Monetary Authority: Finance withdrew its objection to the imposition of the central custody of Warka

Thursday, March 15, 2012 07:34

BAGHDAD / Baghdadiya News / .. take it in the official monetary authority that the objection of the Ministry of Finance Central Bank’s decision to impose custody of the Iraqi Warka Bank Palmtsra, noting that “the financial retractedIntercepted after it became clear her things and in all cases, the responsibility of the banks, the Central Bank and not the Ministry of Finance. ”

┬áThe Deputy Governor of the Central Bank of appearance of Dr. Mohammed Saleh told / Baghdadiya News / “The objection of the Ministry of Finance was hasty and now are down after it became clear that the central bank has been careful in his decision and in any case, banks are the responsibility of the Central Bank.

And the favor of that “Warka Bank had a deposit large government and initiated problem after it was withdrawn quickly, causing weakness in the liquidity and the bank tried to meet Palmshobac government of deposits of citizens and liquidity of the other but at the same time could not recover the loans which he had given her, and then became the liquidity crisis and central bank intervention two years ago and a plan bailout of the bank and let the bank to liquidate loans in order to begin payment of the debts of citizens “, adding that in the practice of accounting when the declining value of assets and the value of liabilities due for payment means that there are losses as assets less liabilities means that capital has decreased When the decline of capital by 5% under the Banking Act, the central bank intervenes to impose a trusteeship, and this is exactly what happened. “

Saleh continued that “the Central Bank of indulgence lot with Warka Bank estimated the conditions of the withdrawal of government deposits, and after that we asked the bank to improve his situation and promised to find a foreign partner, a bank,” Standard Chatrd “which is an international bank Fastmrt negotiations more than a year at the end of the negotiation S Chartrj did not lend itself to enters as a partner and stipulate a condition to control the bank’s management. “/ Finished / 26