10 April 2020 – Central Bank of Iraq issues decisions to support bank liquidity and lending

Type of Intervention: Financial and Economic
Sectors Involved: Central Bank
Intervention Categories: Finance policy and financial aid; Monetary and macro-financial policy
Level of Jurisdiction: National
Lead People/Agency: Ali Muhsen Ismail

Overview: The Central Bank of Iraq issued several decisions, including delaying the implementation of banks’ penalties and fines and supporting bank liquidity, as well as resuming the fulfillment of external transfer requests. Among the decisions taken is the continuation of the work of the Central Bank and other banks according to the exception issued by the competent authorities, and the resumption of meeting external transfer requests through the window to meet the requests that citizens and the government routinely need during the period of imposing the embargo, and delaying the implementation of penalties and fines imposed on banks, and for a period of three months, starting from 1/4 Until 6/30/2020.

For the purpose of supporting the process of postponing the payment of the installments of all citizens ’loans (for a period of three months), it was decided to support the banks’ liquidity by reducing the legal reserve ratio to them by 13% for a period of six months, stressing that “banks, in the event of a curfew, continue to re-practice their activities in full, considering reducing the number of employees working in them and adopting health safety measures in order to ensure the implementation and fulfillment of the necessary actions for citizens and state institutions”.

Full details here: https://www.alsumaria.tv/news/%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF/341018/%D8%A7%D9%84%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D9%8A%D8%AA%D8%AE%D8%B0-%D9%82%D8%B1%D8%A7%D8%B1%D8%A7%D8%AA-%D8%B9%D8%AF%D8%A9-%D9%85%D9%86%D9%87%D8%A7-%D8%A7%D8%B3%D8%AA%D8%A6%D9%86%D8%A7%D9%81-%D8%AA%D9%84%D8%A8%D9%8A%D8%A9-%D8%B7

Type of Justification: No justification given