Specialists: the failure of local banks to make the Iraqi market need for foreign investment banks

Specialists: the failure of local banks to make the Iraqi market need for foreign investment banks


Baghdad / follow-up of the East: - seen by a number of deputies and specialists in the economic sphere that one of the reasons for the decline of the investment process in the country due to failure of the Iraqi banking sector, the fact that foreign investors looking for safe banking environment and advanced to facilitate his work and keep his money. Stressing (the Agency news) needs of the Iraqi market for international banks investment nature help to attract investment companies and transfer of expertise to local banks. The banks in the world have played a major role to play in attracting foreign investment and promoting the investment process by granting loans money transfer, and using modern banking techniques facilitate business and accelerate the completion of transactions. And suffering the Iraqi banking system, which consists of forty-three banks severely underdeveloped in his work because of his use of traditional means old in completing banking transactions. Member of the economy and investment MP / National Bloc white / Aziz al-Mayahi, confirmed the need for Iraq to foreign banks of an investment nature to support the investment process in the country, noting that local banks lack the most basic techniques that the world operates. Mayahi said (of the Agency news): The investment needs to be a solid legal environment and security and political stability and developed banking sector, the companies can come to invest, because they are looking for a safe environment governed by the rule of law and modern systems. He explained: that the Iraqi environment need sophisticated foreign banks with high capital and be of an investment nature of the support of the investment process and economic development in the country, plus it will be able to create a competitive atmosphere between them and the local banks and thus the banking sector will develop. He added: There is difficulty dealing banking that the Iraqi banking sector lags behind and is working with systems and legislation ancient not kept pace with the evolution of the world, noting that most of the Iraqi banks limited their work to bid farewell to the money and selling foreign currency, they need to issue letters of guarantee to attract investors to invest in the country. The banking system consists in Iraq from forty-three banks as well as the Central Bank and distributed by property (7) government and banks (30) waged, including banks (7) Islamic banks, in addition to (6) of foreign banks. MP / coalition of Kurdish blocs / Sherif Soliman, called for the need to encourage rigorous international banks to open branches in Iraq to attract foreign investment and to support the fact investment in the country. Sulaiman said (of the Agency news): The single most important obstacles investment process in the country is the lack of a banking system developed, where Iraq has elements of economic and international companies have the desire to invest, but collide host of obstacles when coming to Iraq. He added: that the advancement of the process requires investment and presence of international banks sober and sophisticated, so must encourage international banks to open branches in the country, working to meet the needs of companies and boost investment forward. He pointed out: that attract international banks to operate in the country, needs to develop Iraq's relations with all countries, as well as important economic legislation of laws and amend the investment law to stimulate international banks and investment companies to come to the country. For his part, stressed banking expert Mohsen Ali, the importance of new legislation for banks that the current law does not help the development of the banking sector does not attract international banks to operate in the country. Ali said (of the Agency news): The local banks are unable to fulfill the requirements of the investment process in the country due to lack of their capital, calling for the promotion of international banks to open branches in Iraq to support economic development. He added: that the state-owned commercial banks and private can not meet the requirements of investment processes and economic development grants loans and advances due to the limited potential physical and technological. Confirmed: that the investment environment of Iraq needs to international banks sober owns capital and higher intervention strongly to the local market to contribute to the development of the country's economy through granting loans, stressing the need to grant the facilities and privileges of international banks to open branches in Baghdad and the provinces or work partnership with local banks . Although the Investment Law No. 13 of 2006 has excluded investment in the banking sector of its provisions except that the investment in the banking sector takes its legal framework based on the legal central bank No. 56 of 2004, banks No. 94 of 2004, with a minimum to create a bank in Iraq 100 billion Iraqi dinars (ie around 85 million dollars).

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