The Committee on Economic Affairs
Cabinet gives public sector companies the right to open bank accounts in private banks
Editor: HA 25.5.2015 thirty-five past five p.m.
Long-Presse / Baghdad
The Council of Ministers approved, on Monday, the granting of public sector companies deposit their money option and open bank accounts, as well as to start gradually depositing the salaries of staff of the Chambers of central funding in private banks, as demanded the Ministry of Finance to open allocations among private banks without passing commercial bank, decided to include farmland in the liberated areas within the agricultural plan for the current year.
A statement issued by the Deputy Prime Minister Ruz Nuri Shaways Office received a (long-Presse) a copy of it, that "the Committee on Economic Affairs held its 14th headed by Chairman of the Committee on Economic Affairs Shaways," noting that "the Commission agreed to give public sector companies the option to deposit their money and open accounts in private banks, as well as the deposit and the distribution of its employees' salaries through these banks. "
The statement added that "the Committee agreed on the gradual implementation of the deposit of the employees and retirees of the Chambers of central funding salaries in private banks, taking into account the need to provide the branches of these banks, so as to ensure the provision of services to the beneficiaries of this system and make sure banks the situation in coordination with the Central Bank."
The statement pointed out that "the Commission approved the establishment of private banks issuing certified instruments and accepted by the government departments and public companies, with the bank's commitment to providing sufficient balances in their accounts with the Central Bank of Iraq and the lack of exposure, and otherwise the bears banks legal consequences, have the same exposure to stop dealing with this mechanism ".
He called the Commission according to the statement, "the Ministry of Finance and the Central Bank has adopted the Committee on Economic Affairs Resolution No. S.l / 495 on 18.11.2014 on the opening of letters of credit to the private banks up to ten million dollars without passing Iraqi trade bank," noting that "the Commission It decided to include acreage strategic crops in the liberated areas, which were within the agricultural plan for 2013 in the agricultural plan for this year. "
The Committee agreed according to the statement on the "do that each of the Rafidain and Rasheed deposit part of their money to the special private banks, and investing those funds in investment projects in accordance with the economic feasibility studies with a sufficient safeguards guaranteed non-refundable and subject to the conditions set by the two banks after studying the financial condition of the bank Special ".
It pointed to the "Commission approval of the Trade Bank of Iraq to open credit lines with private banks and under the supervision of the Central Bank of Iraq, on condition taking adequate safeguards and adhere to the ceiling specified provisions of article (30) of force Banking Act," noting that "the Commission directed the state departments all accept letters of guarantee issued by private banks with a commitment to the regulations and instructions issued by the Central Bank of Iraq and associated with the approval of the Committee on Economic Affairs ".
The statement pointed out that "the Commission has agreed to a contract and the Ministry of Transport / General Company of Iraqi Airways with the International Air Transport Association".
And the Iraqi banking system consists of 54 banks, including seven state-owned newly established Islamic one, and there are 23 private commercial banks, including Islamic nine. There are also 15 branches of foreign banks, and there are many institutions that do some banking, of which 34 money transfer company, and nearly 200 belonging to the banks foreign exchange company or deal with the banks, with the Loan Guarantee Company and to finance small and medium enterprises, with two companies for services of electronic banking and card Smart, in addition to nearly 800 branches and subsidiary banks spread over Iraqi provinces.
And witness the private sector has deteriorated significantly after the year 2003, due to lift government support him, which led to most of the laboratories and factories stopped working because of their inability to compete with imported subsidized goods in the countries where they come from, which imported large fee operations are not subject, as well as local problems resulting from fuel and energy crises and lawlessness, and aging equipment.