U.S. efforts to invest “caution” in Iraq and its economy growth forecast to 15-fold

U.S. efforts to invest “caution” in Iraq and its economy growth forecast to 15-fold

Posted: JULY 22, 2013

U.S. efforts to invest Twilight News / detection announcement bank Citigroup and American Standard Chartered, the British period the past few efforts to expand into the Iraqi market, what تختزنه last great potential for the banking sector in this country, is that the experiences of some foreign banks in Iraq calls for the exercise “caution” to avoid some problems.

And characterized the Iraqi market by low number of citizens who have bank accounts, allowing the banks a substantial margin to attract thousands of customers, particularly that the Iraqis are looking for a complete package of services ranging from current accounts to insurance to mortgages, which are services not in the Iraqi market offers many them.

However, the Iraqi banking sector suffers from obsolescence legislation governing him and the dominance of state-owned banks and poor infrastructure and a large number of obstacles that make the exercise of banking activity is not easy at all.

He says a Western diplomat who asked not to be disclosed in a statement received “Twilight News” that “Iraq has a very large qualifications for the exercise of banking activity,” he said.

And refers مايانك the owner Citigroup branch manager in Jordan and Iraq that the bank sees in the Iraqi market a great opportunity, as it seeks to benefit from the advantages of exports of foreign banks, which will enter the country.

The focus of Bank of America at the beginning of it to serve its customers browsing in Iraq, such as international oil companies operating in the oil sector south of the country, and in the long run will seek Citigroup to enter the field of commercial banking and retail (ie private individuals), but it did not announce a timetable for these steps .

And builds bank U.S. policy on upbeat outlook for Iraq, where he is expected economists they are working to become the number of Iraqis in 2050, some fifty million people and the economy of approximately size two trillion dollars, and the figure represents the last 15 times the value of the Iraqi economy now, and roughly equivalent to the size of the Indian economy at the moment.

With the development of the banking sector in the future there is a need for all well-known banking services in Iraq, where the limited proportion of citizens have access to loans and insurance, credit cards, mortgages and other financial products, according to Al Jazeera television.

Despite the tone of optimism in an interview with the owner, there are major obstacles to the banking business in Iraq, before the announcement, Citigroup last month its intention to extend its activities to the country, the Bank of HSBC British had announced days earlier for selling its stake in Bank of Dar es Salaam in Iraq, The total share of 70%.

And talks, diplomats and analysts for a number of major difficulties in the Iraqi banking sector, including the absence of modern legislation to pay Iraqis to confidence in the financial sector, and that government banks are Bank Rasheed and Rafidain banks dominate the field, which will reduce the incentive to innovate.

According to estimates by the World Bank did not exceed the size of the loans sector in Iraq 10% of GDP in 2010, while the ratio stood at 55% in the rest of the Middle East.