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.
A man counts wads of Iraqi dinars using a money counting machine at a currency exchange shop in Baghdad October 1, 2012. Many Iraqis have lost faith in their dinar currency but to some foreign speculators, it promises big profits. The contrast underlines the uncertainties of investing in Iraq as the country recovers from years of war and economic sanctions. Picture taken October 1, 2012. To match IRAQ-ECONOMY/DINAR REUTERS/Saad Shalash (IRAQ - Tags: BUSINESS POLITICS) - RTR38QU3
A man counts wads of Iraqi dinars using a money counting machine at a currency exchange shop in Baghdad, Oct. 1, 2012. - REUTERS/Saad Shalash
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Omar al-Shaher
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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).

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