Iraqi News Highlights Monday Afternoon 3-20-23
Tlm724 Administrator Bondlady’s Corner
In The Presence Of Government And Diplomats… The Launch Of The Conference “Activating Lending Programs In Iraq”
Monday 20 March 2023 12:32 | Economical Number of readings: 353 Baghdad / NINA / – Today, Monday, the work of the conference “Activating Lending Programs in Iraq” kicked off in the capital, in the presence of the Governor of the Central Bank of Iraq, Ali Al-Alaq, the US Ambassador to Iraq, Elena Romansky, ministers and representatives of diplomatic missions. This program aims to stimulate lending in Iraq to support industrial, agricultural and other projects. https://ninanews.com/Website/News/Details?key=1041635
Association Of Iraqi Private Banks: We Are Committed To Implementing The Central Bank’s Plan To Finance Small, Medium And Residential Projects
Monday 20 March 2023 16:37 | Economical Number of readings: 133 Baghdad / NINA / – The Association of Iraqi Private Banks confirmed its continuation in implementing the Central Bank’s plan to stimulate the economy, achieve economic stability, and implement its financing initiatives, for which 18 trillion dinars are allocated, which contributed to increasing the central financing granted to small, medium and residential projects.
Samir Al-Nusairi, Advisor to the Association of Banks, said, during the conference on activating lending programs in Iraq, held today, Monday, in the capital, Baghdad, that “Iraqi private banks that provide various banking services in all governorates have proven their ability, sobriety, and national stances during the last period in which Iraq suffered.”
From the economic crises and challenges and the Corona pandemic and its continuation with daily work and the revitalization of the economic cycle, during the economic and security shocks in 2014 due to the drop in global oil prices and the fight against the terrorist ISIS, and in 2020 due to the drop in oil prices and the Corona pandemic.
He called on those gathered to come up with specific and practical recommendations to increase the volume of borrowing in general, increase the share of productive and service projects to the volume of lending, develop lending units in private banks, increase the number of banks participating in a financing platform, and expand the geographical area oflending to include all governorates.
He added, “The Association of Iraqi Private Banks and all member banks, which number 70 banks, are working under the supervision and instructions of the Central Bank of Iraq to develop and develop the banking sector in a way that contributes to supporting the national economy and sustainable development through the development and financing of small and medium projects,
and the rehabilitation of youth and creation An appropriate and stimulating environment for entrepreneurship despite the economic conditions and challenges and difficulties that our country is experiencing, and focusing on strict adherence to international standards in compliance systems and rules, combating money laundering, terrorist financing and banking risk management.
He continued: “The development steps, in cooperation with the Central Bank and the Association of Iraqi Private Banks, have contributed to improving the efficiency of performance in most private banks, as well as training and qualifying banking human resources for the purpose of preparation and preparation for launching the project of activating lending in Iraq, which includes 6 stages and 10 goals concentrated in establishing a number Of the workshops, in cooperation with the Central Bank and the US Agency for International Development, the General Secretariat of the Council of Ministers responsible for the financing platform and the Central Bureau of Statistics in the Ministry of Planning, aimed at building capacities, training credit officers and preparing trainees to achieve the goal of the program. / End 5 https://ninanews.com/Website/News/Details?key=1041697
Central Bank: We Will Present A Project To Establish A Loan Guarantee Company.. And These Are The Ceilings Of Our Funds In The Banking Sector
Monday 20 March 2023 16:11 | Economical Number of readings: 149 Baghdad / NINA / – The Central Bank of Iraq revealed a project to establish a loan guarantee company that will provide high flexibility to the banking sector in providing loans to beneficiaries.
The Governor of the Bank, Ali Al-Alaq, said, during the opening of the conference on activating lending programs in Iraq, held today, Monday, in the capital, Baghdad, that “the Central Bank was a pioneer in stimulating the lending capabilities of the banking sector, as we launched in 2015 an initiative that is perhaps the largest in the history of Iraq by allocating 5 Trillions of dinars for industrial, agricultural and housing projects, as well as a trillion dinars for small and medium projects, and this initiative was able to stimulate the Iraqi economy significantly, whether at the level of some projects or in solving the housing problem by providing loans to the housing sector.
He added: “The sums that have been lent so far amounted to about 13 trillion dinars, and we are now in the process of evaluating these initiatives and benefiting from the lessons and putting them in the right directions and focusing them on specific goals, so there will be a great focus in the next stage on financing small and medium projects, as well as what is related to projects.” Renewable energy lending in an attempt to contribute to the central bank in climate challenges and clean energy.
Al-Alaq stressed that “stimulating the banking sector towards enabling it with lending policies should not depend on the central bank, because this role of the central bank is an exceptional role dictated by some circumstances, but the first and basic role is for the banking sector to be able by itself to assume and provide lending capabilities.” , by bringing in deposits and through his own financial ability.”
He continued to say, “We will soon work on developing a national strategy for lending, as I presented the paper last November when I was outside the central bank, but realizing the importance of bank lending I presented a paper at a conference at Al-Mustansiriya University on building rules for lending policies or the national strategy for lending and these important issues Very much,
“noting that” the issue of lending is not only related to the financial capabilities of banks, but rather is related to the work environment, regulatory and legal conditions, and many factors that fall outside the banking system, so it will be a joint strategy presented to the government and other parties to be a matter of their participation in supporting this plan to provide decisions and actions necessary for its success.
He explained, “The ability of banks to lend depends on their ability to bring in deposits, and this is the role of the banking sector in balancing between deposits and lending,” noting that “the banking sector has reached the highest ceiling for lending, because the percentage specified according to the Central Bank’s instructions is 70% of deposits.” And the banking sector has almost reached this percentage, which requires that there be great efforts to attract deposits to the banking sector.
He continued, “We have more than 70 trillion dinars outside the banking system for circulation, and this is a very large amount and represents a high percentage of the gross domestic product, so we must focus in the next stage on finding the necessary means to activate the deposit movement through several measures in this regard, after That we have completed the development of a comprehensive and broad strategic plan for electronic payment to expand the link between these funds that lie outside the banking system and their uses that can be large and wide in the event that these funds are attracted to the banking sector, calling on the banking sector to be a key partner with the Central Bank in what it will do By providing electronic payment methods at a broad national level,
he also urged the banking sector to proceed with a review of banking services in quantity and quality because banking services have come a long way despite the short life of some banks, but some of them have reached advanced stages and others still need to upgrade the level of services. banking”.
He added, “The banking sector needs more geographical spread,” praising some banks that have extended to wide networks inside Iraq, “calling on other banks to strengthen this spread in the regions of the country, noting the need to diversify the credit portfolio or loans for the purpose of reducing risks in what Related to lending and balance in sectoral growth./ End 5
https://ninanews.com/Website/News/Details?key=1041693
Relationship: The Existence Of More Than 70 Trillion Dinars Outside The Banking System For Circulation
Economy Monday, March 20, 2023 2:13 PM Baghdad / National News Center Today, Monday, the Central Bank of Iraq announced the size of the lending amounts within its initiatives for projects, while revealing the existence of more than 70 trillion dinars outside the banking system for circulation.
The Governor of the Central Bank of Iraq, Ali Al-Alaq, said in a speech at a conference on activating lending programs in Iraq: “We extend our thanks to the Association of Banks and the American Agency for Development for keeping pace with the banking sector and attempts to advance it and push it with directions that achieve the desired goals of the Iraqi economy.”
He added, “Bank lending represents the main pillar in the work of the banking sector, whether with regard to its revenues, profits, and operation, or with regard to economic activities in all its forms.”
He pointed out that “the Central Bank was a pioneer in stimulating the lending capabilities of the banking sector, as we launched in 2015 an initiative, perhaps the largest in the history of Iraq, and it was represented by the allocation of 5 trillion dinars for industrial, agricultural and housing projects, as well as a trillion dinars for small and medium projects,” noting that “this initiative It was able to greatly stimulate the Iraqi economy, whether at the level of some projects or in solving the housing problem by providing lending to the housing sector.”
And he indicated that “the amounts that have been lent so far have amounted to about 13 trillion dinars, which is a very large amount,” adding, “We are now in the process of evaluating these initiatives, benefiting from lessons, putting them in the right directions, and focusing them on specific goals.”
He continued: “There will be a great focus in the next stage on financing small and medium enterprises, as well as with regard to projects or loans related to renewable energy in an attempt to contribute to the Central Bank in facing climate challenges and the field of clean energy.”
He stressed, “Stimulating the banking sector towards enabling it with lending policies should not depend on the central bank, because this role of the central bank is an exceptional role dictated by some circumstances, but the first and foremost is that the banking sector is able by itself to assume and provide lending capabilities by bringing in deposits and through his own financial capacity.
Al-Alaq continued: “We will soon work on developing a national strategy for lending, and I presented the paper last month when I was outside the central bank, but realizing the importance of bank lending, I presented a paper at a conference at Al-Mustansiriya University on building rules for lending policies or the national strategy for lending.”
He pointed out that “these are very important and national issues because the subject of lending is not only related to the financial capabilities of banks, but rather is related to the work environment and its regulatory and legal conditions and many factors that lie outside the banking system, so it will be a joint strategy presented to the government and other parties to be a matter of their participation in Support this plan to provide the necessary decisions and procedures for its success.
And he explained, “I shed light on some signs that we must focus on in the next stage, which is that the ability of banks to lend depends on their ability to bring in deposits, and this is the role of the banking sector balancing between deposits and lending,”
noting that “indicators and data indicate that the banking sector It has reached the highest ceiling for lending because the percentage specified according to the instructions of the Central Bank is 70% of deposits, and the banking sector has almost reached this percentage, which requires that there be great efforts to attract deposits to the banking sector.
And he continued: “A lot talks about limited bank lending, so that we do not blame the banking sector only because these are the capabilities available to it, which requires that there be a comprehensive and broad plan to attract deposits so that the banking sector can mobilize them towards granting loans.”
And he continued his speech: “We have more than 70 trillion dinars outside the banking system for circulation, and this is a very large amount and represents a high percentage of the gross domestic product, so we must focus in the next stage on finding the necessary means to activate the deposit movement through several procedures in this regard,
after that We have completed the development of a comprehensive and broad plan for electronic payment strategy to expand the connection between these funds that lie outside the banking system and their uses, which can be large and wide in the event that these funds are attracted to the banking sector.
The Governor of the Central Bank called on the banking sector to “be a key partner with the Central Bank in what it will do in terms of providing electronic payment methods on a broad national level,” adding: “And also among the matters that fall on the banking system in this regard and direction,
It is a review of banking services in quantity and quality, because banking services have come a long way despite the short life of some banks, but some of them have reached advanced stages and others still need to upgrade the level of banking services in different types and in the way of presentation.
He noted that “one of the remarkable things is that the survey conducted by the Arab Fund to study the public’s reluctance to deal in the banking sector, and contrary to expectations, the first reason was that the services are complex and not readily available to citizens in the banking sector, and this is an existing fact that needs to mobilize the banking system to lend to the citizen.”
And provide the necessary services and the best methods and techniques, and unfortunately he noticed that the citizen in some bank branches as if he is reviewing a complex administrative department or a court in the way of depositing or withdrawing the amounts.
And he pointed out that “the Central Bank issued a wide circular to the banking sector in this field, and it will be the focus of our attention and field monitoring of banking services and the extent to which they keep pace with the standards and achieve the goals that we referred to.”
And he continued his speech: “One of the issues that we call for to reduce the risks of borrowing due to the high rates is the default in repaying debts, and we will present the project to establish a company to guarantee loans, and this is very important and provides a great deal and high flexibility for the banking sector to provide loans.”
He stressed that “the banking sector needs more geographical spread,” adding: “We commend some banks that have extended to wide networks inside Iraq, and we call on other banks to strengthen this spread in the regions of the country.”
And he warned that “in order to reduce risks with regard to lending and in order for there to be a balance in sectoral growth, the credit portfolio or loans must be diversified, and this constitutes safety for the banking system and a balance in sectoral growth, and we note that there is a discrepancy in this field and this requires taking into account Consideration, and the best evidence of that collapse suffered by the Silicon Ghali Bank, due to a very clear reason, which is the credit concentration in a specific sector, and this was the main reason for the collapse of the bank.”
And he stressed that “the sectors in Iraq need stimulation, growth and construction, so focusing on a specific sector should not be the goal and the final result of bank loans, as happened now. It’s still at its lowest level.”
He concluded by saying: “We need to build a national strategy for bank lending, led by the Central Bank and presenting it to the private banking sector to express observations and opinions, then we start working on it in order to achieve the aforementioned goals.” https://nnciraq.com/194576/
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