Central Bank: The Government are determined by the interest rate on loans given that 90% of the bank's financial liquidity, including
Sunday, March 04 / March 2012 12:46
[Baghdad - where]
Deputy Governor of Central Bank of Iraq the appearance of Mohammed Saleh said that the issue of loans and the rate depends on the political benefits the banks and the real problem is that the largest banks are government which accounts for 90% of the banking activity in bank inside Iraq.
Said Saleh told all of Iraq [where] that "the government banks are still subject to the policy owner or the administration there and in mostly the government is the owner," asserting that "banks do not have the autonomy to make its decisions and the reason is that more liquidity Finance from the government and thus the last that can reduce the proportion of the interest rate of loans. "
He added that "the central bank supports the philosophy of financial liberalization, which means the banks are free to set prices, the benefits of permanent and the City either for loans or deposits," noting that "the banks are free to direct credit to the sectors it deems appropriate without setting limits of time or restrictions on credit and this principle is acted upon since the second half of 2004 and is called the principle of financial liberalization. "
And that "this principle is also accompanied by the freedom of financial transfer abroad not intersect with the law against money laundering, money crime and terrorism."
He was "there is a reference to deal with the central bank called the reference interest rate and content of monetary policy is used with the banks that deal with the central bank and the interest is calculated depending on the size of inflation in the market and in some cases, the interest rate is zero%."
"Truth is everlasting, but our ideas about truth are changeable. Only a little of the first fruits of wisdom, only a few fragments of the boundless heights and depths of truth, have I been able to gather"