Conscious / the central bank proposes a mechanism for the government to cross the financial crisis
The Central Bank confirmed today, Sunday, its willingness to assist the government through a legal mechanism to cross the financial crisis in Iraq.
The Director General of the Accounting Department at the Central Bank of Iraq, Ihssan Al-Yasiri, said in a press statement carried by the correspondent of the (Iraqi Media News Agency / conscious) that “there are 3 advantages enjoyed by the financial situation of Iraq.
From Iraq, and secondly, the central bank has good reserves and will not leave the Iraqi state subject to financial insolvency too much, and the third is that the government is accountable to its people and will not give up employees there are difficulties and hardship, but things are solvable.
And that “the central bank took a decision in this crisis to postpone the payment of installments by private banks without interest and we strengthened its position by liberating a portion of the legal reserve held by us, which has a value of one trillion dinars and was granted to those banks, which allowed the entry of new funds for them, moved the wheel of funds and allowed loans to continue ”
He stressed that “the bank established the deposit guarantee company and deducted a percentage of the financial guarantee for every dinar that the customer places in the bank to be insured, and this gives a message of assurance that the citizens’ money in the banks is insured.”
He pointed out that “what is going on in Syria and Lebanon from two stifling financial crises, among the causes of which is the Corona pandemic, and the economic burdens it has set up and Iraq have also been affected, but the Iraqi economy is solid and the financial reserves it owns help it in this crisis.”
He revealed that “government banks possess 90% of government and public deposits, while private banks hold the rest, and banks are the oil that drives the economy.”
Bushra pointed out that “the Rafidain and Rashid banks and the Iraqi Bank for Trade are currently engaged in major business with the Ministry of Finance and the Central Bank to cross this crisis,” revealing that “the central bank will be supportive of the government in its crisis, but its law prohibits giving it money directly, and it can support it directly through purchasing Treasury bonds offered by the government for sale or to facilitate the government’s obtaining of loans, with the bank’s international interface.
The Iraqi Central Bank, last Tuesday, directed the banks to meet customers ’requests for all days of the week, taking into account the preventive measures issued by the official authorities. Source