Government Advisor: Contracting With International Auditing Firms Is A Key Step To Modernizing The Economic Structure
Economy Baghdad – INA – Nassar Al-Hajj Adviser to the Prime Minister, Mazhar Mohammed Salih, confirmed today, Friday, that contracting with international auditing firms to evaluate the banking sector is a key step to modernizing the economic structure.
While explaining that these firms are independent and unaffected by pressures and interests, he indicated that this modernization contributes to strengthening confidence in the Iraqi financial market and reform in this sector, and encourages a move away from the informal cash economy.
Advisor to the Prime Minister, Mazhar Mohammed Salih, told the Iraqi News Agency (INA):
“The statements made by Prime Minister Mohammed Shia al-Sudani during his recent important meeting with the chairmen of the boards of directors of private banks in Iraq or their representatives are consistent with the banking reform policy in Iraq, particularly highlighting the importance of contracting with international firms for financial auditing and assessing the status of the banking market in our country.
This represents a fundamental step and a foundation towards comprehensively modernizing the economic structure, while
simultaneously reflecting a drive to rebuild trust and cohesion within the financial sector in general and the banking market in particular.”
He added, “Prime Minister Mohammed Shia al-Sudani’s statements undoubtedly represent reform axes that do not deviate from the principles of the government’s approach that state institutions have followed over the past few years.
The primary goal of banking reform is to modernize it to align with international standards in governance, compliance, and transparency, particularly in providing confidence and efficiency in the provision of banking services to society with a broad framework of integrity and credibility in banking work.”
He noted that “the Prime Minister’s speech focused on the need to encourage investment by ensuring a reliable banking system that supports financial inclusion and efforts to transition to a digital economy, electronic payments, and all digital transactions.”
He explained that “the Prime Minister’s speech focused on the importance of contracting with international auditing firms to re-evaluate the conditions of banks, both private and government-owned, based on a single premise:
ensuring their institutional capabilities to
uncover any financial loopholes in the country’s banking system,
verify the integrity of accounting and administrative procedures within local banks, and
provide an accurate assessment of the financial suitability of banking institutions.
This supports reform plans with real data to take effective steps to build a long-awaited, integrated and efficient banking system.”
He indicated that “these international companies possess advanced auditing expertise and technologies, undoubtedly supported by local competence.
In addition, the international auditing and accounting firms currently undertaking the banking sector evaluation process
are independent entities, unaffected by pressures and interests, and
provide greater credibility to the international community and investors,
which enhances confidence in our country’s financial market.” He continued,
“Prime Minister Mohammed Shia al-Sudani’s speech did not depart from the
fundamental principles of financial and banking reform, which are based on
encouraging citizens and companies to deposit funds and
engage in credit transactions with banks instead of the informal cash economy.
This is achieved by creating an attractive investment environment based on transparent and stable banking institutions,
with the goal of supporting the private sector with effective loans and financial services.
This contributes to creating job opportunities and sustainable development within the aforementioned private sector, which is the true partner of the state in economic progress and prosperity in Iraq.”
Prime Minister Mohammed Shia al-Sudani chaired a meeting of the heads of the boards of directors of Iraqi banks,
during which mechanisms for implementing the banking reform plans prepared by the government were discussed as part of comprehensive reforms of the economic sector.
During the meeting, according to an official statement, the Prime Minister emphasized that “all state sectors are linked to the existence of an effective and flexible banking system that relies on modern technologies.”
He noted that “the government has adopted comprehensive plans for banking reform and contracted with private financial auditing companies, including all banks, and has made significant progress in implementation.”
He explained that “the work of the First Rafidain Bank will launch with a new look and vision, in partnership with specialized and well-known banks.”
He pointed to “the formulation of a clear roadmap to address the conditions of the private banking sector, as a partner in development.”
He emphasized the need for cooperation during the next phase to take effective steps in economic reform.
He pointed to “the state’s distancing from detailed intervention in sectors and assuming a regulatory role,” indicating efforts to
“engage the private sector and foreign companies in all mega-projects, as well as
support local productive sectors and
absorb the imported cash flow.”
Providing domestic goods and services to citizens as an alternative to imports and
ensuring support for local investment.
The Prime Minister directed “banks to
simplify procedures and
participate broadly in the development process, as well as to
participate as investors in all available opportunities,
move toward partnerships with foreign companies, and
work to build trust with citizens,
which will help ensure they feel confident depositing their money in banks.”
https://www.ina.iq/233881–.html
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