Private banks emphasize the scarcity of liquidity and financial criticize parliamenta
Private banks emphasize the scarcity of liquidity and financial criticize parliamentary departments
3/24/2016 0 Comments
Long-Presse / Baghdad Confirmed private banks association, said Tuesday that Iraq is suffering a shortage of liquidity due to lower oil prices, and promised that the main problem in Iraq lies in the management of funds, while the Parliamentary Finance Committee denied the existence of a scarcity of funds, stressing that the Iraqi government is able to pay salaries during the remainder of 2016.
The executive director of the Association of Iraqi private banks Ali Tariq said in an interview to the (long-Presse), "There is a shortage of Iraqi cash because of the economic conditions experienced by Iraq," he returned that "the main problem in Iraq lies in the management of funds and liquidity."
He said Tariq, that "there are a lot of government institutions, which owns a financial surplus, as opposed to another number suffering from a fiscal deficit," revealing that "there are several proposals for the management of the funds and cash in Iraq, including consolidation, especially since there are disclosed a process under way to inventory the existing funds in institutions, in order to clear the financial position of the country. "
The Executive Director of the Association of banks, that "the economic cycle and the liquidity crisis has affected the work of private banks," asserting that "private banks association is cooperating with the Iraqi government today to enable the banking sector to take a role and contribute to the exit from this crisis."
Parliamentary Finance: Iraq is suffering a financial crisis, not a liquidity crisis and the government unable to pay salaries
For its part denied the Finance Committee in the House of Representatives, having a lack of liquidity, stressing the government's ability to pay employees during 2016.
A member of the Finance Committee in the Parliament Masood Haider said in an interview to the (long-Presse), said that "Iraq is not suffering liquidity crisis and this was confirmed by our Central Bank of Iraq," noting that "Iraq is suffering a financial crisis and not a liquidity crisis."
He said Haider, that "the payment of staff salaries due to delays in obtaining the sale of oil imports, which paid for the Iraqi government every six months overdue," stressing that "the Iraqi government is able to pay salaries during the current year 2016".
He attributed the member of the Finance Committee, the lack of liquidity in the private banks to "policy pursued by those banks."
Economist: wrong delay government action salaries
In turn, stressed the economic expert, that Iraq is suffering a financial deficit due to insufficient revenues, pointing out that some private banks suffering from liquidity crisis and not the government.
The economist said Ahmed Rehn said in an interview to the (long-Presse), said that "Iraq is not suffering from a liquidity crisis, but there is a fiscal deficit due to insufficient revenues," noting that "some private banks suffering from liquidity crisis, not the government nor the Ministry of Finance and Bank Central. "
Rehn added that "part of the liquidity crisis in the private banks can be treated through the intervention of the central bank, and the other section is a profound problem is the exposure of these banks to significant losses, and their inability to pay the money to depositors has".
He promised an economist, that "the payment of staff salaries is delayed wrong and unnecessary government action, he was able to avoid it," stressing "the availability of cash to the government and not a problem with that."
The banking system in Iraq consists of 54 banks as well as the Central Bank and distributed by ownership between 7 state banks and 23 commercial banks, including special (9) Islamic banks in addition to the 15 branches of foreign banks.
Iraq has suffered from the financial and economic crisis as a result of lower oil prices worldwide and is a one-sided economy based on oil exports to finance its budget every year without relying on non-oil resources.