Recommendations for the establishment of the Bank for Economic Development

4/2/2014 0:00

Amid calls to bypass the red tape and outdated legislation
BAGHDAD - Hussein al-Tamimi Tgb - Farah pumice


With the escalation of the importance of banks in the world day after day , there is still this important sector in the country suffers from a number of issues hindering progress , as called for increased claims develop modern mechanisms for the development of the banking system in Iraq to become a role player in support of the Iraqi economy .

 Most prominent of these recommendations Generation Bank economic development and give a greater role to the private sector and facilitate the issue of guarantees and reviewing map the spread of the banks in the provinces.


Fiscal policies

In this regard, says economist Tawfiq inhibitor in a statement prolix "morning ": that " economic facts and figures , and that the real challenge for the world now is to build a strong economy and the establishment of balanced economic development and integrated rise and the economic and social reality and moving them towards proper utilization of material and human resources , it is the most important pillars and foundations to achieve the development of the banking sector in Iraq to become an active role in the implementation of fiscal policies . "

He pointed out that "Iraq until this moment missing to set up a bank for economic development , although the Budget Law for the year 2006 approved the establishment of such banks in all provinces to cover the investment services and rebuilding the infrastructure ."

It is said that the secretary-general of the Council of Ministers on the Keywords recently called , to the advancement of the private banking sector in Iraq , through the enactment of laws that will contribute to the development of his work , pointing to the importance of the establishment of a specialized investment bank , to facilitate the entry of foreign capital into Iraq.

He inhibitor that the role of the banking sector, the current role is an influential and effective and closer to neutrality , noting that "the private sector banks are few in number in the stock market as a citizen of Iraq does not invest his money in the institution does not know anything about it and drains most of their capital a family , especially the case of sector banks.

 Like the rest of the private companies registered in the Iraqi market for securities is clear indicators of the weakness of domestic investment . "


Economic activities

And the expert that it leads to the loss of confidence of the citizen companies because of the loss of the vocabulary of good governance in these companies , if the shares of the citizen his money chunky , it means that he will contribute to increasing rates of investment , and thus increase economic activities , adding that the investors a significant role in increasing liquidity and reducing the proportion of inflation of the fact that their contribution to the project will reduce the presence of criticism that will rise its value due to lack of supply , so there is a need to develop the culture of banking , financial, and as soon as possible for the development of banking services , which are almost non-existent, he says.

 also urged inhibitor to show flexibility on the safeguards required by the Iraqi banks private and public , returned them currently Balksria and hard on whether the borrower for loans or simple medium .


He also pointed to the weakness of attention to insurance , which led to a decline in fiscal policy in Iraq , both to secure people or financial , and so far, the National Insurance Company did not deal as a secure real , especially in relation to the re- insurance, and this one of the biggest obstacles in delayed investment , he said.


The expert found that the variation of the geographical distribution of the density of banking in Iraq , is considered a negative situation has affected one way or another in the development of this sector , as increased density in the province of Baghdad, while significantly decreased in some provinces , especially that 89 percent or more of the value of the amounts and the volume of banking transactions in Baghdad .

 criticized inhibitor lack of separation between the capital and the management of banks , especially the banking sector, was established in 1964 as a private sector , but as a result of the decisions of nationalization and so-called law lions at the time , leading to the affected public banking sector routine and contexts of public work , especially as the private sector, the current could not get rid of this node , since most of the workers in the private banks were taken contexts itself and still influence is clear and evident , and this output fact of interruption Iraq on developments in the world during the period of the former regime .

 noted that statistics and the Iraqi Planning Ministry show that the contribution of the private sector in budget the state's general range between 3 percent and 7 percent, the ratio is the opinion of the experts is very weak , compared to the role of this sector in the budgets of some countries which up to about 90 percent in the industrially advanced countries .


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