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The banking sector in the white paper https://economy-news.net/content.php?id=22523 Samir Al-Nasiri Samir Nasiri * While we appreciate the effort made by the government and the Financial Reform Cell in preparing and issuing the white paper, which is the road map for economic reform desired for the coming years, and the white paper on pages 56 and 57 identified the main objectives of reforming the banking sector in the medium and long term between (35) years, which are in The truth is a general diagnosis of the problems and challenges of the banking sector, which have already been diagnosed by the Central Bank and the World Bank, and urgent and strategic solutions and mechanisms have been developed for them, as is evident in the Central Bank’s strategy (2016-2020) and strategic banking projects for the years (2019-2023). The paper is on the general goals of banking reform and as follows: - First - to allow private banks to take their role as a lever for the economy and to end the role of government banks as an arm of bank financing. Second - Tackling bank default, the forced merging of troubled banks, and restoring confidence with the public. Third - Providing the appropriate environment to encourage banks to lend to stimulate the economy. Practicing the real business and not relying entirely on the currency window, guarantee fees and other bank fees. Fourth - Completing the application of international accounting standards (IFRS) and developing the banking business using modern banking technologies. But what clearly indicates on the paper is that it did not specify solutions, mechanisms and urgent procedures to contribute to addressing the challenges and repercussions that the governmental and private banking sector suffers from. It is also noted that the private banking sector was not involved in discussions of preparing the paper. Therefore, the reform goals were general and were not based on detailed observations about what the banks are suffering from. problems and obstacles to the work of current stand in front of the achievement of the goals of reform , so we believe that the white paper needs to clarify the urgent treatment and at least be allocated in 2021 to achieve for the purpose of building a real base for reform Almsrgi sector can be identified measures and urgent solutions to reform banking as I see the following: - First-taking Immediate decisions to restore balance between government and private banks in terms of capital, activity and tasks, and focus on starting to restructure the Rafidain and Rasheed banks, according to what has been agreed with the World Bank several years ago. As it is noted from my analytical readings of the official data and statistics issued by the Central Bank until 2019. The structure of the Iraqi banking sector consists of 7 government banks that account for 86% of the total deposits of the government and the public and 78% of the total assets, and private banks constitute 72 commercial and Islamic banks and invest 78% From the capital of the Iraqi banking sector and did not get only 13% of the total annual profits achieved at the total level, and this is very problematic. Secondly, through an analytical view of the reality of the Iraqi economy and the challenges facing the financial and monetary policies, in particular stimulating and revitalizing the economy through bank financing and banking facilities, inequality and balance between government and private banks in government support and activity stand as an obstacle to that, and this confirms that private banks Urgent and immediate need for government support by studying its problems in the current situation in the Emergency Cell for Financial Reform, in the presence of representatives of the private banking sector. Third: Take immediate measures by redistributing the banking density of private banks in proportion to the actual need of the Iraqi economy and towards stopping the granting of new licenses to establish new banks and starting to rehabilitate troubled banks, whose number exceeded 20, and to study the economic feasibility of continuing to operate or integrate them in accordance with the consolidation guide issued by the Central Bank In the year 2019 , however, that requires special efforts and requirements in the work environment in Iraq. Third ‐ The nature of bank activities depends on the nature of the activities of other economic sectors, and as long as the economic activity is concentrated in trade (imports), the banking activity remains focused on external conversion, and this means that the problem of the currency window is not in the supply of dollars from the central bank, but the reason is the demand for the dollar. Therefore, unless other sectors (industry, agriculture, tourism, etc.) move, we will not expect banking activity to diversify. It is worth noting that without controlling imports, these sectors will not rise, because without support for the local product, the demand for the dollar cannot be reduced. Fourthly, the legal environment must be provided and the authority of the law extended in order to eliminate the phenomenon of default in repayment of loans, as bad debts amounted to up to (5 trillion dinars), 70% of which are government bank debts and 30% of private bank debts, which constitute a large proportion of the total Granted cash credit, and thus banks ’reluctance to provide loans and banking facilities. Fifthly Immediately start implementing the decisions of the Council of Ministers and the Economic Affairs Committee in the Council of Ministers, which were previously issued to support the banking sector, in particular private banks, opening accounts for ministries and government departments, accepting certified instruments and opening documentary credits to the government in the amount of $ 50 million without going through the Ministry of Finance and the Iraqi Trade Bank And other decisions related to borrowing for investment projects, the collection of taxes and customs fees, and the settlement of salaries. Because on the contrary, it will hamper the business and activities of private banks and greatly affect their liquidity, revenues and deposits, and delay the transfer of banks from the role of banking to the developmental role, as confirmed in the white paper. Sixth: Activating the Financial Services Court formed in accordance with the Central Bank Law No. Seventh, considering bad debt claims owed by clients in private banks as urgent and excellent debt cases, similar to government debts. Eighth: In addition to the efforts made by the Central Bank, the government must also work to create conditions and take measures to help private banks obtain an internationally approved credit rating, and thus strengthen international banking relations with correspondent banks. * Banking expert Number of observations: 110, date of addition 11/03/2020

Al-Nasiri: Overcoming our economic crisis depends on urgent and strategic remedies and sincere intentions to stimulate the productive sectors and diversify sources of revenue money and business Economy News _ Baghdad The economic and banking expert, Samir al-Nasiri, explained that in light of the current situation and the midst of the popular movement, economic and financial crises, the challenges of falling oil prices and instability and the implications of the Corona delinquency that our beloved country is going through, the Iraqi economy, through study, analysis, capabilities, and available factors, can overcome the imbalances And the deviations, and poor performance in the economic structure and the achievement of balanced and varied economic and structural reforms of the economy, with the premise of overcoming the objective and subjective economic conditions in the country. Waad Al-Nusiri, in an interview with Al-Eqtisad News, motivates, encourages and supports the private sector according to the vision of the private sector development strategy (2014-2030), which is based on the provisions of Article 25 of the Constitution which states (the development of a vibrant and prosperous national private sector that is locally initiated, regionally competitive and integrated globally. In order to achieve economic diversification, sustainable development and job creation (in the necessary and appropriate step), pointing out the need to leave the rentier economy based on 93% of oil revenues and to develop other vital economic sectors, agricultural, industrial, and tourism through, restructuring state-owned industries and a gradual shift towards the sector The private sector, and encouraging partnerships with local and foreign investors as well as, reviewing the legislative environment for the work of the industry, providing the infrastructure to secure the requirements of the work environment, and expanding the establishment of industrial zones. And Al-Nusairi indicated the advancement of agricultural production and livestock, the provision of effective supplies and treatments for fields and farms, maintenance of irrigation and drainage projects, support for agricultural products intended for export, improvement of the quality of seeds and the state's guarantee of prices, as well as providing support for small and medium enterprises and granting soft loans, ensuring the elements of resilience and economic advancement. He stressed that the country's suffering from its stifling economic and financial crises for the above reasons has not gone through it since the 1990s and the imposition of the economic blockade at that time as a result of the lack of sincere and real intentions for economic reform, the loss of the methodology and the structural imbalance in the economy as well as mismanagement of public money and the failure to approve the general budget for the year 2o2o, Not to mention disposing of the country's money without rational economic and financial planning. Al-Nusairi indicated that the reports issued by the World Bank, the most recent of which is the recent report on the advancement of the Iraqi economy from fragility, indicate that Iraq and some oil-producing countries will suffer from the oil rent and the fluctuation of its prices, down and up, which will fail all the countries' development plans for the coming years without taking the initiative to develop their other resources. And diversify sources of revenue. And since the country has the elements of resilience and economic advancement, which is represented by the fact that it has the fourth oil reserves in the world in addition to a workforce estimated at more than 10 million people who are able to work, and experts in economics and money who have academic and executive experiences, they can overcome the crisis and exit well, by providing A suitable work environment and ensuring an encouraging investment climate to attract private capital and contribute to economic development. And stimulating the productive sectors in agriculture, industry and tourism, and reviewing the structure and presentation of the public budget. Al-Nusiri concluded his speech by referring to the deficiency of the legislative environment for managing the economy and the laws that regulate economic work, which calls for reviewing and making fundamental adjustments for all of them in line with the new economic management situation, to reduce unemployment that has risen to more than 30 percent and the poverty rate that exceeded 30 percent, which are two indicators. Two negative indications of the aggravation of the Iraqi economy crisis. Number of observations 46 Date of addendum 10/27/2020