Iraq Economic News and Points to Ponder Thursday Afternoon 1-11-24
Tlm724 Administrator Bondlady’s Corner
{Diminishing Interest}.. A Government Trend To Increase Development Rates
Economical 01/11/2024 Baghdad: Haider Falih Al-Rubaie Economic affairs specialists welcomed the government trend that will oblige banks to set decreasing interest rates on loans, stressing that this could achieve a number of important economic factors, including increasing development rates and raising the purchasing power of the beneficiaries of these loans, especially employees, retirees, and those covered by the Social Protection Law.
According to specialists, the high interest rates on loans imposed by banks according to the increasing interest method have burdened the beneficiaries of those loans, especially those with limited income, who are forced to pay half the value of the loan sometimes in the form of interest, which led to limiting their purchasing capabilities, and thus this contributed
The banking method significantly increases poverty rates, according to specialists, who also called for the need for the central bank to intervene decisively in determining the interest rates charged on loans.
The welcoming economic stances came after the government decision to limit the “drain” on the financial capabilities of loan beneficiaries, as the Prime Minister, Muhammad Shiaa Al-Sudani, instructed to reconsider the calculation of the interest paid on loans granted to citizens.
Prime Minister Muhammad Shiaa Al-Sudani directed the Ministry of Finance, the Central Bank, and government and private banks to reconsider calculating the interest paid on loans granted to citizens, using the simple decreasing interest method instead of the cumulative method, which burdens the borrower with burdens on them.
This decision, according to the economic expert, Dr. Ali Daadoush, during his speech to Al-Sabah, could enhance the financial solvency of three of the most important segments of society, namely the segment of employees, retirees, and those covered by the Social Protection Law, stressing that this approach is sufficient to achieve a package of important economic achievements, which stands in Its introduction is to give a great advantage to those with fixed income, as the decision, once activated, will reduce the interest paid to become gradually lower until the loan is paid in full.
The expert, Daadoush, gave an example of how to apply decreasing interest if it was actually implemented by banks. He pointed out that, for example, if the loan amount is 10 million dinars, with an interest rate of 10%, and the repayment years are 5 years, then 200 thousand dinars are deducted per month.
But next year the interest will be paid on the amount of 8 million and so on, indicating at the same time that this approach is consistent with the government program in one way or another as it is concerned with serving a large segment of employees and retirees who have been burdened by the cumulative interest.
Despite the positives listed by expert Daoudesh, researcher and member of the Iraqi Economists Association, Muqdam Al-Shaibani, believes that the decision has other advantages related to increasing rates of sustainable development in Iraq.
Al-Shaibani told “Al-Sabah” that “the government’s direction to reconsider calculating the interest on loans granted to citizens and using the simple decreasing interest method will achieve a noticeable and rapid increase in the development process, which will reflect positively on the economic reality of the country through employing the workforce, reviving the markets, and operating many means.”
Transportation that will contribute to supporting construction, trade and other development areas.
Researcher Al-Shaibani also believes that the rest of the loans should be included in the government decision, as industrial and agricultural diminishing loans can play a vital role in accelerating and increasing rates of economic development, and
that financing projects with their various uses is sufficient to eliminate unemployment and improve the level of per capita income from the gross domestic product to achieve well-being for citizens..
Specialists had previously welcomed, during their talks with “Al-Sabah”, the directions of the monetary authority in the country, which aim to increase rates of sustainable development, stressing that
the launch of the Central Bank of the National Lending Strategy could achieve a package of important economic steps, the forefront of which is the elimination of… Unemployment, poverty, and moving the wheel of private sector work.
The initiative announced earlier by the Governor of the Central Bank, Ali Al-Alaq, according to the opinions of specialists, constituted a starting point towards nourishing economic stability and contributing to growth, prosperity and creating job opportunities,
especially since this strategy is directed to supporting small and medium enterprises, which can absorb thousands of workers..
Al-Alaq announced a plan to build a national lending strategy that will come into effect at the beginning of this year, 2024, stressing that
Riyada Bank will be a base for launching and financing small and medium enterprises, and that its total initiatives have reached more than 12 billion dollars. https://alsabaah.iq/90267-.html
Prime Minister: We Cannot Create Development Without Reforming The Banking And Financial Sector
Wednesday 10, January 2024 | Economical Baghdad / NINA / The Prime Minister stressed that: “Development cannot be created without reforming the banking and financial sector.”
Al-Sudani said in a speech at the opening of the Baghdad International Fair activities: “The government has adopted economic reform from day one.” He added: “Specialized teams have come up with a package of measures that contribute to tax reform.” /End
https://ninanews.com/Website/News/Details?key=1100266
Rafidain Bank Announces Privileges For Electronic Payment Instead Of Cash
Wednesday 10, January 2024 | Economical Number of readings: 281 Baghdad / NINA / Al-Rafidain Bank announced privileges for electronic payment and the use of points of sale in financial transactions instead of cash.
The bank said in a statement that one of the advantages of electronic payment is the saving of time and effort in carrying out financial transactions, and the security of transactions, as the electronic payment device provides security and trust by encrypting financial transactions and protecting customers from fraud and unauthorized use, and the device also provides speed and ease in payment operations.” https://ninanews.com/Website/News/Details?key=1100131
Al-Rafidain Issues A Clarification Regarding The Use Of The Electronic Card
Tuesday, January 9, 2024 Baghdad/National News Center Today, Tuesday, Rafidain Bank issued a clarification regarding the use of electronic cards. The bank stated, in a statement received by the National News Center, that “the electronic card has several benefits and advantages and is used in important areas, most notably deposits, withdrawals, shopping, and conducting daily financial transactions away from cash and manual cash.”
The statement added: “From this standpoint, Rafidain Bank stresses the need for its holder to act in accordance with his declared income limits, especially the electronic card for employees and retirees, which is fed into a bank account, and
thus it should be used in a civilized and responsible manner by filling it with amounts consistent with the maximum permissible limit and in a manner consistent with the amount The monthly salary of the employee or retiree and the rest of the sources of income declared by the cardholder in accordance with the Anti-Money Laundering and Counter-Terrorism Financing Law.”
He warned citizens against “giving the card and password to another person who withdraws amounts outside the country, and this is part of money laundering operations,” concluding by saying: “Dear citizen, your card is your financial identity, so be sure to use it for the legitimate purposes designated for it inside and outside Iraq.” https://nnciraq.com/245113/
In The Document.. The Iraqi Central Bank Issues Guidance Regarding Financial Movements Via Cards
Local / Economy |Yesterday, |Baghdad today – Baghdad Today, Wednesday (January 10, 2024), the Central Bank of Iraq directed that it is absolutely not permissible to set a “maximum ceiling” for spending exclusively from debit cards, with regard to payment and obtaining powers in government departments.
According to a document seen by “Baghdad Today”, the directive concerns debit cards linked to a bank account, as citizens who own this type of card will be able to pay fees and financial fees for government services in all state departments without a limited ceiling on spending.
In the document.. The Iraqi Central Bank issues guidance regarding financial movements via cards Whatsapp-image-2024-01-10-at-7_14_05-pm
https://baghdadtoday.news/uploads/posts/2024-01/whatsapp-image-2024-01-10-at-7_14_05-pm.jpg
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Provoking Points To Ponder on Adversity:
Don’t look forward to the day when you stop suffering. Because when it comes, you’ll know you’re dead.- Tennessee Williams
How sublime a thing it is to suffer and be strong.- Henry Wadsworth Longfellow
He disposes Doom who hath suffered him.- Emily Dickinson
They merit more praise who know how to suffer misery than those who temper themselves in contentment.- Pietro Aretino
Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, vision cleared, ambition inspired, and success achieved.- Helen Keller
Never to suffer would have been never to have been blessed.- Edgar Allan Poe
It is somehow reassuring to discover that the word “travel” is derived from “travail,” denoting the pains of childbirth.- Jessica Mitford
http://famousquotesandauthors.com/topics/adversity_quotes.html
Famous Quotes and Authors, Famous Quotations for all Occasions–