Iraq Urged International Bodies to Reform the Financial System
|September 26, 2011||Filled under Iraq Daily News|
Erbil, (Rn) – The international lending agencies said that the Iraqi banking system damage growth prospects in Iraq must be developed in order to attract foreign investment and diversify the productive economy of oil.
A report passed by the World Bank said that seven state-owned banks dominate the banking system and has 89 per cent of bank deposits in the country, according to the reported “Reuters.”
Experts said many of these banks provide limited services and most commercial banks do not be acting work and some selling cars.
Regional Director of World Bank Hedi Larbi on the sidelines of the International Monetary Fund and World Bank in Washington “on Iraq, an economy that seems to Variety that he must provide jobs for millions of people.”
He added that “this is a country where the possibilities are enormous. We need to help Iraq as the next Tiger in the region,” according to the recipe.
The World Bank said that the Iraqi government must order the balance sheets of banks and strengthen the supervision of the financial system and create the conditions for competition from the private sector.
He said the bank “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 Iraq’s troubled financial sector was almost one of the barriers to economic growth. They said there was still a need for security and macroeconomic stability.
The head of the IMF mission to Iraq, Ron van Roden, “has improved significantly, but still a hazardous environment.”
The International Monetary Fund expects to increase the GDP of Iraq by 9.6 per cent this year and 12.6 per cent next year.
This contrasts sharply with many other countries in the Middle East and North Africa that will see a decline in growth in 2012 due to falling oil prices and global recession.
The Iraqi Finance Minister Rafie al-Issawi said his country will be able to overcome the decline in oil prices to increase production.
Al-Issawi, told reporters that if Iraq’s production has increased for changes in prices, this could offset the budget.
Iraq currently produces about 2.7 million barrels per day and is trying to boost production capacity to 12 million barrels per day by 2017.
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