Bondlady’s Corner – Iraq Economic News and Points to Ponder Wednesday AM 1-10-24


Iraq Economic News and Points to Ponder Wednesday AM 1-10-24

Tlm724 Administrator Bondlady’s Corner

Directive From The Sudanese Government To The Central Bank And Banks Regarding Interest On Citizens’ Loans – Urgent

 Politics |Yesterday, 22:09 |Baghdad today – Baghdad  Today, Tuesday (January 9, 2024), Prime Minister Muhammad Shiaa Al-Sudani directed the Central Bank and all banks to use the decreasing simple interest method in citizens’ loans.

A government source said in an interview with “Baghdad Today”,

“Al-Sudani directed the Ministry of Finance, the Central Bank of Iraq, and government and private banks to reconsider calculating the interest paid on loans granted to citizens.” He added,  “He also directed the use of the simple, decreasing interest method instead of the cumulative method, which places burdens on the borrower that burden them.”توجيه-من-السوداني-الى-المركزي-والمصارف-بشأن-فائدة-قروض-المواطنين-عاجل.html

Electronic Payment In Iraq…A Deterrent To Corruption And Bribery And Fears Of A Weak Financial Culture Among People

Reports and analyses     Iraq     breaking     Central Bank of Iraq     Electronic payment     gas stations     POS  2024-01-08 21:36d  Shafaq News/ Electronic payment is a system for making or settling payments without the need to use cash.

This system has many advantages, the most important of which is eliminating corruption, fraud and direct bribery in government institutions, ease of trading, raising cash deposit rates in banks and other benefits.

But Iraq’s transition to this globally applicable system is not without fraud, whether by merchants when citizens shop, or by collecting additional amounts under the pretext of the withholding fees currently in effect, especially since society’s culture of electronic payment is weak.

Therefore, it is necessary to educate society on trading in it, and to facilitate the opening of bank credits for citizens for the purpose of issuing electronic cards smoothly and without obstacles, according to what a number of experts in the Iraqi economy spoke to Shafaq News Agency.

Ending cash handling at gas stations

The Iraqi government seeks to activate the electronic payment service, adopt modern automation systems, and end cash dealing.

Accordingly, the Petroleum Products Distribution Company, affiliated with the Iraqi Ministry of Oil, has set the end of next March as a deadline for cash transactions at government and private fuel filling stations.

The company’s general manager, Hussein Talib, said in a previous statement to Shafaq News Agency,

“All government and private fuel filling stations will use the electronic payment system to fill fuel, on the first of next April.”

Talib had announced an increase in fuel refueling rates through electronic payment cards, confirming in a statement received by Shafaq News Agency, that

“sales through the use of electronic cards

     recorded 35 million dinars last April, while in

     November of last year they recorded more than 350 million dinars.”

This is usually an indication of the success of the experiment.

Talib called on citizens to “procure electronic payment cards to learn more about the service and discover its advantages.”

1.2 million bank accounts in 9 months

In turn, the Iraqi Private Banks Association revealed, on December 12, a growth in accounts, bank cards and electronic payment devices after the great support provided by Prime Minister Muhammad Shia al-Sudani and the Central Bank of Iraq to the banking sector, through activating electronic payment in government and private institutions and reform in Foreign trade financing mechanisms

The association’s executive director, Ali Tariq, said in a press statement that bank accounts grew by 14%, reaching 10.02 million bank accounts by September 30, 2023, after at the end of 2022 there were more than 8.79 million accounts, which means the creation of more than 1.2 million. Account within 9 months.

Benefits of electronic payment

In this context, financial and economic expert, Mahmoud Dagher, says,

“Cash is the means used for all corruption and fraudulent operations, and therefore

one of the most important benefits of electronic payment is the elimination of corruption and fraudulent operations.”  Dagher added to Shafaq News Agency,

“It also facilitates the process of settling accounts inside banks instead of the settlements being outside banks in offices and homes.” He continues,

“It also helps businessmen to have controlled accounts through the bank statements provided to them by the banks they are affiliated with.” He asserts,

 “There are no harms or negatives to electronic payment, and

all countries of the world are trying to reduce the volume of settlements by cash payment and resort to electronic payment.” The economist believes that

 “Iraq is capable of regularizing electronic payments quickly, expecting that

“by the end of 2024, many private and public businesses will settle their payments via electronic payment, which will make it easier for everyone to accomplish many things.”

Requirements for conversion to electronic payment

The economic researcher, Ahmed Eid, agrees with what Mahmoud Dagher said about the

benefits of electronic payment, indicating that it has many advantages, including

“ease of trading,

guaranteeing traders’ funds, in addition to

raising cash deposit rates in banks and banks, and

reducing the factors of corruption and fraud.” And direct bribery in all current Iraqi state institutions, and

provides the opportunity to activate the oversight aspect of the movement of funds.”

But the shift to the electronic payment system through payment cards is not free of fraud – according to what Eid told Shafaq News Agency – whether by merchants when citizens shop, or by collecting additional amounts under the pretext of the withholding fees currently in effect in light of a very weak culture. To the community through electronic payment. Eid stresses

“the necessity of educating society about trading in it, and facilitating the opening of bank credits for citizens for the purpose of issuing electronic cards smoothly and without obstacles.” He notes that

“there are gangs and mafias that exploit these cards to smuggle currency by withdrawing money outside the country, and control measures still greatly affect those residing outside Iraq, due to the fraud and smuggling operations carried out by these gangs.”

On January 7, the Prime Minister, Muhammad Shiaa Al-Sudani, directed that citizens be spared additional financial burdens resulting from commissions, during a meeting devoted to following up on the financial and economic transformation to electronic payment, points of sale, and financial trading using electronic cards (POS).

Al-Sudani confirmed, according to a statement issued by his media office, that the goal is to facilitate dealing and facilitate payment in all fields, while ensuring the highest levels of security.

Demands the provision of POS devices in public places

Most markets and fuel filling stations lack POS devices, despite the Council of Ministers’ directives to implement the electronic payment system in state institutions, the private sector, commercial centers, stores, markets, and other entertainment facilities.

Citizens still lack the provision of POS devices, and

there are demands from the Central Bank, banks, and electronic payment companies to provide POS points of sale and make them accessible to citizens for use with electronic cards in shopping and paying instead of cash.

At the beginning of last June, the Central Bank of Iraq announced that Council of Ministers Resolution No. (23044) for the year 2023 had entered into force, which was to increase the number of electronic payment devices (POS) in government institutions and the private sector to enhance the culture of electronic payment and collection, and reduce the use of paper money in Collection and commercial transactions.

“Wataniya” company for electronic payment systems

It is noteworthy that the Board of Directors of the Central Bank of Iraq decided, on December 13, to establish the “National Company for Electronic Payment Systems” throughout the country, indicating that the company represents a qualitative development in the structure of the country’s financial infrastructure.

According to the Iraqi Central Bank statement, this step coincides with the rapid growth in electronic financial services and products and the rise in the number of users in accordance with the framework of the government program to support and adopt advanced electronic payment systems.تقارير-وتحليلات/الدفع-ال-لكتروني-في-العراق-رادع-للفساد-والرشوة-ومخاوف-من-ثقافة-مالية-ضعيفة-لدى-الن-اس

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Provoking Points To Ponder on Adversity:

There is often in people to whom “the worst” has happened an almost transcendent freedom, for they have faced “the worst” and survived it.- Carol Pearson

I didn’t know I’d have to be torn down before I could be built up.- Anonymous

Suffering! … We owe to it all that is good in us, all that gives value to life; we owe to it pity, we owe to it courage, we owe to it all the virtues.- Anatole France

It is only the women whose eyes have been washed clear with tears who get the broad vision that makes them little sisters to all the world.- Dorothy Dix

 Famous Quotes and Authors, Famous Quotations for all Occasions