The Secretariat of the Council of Ministers discusses the facilitation of industrial and agricultural loans in the Central Bank

Since 2017-05-19 at 17:43 (Baghdad time)

Baghdad - Mawazine News

General Secretariat of the Council of Ministers held a special workshop to discuss facilitating the lending mechanism within the central bank's industrial and agricultural loans initiative.

The administrative director of the Iraqi Economic Council Bassel al-Khafaji said in a statement that "the workshop was held at the guesthouse of the Presidency of the Council of Ministers, attended by the Secretary-General of the Council of Ministers Mahdi Al-Alaq, , The economic adviser to Prime Minister Kazem al-Hassani, as well as the Undersecretary of the Ministry of Housing and Housing, Chairman of the Supervisory Committee on Lending, Astbork Thistle, the Director General of the Operations Department of the Central Bank of Iraq Mahmoud Dagher, the financial adviser to the Prime Minister appearance of Mohammed Saleh, in addition to representatives of the Industrial and Agricultural Bank, Industrial Numeih and unions, businessmen and investors from the agricultural sector and industrial. "

"The Iraqi Economic Council participated actively in the work of this workshop with a delegation that included the President of the Iraqi Economic Council Ibrahim al-Baghdadi Al-Masoudi, member of the board of directors of the Iraqi Economic Council, the financial secretary and Karim al-Yasiri, Sheikh Hussein Al-Khawam, Sheikh Zia Al-Khawam, Ali Mohsen Farhoud, Khafaji.

"The objective, according to the statement, that" the purpose of this meeting is to look at the data presented to the Council of Ministers, including the amounts that have been lent from the inception of the initiative and until now through specialized banks, as follows:

80% of the funds allocated to the Housing Fund.

32% real estate bank

3.5% Agricultural Bank

0% Industrial Bank

"This is indicative of the great reluctance of investors in the industrial and agricultural fields, which means that there are real problems in the lending process. Perhaps the most important issue is the required guarantees, as well as the requirement that the loan be 100% through the documentary credits. the proportion of the loan Kciolh cash to build and prepare and create a place for the production lines. "

He added: "The provision of raw materials and the purchase of machinery and simple supplies from the local market .. As everyone knows that the revitalization of the industrial sector and agricultural large, medium and small has a significant role and important in activating the national economy and reduce the unemployment rate and maximize imports of the state.

"The Committee was formed to follow up the subject of loans carefully in the development of instructions and made sure to be effective since the process began lending on 1/6/2016, but the bureaucracy in the work of banks and the subject of guarantees required to obtain these loans did not encourage the private sector to lend and that the cause of low provisioning on loans with the ratio of the industrial Bank needs to review and study the mechanisms to facilitate lending and the need to develop a mechanism commensurate with the size of the subject. "

Al-Baghdadi pointed out that "there are real and direct reasons for the reluctance on these loans and perhaps the most important guarantees, but there are real reasons, but also important but indirect, and most important, as a serious businessman thinks whether there is economic feasibility to obtain the loan or not."

He explained that "the most important indirect reasons lie in that in all countries of the world there is a permanent conflict between industry and agriculture on the one hand and with trade on the other hand, and in all the world governments support industry and agriculture on trade, but in Iraq! Although the government and legislative bodies to support industry and agriculture But in fact it is still trade that has the upper hand through the lack of control of the border ports and the entry of imported goods in very large quantities without taking into account the amount of available industry and agriculture of Iraq of each article, and therefore, this represents the dumping of goods, which was legislated law A right (anti-dumping law) but did not do until now, unfortunately. "

He pointed out that "most types of imported materials are poor and sometimes very poor, and they do not fit with the Iraqi specifications required, and this is also a violation of another law was legislated, which is (consumer protection law) where the government is supposed to prevent the import of such materials, Which is not able to compete with imported materials because of the cost of one megawatts in Iran cost 1.5 cents and in Saudi Arabia 2 cents for energy processed for industrial projects, while the cost of one megawat in Iraq up to 12 cents industrial buys 90% of the material of kerosene at commercial prices.

He explained that "the lack of many services and infrastructure of industrial cities and factories forced the industrial or agricultural to pay for the provision of services, including security of the security."

He stressed that "the high rate of salaries in Iraq, the salary of the worker in Iran $ 200, Asian in Saudi Arabia and the Gulf countries and Turkey $ 275 while the salary of the worker in Iraq is not less than $ 400."

The participants also discussed a number of other obstacles to lending and discussed a number of necessary proposals, as they reached the formulation of recommendations and solutions to the subject of this workshop.

He promised the relations, according to the statement, "raised and presented for discussion at the meeting of the Cabinet to take the necessary decisions to facilitate the mechanism of lending."