Economic parliamentary: Central allocated six billion dollars to banks in order to support the private sector

Author: BS, ZJ
Editor: BK, BS
05/08/2015 12:05



Long-Presse / Baghdad

Economic Parliamentary Committee revealed, on Friday, the allocation of the Central Bank of billion dollars to activate the private banks sector, especially in the field of small and medium enterprises, and five billion dollars for the banks sector, while an economist saw that it came in line with the government's plan to activate the productive sectors and to avoid a crisis economic.

The Chairman of the Committee of Economy and parliamentary investment, Jawad al-Bolani, said in an interview to the (long-Presse), "The Central Bank of Iraq, devoted billion dollars to activate the private banks sector, especially in the field of small and medium enterprises, as achieve significant revenue and stir the labor market."

He said al-Bolani, that "the central bank allocated five billion dollars to banks and other sectoral, such as industrial, agricultural, housing and real estate," he returned that "accomplishing great to support the private sector, and development of successful national industries, and reform of the national economy."

The Chairman of the Committee of Economy and parliamentary investment, that "the Commission will monitor the disbursement of these funds and spending in order to ensure employ about sound away from the wastage mechanisms," noting that "the central bank for small and medium-sized enterprises support involves a great benefit, for his contribution to the provision of job opportunities in the private and the reduction of unemployment sector" .

Bolani said, that "the Commission and the competent counterpart to work, Sttaavan labor law legislation to ensure workers in the private sector rights."

For his part, he saw economic expert, on behalf of Antoine, that "the Central Bank has decided to lend to banks productivity, to enable them to cope with the scarcity of liquidity due to low oil prices."

Said Antoine, in an interview to the (long-Presse), "The central bank move to allocate five billion dollars for the banks sector came to finance the production process and create jobs and prevent a recession in the country," returned as "will fill a lot of government obligations to contractors and business owners."

According to the economist, that "the central bank initiative will create new jobs, especially in the industry, in line with the government's plan to activate the productive sectors, to offset the decline in sales in the oil sector, and to prevent an economic crisis in the country."

The study estimated that the local government banks' capital reached until October of 2012 last end, a total of 754 billion dinars, compared with more than four billion dinars for private banks, and investment balances in banks operating in Iraq recorded up to 10/31/2012, a sum nearly six billion dinars (5.947), the share of government banks which amounted to 4.929 billion, compared to 1.018 billion for private banks.

Iraq's banking system consists of forty-three banks as well as the Central Bank and distributed by property between (7) state banks and 30 Islamic banks waged including seven in addition to six foreign banks.

And witness the private sector has deteriorated significantly after the year 2003, due to lift government support him, which led to most of the laboratories and factories stopped working because of their inability to compete with imported subsidized goods in the countries where they come from, which imported large fee operations are not subject, as well as local problems resulting from fuel and energy crises and lawlessness, and aging equipment.

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