Tuesday, July 23, 2024

Al-Nusairi: The application of banking reform strategies is the main pillar of the reform of the national economy, 23 July

 Economy News – Baghdad

The adviser to the Association of Iraqi Private Banks, Samir Al-Nusairi, confirmed on Monday that the banking reform and development strategy is the main pillar of reforming the comprehensive national economy.

Al-Nusairi said, in a private interview with “Economy News”, that “the strategy of reform and banking development is the main pillar for the reform of the comprehensive and radical national economy in line with what was stated in Article twelve paragraph (7) of the government curriculum, which clearly and accurately stated that (banking reform, with its real and effective base to promote the Iraqi economy and stimulate investment through restructuring and mechanization of government banks, reviewing their work, stimulating private banks and enabling them to be able to support investment and development in a real way).

Al-Nusairi touched on “the importance of the banking sector, so that it occupies within the financial structure of the economy a vital position in mobilizing savings and financing development through its ability to flow money between the categories of the national economy, which is the basic step for economic reform.”

He pointed out that “the measures currently taken by the Central Bank with the support of the government to launch its new third strategy to reform and develop the banking sector for the years 2024-2026 in accordance with seven main objectives, 24 sub-sub-initiatives and 75 initiatives to implement the objectives focus on achieving monetary and financial stability, strengthening the banking sector, promoting digital transformation, activating electronic payment, enhancing financial inclusion, maintaining a sober financial system, developing the regulatory structure and human resources, strengthening the internal and external relations of the Central Bank, and the compliance of the banking sector with international standards.”

Al-Nusairi pointed out that “the launch of a national strategy for bank lending in Iraq for the years 2024-2029 aimed at increasing credit granted to the private sector by 4% of the non-oil GDP, which is equivalent to approximately 7 trillion dinars. The second goal is to increase credit for small and medium enterprises by 3% of the non-oil GDP, which is equivalent to approximately 5 trillion dinars.”

He stressed, “The new mechanisms adopt the regulation of loan grants for the development of micro, small and medium enterprises by adopting and based on a new approach to determining the basic goals for the development of the economy and evaluating the current situation of financing the private sector and benefiting from international experiences in this field, as well as continuing procedures and using monetary policy applications by controlling the exchange rate and reducing the gap between the official rate and the parallel price towards reaching the target and balanced exchange rate.”

Al-Nusairi explained that “had it not been for the many services provided by the banking system in developed countries, these countries would not have been able to reach their progress and economic growth.”

He pointed out that “the strength of the banking structure has become a necessity to build a prosperous economy that adopts modernity systems and sound sustainable development. The development of banking habits and awareness of the importance of developing banking facilities in a way that ensures the building of the national savings base and develops the financial resources necessary to build the economy has become one of the priorities of the decision-maker.

The Advisor of the Association of Private Banks continued: “The integrity of the banking system and the mobilization of sound decisions in the field of economic policies towards the development and modernization of banking systems provides the achievement of momentum in the world of real and financial investment, which revives financial and monetary markets, which leads to attracting for-profit-seeking foreign capital, which should the decision-maker to take the necessary measures to fortify and strengthen local banking systems in a way that makes it able to meet the challenges of moving capital to and from abroad without causing money laundering or foreign exchange smuggling, and then increasing the profitability of financial and banking institutions and enhancing the GDP structure, and this is currently active in the government and the Central Bank.”


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Added 2024/07/22 – 12:18 PM

https://economy-news.net/content.php?id=45452


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