Economists: Financial inventories by Iraqi banks could not meet the budget deficit


Economists stressed, on Saturday, that the total financial inventories among government banks could not meet the growing budget deficit in 2016, and as pointed out that the funds in state banks available to all state institutions, called for the structuring of the private banking system Bmsrvi Rafidain and Rasheed.

Revealed Union of Arab Banks, the possession of Rafidain Bank "largest" financial stocks in the region and the Arab world with total assets of $ 210 billion, and as he emphasized that Iraq does not need the money in order to stimulate economic and banking sector, it pointed to the need to develop human resources and banking work in Iraq.
The economist said Ahmed Bureihi in an interview for the "long", that "the total amount mentioned by the President of the Union of Arab Banks with the Rafidain Bank is absolutely accurate, because a large number of assets is not commensurate with the size of the government banks."
He added that "the money the government banks come through private deposits represented depositors with money from individuals or companies, and deposits laid down by the government and a few total, are considered."
Bureihi said, "and explained all the financial stockpiling the government banks do not fill the entire federal budget deficit worsening due to lower oil prices gradually until it reached the level of $ 30 after it was nearly the $ 120." He said the "financial inventories available at the State-owned banks in the reach of the government throughout the year, and state-owned banks are reluctant to lend to never governmental institutions if they asked for money from them."
Bureihi stressed that "the accumulation of good cash stocks in government banks give a good impression to the world market to the Iraqi institutions, which pay for increased financial and administrative exchanges between the various global financial markets."
The Association of Iraqi banks occurred in Sunday (January 24, 2016), a cooperation agreement with the Union of Arab Banks to develop its human resources, and called for the legislative and executive authorities to capitalize on this collaboration for the development of the banking sector, while Union revealed the existence of preparations to hold an economic forum in Iraq to attract investors , it expressed its readiness to provide assistance for the establishment of the Iraqi Association of banks. In turn, financial expert, Mohammed Abdul Latif Al-Ani said in an interview for the "long", "The banking system in Iraq largely underdeveloped compared to neighboring countries that do not possess the Provisions of the government treasury of huge sums of money."
He added that "gave conflicting laws and instructions adopted by the State-owned banks have caused a significant accumulation of funds deposited by the companies and citizens without moving to invest in projects that will increase profits and revive the local market."
He said al-Ani said that "Rafidain and Rasheed require comprehensive restructuring as a result of their status under Chapter VII of the law for a period of two decades, causing Angtallma for banking development of the global systems."
And that "the government is obliged to enactment of a new law to government banks in line with local economic data, which varies according to the low and high global oil market."
Ani confirmed that "the presence of a large financial stocks at government banks sing the government's external borrowing, which restricts most of the economic activities of the country in exchange for not blocking only 1% of the worsening budget deficit."
The Secretary General of the Union of Arab Banks and Sam Fattouh during a press conference held by the Association of Iraqi banks with the Union of Arab Banks for the signing of a joint cooperation agreement in the Babylon Hotel in central Baghdad and attended (range Press), said that "Iraq does not need the money in order to stimulate economic and banking sector."
Fattouh added that "Rafidain Bank owns the largest financial inventories in the region and the Arab world, with total assets amounting to 210 billion dollars," noting that "Qatar National Bank ranked second with total assets amounting to 145 billion dollars."
The Secretary General of the Union of Arab Banks, that "Iraq needs to develop its human resources and banking business in order to finance the local economy," pointing out that "the Union is working on it after the signing of a joint cooperation with the Association of Iraqi banks agreement."
It is noteworthy that money laundering and economic crime court revealed earlier, for a number of government and private banks to give large sums of loans without guarantees, as promised, this constitutes a "theft Musharanh," he confirmed many acts against some borrowers and to cooperate with the central bank to recover those loans.