Nazareth calls to reconsider the lending policies

08/12/2015 0:00 BAGHDAD - Hussein al-Tamimi Tgb

The objectives of monetary policy to achieve economic growth and stability and to reduce unemployment and stabilize the prices of goods and services and the stability of exchange rates and improve the balance of payments and to achieve these goals through a direct and indirect their tools.

In this regard, said the financial expert Samir Alnasiri: »that the Iraqi Central Bank is currently preparing a plan for the coming years in the development of policies, programs and mechanisms work, particularly with regard to the applications of monetary policy and means of supervision and control of the Iraqi banking sector and this requires that be considered observations and proposals working to address the gap phenomenon between the financial policies of the state and monetary policies adopted by the Central Bank of Iraq and the requirements of the fight against inflationary pressures and reduce the current expenditure and coordination of plans and programs to achieve the rescue of the Iraqi economy from financial collapse.

» He urged in an interview for »Sabah« the Iraqi Central Bank to do to re-plan and future policies of cash until 2020 with confirmation main goal of dealing with inflation and achieve the planned growth in the contribution of the banking sector in the gross domestic Alajamali.alnasiri suggested activation of the Iraqi Central Bank's policies to control policy cash in the banking system to support and reconsider the policies of lending and mechanisms for credit risk management in the granting of credit to small and medium investment and loans in productivity and investment sectors that achieve cash flow clear and revive the economic cycle so as to contribute to the economic development and diversification of financial resources of the general budget.

He pointed out the importance of the Iraqi Central Bank to reconsider study the possibility of lowering the cap timeout law of the volume of deposits in banks and frozen with the Central Bank of Iraq without investment, noting that the frozen funds can invest and benefit from the support of private banks and enable them to expand their investment activities and the search for banking products It also requires the development of new lending to banks, which suffer from a severe liquidity crisis due to the general economic situation that Iraq is going through mechanisms.

And student development and support and stimulate the Iraq Stock Exchange and to find the means and tools that push for lifting the market and companies index prices in line, assets and standard output and profits, at least certainly for the true value of stocks and prevent speculation that harm the Iraqi assets which does not fit the true and actual value.

And preferred Alnasiri the Central Bank of Iraq to reconsider the instructions for auction foreign currency and regulate the sale of dollar process and define the role of banks in the mediation between the customer and the central bank, in addition to determine the responsibility of the Ministry of Trade, Finance and Planning in the irregularities committed by some customers and not to blame for banks Vqt.wachar to the importance of the establishment of (fund) or (a private portfolio) to certificates of deposit issued by banks wishing to address the deterioration of stock prices in the Iraq Stock Exchange and the addition of new banking management of the current investment investment climate in the market to stimulate as well as increasing the volume of bank deposits, leading to increased investment activities of all economic sectors and then achieve positive impact for investors, pointing to the establishment of boards of directors in banks passage of strategic, operational risks and implementation of the executive management of the bank to ensure that the operational risks associated with all types of banking products selected. And provide a base of information flowing in the bank, which play an important and key role in establishing and maintaining effective framework for operational risk management and follow-up over the banks owning an effective system for identifying, measuring and monitoring operational risk as part of risk management.

He stressed to reconsider a provision for doubtful debts in accordance with the list of guidance and re-elasticities and extended extra time for banks to be able to liquidate these debts, most of which go back to earlier periods and most debtors have migrated outside Iraq for security reasons beyond their control and that these ratios lead to a reduction in profits earned actually the result of deducting these percentages of net profit and thus affect the new investment banking activities.

He concluded his speech by emphasizing the restructuring of the banking sector, especially the government banking sector and to study the privatization of some of its divisions, branches and work on activating the operating banks expand and diversify their banking services especially to increase credit and investment share in a balanced manner with revenues of college to become these banks an effective pillar of economic growth that the move away from the monopoly of some operations Banking and block government activities and public institutions for private banks.

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