Central initiative need to re-allocate the funding

8/31/2015 0:00

BAGHDAD - Hussein Tgb
The special economic circumstances experienced by Iraq, because of falling world oil prices and the war on terrorism has made ​​the Iraqi economy suffers from additional problems on the previous problems highlighted by the financial crisis form the public and the crisis of liquidity special form which ails government and private banks currently.

Financial expert Samir Alnasiri He said that the Iraqi economy needs to be repaired and corrected its tracks trends that help to build a real introductions to move to the economy of the market.

He described Alnasiri in an interview for «morning» the intervention of the Central Bank of Iraq to »sense» in liquidity support to the government specialized banks (real estate, industrial and agricultural) to allocate amount (5 trillion dinars) and private banks in the amount of (trillion dinars) was attached to it banks own and in cooperation and coordination with the private launch program initiative Association of Banks (the financing of small and medium enterprises) and the issuance of executive instructions for banks to work out.

He pointed out that this step aims to achieve economic development sustainable and supporting and financing small and medium enterprises and the reduction of unemployment for young graduates producers within the work and people with occupational and professional and technical skills with the ability to establish and manage product project in economic sectors age (agriculture, industry, housing, trade, tourism and health).

Alnasiri said that activate the implementation of this project mechanisms needed to a series of rapid procedures in cooperation and coordination with the banks and to ensure a successful mechanism for the implementation of the project and its success and development in order to achieve the central objective of it.

He proposed to take action and ensure operational requirements, most notably giving the role of the Iraqi Company for the financing of small and medium enterprises existing as a specialist and commissioning project management that includes the allocation of the amount Banks wishing and not restrict companies contribute to the only company as a first step a pilot to demonstrate the successful application of the instructions issued by the Central Bank of Iraq and for the remainder of 2015 to be reconsidered study program, instructions, applications and successes and failures «The got» to get to the visions and instructions for new 2016 adopted Council CBI management especially as it currently represents the supposed consultation and opinion, partnership and cooperation in making decisions on the applications of the private banking sector of monetary policy.

He pointed out the importance of creating a new structure within the organizational structure of the Central Bank of Iraq, including the establishment of a unit or division or department to manage the amount and distribution of funding and surveillance and evaluation of the application of the financing of small and medium enterprises program in accordance with the operational instructions issued and the window is called (development finance fund management) or as it is called now (National Finance Fund).

He stressed the importance of identifying criteria for small and medium enterprises identified based on the standard numerical workers in it or sectoral standard and are controls put lower and higher lending to the border according to the importance of the project and its impact on economic development.

Alnasiri demanded the annexation of productive families and folk heritage industries and stereotypes, sewing and encourage the feminist element in the establishment and financing of these projects, as statistics indicate that the percentage of women producers Crops loans to finance small and medium projects of not more than ( 13 percent) of the total recipients of these

He said that the refinancing distribution rates balanced the need to serve the economic development of all sectors and not to focus on the financing of the consumer nature of projects and non-productive, as the statistics indicate that the commercial loan accounts for 53 percent of the total funding granted loans previously, while the financing of housing loans 3 percent and the agricultural 5 percent and health 3 percent.

The limp Alnasiri to reconsider rate of interest on the loan, which achieved the Central Bank, banks and the guarantors not more than 4 percent instead of 5.5 percent and the duration of repayment of the loan of not less than 5 years instead of 3 years and can finance the project a second time in the case of repayment of the loan at less than the period above for the purpose of development.

He added that «the past 12 years have seen a significant pause in the wheel of the Iraqi economy through the weakness of cash trading and commodity in the local market as well as the inability of most borrowers customers from government banks The eligibility of the payment of the discharged debt dates of maturity, what disrupted the work of the banking sector and reflected on the liquidity limits have ».

Indicating that it delivers it in some banks to a minimum so it was required from the Central Bank of Iraq to take swift pre-emptive action to address the financial situation and control of the market cash and the protection of some banks from collapse by taking quick steps in coordination with the relevant