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Erbil – The
development banking plans in Iraqi Kurdistan region
tend to developing the governmental and private
commercial banks and giving the bigger role to the
private sector, assisted by the settlement of the
security situation that the region is witnessing,
compared to other Iraqi regions.
Adham Kareem, general manager of the Kurdistani
central bank in Arbil, told that many of the private
institutions desiring banking activity have been
granted licenses for launching banks all over Iraq,
in general. He added that the banking system in
Kurdistan is heading towards privatization.
He called the foreign institutions for "banking
investment, launching branches in Kurdistan, making
use of the facilities offered by the government of
the region, for foreign and Arab investment
companies, pushing to invest in the region." He
confirmed, "Working according to the method of
mutual benefit is better than limiting it within the
framework of one region."
He pointed out, "The central bank is developing
banking activity in Kurdistani commercial banks,
according to what is established in global banks.
Dealing with foreign companies is executed in
accordance with the banking laws, issued by the
Iraqi central bank." "They allow the foreign
investment to have Iraqi partnership (institutional
or individual), and that their work should be
subject to the Iraqi financial control of the
central bank, the investing entity should point out
the names of their partner companies and banks, and
to obtain the founding permit from the central bank
after submitting the necessary data", he added.
He said that before the withdrawal of the central
government departments from Kurdistan in 1992, the
number of banks was 7. As for the current number of
banks in the city of Arbil and its suburbs, it is 15
banks, all under the public sector, in addition to
the private "Kurdistan" bank and "the Iraqi bank for
trade", which works on the external relations' line
between the public and private sectors. Its
headquarters is based in Baghdad.
He disclosed a plan, which aims at "developing the
atmospheres and preparing them to reach the method
of dealing in credit cards instead of dealing in
cash, and facilitating the process of transferring
the currency and controlling its value, through
setting a program that stabilizes the exchange rate
of the Iraqi dinar."
He added, "The government of the region is
establishing its banks on bases of the need of
Kurdistani individuals. It works hard on delivering
the banking services to all areas and districts, to
facilitate banking transactions and encourage
citizens to deposit their money there." He pointed
out, "The interest rate, which is offered by banks
in Kurdistan differs from region to another, due to
the competition among these banks. The general
central bank does not collect interests on money.
Iraqi commercial banks are the ones that do that."
As for the private commercial banks that offer loans
to merchants and contractors, he said, "Some
commercial banks offer advance payment and loans to
merchants and contractors. Nevertheless, the loans
of agricultural and real estate banks are still
frozen, due to the lack of issuing a law by the
Iraqi central bank, which allows offering them."
He stated that the activity of the business of
banking is connected to the security conditions in
the country. "When the latter stabilizes, the
efficiency and activity of the former increase", he
said. He stressed the necessity of working in the
most secure regions. "No matter if they were in the
north or the south, as we can think of gradual
expansion of banking to include all Iraqi regions,
afterwards."
Al Hayat
www.almendhar.com
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