Lower demand on private banks crediting

July 13, 2009 - 01:26:06

BAGHDAD / Aswat al-Iraq: There is a large decrease in the demand for credit from private banks in the Iraqi market, a banking expert said on Monday, attributing this reduction to high interest rates.

“Banking relies on credit which is currently witnessing a great reduction,” Abdilaziz al-Hasoon told Aswat al-Iraq news agency.

“Banks are no longer actively funding economic activities,” he said.

“By the end of 2008, the size of credit offered by banks was 22 percent compared to the capitals of 35 Iraqi private banks that exceed 1.2 billion U.S. dollars,” he added.

“This will not help to create an environment for the Iraqi economy to work effectively,” he noted.

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