State regulation threatens to bankrupt the Iraqi private banks

State regulation threatens to bankrupt the Iraqi private banks

10/14/2014

Alaa Yousif-Baghdad
Experts stressed that the money in the Iraqi banking sector is exposed to a contraction because of the current war between the security forces and Islamic militants, state regulation, which led to the displacement of more than two million people.
Iraq has worsened security and wide where gunmen controlled a third of the area of ​​Iraq, in addition to the inability of the security forces to stop the deterioration of security in Baghdad, which greatly affected the economic movement, especially on the banking sector.
Setback
and said banking expert just peace in his speech to the island revealed that the banking sector, which suffers from significant distortions exposed now to the setback after security incidents that have occurred in the province of Nineveh on June 10 last through the omission of thousands of civilians to repay loans, which means the bankruptcy of the banks in the near future.

Bassem Jamil Anton: there are errors
in the work of Iraqi banks (Alice)
And just explained that the loans owed by the displaced people and migrants loans have become dead, and on the Iraqi government to compensate the banks in the future because the present conditions the product of public policies.
He stressed that the government and private banks in the provinces of Nineveh, Anbar and Salahuddin stole nearly 600 billion dinars (about 540 million dollars), which led to the reluctance of some private banks now give loans for fear of not getting them in the future because of the deterioration of continued security.
He added that the government’s financial policy is clear and contributed to obstruct the work of the private banks, and that the Iraqi government has imposed numerous restrictions on private banks, which impact negatively on their work and not to keep pace with the development in the neighboring countries.
The system consists of the Iraqi banking of 55 banks, including seven state banks and 16 Arab and foreign banks and 32 regional banks, in addition to 49 financial institution and investment.
Contraction
on the other hand, sees a banking expert Bassem Jamil Anton that private banks exercise their role naturally and still trust of the citizens by the present, but it is in the recent period tarry work and subjected to shrink due to lack of approval of the financial budget for the current year and not to deposit government funds in private banks since seven years.
Anton said in his speech to the island revealed that there are some errors in the work of Iraqi banks, noting that the government banks full of money, unlike private banks, and this is the result of government policy.
He denied the theft of state regulation of Islamic militants funds of private banks in the provinces controlled by, saying that the gunmen did not steal the money, but they closed the doors of banks and stopped their balances, which halted its work.
The most prominent losers
in turn, said economic expert, Dr. Ali Chihod Sudanese in his speech to the island revealed that the banking sector in any country in a state of war affected and can not exercise his role naturally, how the banking sector of Iraq, which is weak and perform the functions of a very simple through the buying and selling of currency from the bank CBI.

Sudan called on the Iraqi state to develop
an emergency plan to rescue the country’s economy (Alice)
He called on the Sudanese Iraqi state to develop a plan of economic emergency to save the country’s economy from the current war, which will remain for a long time by taking loan repayments for the displaced, indicating that banks in the provinces of Nineveh and Anbar give loans to agricultural and real estate, and agricultural land and real estate exposure, mostly to the mass, which would be a heavy burden on the parents.
He pointed out that the banking sector leading the losers of the current military operations and needs to be a serious stand by the Iraqi state to save him in the event of the continuation of the situation unchanged, indicating that the American military was allocated nine billion dollars when it launched Operation Imposing Law, the military in 2007 in some provinces of Iraq to expel the insurgents, including , so the government has allocated the equivalent damage to the citizens.
And Central Bank officials declined to answer questions on the Al-Jazeera correspondent Net and refused to give any statement the subject.

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