Iraq 's economy depends on a new mechanism to distribute the salaries of 4.5 million employees

Iraq 's economy depends on a new mechanism to distribute the salaries of 4.5 million employees

The project is expected to be completed by the end of the current year, the project of automation of salaries or what is known as electronic settlement through the use of smart card, as all the employees of Iraq, about 4.5 million, representing 10 percent of the population of smart cardholders, and receive salaries from banks Via this card with different uses.
The Iraqi Council of Ministers requested that the Ministry of Planning and Development Cooperation coordinate with the Ministry of Finance and the Central Bank of Iraq to issue a unified job number for the employees of the government departments, for adoption mainly in government databases.
The Council of Ministers also granted the employee the freedom to choose a bank approved by the Central Bank in the process of settling salaries to open a bank account in preparation for receipt of his salary through the account electronically under a bank card.
The project is an important step that will contribute to a qualitative change in the life of Iraqis with the presence of so many employees.
The economist Abdul-Zahra al-Hindawi, that "the country is witnessing a real savings movement by citizens in banks, whether government or private, especially as the salaries of employees represent the largest mass of cash traded in the local market, but this trading is not an investment, And the entry of a large monetary block in the banking portfolios with a clear vision to invest these funds in a developmental way would move the economy in a remarkable way in light of the financial crisis that has plagued the country since 2014, in addition to establishing banking policies that must be of dimensions Sound development ".
He added that "the project pays to encourage employees to save, especially in light of the widespread culture of hoarding funds and the lack of confidence between citizens and banks, especially private banks," noting that "banks must work on the principle of competition between them through services and benefits provided to customers and compete in the annual interest rate On the funds deposited, which drives the citizen to go to the bank that gives a higher interest rate than others, as well as other services that banks can offer to attract depositors of smart card holders, such as granting loans and facilities banking.
He pointed out that "this experience will face challenges, as we will find fear in the employees of the failure of banks to meet their obligations to depositors," noting that "the banks selected for this task is guaranteed by a government agency."
The task of selecting the Central Bank of Iraq as the sectoral sector supervising the banking sector, he announced that he chose 16 banks, some of which are government and some of the private banks to take over the task, and that the selection process was in accordance with global standards and the level of the bank will be the guarantor of any of these banks May face problems or falter in the fulfillment of its obligations to the extent that he expressed his willingness to pay dues instead of the bank stagnant ».
Al-Hindawi stressed the importance of mechanisms and procedures that will reassure employees about this new experience which they are not yet accustomed to. He pointed out that the presence of ATMs in public markets and important commercial centers, as well as the headquarters of ministries and government departments, is necessary to enable the cardholder to shop through them. .
He said many of the managers of private banks that the localization of salaries of state employees electronically a step bear important implications, which will be reflected positively on the performance of banks in terms of securing liquidity and restore confidence between the citizen and the sector, which witnessed during recent years reflected the results reflected the reality of the Iraqi economy, stressing the ability of banks to implement expansion programs The base of its services to citizens in a form that strengthens the investment base of the sector to reflect its results on the financial sector in general.
alhayat

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