A standard mechanism for valuation of real estate for adoption as collateral for loans

A standard mechanism for valuation of real estate for adoption as collateral for loans




22/7/2017 12:00 am

In an economic seminar organized by a committee of the central
Baghdad / Sabah, the
committee formed by the Central Bank, charged with developing and facilitating the work of the government sector with the private sector, approved a set of recommendations that would reduce the routine and ease lending conditions for private sector projects. Support the private sector to take its real role in the process of economic development.
This came during a seminar held by the Committee at its first meeting, where the Governor of the Central Bank Ali Al-Alaq and member of the Presidency of the Parliament Sheikh Hammam Hamoudi, and government banks to increase the contribution of the private sector in the process of sustainable development and investment. The

central direction and
opened the work of this committee Adviser in the Central Bank Walid Idi, referring to activating the desire of the Central Bank to develop the work of the banking sector of the government, and improve its dealings with private sector companies various disciplines, and give a clear picture of the trends of the Central, Including the private sector with government banks, for the purpose of addressing them.
In turn, praised the President of the Iraqi Economic Council, Ibrahim al-Baghdadi, the continuity of government institutions, especially the central bank with the private sector, pointing out that the problems of the private sector too many, calling for simplification of procedures for the mechanism of lending and most important guarantees that we promise complex and very difficult.

Industrial loans
and pointed out that the proportion of lending in the industrial bank is still zero , and this is clear evidence of the reluctance of the private sector initiative because of the lack of integrity of the business environment, because it is still close to being a repulsive environment despite some important decisions and measures taken by the government.
He pointed out that the economic council is determined to continue to establish bridges of communication between the private sector and the executive and legislative sides.

Project Finance The
Director-General of the Industrial Bank, Bilal Sabah Hussein, said that the instructions for lending were developed through workshops contributed by the private sector, stressing that the forms submitted so far to 52 industrial projects were accepted 12 projects after the feasibility study.
Hussein confirmed the cancellation of the bank's routine, where an electronic form is submitted with a feasibility study by the borrower and then be submitted to the national team and the Council of Ministers for the purpose of obtaining approval.
The committee concluded by approving a number of recommendations, the most important of which is the recommendation to facilitate the granting of loans by simplifying the procedures and placing the reservation signal on the real estate instead of mortgaging the property. It also approved the nomination of an expert for each of the Karkh and Rusafa landowners, In addition to the establishment of a unified mechanism for the purpose of evaluating the real estate in Iraq for the purpose of its credit as collateral for loans.
The recommendations also called for the central bank to examine banks to reduce the interest rate on loans with a gradual increase on the interest granted to deposits, as well as to encourage and support the procedures to address the monopoly by one company or two government companies or private and its hegemony on the work of many ministries and government institutions.

Contractors entitlements
and approved the recommendations of the need for the Ministry of Finance to include budget 2018 all amounts of dues contractors, for the purpose of payment of all dues and speed up repayment procedures, and also approved the recommendation for inclusion for investment projects implemented or those in the stages of implementation of acceptable collateral for loans exclusively for investment projects.
And approved the recommendation for the use of a modern mechanism for financing projects based on the schedule of progress of the investment project, similar to the projects implemented for the benefit of the State, and in accordance with the instructions of the Ministry of Planning to ease the pressure of guarantees on companies.

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