Restore confidence in the banking sector contributes to the provision of liquidity

11/24/2015 0:00 BAGHDAD - the joy of pumice


Economists attributed the lack of liquidity in the trading market daily to the weakness of the Iraqi people confidence in the banking sector, and the impact of fiscal policy in the liquidity available in the market size achieved through spending in the framework of the implementation of the general budget annually, calling for work to restore confidence in this important sector.

And it caused a lack of fiscal revenue earned from the oil sector due to lower prices globally, pressing the government spending, which led to most of the monitoring revenues and operating budget for the provision of wages and salaries in return investment projects that promised one of the challenges that have affected the lack of liquidity of cash in circulation has stopped.

The operational budget is estimated in the budget of next year 2016 more than 83 trillion dinars, or about 80 percent of the support of the general budget revenues.

In this regard, he said economic expert on behalf of Antoine: The «exacerbate the issue of lack of liquidity in the local market at present, has formed a burden on the citizens, also led to some banks failure to pay some depositors benefits they have to pay some companies salaries».

He noted Antoine that one of the reasons for the lack of liquidity is the weakness of citizens and depositors and business confidence in the banking system, which led to the withdrawal of nearly 60 percent of the cash flow, in addition to the amounts of dollar from banks and Aktnazha in homes for fear of lack of the bank's failure to repay the citizen benefits in times of need .

He added that this process has created a paralysis of economic life, the impact of what in fact the Iraqi market and froze the activities of a large number of business processes and stop projects.

For his part, the economic expert d. As Abdul Hadi that the issue of liquidity in the economy is one of the basic tasks of the central banks. He said Abdul Hadi: «in order to sustain employment and economic activities must meet the commodity transactions that depend on available liquidity in the economy, where the central works to achieve balance between commodity and cash transactions to maintain price stability without cash transactions to be there is an increase or decrease in liquidity. »

As he saw that one of the reasons for the low liquidity in circulation cash recently, a lack of oil revenues that contributed to the decrease in government spending in the investment aspects, as well as private spending, as well as reservation individuals as a result of expectations of a pessimistic because of foggy statements for the future of the economy and the outlook is optimistic for the high oil prices in the future.

As regards the framework of lending, Vnoh expert that when the government increases the lending operations, they crowd out the private sector to make sense of what is little liquidity in banks leads to the inability of the private sector to obtain sufficient funds to complete its work and sustain investment projects.

With regard to the necessary solutions that limit the lack of liquidity and bring it back to the banks in order to circulation and completion of commercial and investment operations to provide cash, experts Antoine Abdul Hadi stressed the need to reassure citizens and individuals by financial stakeholders, to return the money chunky in homes to banks.

He described Antoine this kind of compactness b {compactness savings », urging to turn it into a« investment savings »by returning the amounts by individuals to banks and the benefits of a rewarding and guaranteed by financial authorities legislation guarantee deposits law, what drives the Iraqi market and the elimination of unemployment and re-business and investment banks.

He stressed the need to restore confidence in the banking system, and administered private banking institutions efficiently and serious, pointing out that such large amounts of cash chunky could be loans to the government to borrow from international organizations, rather than the conditions of work and the experiences of some Arab countries, what makes Iraq It has made reinvigorating the market.

Another solution to this problem, Antoine importance explained reduce cash circulation in the market by treating cash cards avoids citizen many problems Kaltlv and theft of cash categories, along with maintaining the liquidity in the Almassarv.mn other hand, Abdul Hadi called on the government to make way for larger the private sector on the subject of lending, and not on what Mzahmth available liquidity at the banks.

Also believed that the main dilemma is in the nature of the Iraqi banking business, especially as the banks cautious in lending to the private sector of the high risks in the Iraqi market, stressing the need to reform the banking sector to restore customer confidence in dealing with the banks, particularly private
Including.

Between experts and economists that the application of these solutions to the problem of liquidity is the responsibility of the concerned authorities as well as the significant role played by the media in spreading awareness
Society.


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