2024-03-26T07:27:55+00:00
A-
A
A+
/ An informed source revealed on Tuesday that most government banks are still adopting the fixed interest method on advances and loans despite the directives of Prime Minister Muhammad Al-Sudani to recalculate bank interest.
The source told Agency, “Most banks set fixed, not decreasing, interest on loans and advances, which leads to citizens’ exhaustion during repayment,” noting that “the relevant authorities in the government, the Ministry of Finance, the Central Bank of Iraq, and the Parliamentary Finance Committee must demand that government banks announce And promoting the decreasing rates of advances and loans that it grants so that the citizen, employee, and retiree can know the benefit of each advance or loan.”
Prime Minister Muhammad Shiaa Al-Sudani directed government banks to adopt simple decreasing interest on loans and advances.
According to a government source; Prime Minister Muhammad Shiaa Al-Sudani directed the recalculation of bank interest on loans and advances for all segments of society, including groups with limited income, through a plan and vision that reduces the burden of the citizen and enhances financial inclusion. The simple decreasing interest method was calculated instead of the fixed interest that was previously applied.
He added that, accordingly, all government banks have adopted the new method of calculating the bank interest on those loans and advances to ensure positive flow in banking performance.