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Iraqi private banks stumble and is considering measures to ensure liquidity
3/25/15
The President of the Association of Iraqi private banks meek Handal, that many of the private banks are suffering due to stop many of the borrowers to repay their loans and facilities granted them financial difficulties, pointing out that these difficulties are caused by hot spots as a result of the security and the exceptional situation.
He Handal, who spoke to reporters about the consequences of these continuing difficulties faced by these banks on sector activity in the country, that the Iraqi Association of private banks see that there is an important reason makes the CBI and other stakeholders in the sector to take the required measures to aid private banks covered with difficulty collect the debts. He pointed to the urgent need to support the liquidity of troubled private banks financially and through inter Options may be one of them to provide long-term soft loans or government bonds or symbolic benefits of lifesaving procedures and ways that help these banks to overcome the difficulties.
Handal called to activate inter decisions issued by the Committee on Economic Affairs of the Council of Ministers relating to the banking sector in ways that help to create a common understanding between the central bank and private banks, in the framework of standards in line with the exceptional circumstances experienced by the country's economy, especially the financial and banking sector.
He pointed out that the recommendations of the Economic Commission for Refugees private sector is gaining importance from the fact its call to the credit enhancements to banks specifically for, and activate the channels of financing and credit vessels needed to participate in development projects, pointing out that the small and medium enterprise support is a priority at this stage of its importance to the revitalization of the private sector and operation of labor and the elimination of unemployment.
He explained that many of the private banks, the situation calls for speedy implementation of the recommendation on taking advantage of the legal reserve for private banks, by granting investment loans from the reserve under the supervision of «Central», stressing that the Association of private banks will be eager to coordinate with him in relation to the development of the Ministry of Finance and clear controls to ensure that the rights of depositors in banks. Here, there is a need to accelerate the establishment of a company to guarantee deposits in private banks and other credit guarantee and the creation of a central fund to finance private banks charge to cover the financing of development projects.
He pointed to the possibility of the bank «Iraq» and «rational» deposit part of their money in private banks in exchange for the benefits of soft, what he considered Handal step in the right direction to support private banks, and the provision of liquidity and its contribution to development projects.
Handal touched on the issue of the adoption of appropriate economic policies that will move the labor market and activate the activity of industry, agriculture and services sectors, and considered that such steps also requires the activation of work toward the formation of a supreme body of the banking reform holds the restructuring of the sector, and to reconsider the laws that prevent the performance of private banks its role in the investment.
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