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Hue Mi
11-11-2013, 09:20 AM
Private banks tend to invest its liquidity in development projects (http://www.alsabaah.iq/ArticleShow.aspx?ID=58184)

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11/11/13, 12: 00 am

Aggregate loans and Treasury bonds highlighted its

Baghdad Hussein thghb Al-Tamimi

Returned on the lifting or raising capital for private banks to 250 billion dinars to the spotlight and controversy about the importance of raising their performance despite the consensus on the need to achieve this goal but differ on ways of asstthmarha under certain restrictions in the law of private banks in particular in articles (27) and (28), which encountered many objections by specialists and stakeholders as being tied to some investment activities by some concerned.

Real development

But it seems that the Association of private banks in Iraq settled the order to go to access the capital invested for development that reached its Chairman Adnan Chalabi said in an interview with (morning) and we need to start serious steps by contributing loans aggregate provided by several banks to finance and lending to strategic development projects to contribute to the real development and operation of the liquidity generated by raising capital.

Syndicated loan

Turning mechanism in such a banking service developed the process, said Chalabi's bank or two or 3 business loan common controls and mechanisms to guarantee the rights of parties through one of these banks to do the job and this action of course carried out with the approval and supervision of the Central Bank, and we believe that this kind of investment will lead to real improvements in infrastructure projects as a result of their actions.

Chalabi is responding in the projects should be financed through loans aggregate those affecting life and housing projects, schools and the active role of banks in development through job creation and run many other units of compromising the process of reconstruction.

Multiple services

Chalabi said that this type of funding available in most countries in the world and has contributed to the implementation of strategic projects.

Turning to question (the morning) on further steps to help banks in the diversification of banking services to enhance development programmes suggested that Chalabi, strengthening the capacity of banks to liquidity through the issuance of Treasury bonds, the measure requires the approval of the Central Bank by official bond issue negotiable in Iraq market for securities and of interest for the development and this depends on the decision by the Ministry of finance and the Central Bank.

Unlisted bonds

These bonds for trading by citizens rather than deposits for cash, buying bonds guaranteed the entire duration of its value and the sale and purchase and lucrative for the citizen and at the same time the amount invested by the banks and would go for investment and development.

However, Chalabi said these trends were seriously alaanha currently studying and then blorthaothadid goals and mechanisms, to the authorities concerned for validation and approval being would reduce inflation and withdraw excess liquidity.

New directions

And the timing of the application of this mechanism was Chalabi with the expectation that the mid-2014 as the date for the launch of the new feature to many other directions of association with nearby structure. pointing out that the League is heading over the next period to urge banks to interact among themselves with a view to revitalizing the banking business and promote products to the public, adding that advanced technology began turning sections of several banks and numerous products and represents the target of the most discreet banks.