By John Lee.
Iraq plans to establish a state-funded investment bank to help finance major infrastructure projects and steer money towards private sector companies.
Sami Al Araji, chairman of the National Investment Commission (NIC), told Reuters:
“We need this [state-funded investment bank] to push forward the economy … Our existing commercial banks do not have the skills or experience.”
He added that he proposal is part of a series of planned amendments to investment laws which will be submitted to parliament.
The new Investment and Development Bank of Iraq would receive 1 percent of annual state budget allocations over seven years under a proposal that will be sent to parliament for approval.
That arrangement, if it goes ahead, could eventually provide the new bank with over $10 billion to invest.
(Source: GulfNews, Reuters)