Iraqi News Highlights Monday Evening 5-15-23

Tlm724 Administrator Bondlady’s Corner

By 2025, A Qualitative Leap In Performance Awaits The Central Bank

Economical 2023/05/16   Baghdad: Hussein Thaghb Al-Tamimi   A qualitative leap awaits the performance of the Central Bank by the year 2025 with the move to the new building,

which was designed to be a new breakthrough in the performance of the Iraqi financial sector, as it works to take into account the technical developments witnessed by the global financial sector, and

the design that leads to raising levels of performance, which necessitates the use of advanced systems Which saves effort and time in accurate financial transactions.

Director of the Central Bank of Iraq building project, Eng. Ikhlas Jawad Nazim, told Al-Sabah:

“The new Central Bank of Iraq building project represents a quantum leap in performance, construction form, sobriety, and its synchronization with transformations towards clean energy,” pointing out that

“the reality of the building gives high flexibility to the process of Transferring and fulfilling the country's cash liquidity requirements, as it will be done in accordance with the latest international technologies in this field.  She added,

"The bank's management realized the importance of building a new building that keeps pace with global developments in the field of banking work, "automation" systems, and modern technologies in the world, so

the office of the Iraqi designer Zaha Hadid was chosen for this regard, as

it is a landmark in the field of architecture in the world, and it is of Iraqi origin, and

it was chosen to be It was designed for this new building, and approvals were obtained from the Council of Ministers to send a direct invitation to Hadid in order to develop a distinctive design for the new building, as bank buildings give an indication of the country's financial stability.  Nazim pointed out that

"the project has an independent budget, i.e. from the Central Bank and not from the state's general budget, and the amount allocated is about (885) million dollars, but upon referral it became about (772) million dollars after negotiating with the executing company, as we obtained during the process of preparing the tender With international companies, there are exceptions in this regard, so the bank was excluded from the instructions for implementing government contracts, regarding this project, and

we contracted according to international terms and contracts. And it showed that "

Regarding the completion of the building, Nazem said:

"We have not set a date yet because there are several existing belongings that need to be resolved, but

there is a work program in this regard in which we are trying to reduce the time period for the opening process as much as possible.

We can say that we need about a year and a half to open it, and perhaps It will be early 2025." 

She pointed out that

"the new building of the bank will include, for the first time, a museum that chronicles the history of the Iraqi currency, and

there will be educational activities in it that university and school students can visit. Displays on screens that talk about the stages of currency development, and

there will also be cultural activities that talk about the history of Iraqi civilization, and the design of the museum will be in a modern and unconventional style, and the company that implements the museum is among the companies that worked with Zaha Hadid and is specialized in museums.  

Nazim continued,

"The engineering specifications are the most important characteristic of the building.

For example, the currency counting and cash center will be a fully automatic system (automation).

Currently, a leading international company specializing in this type of system is designing the building system, where a robot will be used, and

we do not need manual labor, so the issue of currency transfer. "By carts”, and the traditional methods, as we used to see on Al-Rashid Street, will be completely finished.

The currency will be transferred to the “currency conveyor belt comp.”

It will be in the form of boxes that move smoothly, approved by all banks, and there will be a barcode on each box until it passes through a belt and is read by the device or a computer It directs these boxes according to the system and transfers them to the safe or to the counting and sorting center.

This is an integrated automation system that will save time and speed in the process of receiving and delivering currency to banks, as well as currency exchange between the bank and banks or the currency counting and sorting process inside the bank that adopts advanced technology that is consistent with the development of the building.   https://alsabaah.iq/76988-.html

Al-Sudani: We Are Determined To Create A Safe Investment Environment

second and third 2023/05/16   Baghdad: morning  Prime Minister Muhammad Shia' al-Sudani, during his meeting with the President of the American-Iraqi Business Council, Steve Lotus, Vice President of the American Chamber of Commerce for Middle East Affairs,

reaffirmed the government's determination to prepare everything that would provide a safe investment environment for international companies, including: through laws and regulations.

The Prime Minister added, in a statement to his media office, that

"Iraq today has many important investment opportunities awaiting the arrival of major companies."

During the meeting, according to the statement, they discussed prospects for cooperation in the economic, financial and health fields, as well as

consolidating this cooperation in the field of energy and the environment, in addition to the partnership between the Iraqi private sector and American companies, based on the strategic framework agreement between Iraq and the United States of America, in order to achieve the requirements Advancement of these files, which are a priority in the government curriculum.

During his meeting with a delegation that included a number of heads and representatives of German companies and businessmen, in the presence of the German Ambassador to Iraq Martin Jaeger,

he stressed that the relationship between Iraq and Germany is witnessing a growing development, and indicated that the Iraqi arena is open to all kinds of economic partnerships with friends and partners, indicating that

security stability The economy that Iraq enjoys is an encouraging factor, supported by an official and popular desire on all sides towards the success of the Iraqi economic reality.

Al-Sudani discussed the available investment opportunities and joint work with German companies in Iraq, stressing that

the government's clear program and its vision for the sectors enabled the movement of projects that had been suspended for more than fifteen years, which created a favorable opportunity for international companies to be present in Iraq and contribute to the reconstruction of infrastructure.

https://alsabaah.iq/77004-.html

Specialists: The Knowledge Economy Is Capable Of Moving Production And Increasing Development

Economical 2023/05/13  Baghdad: The Emad of the Emirate  Those concerned with the economic affairs stressed the need to give the technological aspect the utmost importance in the work of all government joints, and

actively strive to use the latest developments of the information revolution,

especially in the field of modern communications, while

they praised the government's efforts to use electronic payment methods in all aspects of life.

They emphasized that the knowledge economy has become the starting point for many

productive,

investment,

agricultural,

industrial,

banking and

transportation sectors.

The digital transformation process, according to the spokesman for the General Secretariat of the Council of Ministers, Haider Majeed, “is of utmost government importance, and

the e-governance file receives direct attention from the Prime Minister, Muhammad Shia’a al-Sudani, who stressed the need to include it in the ministerial program.” 

In the midst of this, the Rafidain Bank yesterday implemented the electronic collection system in customs, ports and taxes, in

a step that enhances the process of transformation towards the "electronic economy" and leads to the elimination of corruption, while

those concerned with the economic affairs see the "digital transformation" of currency circulation, which the Prime Minister stressed To actually start it early next month, it

represents an important starting point for the national economy, stressing that

this step will basically eliminate corruption and bribery, and facilitate commodity exchanges and money transfers.

According to the specialist in economic affairs, Dr. Ahmed Al-Rawi,

“the modern economy relies mainly on

information,

digitalization, and

software, and

this transformation has been called many names, including the

digital economy and the

information and knowledge economy,” noting that

the digital economy indicates that “the creation of wealth has moved From materials, buildings and machines

to digital knowledge and software information.  Al-Rawi pointed out that

"the principles of this type of modern economy are taking root with the progress made in the knowledge levels to confront the traditional economy,

and lead to the adjustment of the international economic system," stressing

"the need to implement the mechanisms of transformation towards this type of economy in Iraq, and work to lay the foundations on which In light of it, an economic system based on knowledge and technology can be built,”

praising at the same time government moves aimed at eliminating paper circulation, and adopting technology in the buying and selling movement and government reviews, noting that

“this step will eliminate many negative phenomena, especially corruption and delay.”

What is achieved in government audits, as well as the elimination of counterfeit currency.

Member of the Iraqi Economists Association, Dr. Ikram Abdel Aziz, showed that the

knowledge economy includes the communications and information technology sector in addition to digital activities in the rest of the commodity and service production sectors, and is

mainly rooted in businesses related to tourism, insurance, transportation and communications.

Abdulaziz confirmed that the size of the knowledge sector is witnessing a clear growth in recent times,

despite the existence of some difficulties in the process of estimating the size of these sectors,

calling for intensifying digital transformation efforts in Iraq, and working to abolish the paper circulation system in all governmental and private institutions.

Dean of the College of Business Economics, Dr. Nagham Hussein, explained that the

acquisition of knowledge in all fields in general and in the field of information and communication technology in particular plays a prominent role in improving the process of human development and in building a knowledge society from which a knowledge economy emerges with encouraging economic growth rates.  Dr. Hussein continued that

acquiring knowledge is not limited to building a national knowledge base, but

also requires reaping and adapting existing knowledge in other places through

wide openness to the developed world,

encouraging the free flow of knowledge,

establishing links with global markets, and

attracting foreign investment.

https://alsabaah.iq/76760-.html

An Economic Welcome To The Directions Of Establishing A Loan Guarantee Company

Economical 2023/05/14   Baghdad: Haider Fleeh Al-Rubaie  Specialists in economic and financial affairs welcomed the Central Bank's move towards establishing a loan guarantee company in cooperation with the International Finance Corporation, aimed at stimulating the lending process and reducing default rates, stressing that  this step represents a "solid legal guarantor for lending."

The “loan default” process constitutes a real obstacle that many private and government banks suffer from, which cost them huge financial losses, which,

according to the financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, amounted to about 28 percent of the volume of loans granted after 2003,

which is "Very dangerous" against the accepted global average of 3-6 percent maximum.

In order to eliminate this financial phenomenon that confused the work of many banks, the Governor of the Central Bank, Ali Mohsen Al-Alaq, discussed with a delegation of experts from the International Finance Corporation (IFC) affiliated with the World Bank, financial market projects in the Levant region, and during the meeting, according to a statement he issued.

The Central Bank has drawn up a plan to establish a (loan guarantee company), which was proposed by the governor earlier as part of a comprehensive study he presented regarding building the bases for a national strategy for bank lending, while the staff of the Central Bank undertakes to build the national strategy for lending according to the rules stated therein.

The establishment of a loan guarantee company, according to the Central Bank statement, represents an important factor in stimulating lending, by reducing the rates of loan defaults that the banking sector in Iraq suffers from.

In turn, Counselor Saleh believes, during his interview with Al-Sabah, that

“defaulting in loan recovery varies in our country between the years and the stages through which economic activity passed, in a period of banking turmoil for years after 2003, which involved expansion policies in granting loans or cash credits.” With weak guarantees, during which the government banking system was exposed to defaults in recovering cash loans granted,

its defaults amounted to 28 percent, which is a very dangerous percentage compared to the acceptable global rate between 3-6 percent as a maximum,

which is the rate that is accepted to face the risk of default in recovering cash loans in order for banks to hedge Reserves around capital, which is called the provision for non-performing loans.

Although bank collection mechanisms have mostly improved, Saleh believes that cases of failure to collect loans are still more than double the acceptable global rate of default within the scope of accepting emergency and rare cases.

Despite the foregoing, the government financial advisor confirms that

"loan or credit guarantee institutions in the world are considered today among the most effective means to help small and medium-sized companies access financial facilities, and

this is what we are looking forward to today in providing flexible financing levers that help their flows to move effectively development activity that is directly linked to the labor market and addressing employment problems and the dilemma of unemployment.

For his part, the financial and banking expert, Dr. Mahmoud Dagher, pointed out during his interview with “Al-Sabah” that

“the Central Bank’s initiative represents a step towards stimulating banks to grant soft loans to citizens in a larger and wider manner, which prompted the establishment of a guarantee company that bears an important part of the risks of those loans.” Which usually falls on the banks when the borrower fails to pay it.  Dagher explained,

"Iraq owns a company to guarantee loans, but it has a low capital, so the

Central Bank established a large guarantee company that is no less important than the Deposit Guarantee Company, which was established with a high capital and contributed by all Iraqi banks that guarantee an important part of citizens' deposits, in When the company to be established guarantees the risks of loans that banks pay to the public (companies and individuals), so that it makes the bank more able to grant additional loans.

Contrary to the previous opinion, the financial and banking expert, Abd al-Hussein al-Mandhari, expressed in his interview with "Al-Sabah" his surprise at the establishment of that company, indicating the existence of a Kafalat loan company that belongs to a number of banks that established it several years ago.

Most of the banks contracted with government companies to insure their loans, and among them there were contracts several years ago, including loans from the Central Bank’s initiative.

The financial and banking expert, Abd al-Rahman al-Sheikhli, did not stray far from the previous opinion, when he explained to “Al-Sabah” that

“there is a loan guarantee company that is working in real time at the present time, but in a less than required manner, and

works to guarantee loans in return for a simple commission (not binding on the customer).”

Considering the trend towards establishing a company for the same purpose as an "additional administrative circle".

In addition, a member of the Iraqi Economists Association, economic researcher Moqdam Al-Shaibani, counted the

Central Bank of Iraq's move to establish a loan guarantee company in cooperation with the International Finance Corporation as a "step in the right direction," stressing that

it will contribute to opening the door to the Iraqi economy and Iraqi banks by bringing more international investments.

Especially the investments directed towards the sustainable development goals and implemented by the sector.  Al-Shaibani stated that

one of the IFC's missions is to advance economic development and improve people's lives by encouraging the growth of the private sector in developing countries.  The researcher Al-Shaibani stressed that

"the presence of a loan guarantee company, with the help of the International Finance Corporation, encourages many investors and international banks to finance projects inside Iraq, especially by the private sector."    https://alsabaah.iq/76829-.html

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