Parliamentarians call for establishing a bank shareholder between public and private sectors

[alan_coaks_3]

5 - 13 - 2012

Baghdad/term

Called on parliamentarians to establish an Iraqi bank contributes to the public and private sectors, confirming the importance of the development of the banking system, which is the basis of the investment process in the country.

Witness the banking system Government subsidiary flounder as a result of the absence of a clear and modern banking technology awareness programs, to make its work limited to issuing letters and farewell money.

Member of the Economic Committee Abdullah Abbas sheyaa by (Agency news): the banking needs of modern banking systems suited to the practice in the world showing the Iraqi economy, free market oriented.

Sheyaa: that was the draft founding contributor Bank by the Government and private banks would ease that bear a great burden of Government, provided the Bank was granted some powers that help him contributing to the development of the investment process in the country as open credit and loans and certain other transactions.

It is recalled that the financial deposits by customers of Government banks (90%) Volume of deposits at banks of eligibility because of high public confidence, being supported by the State, although they are technologically advanced.

Said Economic Committee decision mohama Khalil Kassem, Deputy to the banking sector "obsolete" due to unstable conditions of the country, therefore, must develop scientific plans, working President rehabilitation is to attract investors to the Iraq capital.

He said Qassem: rehabilitation involves the departure of red tape in banking, legislation obliges the Iraqi banks develop its work according to the evolution of the world, and help to enter the Iraqi environment to investors.

Qasim said: that the country needed to establish an effective contributor to the Bank by some private banks and with the support of the Government of Iraq to increase its capital and be able to perform the investment process in the country.

And see the investment process in the country deteriorated because of political differences that gave a message that is reassuring for the investor and prevented him from going to Iraq for the purpose of investment.

The Committee member explained that the national body albegari Noora to invest sent a worksheet as amendments to the Iraqi investment law includes special support for Iraqi banks failed for long global banking evolution due to circumstances that passed on Iraq, as well as an intention to convene a Special Conference on how to develop Iraqi banks in parliamentary Economic Committee.

Albegari said that the idea of creating an Iraqi bank will be a successful contributor and would help to promote the investment process in Iraq it would create competition between the Government and private sectors, confirming that reliance on the Government sector would create a significant defect in the Iraqi economy because it supports the free market and not centrally holistic.

And Iraq's banking system consists of three and forty banks as well as the Central Bank and distributed by ownership between (7) and banks (30) communal banks, including Islamic banks (7) in addition to (6) foreign banks.

Although the investment law No. (13) of 2006 investment in the banking sector were excluded from its provisions, however, investment in the banking sector takes its legal framework based on Central Bank legal number (56) of 2004 and banks no. (94) for the year 2004, the minimum to establish a bank in Iraq 100 billion dinars, around 85 million dollars.

My link