Central Bank to revive SME initiative

26/9/2018 12:00 am 
 
Revitalizing the labor market and activating the economic cycle 

Baghdad / Shukran al-Fatlawi 

The Governor of the Central Bank of Iraq d. On the need to activate the initiative of the Central Bank of Iraq to finance small and medium enterprises, which aims to stimulate the labor market and activate the economic cycle in the country. 

The banking adviser of the Association of Iraqi Private Banks Samir Nusairi said: "The Governor of the Central Bank addressed during the regular meeting with banks the need to activate the initiative to finance small and medium projects aimed at revitalizing the economic cycle of the country, as well as the contribution of the Iraqi banking sector, both government and private development. 

Trillion dinars 

The Central Bank of Iraq was granted 6 trillion dinars as a payment to help the government in its financial crisis and the development of the economy, including 5 trillion sector loans include housing loans, agricultural and industrial and also a trillion dinars for medium and small projects and is dedicated to private banks. 

He added that "the central bank discussed yesterday the ways to activate the financing of small and medium-sized projects in light of the experience of banks in lending and reconsider the rates of interest approved and stimulate them to increase the number of loans granted to these projects." 

He pointed out that "banks call for giving flexibility in the identification of sectors and projects and reconsider some of the conditions and instructions governing the mechanisms of lending." 

Local market 

A member of the Iraqi National Business Council Haytham al-Bolani said that "the follower of the reality of the local market indicates the operation of a number of small and medium productive projects in some economic joints." 

He pointed out that "the revival of national production starts from the small and medium enterprises that have already begun in Iraq during the last period, albeit in relative terms, because the entrepreneurs relied on financing their own projects, and in solving the small and medium loans, it is different and becomes a significant expansion in the process 
Productivity". 

Production Process 

"The local labor market is in need of medium and small loans, which are the key to reviving the production process in the country," he said. 

He stressed that "banks are required to work to contribute effectively in achieving a high flow in making loans are moving towards real projects, achieving economic feasibility of the national economy and the family economy alike," and these projects contribute to contain unemployment and stimulate the local market, through the provision of employment opportunities Directly within projects and others indirectly in the sectors that support them and supply markets. " 

Dairy products 

"The detailed import of dairy products requires allocations of over $ 300 million, at a time when we can provide this amount to the state treasury when medium and small dairy production projects are set up within the country," Bolani said.   link