BAGHDAD/ Aswat al-Iraq: Banking experts disclosed today that the Central Bank of Iraq (CBI) adopted strict measures that led to strangling the private banks, pointing the reforms need governmental support to change them from exchange offices into development establishments that will contribute to support Iraqi economy.
Expert Sameer Nusairi told Aswat al-Iraq confirmed that "the development of the private banking system needs governmental support for re-organization and development". "Though CBI exerted its efforts to suppress the inflation and build a foreign currency reserve, but could not manage to reform the private banking system", he pointed out.
Nusairi added that the CBI took strict measures "as if the private banks are working under its umbrella or as one of its offices".
He suggested forming a higher economic council, comprising of both governmental and private sector experts, to lay down the economic policies and finding new economic approaches for internal financing.
On the other hand, he proposed formation a "guarantee company" for the deposits in the private bank, as well another fund to finance the private banks to cover development projects with special procedures and guidelines.