Political and security crises are forcing foreign banks to leave Baghdad towards the Kurdistan region

Political and security crises are forcing foreign banks to leave Baghdad towards the Kurdistan region

07/08/2014 (00:01 pm)

Iraqi dinar currencyBAGHDAD / Ibrahim Ibrahim

Called on MPs and economists Iraqi politicians to the need to reassure foreign investors and owners of banks to stay in Iraq, and they continue to work through accelerating the formation of the government, stressing that the security situation is the controlling element of the work of international banks in Iraq.
A member of the Finance Committee Hassan Suleiman Wahab in an interview for the “long”, that “the economic transformation in the country is still in its early stages and did not significantly rooted so can be relied upon and make it an important tributary of the processes of reconstruction and building the future.”
He added that “the work of foreign banks in number is little not have a large influence on the daily operations of the Iraqi economy and the well-known Bmrkzih and influenced by the government in most of his joints.”

Wahab said that “the lack of political confusion and the formation of the new government during the first session after the last legislative elections are all messages express the internal instability of the country, which makes foreign investors in constant fear lead to their escape to the outside.”
He said the “turbulent economic situation is a reflection of the reality of political bemused and bad and it seems very clear to the Iraqi situation many years ago.”
He pointed out that “the biggest reason for volatility in the overall financial result of a failure to approve the budget generally put the main lines and detailed financial year for the economy, causing a lot of blocking investment projects with foreign capital.”
For his part, economist said the appearance of Mohammed Saleh in an interview for the “long”, “The security situation has become the controlling element in the orientation of a large number of international banks with professional competence and financial work in the Iraqi market.”
“The beginning of this year saw a contention large number of Arab and foreign banks to enter the Iraqi market because of their advantages and promising all the joints of financial, investment and others.”
He said a former adviser to the central bank said that “the events of Mosul left a clear imprint on the overall economic process in the country has begun to show results through a reverse migration of most banks and foreign banks that favored Erbil or Amman center of Iraq and the capital Baghdad.”
He said, “Despite the effect is caused by the large foreign banks on the domestic market but its impact will confuse the media outside the image with investors and other banks were intent on entering Iraq.”
He stressed that “the process of the withdrawal of some foreign banks to the provinces of Arbil and Sulaymaniyah such does not necessarily mean the withdrawal of its investments in its final form it is a tactic to change it in the overall market and an Iraqi one.”
He noted that “the commercial market and financial rely primarily on the basis of information which represents an important pillar to extrapolate what happens from changes that may affect the work of the economic and financial foreign investment banks.”
He pointed out that the benefit of “fast-moving financial companies also known for it’s sensitive to any disturbance of security or political maneuvering sudden so in several directions without causing serious financial losses.”
In turn, the economic expert Maytham defect “long”, that “the economic situation of the country to Aabashr okay but on the contrary in a large decline as a result of the deterioration of the security aspect in important areas of the national map.”
He added that “the work of foreign Almassarpf depends on the strategic plans and several close-range qualifies them to take action commensurate with the development of any economic or security might happen.”
He stressed that the defect “banks are considered the foundation of any economic movement so it is necessary to provide guarantees to the crisis, financial companies and banking
To continue to invest the money in the market Ornament of the country. ”
He said the “withdrawal of banks Alajneph carries with it many negative effects, mainly the loss of important investment projects help build and develop the infrastructure of the country in addition to wasting job opportunities for hundreds of individuals.”
He pointed out that “the Iraqi banking system suffers from obsolescence of a large led to limited banking on remittances import without the introduction of savings to individuals and companies as in regional banks, including the Lebanese.”
The news reports have confirmed on Monday that the bank “Standard Chartered”, which opened two branches in Baghdad and Erbil, the transfer of its own in Iraq to Dubai.
The bank opened branches in Iraq to take advantage of large infrastructure projects in the country, which is trying to rebuild itself after long years of wars, especially in the wake of rapid economic growth, thanks to the growth of Iraq’s oil production.
With the transfer of the bank, “Citigroup” representative office of Baghdad to the Jordanian capital Amman, as advised international companies process has reduced the level of cash (LNG) which keep them to a minimum, according to the newspaper “Financial Times” British.
While the organization of the Islamic State extend its control over large areas in the western provinces, Mosul, but the workers in the banking industry say that banks in the city of Mosul, still working as usual, as he continues international lenders offer their services for multinational companies in Iraq, pointing out that the business is going naturally.
The sources said that al-Daash tightened his grip on the 450 million dollars and the gold stocks in the Iraqi Central Bank in Mosul last month, when they take control of the city, located north-west of Iraq, the banks and employees in the banking sector say they want to be prepared in the event of deteriorating conditions .
The other banks have withdrawn from the Iraqi market before the outbreak of the recent crisis in Iraq, such as a bank, “HSBC”, as it cut its relationship with Bank of Investment Dar es Salaam, by suspending its relationship banking with Bank of Iraq, which owns 70 percent of shares