http://www.npr.org/templates/story/story.php?storyId=10380130&ft=1&f=1004
Day to Day, May 24, 2007 ·
Four years after the U.S. invasion of Iraq, credit cards have come to the country.
At least one Iraqi bank is offering the service, unheard of during the Saddam era, to customers.
But Iraq is still very much a cash-based society. Many say the find the cards more useful when they're out of the country.
Iraqis refer to money as notebooks, because the bundles are so big. In Iraq, the U.S. dollar buys just over 1,200 Iraqi dinars, so going shopping and paying bills requires hauling around big stacks of local currency.
The banking system is no more sophisticated. Bank employees lug boxes stacked with 10,000 dinar notes to government offices to pay employee salaries.
"For people that we know, we can take some risk and give credit card. For people who have no history we start with pre-paid," said Zaid Mahdi, who is in charge of business development at the Trade Bank of Iraq. He says his bank has issued 15,000 credit cards so far.
The Trade Bank has had to start from scratch in a country embroiled in war.
"We have to know a client. Things are not like in the west. They just put your Social Security number and they know your credit history," Mahdi said. "We don't have that in Iraq yet."
There's a massive billboard on one street corner in downtown Baghdad with the word "VISA" emblazoned on it. This is a typical sight in most countries, but in Iraq the sign, more often than not, elicits blank stares.
Mahdi says the bank has only three ATM machines operating in all of Iraq. Progress in the banking is slow, he says, but it is moving forward, despite the uncertain security situation.
But it's more than just getting people to use credit cards.
"You know there are sometimes problems buying things in the first place," said Ahmed Fadhil, a 26-year-old dentist. "If you want to pay with your debit card … you have to list your address. Sometimes the lists do not have Iraq ..."
http://www.iraqupdates.com/p_articles.php/article/17781
Visa International's services may serve to create a healthier economic environment in Iraq
Jordan, 28 May 2007 (AME Info FZ LLC)
Print article Send to friend
Visa International, recently took part in the IZDIHAR Iraq Private Sector Growth and Employment Generation Banking and Finance Conference.
The event, organized by USAID, was held last month at the Amman Intercontinental Hotel.
Mr. Naser Abu Ghazaleh, Visa International's Regional Manager for the Levant, represented the organization at the two day event. As part of his participation in the event's proceedings, he gave a ten minute presentation about the benefits that electronic payment systems present to the Iraqi people and the products that are most suitable for the current financial and security situations in Iraq.
'Despite the turbulent security conditions seen in Iraq, reports issued by IZDIHAR show that most Iraqis still have a tendency to carry tens of thousands of dollars in their pockets. For those people, electronic payment systems may in fact present a more ideal solution. Work, however, still needs to be done in Iraq to spread awareness of the benefits that Visa International provides for such a society. More people in Iraq need to know that through Visa International they can access funds from anywhere in the world and this in turn means that they no longer need to carry large amounts of cash in a country where it is unsafe and unwise to do so. Furthermore, having more people use the services that Visa International provides allows for more economic growth, especially since more people will automatically be brought into the banking system. With more people in the banking system, more funds are put in bank deposits and therefore more funds are taken out of the grey market and put to more productive use such as retail loans,' said Mr. Abu Ghazaleh.
'The debit card presents itself as a card for individuals seeking a secure payment solution for their day to day transactions, since it is one that is linked to the cardholder's bank account. The prepaid card from Visa International targets new customers who may not be eligible for a Visa credit card or a current account, enabling the banks to extend their cardholder base. Both of these payment tools are sure to be received with high demand from different sectors in the Iraqi community, for the Iraqi population is diversified in nature, and we at Visa International have payment products to cater to such a diversified demographic make-up.'
Ending his presentation on a high note, Mr. Abu Ghazaleh thanked Visa International's member banks throughout the Levant. He stated 'Without the help of our member banks, Visa International wouldn't be doing so well in the region. They are our partners and together we hope to spread more awareness about our payment solutions and to highlight them as the secure and convenient payment solutions that they are. Visa International's Levant office is also ready to provide the support needed for the Iraqi and regional banks who are interested in launching new electronic payment systems and offer assistance in terms of membership applications, identifying suitable vendors, product segmentation, and others.'
It is important to note that IZDIHAR is a comprehensive, 3-year program designed to assist the Government of Iraq, and to expand the private sector so that more jobs are created for varying sectors within the Iraqi community. The program achieves this goal by developing a more market-friendly environment for economic growth. IZDIHAR is funded by the United States Agency for International Development (USAID) and is implemented in partnership with the Iraqi private sector and government. Awareness conferences like this one are part of the many tools it uses to promote more economic prosperity in Iraq, and they serve as a perfect venue to showcase all what the Iraqi economic arena has to offer.
Day to Day, May 24, 2007 ·
Four years after the U.S. invasion of Iraq, credit cards have come to the country.
At least one Iraqi bank is offering the service, unheard of during the Saddam era, to customers.
But Iraq is still very much a cash-based society. Many say the find the cards more useful when they're out of the country.
Iraqis refer to money as notebooks, because the bundles are so big. In Iraq, the U.S. dollar buys just over 1,200 Iraqi dinars, so going shopping and paying bills requires hauling around big stacks of local currency.
The banking system is no more sophisticated. Bank employees lug boxes stacked with 10,000 dinar notes to government offices to pay employee salaries.
"For people that we know, we can take some risk and give credit card. For people who have no history we start with pre-paid," said Zaid Mahdi, who is in charge of business development at the Trade Bank of Iraq. He says his bank has issued 15,000 credit cards so far.
The Trade Bank has had to start from scratch in a country embroiled in war.
"We have to know a client. Things are not like in the west. They just put your Social Security number and they know your credit history," Mahdi said. "We don't have that in Iraq yet."
There's a massive billboard on one street corner in downtown Baghdad with the word "VISA" emblazoned on it. This is a typical sight in most countries, but in Iraq the sign, more often than not, elicits blank stares.
Mahdi says the bank has only three ATM machines operating in all of Iraq. Progress in the banking is slow, he says, but it is moving forward, despite the uncertain security situation.
But it's more than just getting people to use credit cards.
"You know there are sometimes problems buying things in the first place," said Ahmed Fadhil, a 26-year-old dentist. "If you want to pay with your debit card … you have to list your address. Sometimes the lists do not have Iraq ..."
http://www.iraqupdates.com/p_articles.php/article/17781
Visa International's services may serve to create a healthier economic environment in Iraq
Jordan, 28 May 2007 (AME Info FZ LLC)
Print article Send to friend
Visa International, recently took part in the IZDIHAR Iraq Private Sector Growth and Employment Generation Banking and Finance Conference.
The event, organized by USAID, was held last month at the Amman Intercontinental Hotel.
Mr. Naser Abu Ghazaleh, Visa International's Regional Manager for the Levant, represented the organization at the two day event. As part of his participation in the event's proceedings, he gave a ten minute presentation about the benefits that electronic payment systems present to the Iraqi people and the products that are most suitable for the current financial and security situations in Iraq.
'Despite the turbulent security conditions seen in Iraq, reports issued by IZDIHAR show that most Iraqis still have a tendency to carry tens of thousands of dollars in their pockets. For those people, electronic payment systems may in fact present a more ideal solution. Work, however, still needs to be done in Iraq to spread awareness of the benefits that Visa International provides for such a society. More people in Iraq need to know that through Visa International they can access funds from anywhere in the world and this in turn means that they no longer need to carry large amounts of cash in a country where it is unsafe and unwise to do so. Furthermore, having more people use the services that Visa International provides allows for more economic growth, especially since more people will automatically be brought into the banking system. With more people in the banking system, more funds are put in bank deposits and therefore more funds are taken out of the grey market and put to more productive use such as retail loans,' said Mr. Abu Ghazaleh.
'The debit card presents itself as a card for individuals seeking a secure payment solution for their day to day transactions, since it is one that is linked to the cardholder's bank account. The prepaid card from Visa International targets new customers who may not be eligible for a Visa credit card or a current account, enabling the banks to extend their cardholder base. Both of these payment tools are sure to be received with high demand from different sectors in the Iraqi community, for the Iraqi population is diversified in nature, and we at Visa International have payment products to cater to such a diversified demographic make-up.'
Ending his presentation on a high note, Mr. Abu Ghazaleh thanked Visa International's member banks throughout the Levant. He stated 'Without the help of our member banks, Visa International wouldn't be doing so well in the region. They are our partners and together we hope to spread more awareness about our payment solutions and to highlight them as the secure and convenient payment solutions that they are. Visa International's Levant office is also ready to provide the support needed for the Iraqi and regional banks who are interested in launching new electronic payment systems and offer assistance in terms of membership applications, identifying suitable vendors, product segmentation, and others.'
It is important to note that IZDIHAR is a comprehensive, 3-year program designed to assist the Government of Iraq, and to expand the private sector so that more jobs are created for varying sectors within the Iraqi community. The program achieves this goal by developing a more market-friendly environment for economic growth. IZDIHAR is funded by the United States Agency for International Development (USAID) and is implemented in partnership with the Iraqi private sector and government. Awareness conferences like this one are part of the many tools it uses to promote more economic prosperity in Iraq, and they serve as a perfect venue to showcase all what the Iraqi economic arena has to offer.
