The Iraqi government is working to develop a competitive banking system and support the private sector, 25 NOV

 The Iraqi government is working to develop a competitive banking system and support the private sector

Mawazine News – Baghdad

The financial adviser to the Prime Minister, Mazhar Mohammed Saleh, announced on Sunday the government’s efforts to develop a banking system based on the foundations of the competitive market, explaining that the government has commidated two international companies to study the Iraqi banking market with the aim of improving performance and regulating the banking sector.


Saleh said in a statement to the official agency, followed by “Mawazin News”, that “the government strategy for banking reform began with the government banking sector, with the aim of isolating government financial operations from the development of the banking market, as the traditional government sector dominates 88% of banking activity, which causes confusion between government operations and the market. ”


He explained that the government aims to create a competitive banking system that provides modern banking services in line with the country’s digital payments policy, with the aim of achieving actual and digital financial inclusion. He added that “the private banking sector is also going through an evaluation phase and there are opportunities for voluntary integration between banks seeking an international strategic partner.”


In the same context, Saleh stressed that the ultimate goal is to achieve integration into the banking market that enhances competitiveness, homogeneity, compliance and governance, thus integrating the national banking market with the global market.


Saleh also indicated that the government is working to strengthen the development partnership with the private sector by granting sovereign guarantees to the industrial sector to finance international loans for production lines for the most important industrial projects in Europe and Japan, and expanding support for the agricultural sector.

He stressed that the government aims to increase the contribution of the private sector to GDP from 37% to more than 54% in the coming years by providing development financing and supporting private projects, including the Iraq Development Fund and Riyada Bank.