Private banks appealed to the Government to lift the restrictions on their activity


Iraq has more than ten years one of the countries of market economy economy-page folding elawamry and bureaucratic central planning in the years before the 2003 change, or so it is on paper. But reality tells another story.

The State remains the largest employer in Iraq in strategic sectors such as oil and minerals, electricity and railways. While allowing the private sector to work in the banking sector, the State banks accounted for the lion's share of transactions and transfers, deposits, credits and bank loans.

This discrepancy between the declared policy to rely on private-sector initiative to build a national economy and drive growth and continued state control over key economic sectors.

With regard to the banking sector specifically, government officials, the first to admit that this sector needs radical reform in particular, that the conditions of Iraq as it went through wars and isolation in the years of international sanctions left bank sector lags behind developments in banking.

Private banks are still saddled with restrictions to prevent the takeoff to contribute to the development of the banking sector and expanding the options available to the ordinary citizen and the investor of banking products and services.

The Government has promised to make adjustments in this area to facilitate the work of the private banks. But the Administration contends that its Government remained in the box promises and did not come into implementation in practice.

Radio free Iraq met with President of the Association of private Iraqi banks Abdul Aziz hasoon said that no harm in the existence of governmental and private banks to be equal, not a dysfunctional relationship as is now provided by the Government of the protection of State banks, which account for 85 percent of the assets, although they do not operate as banks but are offices for the Government, described the goldfinch.

Hassoun went to Government imposed banking district while practical progress in its circular on 35 private bank harmless limited number of failed banks that these banks have capital equivalent to 8 billion dollars can add significant economic activity.

And the Chairman of the Association of private banks Abdul Aziz Hassoun to the Iraqi Central Bank pumped every month six trillion dinars paid salaries and wages of employees and that his huge cash spend great consumer instead of encouraging them to save, for example, which decreased relatively about 10 years ago, despite the significant increase in revenues.

Member of the Finance Committee in the House of Abdul Hussein Al-yassiri said that a Conference will be held on 28 and 29 September to listen to the demands of private banks and that Parliament is moving towards modifying the basic materials in the Banking Act in the interests of the private banking activity.

Al-yasseri said the expected amendments to the banking law include articles preventing private banks from direct investment and expressed the hope that the banks allows modification of sectors such as infrastructure, housing and electricity.

Beautiful name Economist Antoine reviewed the history of private banks and its positive role to nationalize in the mid-1960s and warned that restrictions on their activity today does not serve the national economy.

Suggested bankers spoke to form a Committee of experts and specialists to review the Iraqi banking sector as a whole to promote fact and catch up with the developments in this sector.