Euphrates Center discusses the development of the banking sector in Iraq, Karbala model
Monday, April 27 / April 2015 - 20:19
Euphrates Center for Development and Strategic Studies
Contract Euphrates Center for Development and Strategic Studies in collaboration with the Economic Commission of the Council of the holy city of Karbala specialized seminar entitled: (development of the banking sector in Iraq Karbala model) on the provincial council hall on Thursday, a brief summary of 04/24/2015, which began from ten in the morning, and even the second capacitance afternoon ..
The seminar opened with a speech center of the Euphrates Development and Strategic Studies, delivered the center's director, Dr. Khalid Silverline Aerada which focused on the importance of cooperation between research centers, government institutions and on the active role played by research and studies centers in providing solutions, processors, and visions of the right to the decision maker to skip difficulties and overcome them in government institutions also thanked Aerada provincial council affiliated Economic Commission on ownership by cooperation with the Centre, after the Center delivered the seminar management to Dr. Hashim Mrzuk Shammari teaching at the College of Management and Economics, University of Karbala, and the Director of Episode Summary important in economic affairs end namely: Dr. Ahmed Abrihi Ali, deputy governor of the central bank earlier, and Dr. Abdullah al-Bandar, the national investment adviser.
the challenges of the banking sector in Iraq
began, Dr. Ahmed Bureihi research paper, which was titled: "The banking sector challenges in Iraq," which he addressed the most important financial and economic problems in Iraq, in which he explained that the Iraqi economy in general suffers from a well-known to all the problems, and this year in particular is suffering from a financial crisis and not a cash crisis, has made clear to the presence of the difference between the financial crisis and the crisis in liquidity. He said the problem is insufficient income and mean a problem in the public finances and stressed that the Iraqi economy is suffering from a financial deficit and not in cash. This deficit was caused by a significant drop in oil prices. And accept a number of times in which the price of oil has fallen since the eighties until 2014, explained the economic and financial crisis experienced by the Iraqi economy during these years.
He added that increasing government spending, accompanied by lower oil prices poses these crises. He explained another reason and whatever the economic crisis in Iraq, which is a reduction of agricultural and industrial production and continued to deteriorate with stops and the deterioration of the investment motives; and due to the continuing deterioration of the capabilities of Iraq's international competitiveness, leading to a decline in investment capabilities. Turning to the social and institutional reasons for this decline, saying that the Iraqi man accustomed to dealing with the government and public affairs taking mentality, grab, and assessment, and use. The government is a place of wealth for him and he has to cut part of it. This is the logic that governs the relationship of citizen to the state makes him evade their tax obligations. As the introduction of a tax is the same nationally, and is opposed to this project.
He Abrihi to most Western countries to adopt the economics of the tax, which may be up to 40% of the national income, was formed in the states 60% of per capita income. He pointed out that the administrative and financial corruption is the most important reasons for the Iraqi financial crisis, and this corruption seemed to move from the public sector to the private sector.
and he stopped at the axis of money and banks in Iraq and under tables and statistics documented and presented to the public in terms of the meaning of the monetary base in the Iraqi Central Bank consists of net International Asset Bank of gold and special drawing rights and net foreign assets plus net domestic credit, and the corresponding liabilities agenda consists banks reserves (deposits at the bank, currency held by the banks) in addition to currency trading. He said the foreign assets in banks is the largest of the issued currency, which is more than 200% in 2014. It said the monetary base, which consists of oil revenues with the accumulation of foreign currency dropped down oil prices and led to a lack of proliferation in the banking system.
And interest rates high (31-14%) between the government and private, said the benefits imposed on lending rates are very high due to the appreciation of banks at risk is very large; because of the failure of those loans, but this does not offset by monetary action to eliminate these risks.
banking reality in Iraq and Karbala
after the completion of Dr. Ahmed Bureihi his paper, Dr. Abdullah al-Bandar, the national investment adviser began an intervention in which he discussed the banking reality in Iraq and Karbala. He said the basic problem is the economic problem, and that the economic decision-making, and technical and vocational collide with political quotas decisions, we need to processors and processors must be imposed by law and he stopped at the problem of lack of income and how to address the shortages and increase Turning to the establishment of special projects for investment. And how domestic investment to develop and change the economic structure in the province, and exposure to the problems of investors in the province and how to overcome them, and the difference between the interest rates on foreign deposits and low exchange rate or the auction.
Interventions
after the completion of Dr. Abdullah al-Bandar his speech Mr. Nasser al-Khazali, head of the Economic Committee in the province of Karbala occur, He said: We are in the Economic Commission suffer from a number of things and we need more help where we could not achieve during the past two years and 60% of the projects and economic plans. He said al-Khazali: "I tried to work on providing revenue to the province of Karbala from several sources including tourism or quarries; and because of lack of financial allocations, knowing that our province attracts visitors and it is possible to impose the fees under the law of 21 provinces irregular province. He Khazali on the existence of deterioration economic and clear in Karbala, and we have 15 plants dependent or semi-dependent in Karbala. We need real help and any economic advancement of the industrial sector in Karbala faces fierce war as if everyone is greedy to quell the economic reality in Karbala.
After completing a professor Nasser al-Khazali display the economic problems in the province open Dr. Hashim Mrzuk Shammari episode director door to dialogue and discussion with the audience of economists and researchers in relevant: -
- Mrs. Howrah Abdullah Abbas, director of the Iraqi Federation of Industries, which talked about the most important problems that the Iraqi investment faced; and by the non-local product protection, and allow to enter the inferior products up without censorship to compete with local product unfair competition.
- Economic researcher Mohammed Sudani, confirmed that promote the development of the regions of what is the custom now and because of the increasing population growth is not enough, and pointed to studies presented to several destinations reported a number of recommendations, including: reliance on a system holding companies, and participation and Murabaha, and sustainable development. Sudanese suggested activating the private sector in order to compete with the public sector.
- Dr. Abbas Kadhim Daami of Karbala University School of Management and Economics, said: We have problems in the private sector, the banking sector and its role in development is still weak; and because of the low confidence between banks and individuals noticed the presence of low savings and individuals prefer to keep their savings in their homes, and this leads to a decline in bank liquidity because of these fears as the savers are hampered by some of the legislation and regulations governing the process, also pointed to weakness in the accounting systems, and non-use of technology in the banking business enough.
- Professor Ahmed al-Shammari Director of the Legal Department in the Investment Authority in Karbala pointed out that the banks relationship with investors is poor; because when the investor gets the investment license go to banks Faistdm safeguards imposed crippling it. Note that the Industrial Bank lends the investor who has a vacation industrial development and not an investment license.
- Dr. Khalid Aerada director Euphrates Center said that Iraq where 30% below the poverty line and the remaining low-income people in this case the investment for the poor or the rich? He added that the decision-maker must be proactive to overcome obstacles; but in fact does not make the proper effort to bypass the red lines that needs to be bolder to overcome them, and confirmed that the killing of the economy and weaken it is a terrorist attack and wondered: How can we protect our economy? We have no policy to protect domestic product.
After the interventions by economic researchers and practitioners in the Iraqi economic sector in Karbala, following the researchers, Dr. Ahmed Bureihi Ali and Dr. Abdullah Al-Bandar on the questions raised and Alastfhamat on economic and banking sector in particular in Karbala and ways to address them, said Dr. Abrihi: We must really mean reform does not stand for the scene, and identify the obstacles that have prevented the existence of a foreign investor; and this work will take years, not months, and the real intention of directly reform.
At the end of the seminar provided a number of recommendations concerning the Iraqi economic reality in the House of Commons and Karbalai in particular, namely:
1. that the Iraqi state to adopt programs and actual plans for reform.
2. Everyone has to convince businesses that deal gentle persuasion with banks borrowing issue.
3. The government should impose law and professional to eliminate administrative and financial corruption.
4. Develop credit management and risk management of all kinds.
5-that the government go to the development of (the stock market in Iraq), which is very underdeveloped market can not help the banks to repay the debt; because the total value of the shares is not commensurate with the value of domestic production. Karbala / behalf Hasnawi
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Monday, April 27 / April 2015 - 20:19
Euphrates Center for Development and Strategic Studies
Contract Euphrates Center for Development and Strategic Studies in collaboration with the Economic Commission of the Council of the holy city of Karbala specialized seminar entitled: (development of the banking sector in Iraq Karbala model) on the provincial council hall on Thursday, a brief summary of 04/24/2015, which began from ten in the morning, and even the second capacitance afternoon ..
The seminar opened with a speech center of the Euphrates Development and Strategic Studies, delivered the center's director, Dr. Khalid Silverline Aerada which focused on the importance of cooperation between research centers, government institutions and on the active role played by research and studies centers in providing solutions, processors, and visions of the right to the decision maker to skip difficulties and overcome them in government institutions also thanked Aerada provincial council affiliated Economic Commission on ownership by cooperation with the Centre, after the Center delivered the seminar management to Dr. Hashim Mrzuk Shammari teaching at the College of Management and Economics, University of Karbala, and the Director of Episode Summary important in economic affairs end namely: Dr. Ahmed Abrihi Ali, deputy governor of the central bank earlier, and Dr. Abdullah al-Bandar, the national investment adviser.
the challenges of the banking sector in Iraq
began, Dr. Ahmed Bureihi research paper, which was titled: "The banking sector challenges in Iraq," which he addressed the most important financial and economic problems in Iraq, in which he explained that the Iraqi economy in general suffers from a well-known to all the problems, and this year in particular is suffering from a financial crisis and not a cash crisis, has made clear to the presence of the difference between the financial crisis and the crisis in liquidity. He said the problem is insufficient income and mean a problem in the public finances and stressed that the Iraqi economy is suffering from a financial deficit and not in cash. This deficit was caused by a significant drop in oil prices. And accept a number of times in which the price of oil has fallen since the eighties until 2014, explained the economic and financial crisis experienced by the Iraqi economy during these years.
He added that increasing government spending, accompanied by lower oil prices poses these crises. He explained another reason and whatever the economic crisis in Iraq, which is a reduction of agricultural and industrial production and continued to deteriorate with stops and the deterioration of the investment motives; and due to the continuing deterioration of the capabilities of Iraq's international competitiveness, leading to a decline in investment capabilities. Turning to the social and institutional reasons for this decline, saying that the Iraqi man accustomed to dealing with the government and public affairs taking mentality, grab, and assessment, and use. The government is a place of wealth for him and he has to cut part of it. This is the logic that governs the relationship of citizen to the state makes him evade their tax obligations. As the introduction of a tax is the same nationally, and is opposed to this project.
He Abrihi to most Western countries to adopt the economics of the tax, which may be up to 40% of the national income, was formed in the states 60% of per capita income. He pointed out that the administrative and financial corruption is the most important reasons for the Iraqi financial crisis, and this corruption seemed to move from the public sector to the private sector.
and he stopped at the axis of money and banks in Iraq and under tables and statistics documented and presented to the public in terms of the meaning of the monetary base in the Iraqi Central Bank consists of net International Asset Bank of gold and special drawing rights and net foreign assets plus net domestic credit, and the corresponding liabilities agenda consists banks reserves (deposits at the bank, currency held by the banks) in addition to currency trading. He said the foreign assets in banks is the largest of the issued currency, which is more than 200% in 2014. It said the monetary base, which consists of oil revenues with the accumulation of foreign currency dropped down oil prices and led to a lack of proliferation in the banking system.
And interest rates high (31-14%) between the government and private, said the benefits imposed on lending rates are very high due to the appreciation of banks at risk is very large; because of the failure of those loans, but this does not offset by monetary action to eliminate these risks.
banking reality in Iraq and Karbala
after the completion of Dr. Ahmed Bureihi his paper, Dr. Abdullah al-Bandar, the national investment adviser began an intervention in which he discussed the banking reality in Iraq and Karbala. He said the basic problem is the economic problem, and that the economic decision-making, and technical and vocational collide with political quotas decisions, we need to processors and processors must be imposed by law and he stopped at the problem of lack of income and how to address the shortages and increase Turning to the establishment of special projects for investment. And how domestic investment to develop and change the economic structure in the province, and exposure to the problems of investors in the province and how to overcome them, and the difference between the interest rates on foreign deposits and low exchange rate or the auction.
Interventions
after the completion of Dr. Abdullah al-Bandar his speech Mr. Nasser al-Khazali, head of the Economic Committee in the province of Karbala occur, He said: We are in the Economic Commission suffer from a number of things and we need more help where we could not achieve during the past two years and 60% of the projects and economic plans. He said al-Khazali: "I tried to work on providing revenue to the province of Karbala from several sources including tourism or quarries; and because of lack of financial allocations, knowing that our province attracts visitors and it is possible to impose the fees under the law of 21 provinces irregular province. He Khazali on the existence of deterioration economic and clear in Karbala, and we have 15 plants dependent or semi-dependent in Karbala. We need real help and any economic advancement of the industrial sector in Karbala faces fierce war as if everyone is greedy to quell the economic reality in Karbala.
After completing a professor Nasser al-Khazali display the economic problems in the province open Dr. Hashim Mrzuk Shammari episode director door to dialogue and discussion with the audience of economists and researchers in relevant: -
- Mrs. Howrah Abdullah Abbas, director of the Iraqi Federation of Industries, which talked about the most important problems that the Iraqi investment faced; and by the non-local product protection, and allow to enter the inferior products up without censorship to compete with local product unfair competition.
- Economic researcher Mohammed Sudani, confirmed that promote the development of the regions of what is the custom now and because of the increasing population growth is not enough, and pointed to studies presented to several destinations reported a number of recommendations, including: reliance on a system holding companies, and participation and Murabaha, and sustainable development. Sudanese suggested activating the private sector in order to compete with the public sector.
- Dr. Abbas Kadhim Daami of Karbala University School of Management and Economics, said: We have problems in the private sector, the banking sector and its role in development is still weak; and because of the low confidence between banks and individuals noticed the presence of low savings and individuals prefer to keep their savings in their homes, and this leads to a decline in bank liquidity because of these fears as the savers are hampered by some of the legislation and regulations governing the process, also pointed to weakness in the accounting systems, and non-use of technology in the banking business enough.
- Professor Ahmed al-Shammari Director of the Legal Department in the Investment Authority in Karbala pointed out that the banks relationship with investors is poor; because when the investor gets the investment license go to banks Faistdm safeguards imposed crippling it. Note that the Industrial Bank lends the investor who has a vacation industrial development and not an investment license.
- Dr. Khalid Aerada director Euphrates Center said that Iraq where 30% below the poverty line and the remaining low-income people in this case the investment for the poor or the rich? He added that the decision-maker must be proactive to overcome obstacles; but in fact does not make the proper effort to bypass the red lines that needs to be bolder to overcome them, and confirmed that the killing of the economy and weaken it is a terrorist attack and wondered: How can we protect our economy? We have no policy to protect domestic product.
After the interventions by economic researchers and practitioners in the Iraqi economic sector in Karbala, following the researchers, Dr. Ahmed Bureihi Ali and Dr. Abdullah Al-Bandar on the questions raised and Alastfhamat on economic and banking sector in particular in Karbala and ways to address them, said Dr. Abrihi: We must really mean reform does not stand for the scene, and identify the obstacles that have prevented the existence of a foreign investor; and this work will take years, not months, and the real intention of directly reform.
At the end of the seminar provided a number of recommendations concerning the Iraqi economic reality in the House of Commons and Karbalai in particular, namely:
1. that the Iraqi state to adopt programs and actual plans for reform.
2. Everyone has to convince businesses that deal gentle persuasion with banks borrowing issue.
3. The government should impose law and professional to eliminate administrative and financial corruption.
4. Develop credit management and risk management of all kinds.
5-that the government go to the development of (the stock market in Iraq), which is very underdeveloped market can not help the banks to repay the debt; because the total value of the shares is not commensurate with the value of domestic production. Karbala / behalf Hasnawi
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