Central Bank of Iraq makes plans for private sector support

June 8, 2010 · Posted in NEWS
08.06.2010
Emad Jassim

Deputy Central Bank Governor Ahmed Bureihi that the Bank’s plans moving toward consolidation of private-sector work to breathe life back into business life and urban, industrial and investment.

Bureihi explained that the integrated program of action put under the supervision of experts, economists and academics to implement these plans, despite the constraints, and said the biggest obstacle to the implementation of those plans is the lack of confidence in government and private banks, which is a bridge of convergence between the Bank and who wish to receive loans encourage their work, as well as non- confidence commitments of traders and entrepreneurs and growing fears of security and political conditions are very unstable, so they exaggerate the application of safeguards do not give loans easily, because it is responsible before the central bank for the return of financial receivables, and they should be cautious in granting loans, making it apply the instructions of the Central Bank of the a lot of obstacles and difficulties.

Bureihi stressed that the central bank began cutting interest loans, which recently arrived at 6% in an attempt to push for the revitalization of the private sector and to overcome the difficulties the monetary and banking to enable the dealers or owners of factories and workshops for private or holders of commercial projects range from in order to activate their business and to continue their projects of different varieties to run workforce after they invaded Iraqi markets of imported goods has also prevented the development of national industry, and stopped most of the industrial companies and factories with a production history and reputation of the task and the great work.

Although the steps and measures have been welcomed the central bank and the complacency of many of the owners of capital, but that those concerned with economic affairs and found that the policy of the CBI is still inadequate and poorly understood and clear in some cases.

The expert said the economic peace Sumaisem to a discrepancy and contradiction in the ECB’s monetary and fiscal policy or economic, as the reduction of interest rates of loans that would lead to an increase in inflation, by injecting large amounts, with assurances the Central Bank of the necessity and importance to improve the value of the Iraqi dinar.

http://www.iraqhurr.org/