Central Finance and agree to resolve the problematic Warka Bank

Friday, March 23, 2012 15:40

BAGHDAD / Baghdadiya News / .. with sources close to the Central Bank and the Ministry of Finance of the existence of efforts to resolve the problematic custody of the Warka Bank by providing financial support, between the Executive Director of the Association of Banks Abdul Aziz al-Hassoun of the central bank told us officially preparing for.. meetings of the Economic Commission parliamentary next April.

Club journalists, economists Iraqi Transport Agency / Baghdadiya News / Friday, a member of the Economic Commission parliamentary Nora Albjara saying, “The preparation for these meetings that would solve some problems in the private sector, especially since the weight of the largest is located here on the responsibility of Parliament as the legislative authority of the laws governing the work of the government and the private sector. “

She said the Commission would make use of experts, banks are competent in addition to the relevant members will listen to domestic banks and the central bank later so they can be putting in place mechanisms to pass some obstacles, including the problem of custody of the Warka Bank the last reservation by the measure may send negative messages to foreign investors and limit their desires to enter Iraq, let alone measures from being burdened the private sector.

Banking expert d. Majid picture revealed that many members of parliament concerned sector economics and finance, including MP Ahmad Chalabi, and Albjara, and even the Finance Minister Rafie al-Issawi, as well as central bank officials have reached a recent agreement to provide support to the Warka Bank to help him to continue his works normally.

The expert also warned of the repercussions of the collapse of one of the largest private banks in Iraq, because its collapse meant the collapse of a large part of the private banking system would be a very negative impact on the economy and the private sector.

Alluding to what is owned by the Warka of the possibilities of very large assets, especially assets that Hao is enough to solve the problem of the original but Macltna spend here on how to organize these assets and restore credit to spend on the problem of liquidity.

He said that the picture of the powers of the Central Bank to impose trusteeship on a local bank to a foreign worker in Iraq, it is not freezing to work of the bank, liquidated or canceled completely, but it is an administrative end, identify the nature of the problems faced by them and find the necessary solutions as soon as possible.

He revealed the picture of the existence of conflicts of different interests between banks led to the events of a problem for Urkae which is one of the largest private Iraqi banks, and here will be the Bank’s mission now address the problem of Warka and determine the size of government financial assistance to return to his work and his duties normally.

He stressed that the Central Bank Law and if the latter is required to impose guardianship on the Bank to be paid within a period of one month only select the type of problem. Especially that of Warka, and has already provided assistance to Iraqi banks and helped them to stand again by buying shares of a particular share, but he follows the wishes of the departments of banks.

For his part, Executive Director of the Association of Iraqi private banks Abdul Aziz Hassoun, for the latest central bank data, and through contact shows that the central works on solving the problem of Warka and there are serious efforts to end the problem.

With regard to the meetings that will be within the Economic Commission Parliamentary with the directors of private banks and then officials of the central bank, the goldfinch that the parliamentary committee is very interested in this matter no problems suffered by the Iraqi private sector in general and banking in particular, was let us know through the Central Bank to participate in this formal meetings, noting that some lawmakers are contributing continuously to examine these problems and put forward ideas to solve them.

It is noted that the Iraqi Central Bank decided three weeks ago and put Warka Bank under the trusteeship and the appointment of financial management and administrative staff from a central, for reasons attributed to the presence of drought in the liquidity of the bank and the failure of the partnership agreement with the Bank of British Jad.

And the Central Bank of Iraq that the decision of the Trusteeship came to help the bank and not for liquidated private banks in Iraq and suffered greatly from the decision of the Ministry of Finance, the judge to withdraw all government deposits from private banks and deposited in the state exclusively, resulting in the withdrawal of large amounts of liquidity.It is obligatory to oppose the move by the big banks, economists and members of Parliament, as well as Finance Minister, who had previously agreed to grant a large loan to Urkae However, the Rafidain Bank hindered the implementation of it, / End / 27.