Amer Issa Al Jawahiri
Increasing the movement of funds in private banks and the localization of salaries should be a catalyst for the further development of their financing activities, which will need to be reflected in the increase in the pace of concessional lending to various productive projects, entrepreneurs and craftsmen who have ideas of well-studied projects and indicate their expectations of success and are technically and professionally supported by the concerned private and public sector institutions. In line with the Central Bank's initiative to facilitate concessional financing of industrial and agricultural projects.
In parallel with the financial [You must be registered and logged in to see this link.], there is an urgent need to take supportive measures technically, logistical, protection, marketing and in the field of studies and public relations to increase the competitiveness of projects seeking
Although article (28) of the Banking Law No. (94) of 2004 “prohibits banks from participating as agents, partners or co-owners in wholesale trade or in manufacturing, transport, agriculture and other activities”, the same article states that the bank may With the prior written authorization of the Central Bank of Iraq to temporarily exercise or participate in the exercise of these activities (prohibited) as necessary for the performance of receivables and the Central Bank may request the bank to stop these activities on a specific date in the authorization. As stated in paragraph (1-c - Article 27) of the law that the bank may a number of transactions, including “buy and sell to his own account or to the account of customers shares and other securities, futures and swap agreements, futures and option contracts and other derivatives related to currencies, stocks or bonds ... ”.
While the movement is supposed to immediately amend some of the articles and paragraphs in the law of banks that curtail the very active participation of banks in investment operations and because it is a limited amendment process is easy and fast, but we believe that can be legally enforced for the participation of banks in the activity of joint-stock companies listed or planned to be listed in the Iraqi market For papers
This means that we interpret the possibility of mobility banks to engage in the implementation and / or financing of investment projects and studied in different sizes, either fully or in partnership, locally and foreign, and in coordination with the relevant public and private institutions, including the Association of Iraqi private banks and the Federation of Iraqi industries and national investment bodies and in the provinces and with the relevant ministries Sectors and move to obtain the approval of the Central Bank when necessary, which will inevitably [You must be registered and logged in to see this link.] them, especially when they are relevant to the directions of the national development plan and sectoral strategies, which is necessary to proceed accordingly.
At the same time, the reality of economic challenges and the long way to establish a private sector development council highlights the need to amend the Banking Law and in return develop and increase the participation of banks in the process of development and investment with high flexibility, including the establishment and participation in joint-stock companies and the development of banking services and follow up the position of banks and revitalization in the Iraqi Stock Exchange Associates with the expansion of its activities and services and competitiveness in service
The active participation of Iraqi private and public banks in development activities and the interdependence between increasing the types and size of their products and their competitiveness in providing them enhanced by high level of governance, disclosure and transparency will greatly reflect on their activities and profits and in enhancing the contribution of the private sector in development activities and in calculating the investment environment and its attractiveness to local direct investment.
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Consultant in Industrial Development and Investment