Shafaq News / The "white paper" on economic reform published by the Ministry of Finance on its official website highlighted a major defect in the work of government and private banks in Iraq, indicating that government banks monopolize 82% of total loans and 86% of total deposits.

The paper reviewed by Shafaq News agency indicated, "public companies stand a major obstacle to the development of the private sector, which is of great importance, especially the financial sector," indicating, "public sector banks monopolize 82% of total loans and 86% of total deposits in Iraq."

"This percentage demonstrates the near-total monopoly of the public sector in loans, deposits and commercial financing operations," noting, "the private sector makes most of its deposits and loans with government banks, which does not allow the development of private banks."

"Because of this imbalance, the deposits base of the private sector banks, amounting to about 10.8 trillion Iraqi dinars, approximately 14% of the total deposits has not developed. Similarly, the loan base of the private banks stood at 7.3 trillion Iraqis, or about 18% of the total loans." It continued.

"The budget has become the only means for the state to strengthen its role in the economy and society, as the salaries of employees and retirees are constantly increasing, which consumed the increasing proportions of oil revenues while the share of investment in non-oil infrastructure is constantly decreasing," the paper explained.