National Business Council: the recent initiative of the central bank requires financial adjust the ratio between banks

08/11/2015 20:40

Tomorrow Press / Baghdad: The head of the Iraqi National Business Council, David Abdul Zayer, the central bank initiative to allocate five trillion dinars to finance the sectoral banks require tuning process and priorities of the ratio of financial mechanisms between these banks.

He said Zayer in remarks followed up "tomorrow Press," that "define the mechanisms of lending came within the government program of economic reform and support for the private sector", adding that "the ratio of 80 per cent of the allocation equally between industrial and agricultural banks it needs a pause quality during which determine the ratios according to the actual needs of each sector. "

He stressed "the importance of the revitalization of the industrial sector 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," stressing "the importance of the exclusion of agricultural activities, which included agricultural initiative so they can be allocated percentages to the food industry and dependent on supplies local primary aim of reducing imports of such goods, which drains hard currency. "

And between Zayer aspects of allocation for the agricultural sector, which includes conversion of agricultural crops such as canning fruits and vegetables, jams, putty industries and the dairy and livestock industries of poultry, fish, canned meat with all kinds of wealth and massacres factories except animal husbandry.

He stressed the "importance of being 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 manufacturing industries."

And select Zayer funding priorities of the old industrial enterprises for the purpose of replacing 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 endorsed by the Industrial Bank to meet local needs and mitigation of import and limited to food projects primarily Baby food needs.

And on construction materials he 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 the import and that it is possible to manufacture in Iraq and electronics industries.

He suggested President of the Council it needs 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.

He pointed to "the need to stop the housing indiscriminate financing and conversion of agricultural areas to 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 organizing housing and organizing the purchase and marketing of those projects and systematic manner because it has approvals from the basic design and contain infrastructure and ensure that Ncae new slums in cities without services and reasonable sizes and Sharing lending to the formal private housing. "

He noted Zayer that "the committee formed for this purpose and put mechanisms in order to 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 suggesting that the borrower offers by the competent 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 to the 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 value of the loan is given for 12 months and is considered a window 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 the documentary credit exclusively to the manufacturer directly Without broker and submitted to the Commission for the purpose of approval of the origins and verification as manufacturers and not the median. "