The Central Bank announces the success of its strategy in regulating the issuance of letters of guarantee

 
05/04/2022

Economy News - Baghdad

The Central Bank of Iraq announced, on Tuesday, the success of its strategy in organizing the issuance of letters of guarantee, calling on state institutions and the private sector to continue to follow the platform for letters of guarantee to ensure the solvency and correctness of the issuance of any letter issued by banks operating in Iraq.

The Central Bank stated, in a statement received by "Al-Iqtisad News", that "the mechanism for issuing letters of guarantee through the electronic platform contributed to increasing the seriousness of contractors and contractors in implementing projects and protecting government institutions from contracting with fictitious companies and limiting their ability to access the projects to be implemented."

He added, "The platform for letters of guarantee completed the issuance of more than 30 thousand letters worth more than 9 trillion dinars during the year 2021, which confirms the success of the strategy of the Central Bank of Iraq in organizing the issuance of letters of guarantee and increasing the confidence of the beneficiaries of letters issued by banks that are subject to the control and inspection of the Central Bank of Iraq. ".

He pointed out that "the establishment of the electronic platform for recording letters of guarantee issued by licensed banks for the benefit of the governmental and private sectors, comes within the efforts of the Central Bank of Iraq to develop banking work, and organize the mechanism for issuing and renewing letters of guarantee based on guarantees provided by individuals and companies and the credit rating of exporting banks, and limiting the operations of fraud and forgery.

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