Experts: The absence of guarantees paid by {40} trillion dinars outside the banks

Experts: The absence of guarantees paid by {40} trillion dinars outside the banks

18/3/2018 12:00 am

Iraqi DinarEstablishment of a company to secure the deposits of citizens
Baghdad / Huda al-Azzawi
The Central Bank of Iraq resorted to the issuance of the system of guarantee bank deposits, including the bank to grant a license to practice a guarantee for a joint stock company established in accordance with the provisions of the Companies Law, a system that was welcomed by the economic circles because of the weakness in the mobilization of funds and deposit with banks to take their way to different investment channels, Especially after the large losses caused by the financial crises in the state budget.
The participation of banks is mandatory
The Director General of the Legal Department of the Central Bank, Mustafa Ghaleb, told the “morning”: “The Central Bank is currently working according to the feasibility study of technical and economic and legal establishment of the Iraqi Company to ensure deposits with a mixed contribution of government and private banks with the Department of registration of companies in the Ministry of Commerce , According to the provisions of the Companies Law No. 21 of 1997, “noting that” this institution aims to achieve the public interest of the community and protect the funds of depositors and increase their confidence in the banking sector existing in the State, away from profit. ”
He explained that the proposed capital of the company, amounting to 100 billion dinars, 55 percent of its nominal capital of the contribution of public and private banks and branches of foreign banks, including the minimum required for the contribution of the state of 25 percent, while the remaining 45 percent will be put to public subscription on the basis of the provisions of Article 39 of the mentioned companies Law “, pointing out that” the participation of Iraqi banks , which is compulsory to ensure the continued existence of sufficient balance within the fund and use it to provide financial cover to ensure that the assets of depositors in the licensed banks from the Central Bank of Iraq within the country. ” compensation according to the circumstances and noted cerebrospinal , That the company’s funds can be invested in the field of deposit with banks, such as fixed deposits and the purchase of government securities such as treasury bills and bonds, and remittances issued by the Central Bank of Iraq, which is purchased from the secondary market, and can be invested in borrowing from banks or issuance of loan bonds to support Its capital and its own resources, “stressing that” the company will pay compensation for deposits with banks according to the amounts and depending on the economic conditions of the country. “He concluded his remarks by noting that” will be announced the issuance of the certificate of incorporation of the Ministry of Commerce after the end of the Central Bank of Jamie With the registration and public registration department in accordance with the Companies Law referred to. Doubts and concerns of the depositors With regard to the culture of dealing with the banking system, the financial adviser to the Prime Minister Dr. Mohammed Saleh appearance of the “morning” that dealing depends on the awareness of the Iraqi financial system, and consider private sector projects and the availability of jobs that can contribute to reducing rates Unemployment, therefore, the system of deposits adopted by the Central Bank has been approved by the Council of Ministers for more than two years, which is expected to see the year 2018 achievement, aims to encourage citizens to save in banks rather than compactness, “noting that the proportion of cash mass outside the banks up To 80 percent, so m In order to attract them to the government and private banks, the real guarantees that encourage depositors to save should be provided. ” Subscription and Contracting Parties For his part, Professor of Monetary Law at Mustansiriya University, Dr. Faleh al-Zubaidi told Al-Sabah that the banking system should clarify the nature of the work on how to invest citizens’ In the form of legal contracts that protect the rights of the contracting parties by way of subscription and to put the company’s shares to the public, in order to seek to increase its capital and to contribute to attract financing for the sale of its shares or issue new shares to support the capital Current. Explaining that some of the amount of money outside the banking system and estimated at 40 trillion dinars, a normal situation because Iraq from developing countries known to increase the proportion of currency in circulation outside the banking system, “pointing out that” the investment of this huge amount of money by the banking system or Companies will employ the money will contribute to the revitalization of the Iraqi economy and provide job opportunities to reduce the high unemployment rates rampant in the country. ” Increase control and supervision In relation to the most important steps by the Central Bank to withdraw funds Almtznzp to financial institutions and banking, said Director of payments in coffee As the Central District of Abdul Karim Mohammed for “morning” that the project of localization of salaries, which will contribute to increasing awareness of banking and saving and rely on technical methods in the transfer of funds and not rely on cash, will work to determine the conversion rate from the dinar to the dollar in cards issued locally, The card is used outside of Iraq to be a motivational factor for citizens to use in any place where it is resolved in addition to the inside according to the best services, “adding that the strategy of financial inclusion, which will be launched by the bank soon aims to access financial services and banking to every citizen to suit his needs. The payments manager is expected to contribute to the establishment of strategic projects in the country with the financial and banking institutions.

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