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Expert: increase the capital of the banks does not happen, but traces inflationary revive the Iraqi economy
Posted in Business & Finance Wednesday, 14 May 2014 16:47
Iraq / future
Ruled out the head of the Economic Studies at the University of Kufa expert Raad Twigg, inflationary effects occurring as a result of increasing the bank's capital and industrial real estate.
He said that "banks and industrial real estate from banks specialist non-profit, which is intended to Industrial Bank achieve the objectives of productivity and real estate for the purpose of expansion of the residential units for citizens, stressing, that activate the roles of such banks, which offer long-term loans on favorable terms to projects quality will be reflected positively in strengthening its capital and activating the roles of the Ministry of Finance as part of the basis of fiscal policy. "
He said, "Such loans do not lead to inflationary effects Quite the contrary the fact that there is an equivalent of the production capacity of industrial plants and the growth in residential buildings and Monday will lead to absorption of inflationary pressures due to higher prices of imports and condominiums and so these loans is a factor reduced prices and will provide local products in the market at low prices and real estate at bargain prices. "
The economic expert peace Sumaisem confirmed, "The capital increase banks will lead to higher inflation and the emergence of the movement of a rise in prices, especially construction materials and residential lands as a result of real estate loans, noting that it would not represent a solution to the housing problem as much as an outlet would pass pressure inflationary new to the Iraqi economy. "
The Cabinet decided last Tuesday, to increase the capital of the Land Bank an amount of "150" billion dinars to 500 billion dinars.
According to a statement of the General Secretariat of the Council of Ministers, "The Council also decided to increase the capital of the Industrial Bank of an amount of 175 billion dinars, to the amount of $ 500 billion dinars."
The statement said that "the amount of the increase will be funded over the search of the public treasury within the allocations of the federal budget for fiscal years 2014 and 2015, according to the provisions of Article (10) of the Companies Act No. 22 of 1997 as amended."
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Posted in Business & Finance Wednesday, 14 May 2014 16:47
Iraq / future
Ruled out the head of the Economic Studies at the University of Kufa expert Raad Twigg, inflationary effects occurring as a result of increasing the bank's capital and industrial real estate.
He said that "banks and industrial real estate from banks specialist non-profit, which is intended to Industrial Bank achieve the objectives of productivity and real estate for the purpose of expansion of the residential units for citizens, stressing, that activate the roles of such banks, which offer long-term loans on favorable terms to projects quality will be reflected positively in strengthening its capital and activating the roles of the Ministry of Finance as part of the basis of fiscal policy. "
He said, "Such loans do not lead to inflationary effects Quite the contrary the fact that there is an equivalent of the production capacity of industrial plants and the growth in residential buildings and Monday will lead to absorption of inflationary pressures due to higher prices of imports and condominiums and so these loans is a factor reduced prices and will provide local products in the market at low prices and real estate at bargain prices. "
The economic expert peace Sumaisem confirmed, "The capital increase banks will lead to higher inflation and the emergence of the movement of a rise in prices, especially construction materials and residential lands as a result of real estate loans, noting that it would not represent a solution to the housing problem as much as an outlet would pass pressure inflationary new to the Iraqi economy. "
The Cabinet decided last Tuesday, to increase the capital of the Land Bank an amount of "150" billion dinars to 500 billion dinars.
According to a statement of the General Secretariat of the Council of Ministers, "The Council also decided to increase the capital of the Industrial Bank of an amount of 175 billion dinars, to the amount of $ 500 billion dinars."
The statement said that "the amount of the increase will be funded over the search of the public treasury within the allocations of the federal budget for fiscal years 2014 and 2015, according to the provisions of Article (10) of the Companies Act No. 22 of 1997 as amended."
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