The granting of loans without legal guarantees cause of wasting billions from the state treasury

The granting of loans without legal guarantees cause of wasting billions from the state treasury


 

BAGHDAD / Ibrahim Ibrahim 
 
 Economists called for regulators to activate the role of the court by placing controls on the granting of loans at state banks, and pointed to the need to address the violations produced by large financial policies of some banks to grant loans and that hundreds of millions of dinars for people and companies without legal guarantees.
 
The economist said Mohammed Hammad al-Ani, in an interview for the "long", that "the work of government banks tainted by corruption, especially in the field of large loans, which is awarded to people and not others because of their political influence or financial."
"The loans represent a huge and enormous sums without giving any guarantees or documents authorizing the donor disposition of the case of defaulting on the loan and it is contrary to the procedures for granting loans, exposing those banks to severe legal accountability."
Ani explained that "some businessmen borrowed nearly 70 billion dinars in the form of soft loans without legal guarantees in order to bring them is not Tanslhm of paid later 
He said the "rampant corruption in some government banks and the goal of nepotism and clientelism and offering bribes of all kinds led to the waste of billions of dinars of public money without any accountability remember only in some simple cases."
He stressed that the "randomness in the distribution of investment projects and that lack of plans and legal guarantees for each company to apply for an investment project to build without studying the efficiency of fiscal and monetary prevented the completion of most of these projects
And misappropriation of loans granted to them from government banks. " 
As a student number of economists and financial specialists affairs, earlier, the Integrity Commission to investigate the granting of some government banks loans without legal guarantees, and a lot of them distance themselves from the payment of these loans, which led to a big waste of money without an accountant remember.
In turn, said one business (Akil Mansour safety) in an interview for the "long", "The process of preference for some businessmen on others come because of nepotism and dubious relationships between these departments and some state banks that offer them money on a platter of gold."
He added that "the lack of any claim for legal and financial guarantees by the banks and credit-granting large sums helped borrowers to evade the payment of those loans."
He explained that "the responsibility of regulators is to prosecute these people and bring those responsible in some banks to the competent courts and activate the legal side on some bad practices that are harmful to the national economy."
He stressed that "some government banks are double standards among its customers at a time, which emphasizes its procedures on administrative Some are granting loans without collateral to others, according to present them amounts to a bribe or the degree of kinship of the bankers." 
The association of private banks in Iraq, said in (the fourth of January 2013), that the number of private banks in Iraq reached 32 banks in two decades, adding to the growing number of branches in Iraq to more than 500 branches and assets of these banks amounted to more than 12 trillion Iraqi dinars, as the volume of deposits in which eight trillion dinars, and arrived in the credit which the cash to a total of three trillion and six billion dinars, while reached the capital of these banks and their reserves to three trillion and three billion Iraqi dinars, and that the total profits of these banks exceeded Al477 billion dinars.
The study estimated that local banks' capital amounted to the government until the end of October of 2012 the past, a total of 754 billion dinars, compared to more than four billion dinars for private banks, and investment balances in banks operating in Iraq recorded up to 31/10/2012, a sum nearly six billion dinars (5.947), and the share of government banks, including 4.929 billion dinars, compared with 1.018 billion dinars for private banks.
The International Monetary Fund said in a report issued in (21 March 2013), after the end of consultations in the Jordanian capital, Amman, between a delegation from the Fund and the Iraqi delegation headed by Minister of Planning, and seen by the "long", that improvement occurred in the financial sector, but stressed he still needs to "greater efforts by the central bank in the revision of monetary policy tools and strengthen banking supervision, and to accelerate the restructuring of the banking system."
UNFPA emphasized that "the establishment of a banking system national requires abandoning the current model, which is controlled by the weak banks owned by the state, which enjoys preferential treatment distinguish them from private banks," calling on Iraq to "do the strengthening of institutions of public finances to ensure efficiency and transparency in the use of oil revenues."
 
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