06/07/2011Salih: Banking sector holding back economy
Erbil, Kurdistan Prime Minister, Barham Salih, said today that the development of the economy is being held back by a poor banking sector.
Speaking exclusively to AKnews at a visit to their offices, he said that it is one of the main factors blocking foreign investment in the region.
“We are trying to encourage international banks to operate in Kurdistan, because at present we do not have a world class sector,” he said.
The government will have to improve the legislative environment and introduce new laws if it is to flourish, he added.
Kurdistan has a projected growth of 9-10 percent for this year, an unprecedented level for the region. However, the prime minister said the government must guard against the boom and bust cycle.
“We have to make sure that it is sustainable growth. There is the inevitable economic cycle to consider. We are developing many sectors including industry, agriculture, tourism, services and of course oil. If we develop these thoroughly then we will hopefully guard against bust,” he said.
Salih said that infrastructure is also an impediment to growth:
“Electrical power is a particular problem, but we are looking to make special energy provisions for foreign companies, to encourage investment. We’re also planning to construct new power plants to tackle the problem.”
http://www.aknews.com/en/aknews/2/250413/
