verify that they manufacturers and not the median.

Production lines also finds that only the Industrial Bank only financed production lines and assumes the borrower civil works all privately funded by him and the arrival of the project to work upon the arrival of production line electrical and mechanical accessories for the purpose of production.

Besides securing the documentary credit document to secure $ 110 percent of Iraqi exclusively companies, believes in the project and 100 percent of the Iraqi insurance companies, including private sector companies on the condition that the insurance policy be re-insurance carrier also (Insurance and Re-Insurance).