Removing the Private Iraqi bank's guaranty to open letter of credits
February 05, 2009
The Ministry of Finance in cooperation with the Iraqi Trade Bank and the Central Bank of Iraq held a Conference, and the participants called for reducing the statutory reserve of the government's deposits after the classification to a minimum of 25% instead of 75%.
A source at the Finance Ministry stated on Friday that most of the self-financing services are depositing the surpluses in the banks for an interest and use the cash surpluses in banks for the purposes of development.
The source noted that the participants have recommended the need for ministries to open direct credits in private banks and the possibility of opening of current accounts for government departments and accept the letters of guarantee issued by private banks.(Source) Al Iraq