Iraq has about 70 banks licensed by the Central Bank with a capital of more than 11.7 trillion dinars.
Walid Eidi said in an interview with "Economy News" that "the Banking Law allows the bank to grant a loan of 10% of the capital as a result of the challenges facing the economy because of the security situation and weak guarantees provided."
He pointed out that the Central Bank decided to establish a mutual fund with a capital of 500 billion dinars can be increased and with the mandatory participation of all commercial banks, explaining that each bank will contribute to the capital of the Fund by 4 billion dinars.
The banks operating in Iraq, government and private loans more than 37 trillion dinars, according to data issued by the Association of Iraqi private banks.
The adviser to the Governor of the Central Bank that the loans to be granted by the Lending Fund is related to the development of infrastructure such as the establishment of hotels and hospitals and financing projects lagging government and the construction of schools and others.
He stressed that the interest to be taken by the Lending Fund is very little compared to the market interest because the risk ratio is not large because there is more than one loan track.