Iraqi economy to a new stage of work

3/20/2017 0:00

BAGHDAD / Hussein Tgb
Lack of liquidity experienced by the banking sector is in dire need of a real movement to activate the capital cycle through the creation of a new deposit policy is based on mutual trust between the customer and the private banks. Executive Director of the Association of Iraqi private banks Ali Tariq said that the reality of working in Iraq, in dire need of liquidity to fund projects to differ, pointing out that the indicators confirm hoarding large sums of money outweigh the barrier of 20 billion dollars in homes, which requires a real effort to transfer such a large bloc to the banking system.

Investing money

Tariq said in an interview with "morning" that the economy to a new stage of work requires creating an environment that contributes to the transfer of money from the homes to the banks, indicating that the beneficiary looking for utility, banking and business as well as looking for a benefit, and here has to be a mechanism to recruit money chunky trends guaranteed check interest of all these parties and so could that supports the reality of liquidity and preserve the capital course in Iraq, indicating the possibility of benefiting from international experiences in this field.

Decline in performance

And got the confidence among depositors and banking crisis due to declining performance of some private banks for non - accredited advanced systems in the management of depositors ' funds , as called for intervention by the Central Bank of Iraq.

Liquidity crisis experienced by our banking sector has become overrun occupy a great deal of time and money , economists, and research to address the reluctance of citizens to business owners or other mechanisms of deposit money in banks and make it an important part in the development process.

The reason for the financial distress experienced by Iraq to decline and the decline in oil prices in world markets, as well as compactness in homes for the existence of a gap between the citizen and the banks.

Liquidity trends

Financial expert Mohammad Ali Jaber said in an interview for the "morning": that the private banking sector need to focus its activities on the risks of doing business and trends in liquidity owned and this will be through a specialized unit of running risks and these that require specialized highly experienced team is following paths money and indicates where the risk in these directions.

Jaber stressed that fed the banking sector liquidity is needed to guarantors environment make the citizen feel reassured his money, and is capable of enhancing the tally or drag whenever he wants , without any confusion or disabled and the adoption of advanced systems that rely regionally and internationally and contribute to documenting bridges of cooperation between depositors and banks.

Relative improvement

He had pointed out the possibility that gets relative improvement gradually by liquidity while starting the process of the reconstruction of liberated areas, where prescribed contractors repayment to banks with the recovery of their activities, pointing out that a large segment of depositors to withdraw their deposits from banks , especially the displaced to meet the demands of life has contributed to the deepening negative effects.

He urged in an interview earlier on accelerating the pace of work and the establishment of a deposit insurance company being established under the umbrella of a law guaranteeing the right of depositors, and that the Board of Directors consists of private banks to participate and operate in accordance with the mechanisms and guarantees provided to deposits that mean private banks.