Iraq to Raise Bank Capital To Address Housing Crisis
Iraq plans to increase the capital in the country’s two government banks from $23 million to about $360 million to address the growing housing crisis.
BAGHDAD, Iraq - Iraq plans to increase the combined capital of the only two governmental banks in the country, from about $23 million currently to about $360 million next year. Deputies in parliament say that this increase is aimed at supporting housing loans for citizens, in order to help them face the increasing housing crisis in the country.
It is worth mentioning that Rasheed Bank’s capital is 2 billion Iraqi dinars (about $1.72 million) while Rafidain Bank’s capital is 25 billion dinars ($21.5 million).
In May 2012, the council of ministers agreed to increase the capital of Rafidain Bank to 400 billion dinars and that of Rasheed Bank to 300 billion dinars, using the two banks' general reserve funds. However, the increase was not included in the 2013 budget.
An informed source in the Iraqi Ministry of Finance told Al-Monitor, “The country's public budget for 2014 includes a capital increase for Rasheed Bank from 2 billion Iraqi dinars, and for Rafidain Bank from 25 billion dinars, to 200 billion dinars (about $180 million) for each of them.”
