Related article ~ Iraq, IMF, and World Bank ~ Iraq urged to reform financial system
26/09/2011
World Bank: progress in Iraq on further financial reforms
Confirmed high rates of gross domestic product by 9.6 percent
BAGHDAD - Haider al-Rubaie Flaih
acknowledged experts and specialists in the economic world that monetary policy in Iraq is still unstable and suffer from the reluctance in many aspects, as hinted that the specialists of the financial sector in the country is the most prominent barriers to achieve higher rates of sustainable growth in Iraq in general, critics at the same time the dominance of government banks on the overall financial dealings in Iraq and the inventory of bank transactions for things small does not live up to the work of international banks such as selling cars for example.
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and counting many people concerned with the economic reform is part of the financial institution in Iraq, which continues to suffer as a result of limitation laws and lack of ability to achieve growth rates of more as the case in most countries of the region, and attributed the watchers that the fiscal policy pursued by the central bank does not pay the rates of development great attention in spite of achieving important goals Kmhafeztha the stability of the Iraqi dinar and reducing inflation rates, and considers Dr. in the Faculty of Economy and Administration Mustansiriya that the central bank is the only economic, which worked in Iraq in a professional manner during the previous period, but the rich Khazraji criticized at the same time the performance of the Central, which said it did not specify goals for periods of long and short as well as absence of the word development in the dictionary of the Central Bank according to Khazraji ..
and called Khazraji during the symposium discussed the review of monetary policy in Iraq and attended (morning) to change some of the laws of the Central line and the economic changes taking place in Iraq, noted Dr. to the Central pursued a deflationary policy since 2003 to the year 2009, while the policy was expansionary after the year 2009 as a result McCann suffered by the country's unemployment is rampant, and called at the same time have to take banks for their role in the financial process and development in the country, similar to banks government, which said it was still underdeveloped and suffer from aging systems where ..
and came views experts and specialists who admitted the existence of an imbalance in the fiscal policy for Iraq during the after the announcement issued by a group of bodies, international lending, stating that the Iraqi banking system damage growth prospects in Iraq must be developed in order to attract foreign investment and diversify the economy. A report passed by the World Bank said that seven banks SOEs dominate the banking system has 89 percent of bank deposits in the country.
According to Reuters, a number of experts said that many of these banks provide limited services and most of the commercial banks in Iraq are not working be acting and some sell cars. He said Heidi Larbi Regional Director Bank International on the sidelines of the IMF and the World Bank in Washington, "Iraq must seem an economy diversified as it has to provide jobs for millions of people.
"He also said: This is a country with enormous potential and we need to help Iraq as a tiger next in the region."
said the World Bank should The Iraqi government order of the balance sheets of banks and strengthening supervision of the financial system and create the conditions for competition from the private sector.
The bank said "in order to improve the balance of the economy there is a need to deepen the financial sector to support the growth of non-oil sector."
Officials said the Iraqi financial sector's troubled was almost one barriers to economic growth, they said there is still a need for security and macroeconomic stability.
The International Monetary Fund expects to increase gross domestic product of Iraq by 9.6percent this year and 12.6 percent next year. This contrasts sharply with many other nations in the Middle East and North Africa will see a decline in growth in 2012 due to falling oil prices and global recession.
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