The Central Bank talks about a mechanism for granting loans to projects

by **claud39** Wed Feb 03, 2021 9:39 am

The Central Bank talks about a mechanism for granting loans to projects

02/03/2021

Economy News _ Baghdad

The Central Bank of Iraq confirmed, on Wednesday, that the mechanism for granting loans to projects is through a government committee.

The Director General of the Accounting Department at the Central Bank, Ihsan Shamran Al-Yasiri, said in an interview with the Iraqi News Agency, which was followed by "Al-Eqtisad News", that "there is a committee headed by the Secretary-General of the Council of Ministers and a sub-committee headed by the head of the Advisors Authority in the General Secretariat of the Council of Ministers, which studies transactions or exchange issues that come. From the specialized banks regarding the five trillion dinars loan initiative, in addition to the committees looking at the extent of the strategy of these projects.

He added that "the activation of strategic projects is not related to the amount of the loan, and the loan may be medium or small, leading to the activation or creation of a strategic project according to the criteria established for the strategic concept by employing the largest number of workers and using local raw materials."

He pointed out that "enterprise loans are preferred to be a priority that creates and enhances investment, adds value to the national economy and contributes to employing workers, as there is no justification in competing with local industries that do not contribute to raising the value of the national economy."

He explained that “granting loans is not linked to the bank’s window, as some banks are involved in the issue of borrowing and in promoting development in their own resources,” stressing that “development resources are the funds that the Central Bank allocated through the initiative that it launched. The Industrial and Agricultural Bank, the housing sector, and the housing fund. "

Al-Yasiri added, "There is an initiative of one trillion dinars given to private banks as well as to medium and small enterprises, as these loans have been activated through this initiative or window that includes amounts of up to one billion dinars."

He added that "the high interest rate of bank loans is linked to their own resources and the risks of non-payment, as the percentage of interest granted on loans granted by banks from their resources to citizens is high by up to 6%, 8% or 10%," indicating that "the initiative resources that were activated early 2021 has become little or no interest for the housing sector, in addition to the fact that the percentage of the industrial sector reaches about 2%, and this difference between the loans granted by banks from their resources or granted by the initiative of the Central Bank.

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