$ 36 billion savings Iraqis in their homes

June 18th, 2016
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«Central»: to guarantee deposits with a capital of 100 billion dinars, Inc.
Baghdad's new morning:

Iraqi economic circles expected the return of citizens to deposit their savings in banks, after the central bank's decision to establish to guarantee deposits in the government and private banks with a capital of 100 billion dinars ($ 85 million), and promised to move the stage of salvation for banks experiencing liquidity squeeze, which led to a severe lack of overall performance of the sector.

In contrast, banks and experts for the task of monetary mass of the total cash in store by Iraqi citizens, which is estimated at between 30 and 40 trillion dinars forecast ($ 36.1 billion).

Economists described the decision «Central» as significant in connection with the need to encourage people to deposit their money in banks after the break prevailed in the relationship between the two sides, after the banks to fulfill their obligations have failed as a result of mismanagement, corruption and lack of the necessary guarantees for citizens to regain their deposits, and stressed that the decision to activate the founding of the company to guarantee bank deposits will move domestic production wheel and revitalize the Iraqi market.

The economist said Bassem Jamil Antoine, in an interview carried by the «life» International on its website, on the impact of the decision on economic activity, he said that the current financial crisis and the lag suffered by banks and lack of liquidity, produced a significant negative consequences for the public life of the country, especially in the economic part, .

Antoine predicted that contribute to activating the decision to pay the required efforts made by the banks in large monetary mass transfer has to investment block, not savings, pointing out that the amounts in store citizens and investors are estimated at about 77 percent of the funds can be used to activate investment, especially after new amendments to the investment Law No. 13 of 2006 and make it commensurate with the reality of the country, because it would open a window of revenue instead of relying on a single source in the conduct of economic activities.

He added that to attract the masses of cash saved the country from external borrowing and its consequences and keeps interest within the country and reflects positively on the citizen, with a focus on the bloc to employ them in investment issues, not consumerism.

The central bank issued a statement pointed out that the banks will put a certain percentage of the company's deposits so as to ensure pay depositors in case of bank's inability or being liquidated.

The statement added that it will encourage people to deposit their money in banks rather than saved in the home, pointing out that the money outside the banking system exceeds 30 trillion dinars.

The executive director of «Iraqi private banks association», Ali Tariq said in a statement, that the building of an effective banking sector in Iraq requires the positive interaction between the citizen and the banks that falls upon themselves to support the national economy and its financing, noting that this interaction is waiting deposit guarantee to ensure the company the rights of depositors.

He pointed banking expert Mohammad Ali Jaber, that citizen who intended private banks to deposit the money must be reassured and confident in them it was investing in the right direction and that there is protection for the money which can be moved in a continuous form without problems.