The banking sector .. inability to cover the credits of foreign companies

The banking sector .. inability to cover the credits of foreign companies

9/29/2014 0:00

Iraqi dinarBAGHDAD – Mustafa Alhashima- Farah pumice
facing the banking sector in Iraq, significant challenges in the current circumstances limits of its development, as interpreted by some experts the lack of powers given, while the others saw that external relations with international banks and foreign relevant Arab important in attracting companies invested and sustain development projects in the country.
suffer foreign companies invested in various sectors in the country except for “the oil sector” of the scarcity of open letters of credit in local banks Iraqi, so are going to be dealing with the branches of international banks in their countries.
either local and international observers Veron said the weakness of the banking sector in Iraq lies in the inability of banks to cover the credits of foreign companies that need large amounts exceed tens of billions of dollars, and the lack of openness on the banks of the world. coverage credits banking expert Mowaffak Hassan said in a statement the “morning” no deal foreign companies with Iraqi banks is not a flaw in her performance, but these companies do not need to Iraqi banks, especially as it is imported from their countries or from other countries. also believed that local banks can not cover these credits large for several reasons, notably the weakness of capital, in addition to State-owned banks can not opening credits because of the sanctions imposed on it and the weakness of its relations with the international banks, which make way for the opening of branches of foreign banks in Iraq to its potential in opening letters of credit tens of billions of dollars. exist in Iraq, six foreign banks, most notably Standard Chartered Bank, which opened in October The second of the year 2013. suggested Mr. Hassan several solutions, mainly for asylum large companies to subcontractors locals in some of the business to be able to deal with Iraqi banks, as well as the merger of banks, weak capital, but it needs to be the will of the great by the boards of directors, in addition to giving the area and powers to banks for opening credits and not to limit it to the Trade Bank of Iraq, which inhibits the action of these banks that have the ability to open all bank credits to the state in spite of the existence of difficulties and obstacles, but it can be treated by specialists and experts, bankers, he says. competitive environment either expert Economic appearance of Dr. Mohammed Saleh emphasizes that “Iraq lacks a competitive environment with foreign banks and their branches because of the repercussions conditions inherited inherited Iraq in late last century.” He said in his speech for the “morning” that these banks has a large network of correspondents around the world and enjoys International along with its services good, while the branches of the Rafidain Bank, lost their resources abroad after coming under harsh sanctions and continued repercussions of Chapter VII of the Charter of the United Nations and provoked them so far, stressing the need to be free from these accumulations and restrictions which caused damage to eloquent them. Saleh added that he “In general, the central bank is the donor for work permits branches of foreign banks in Iraq and based on the powers of the supervisory it has the right to audit services Is that what it does is transfer of financial or other banking services.” He said not to grant licenses to banks holds a rating less than AAA It has been made ​​in the central banks of the country, saying that the administration is the foundation must be built on governance. implementation of projects either banking expert Abdul Aziz Hassoun says: that open an account for investors in banks open whether dinar or dollar nor restrictions on it, but in the case of access to credit . , and between the Goldfinch “morning” that foreign companies that implement projects in Iraq for Ataataaml with our banks, local and even dealing with the branches of banks of their countries because of possession of services that is lacking in most banks, Iraq, therefore, be required to develop the performance of banks and the restructuring of departments and attract deposits, and promote his works and progress itself to the external market and know its existence and its potential, especially given that the Iraqi banks absent from Alsahh.mn the other hand, pointed out an official source in one of the branches of Rasheed Bank that the imbalance in the opening credits of banking lies in the country’s economy and central bank policy, and that the current operations is a financial transfers and no credits. confirmed the source of the “morning” the need to strengthen Iraq’s relations with countries abroad and the opening of bank branches and dealing with foreign companies, according to the foundations and modern technology, especially as the existing branches are limited and only three in London, Jordan and the United Arab Emirates, but their banking activities are almost a few. stressed the importance of changing the Angels in the banks and attract talent and experience the young of specialties banking and financial, economic, and this is what must be taken into consideration in the restructuring of the banks, in addition to giving powers to the branches of the banks as in the past to open letters of credit, especially given that the powers are limited to the central bank only.

alsabaah.iq