CBI Lends $5.1bn Iraqi Banks

By John Lee.

The Central Bank of Iraq (CBI) has allocated $5.1 billion (6 trillion Iraqi dinars) in loans to banks in a bid to keep a handle on inflation.

Ali Allaq, Central Bank general manager, told the Al-Hayat newspaper on Monday that the CBI is responsible for the stability of the market, adding that the parliament's Economic Committee called on Iraqi ministries to open bank accounts in the private banks, "but it seems like Iraq's finance ministry ... think they do not have to deal with private banks, only the governmental ones."

According to Allaq, $4.29 billion of the loans will go to the Industrial Bank, Agriculture Bank, and Housing Bank and the other $841 million will go to private banks.

(Source: Rudaw)