2024-04-02T15:08:56+00:00
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/ Member of the Parliamentary Finance Committee, Moin Al-Kadhimi, confirmed on Monday that government banks did not comply with Al-Sudani’s directives regarding loan interest rates.
Al-Kadhimi told Agency, “A lot of the advance funds and loans in banks belong to the private sector, and they are not necessarily bank funds, so interest is not taken into account and reduced.”
He added, “If a simple employee wishes to take an advance worth 10 million dinars from banks, he will repay 14 million with the interest rate.”
Al-Kadhimi explained that “the Parliamentary Finance Committee will, during the coming period, host the Governor of the Central Bank and bank directors to discuss the mechanism for granting loans and advances to employees and citizens,” noting “the banks’ failure to adhere to the Prime Minister’s directive regarding the interest rate being decreasing and not fixed.”
On March 26, an informed source told Agency 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.
Al-Sudani had directed government banks to adopt simple decreasing interest on loans and advances.