Raise banks' capital boosts lending capacity

Raise banks' capital boosts lending capacity

6/5/2014 0:00

To contribute to the economic revitalization of the movement

Baghdad Farah pumice

After the Cabinet decision last up capital banks real estate, manufacturing and support for the initiatives of the housing and industrial, increased calls to increase the capital of private banks or merger to compete with the public sector banks in supporting the process of economic development of the country. Provides decision to increase the bank's capital and real estate industry of the amount of $ 150 billion dinars, and 175 billion dinars, respectively, to 500 billion dinars each, of which 250 billion dinars for the year 2014 and 250 billion for the year 2015, as it is funded by the amount of the increase over the search of the public treasury within the allocations of the federal budget for fiscal year 2014, according to the provisions of Article ( 10) of the Companies Act No. 22 of 1997 as amended. economic expert, Dr. Hilal Taan urged private banks to increase their capital to become competitive position with the government banks leads to increase banking services to citizens, whether in the public sector or private, saying that the trend General policy bank to raise capital leads to increased lending capacity and competitiveness among banks. says Taan in his statement the "morning": "As a policy of financial success is to be increased capital of banks to be the level of responsibility and the event and the level of global development, as it is in many countries of the world Therefore, it is necessary to be big and bulky to contribute to the economic development process, indicating that it healthy state of the economy, which is going through the stages of development, because of its importance in the granting of loans in all directions and all sectors of the national economy to promote him as a first stage. "According to the expert, the main objective of increasing the the capital of the Land Bank is to alleviate the housing crisis and the granting of loans to citizens as facilities banking to build housing units and reduce the growing crisis in the country since the eighties of the last century, because that Iraq needs approximately 3 million housing units, according to the general indicators. either the Industrial Bank, stated Taan that the capital increase came in support of the industrial initiative, for the purpose of granting soft loans to industrialists and to encourage Iraqi industries, small and medium enterprises to stimulate the movement of the Iraqi economy and reduce dependence on oil as the sole general budget and rely on other sectors in the funding.

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