Planning minister says Iraq needs new banking system

KARBALA / IraqiNews.com: The Iraqi minister of planning and development cooperation on Sunday criticized Iraq’s current economic policy and its major dependence on oil, calling for a new banking system that encourages major institutions to play a more effective role in economy. “The Iraqi economy is going through a dangerous stage because most of its financial resources are spent on government expenditure,” Minister Ali Baban said today during an economic conference at Karbala University. “Iraq’s financial resources totally depend on oil,” the minister said. “The total reliance on oil has made Iraq pay dearly when oil prices dropped from $140 to $40 a barrel,” the minister noted. The holy Shiite city of Karbala lies 110 km southwest of the Iraqi capital Baghdad. SS (P) 1