Experts: Government loans increase commodity flow and reduce unemployment

Economists stressed that government loans would move the local economy with emphasis on activation of laws which ensure restoration with profits without wasting, with parliamentary economy Committee called for sanctions "deterrent" against banks that do an initiative supporting small and medium-sized enterprises.

The Economist said in an interview for maytham alaibi "range", that "Government loans contribute to increased commodity production, reduce unemployment, and assumed that these amounts are distributed among small, medium and large, and that this amounts to pump the economy add to demand, and the increase in turnover".

He added that "these funds are expected to go abroad, because most will spend on buying imported goods and services for the establishment of industrial plants and agricultural mechanization, in addition to contributing intermediates production process".
Alaibi explained that "the positive effects can appear in the long term, assuming the funds go to projects a reality, and not to go to projects that the fake and don't go to the investors rights, which presupposes the existence of real guarantees and controls to prevent it". The "past experiences showed that much of the money that has been lent did not return, especially industrial loans and housing loans and other, it requires the development and the application of strict laws right retarded, it also requires a balance between controls and guarantees that these funds will go to investors, industrialists and farmers reviews".

He stressed the need "to develop a unit to follow up on these loans, with the bulk of them for large projects, the selection of projects represent the goods are carefully selected and then distributed to the governorates take into account issues of availability of raw materials that are the base to reduce the imported goods in the future".
He noted the need to "choose fewer projects to facilitate the control and follow-up of mission subsistence allowance for many small and medium-sized enterprises can be dissipated and difficult to control, and then the project loses its real value".
The Central Bank announced, Tuesday 23/6/2015 launch loans to small and medium-sized enterprises by private Iraqi banks early next month, the loan amounts will reach 50 million dinars, said the interest banks will not exceed 5%.
He said the Central Bank Governor told relations (range), the "Central Bank's decision to allocate 1 trillion dinars to private banks for the establishment of small and medium-sized enterprises will begin early next month (July)", indicating that the objective of these projects is to achieve economic and social development and to support small and medium-sized businesses and operating skilled workforce excellence ".
He added that "the amounts to be allocated to target projects in sectors (industrial, agricultural, housing, commercial, educational, health, tourism)", noting that "every Iraqi banks covered by this resolution to work out".
In turn, the head of the parliamentary Economic Committee, Jawad Al-Bolani, Thursday, to impose sanctions "deterrent" against banks that do the Central Bank initiative to support small and medium-sized enterprises, should be supporting these projects rely on private banks.

Al-Bolani, said in a statement, received (range), a copy of it, that "the ball today in private banks after the Central Bank initiative for small and medium-sized loans in previous time", calling for "the need for the effective contribution of private banks to support such projects".
He stressed Bolani, that "there will be sanctions against banks that do this initiative with stiff penalties up to deny banks access to the foreign currency auction".
The Iraqi Central Bank has released an earlier loan of $ trillion Iraqi dinars to support small and medium-sized enterprises in the form of loans to citizens through private banks.