Iraqi Prime Minister unveils action plan to revitalize local banking sector

Baghdad, Iraq — A government source revealed on Tuesday, that Prime Minister Mohammed Shiaa Al-Sudani has issued a series of measures and steps to invigorate the domestic banking sector, while directing the study of the possibility of enhancing the foreign currency needs of local bank branches abroad. The source informed the Iraqi News Agency (INA) that this move aligns with the Iraqi government’s endeavor to devise a strategy fostering activity within the domestic banking sector in the upcoming period. This strategy aims to encourage greater involvement in economic diversification efforts and fortify its fundamental pillars.
 
Key directives issued by Prime Minister Mohammed Shiaa Al-Sudani include:
 
The Council of Ministers for Economic Affairs will assess a proposal to increase deposits for government institutions and the central government in local banks. This initiative seeks to facilitate more banking transactions, contributing to the advancement of various vital sectors, and enhancing their capacity to provide diverse financial services within and outside Iraq.
 
The Iraqi government, in collaboration with the Central Bank of Iraq, will provide support for local Iraqi banks through foreign institutions and banks. Consideration will be given to the credit rating of each bank in this process.
 
Exploration of the opportunities to enhance the foreign currency requirements of local bank branches abroad for facilitating foreign trade in the private sector aligning with applicable contexts.
 
The Iraqi Central Bank’s Board of Directors will evaluate the contribution of foreign capital in Iraqi banks, ensuring alignment with the provisions outlined in Banking Law No. 94 of 2004, to benefit the Iraqi economy.
 
Representatives from the private banking sector will participate in discussions concerning pertinent issues across all state institutions, including meetings of the Iraqi Central Bank’s Board of Directors.
 
A review will be conducted regarding the reactivation of the financing initiative provided by the Iraqi Central Bank, guided by proposals put forth by the Central Bank in this regard.
 
The Competition and Monopoly Prevention Board will undertake measures mandated by Law No. 14 of 2010 to prevent monopolies in banking services. The board will regularly submit reports to the Iraqi Central Bank and coordinate with it in accordance with the aforementioned law.

This news is sourced from Iraq News Agency (INA)