IRAQ TO CHANGE BANKING LAWS

BAGHDAD / Aswat al-Iraq: Specialists in the economic and special banking work in Iraq said on Thursday that the special banking system needs to reconsider its laws to suit the current reconstruction stage in the country.

This came during a ceremony held by the Gulf Commercial Bank on Thursday (Jan. 7) on its 10th anniversary, during which it honored a number of media institutions for their roles in spreading the economic culture in the society, including Aswat al-Iraq news agency, al-Sabah newspaper and al-Hurra satellite channel.

“The Iraqi banking sector has achieved a quality leap regarding the number of banks and their branches which reach 640 or their capitals which reach 1.200 trillion Iraqi dinars,” Chairman of the Gulf Commercial Bank, Abu Taleb al-Hashemi, told Aswat al-Iraq news agency.

However, the banker continued, despite these developments the banking sector’s contribution in the national output does not exceed 7%.

“The banking system in Iraq needs a comprehensive restructuring and a development of its legislations to encourage banks to take part in the developmental work, mainly in the establishment of the small and medium enterprises.

He called on the Central Bank of Iraq to set up two economic institutions; the first one to guarantee deposits and the second to guarantee the loans which will enable the national banks to expand their activities.

“There are some laws need to be studied because they are very important in the baking dealings, mainly fostering the Iraqi judiciary concerned with the economic affairs,” he explained.

“Iraq does not has laws on the electronic commerce (E-commerce) which is very important for boosting the economy and its development,” he concluded.

Economist, Ghazi al-Kenani, said “the coming stage is a competition stage between Iraqi and foreign banks,” pointing out that the later expressed readiness to enter the Iraqi market and invest in it, the matter which force the Iraqi banks to develop themselves to prove their ability to work and compete.

“Special banks need some change in their law to foster the roles in the Iraqi economy,” head of the economic department in al-Sabah newspaper, Yasser al-Mutwali, said.

“This will depend on the fiscal policy the Central Bank of Iraq will adopt,” he told Aswat al-Iraq news agency.

He voiced hope that the fiscal and monetary policies of the CBI would support and strengthen the special banks’ roles to live up to the international levels.