Claim CBE adding secured loans for the exclusion clause
Baghdad morning
The President asked the governing body for the Iraqi bank guarantees Mr. Wadee Alhandal Iraqi Central Bank by adding amounts of loans guaranteed by the Iraqi company for bank guarantees for the exceptions and on the Basis for the calculation of allocations so that these facilities direct good only for the purposes of calculating the allowance year. He said that this could encourage banks to lend The process of expanding lending to SMEs
He added Alhandal, this requirement has clearly expressed by all Iraqi banks that participated in the Iraqi banking work, which was held in the Jordanian capital in (4, 5) a month last April had agreed on all these banks that can build private sector without providing an opportunity for SMEs to obtain the sources of financial support of granting loans have to be able to expand and grow. He said that the Iraqi company for bank guarantees has newly established to guarantee loans amounted to four hundred and ninety thousand dollars covering several provinces and the productivity of different sectors also stated that the fight against unemployment can be achieved without the empowerment of these SMEs access to formal sources of finance. He added : there are interdependent and must achieve all of them is the need for the exemption secured loans from the General Allocation imposed by the Central Bank of Iraq, as is the case in Jordan, Egypt, Lebanon and the second to the need to expand the Security In this regard Alhandal pointed out that the company had signed with a donor a grant of five million dollars within a set of controls and conditions which aims to strengthen the infrastructure of the company. He added Alhandal that there is a tendency to transform the company into a public shareholding company, but within the framework aims to increase the role of banks and financial companies in contributing to this company. He stressed that Alhandal course of the reconstruction of Iraq must do not remain a slogan on paper and must be translated into effective participation of all the partners, including the Iraqi Central Bank also warned of underestimating the importance of small and medium-sized companies which he said would constitute more than 96% of total private companies and has a great capacity to absorb the manpower, which is inoperative until now. He explained that the company had studied the field on market demand for lending to SMEs and that the study showed that the volume of demand for secured loans is very high and that the exclusion of secured loans from the General Allocation will stimulate these banks to cooperate with the size of this demand. Finally, he said that the Iraqi company for bail banking has come to represent the parasol that encompass (12) special Iraqi banks and thus represent the interests of the private banking sector.
Therefore, the company opened the door to dialogue with the Central Bank had become a postponement is unlikely, but we are confident that the Iraqi Central Bank is aware of the difficulty of the current stage and will interact with these facts.