| 2008: Private Iraqi banks to open up a clearing with American banks |
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March 18, 2008 A financial expert stressed that Iraqi private banks need to be supported by the State to enable them from doing their part in the building and reconstruction campaigns which are about to start. The financial advisor to the Bank of North, Maan Ghanim Abdul Jaleel, said that the decision to raise the amounts of credits for private banks to two million dollars is an encouraging step and good for activating the role of these banks, but it is not up to the ambition. As for the type of support required, he said that it is a proposal adopted by private banks asking the is the Iraqi Central Bank to allow them to open a clearing with American banks in order to raise them up to the real competition with global banks which are awaiting the launching of reconstruction. He explained that the procedures of granting banks credits insurance of %10 as guarantees payment are just paper transactions carried out by banks in return for simple currencies, and these procedures can not develop banks. He said that the way of feeding our assets abroad by the Central Bank was set at 4 -5 days and this hinders some business transactions through influencing the price rise, as seen in the world market, causing some losses, so he proposed to reduce the period to two days. As for the possibility of the return of immigrant Iraqi capitals working in neighboring countries, he said that these funds can be encouraged to return through the support of banks to give facilities to Iraqi businessmen to return to work with the Iraqi banks. He pointed out that banks in neighboring countries are taking advantage of the clearing they have with American banks to attract capitals, including Iraqi funds, because of the encouraging privileges they enjoy. |