Call banks to finance development projects

14/05/2013 12:00 AM

Hafiz: Investment deposits meaningful opportunity for profits and boost the economy

Baghdad - شكران the Fatlawi

Collect experts and specialists in the economic and financial potential contribution of Iraqi banks in the financing of economic development projects through joint loans of medium and long term., And pointed out that there is a phenomenon chronic afflicting banks are embracing high liquidity may reach 50 percent of the capital of banks, but to no avail or contribute to the development because of the administration's inability to be invested into our circle of harsh criticism from several quarters ago. said economic expert d. Mehdi al-Hafez in an exclusive interview »Sabah» that this phenomenon can be addressed by establishing a pool bank (Banking Consortium) that provides loans are grouped (Syndicated Loans) medium and long-term lending to the business sector in order to finance existing projects or establish new projects., Adding that the feet of banks the allocation of a percentage of deposits to invest supporting the national economy and gives banks invest their money with meaningful opportunities and thus lead to improved performance and increased profits, pointing to the distribution of risks to the largest number of participants in the consolidated loan.


Two agreements


The banking expert conciliator Hassan Mahmoud Vivq with Hafiz to embrace the idea of ​​founding assembly banking Alconsort day but he sees the need to develop a mechanism Court to make this gathering via authoring committee based the conclusion of two agreements in this regard. First agreement concerning funders and the second private banks are willing to assume responsibility for management of syndicated loans. He said in the event announced assembly willingness to finance economic development projects will be the establishment of new projects and the provision of capital operation (Warking Capital) pointing to the financing of new production lines, financing and purchase technology in addition to funding projects complexes housing, hotels and restructuring of existing projects.


Coalition banker


He called Mahmoud need to form a pool or a coalition banker as Musharraf consists of the Association of private banks and the Bank Iraqi Trade and bankers specialists shall form a pool bank (Banking Consortium) from a number of banks, insurance companies and international institutions like the World Bank and arm financial Ifc as well as Opic stressing that failure to do thus lead to a denial of the national economy from the investment of capital is not a small code that could contribute to rebuilding the home or rehabilitation of new projects, on the one hand and the other hand, capital investment this if Maatmkn banking system and put it at the disposal of the national economy will have positive effects many noting that the investment is a cornerstone of efforts to revive the economy and stimulate economic activities in his goods and services.

He pointed out that all of this in the best increase in GDP, increase employment and reduce unemployment and increase tax revenues and not only this, but extends to enrich the balance of payments, whether to increase the production of these for the purpose of import or compensation were directed to increase exports.


Poor understanding and coordination


The banking expert on behalf of Jamil Antoine has attributed the reasons for failure of the banking sector to the weakness of understanding and cooperation between the central bank and private banks in terms of providing logistical assistance and technical them. Jameel said there are weak understanding and joint coordination between the central bank and private banks regarding the evolution of the banking system and to identify the most important constraints banking to find solutions to them, adding that this spacing between the Central Bank and local banks have made a big gap in their work rendered control and government control over the work of private banks and trading operations of financial and banking sectors. drew Antoine to that in spite of the Investment Law No. 13 of 2006 has excluded investment in the banking sector of its provisions, but the investment in the banking sector takes its legal framework on the basis of legal central bank No. 56 of 2004, banks No. 94 of 2004, with a minimum of the founding of any bank in Iraq's 100 billion Iraqi dinars, up to $ 85 million.

Bank for Reconstruction and Development

For his part, suggested financial advisor d. Akram Mohamed Hassan establish a bank of reconstruction and development of Iraq specific tasks essential help of the private sector in the process of financing investment opportunities long-term more than interested in obtaining capital gains fast. Said the possibility that the Bank provide loans to existing projects and new projects, particularly those projects bound for export to their ability to providing hard currency useful that returns potential generated by these projects are greatly influenced by changes possible exchange rates and interest rates in the international market., and pointed out that the Bank of Reconstruction and Development proposal will provide the necessary funding for these projects may contribute to the decline of these potential risks, pointing out that this orientation may push to encourage foreign capital to participate in these projects which contribute to bring managerial expertise and marketing necessary to raise the chances of success for these projects.

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