Bank loans...merciless interest, and the Sudanese advisor diagnoses the reason

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[size=52]Bank loans...merciless interest, and the Sudanese advisor diagnoses the reason[/size]

[size=45]The young man, Amjad Abbas (26 years old), suffered a fall from the “trailer” and decided to leave “employment” due to health problems in his back, and go to work as a taxi driver in one of the companies that rely on phone applications, but what (Abbas) fears is the seizure of his vehicle. In which he works as a taxi driver, after going to a car showroom and signing documents to pay the vehicle installments over a period of (5) years with the sponsorship of one of his relatives.[/size]
[size=45]Abbas tells Al-Mada: “When I fell from the bike, I fractured my dorsal vertebrae. That’s when I decided to work as a taxi driver because of my health condition,” adding, “My vehicle was involved in an accidental accident that led to its complete destruction. I repaired it for a large sum, but I was late.” About paying bank dues.”[/size]
[size=45]Abbas continues: “I do not advise young people to buy installment vehicles because they burden the average citizen and their bank interest is very arbitrary, and I do not know how to pay the late dues. The debt has accumulated on me.”[/size]
[size=45]Benefits at great losses[/size]
[size=45]Al Mada contacted one of the car showrooms for the purpose of knowing the mechanics of purchasing vehicles and their bank interest rate, where they found high interest rates exceeding 9 million Iraqis, in addition to the vehicle losing its value when paid over a period of 5 years, which leads to the citizen losing approximately 17 million when selling the vehicle after paying. Its installments.”[/size]
[size=45]Houses and loans[/size]
[size=45]Employee Taha Yassin (45 years old) was waiting for the opportunity to grant a housing loan to complete the construction of the remainder of his house. When the loan he had applied for earlier was delayed, he was shocked by the rise in the prices of building and construction materials in conjunction with the rise in the exchange rate of the dollar against the Iraqi dinar.[/size]
[size=45]Yassin said in an interview with Al Mada, “The loan was very late and the prices of construction materials rose significantly with the rise of the dollar. At that time, I had to ask for debt from my friends to complete the construction of the house and get rid of the rental houses.”[/size]
[size=45]He hesitated and paid up[/size]
[size=45]For his part, Dr. Omar Ali Kamel, professor of accounting and auditing at the College of Business Economics, told Al Mada, “The effect of raising the interest rate on loans granted by the state to citizens is summed up in the state’s attempt to reduce the volume of cash put into circulation for the purpose of raising the value of the dinar based on According to the rule of supply and demand, because the volume of demand for loans is inversely proportional to the interest rate on them, in addition to the state’s goal of increasing the profit from lending operations by increasing interest returns on withdrawing the largest amount of trading liquidity.”[/size]
[size=45]Kamel continues, “Employees are affected by the high interest rates on loans because they bear the consequences and repay them for long periods, or because they are guarantors of those requesting them, and they will certainly bear the consequences or problems in cases of delay in paying the interest or the total amount by the borrower.”[/size]
[size=45]Government clarification[/size]
[size=45]In the same context, the spokesman for the Ministry of Construction and Housing, Nabil Al-Saffar, said in an interview with (Al-Mada), “The Housing Fund works with self-financing, as it has granted 203,000 loans to citizens since 2004, which helps them complete the construction of their housing units according to the conditions announced by the Iraqi Housing Fund.” “.[/size]
[size=45]He adds, “The Housing Fund grants construction loans through the repayments that come from citizen borrowers, and there are no interest charges on the loans, only an administrative fee of 2% and only one time.”[/size]
[size=45]The Sudanese advisor extends an invitation[/size]
[size=45]For his part, the economic advisor to the Prime Minister, Mazhar Muhammad Saleh, said in an interview with Al Mada: “Until they have liquidity, banks collect large interest from borrowers because they are forced to pay interest to depositors with the bank.”[/size]
[size=45]He adds that “the beneficiaries of bank loans are depositors with large sums of money with the bank,” adding that “the interest that the bank charges from the borrower leads to achieving profits after he pays the interest on deposits with him from the loans.”[/size]
[size=45]The Prime Minister’s advisor calls for “reducing interest rates on productive projects to encourage national investment.”[/size]
[size=45]He points out that “consumer loans are naturally high because banks have had the freedom to set interest since 2004.”[/size]
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