Funds 'under the slab' and the banks are above the law in Iraq

Funds 'under the slab' and the banks are above the law in Iraq
Iraqis are losing confidence in the banking system and save their money in houses with banks' exposure to bankruptcy, theft, and the accumulation of errors.




BAGHDAD - retains Salah Majeed, the owner of a shop selling electrical materials in Shorja market in central Baghdad their money at home or as they say "under the slab" and refuse deposited in banks, Its experience earlier lost the large sum of money after it went bankrupt bank which was filed his money is paid to it.

Salah put a large sum in Warka Bank Ahli and when the bank went bankrupt two years ago lost all his money and recovered 20 per cent only.

CBI has already put the custody of the Warka Bank and justified it not the Bank's commitment controls raise capital and for other reasons involving money transfer, and a month before the central bank announced to raise the custody of him but the bank refused to bow to the decision because of the great loss suffered by her and demanded compensation.

Khalid Wasti, a teacher at the University of Baghdad, has another story with saving his money in the bank and say, "about a year ago I decided to put my money in a bank of good government in order not to Odaaha because of armed robberies that have sprung up in time in our region, located in Rusafa of Baghdad, Indeed, I went to a branch of the Rasheed Bank, which at the time I thought it would be safer than private banks for its association with the government. "

He adds, "After putting my money in that section I went back three months later to withdraw part of the amount was shown to me then that the employee made a mistake and wrote in the official papers that the deposited amount is three million, rather than thirty million and months later they told me that they conducted an inventory of all assets and discovered an increase 20 million and lost because of that ten million dinars. "

Ministry of Finance, which oversees the largest banks in Iraq and are the Rasheed Bank and Rafidain Bank says that there are indications of a real reluctance of some citizens for their money in savings banks branches for different reasons.

Undersecretary of the Finance Minister Fadhil Nabi told the website "talk" news that the occurrence of a number of cases of theft of some state-owned banks as well as the bankruptcy of some private banks caused the reluctance of Baghdad residents to deposit their money in banks.

Finance Committee in the House of Representatives confirmed that it is seeking to enact a law that protects citizens' funds deposited in different banks, says committee member MP Magda al-Tamimi of the site's news that the Finance Committee in the House of Representatives not only the stability of the banks financially, but trying to push the development of these banks, whether civil or governmental by increasing their heads, which come from the ministries of the state and its various institutions as well as the deposits of citizens.

It showed Tamimi In the case of enactment of the law there will be confidence of the citizen to put his money in the banks without fear, but will invest the funds within the projects and investment banks to take advantage of its benefits.

Some bank managers ŃÍČć step being the parliamentary Finance Committee will help the banks, especially civil ones to raise their capital and participate in a variety of economic processes.

He says reformer Wa'ili Managing Director of the North Bank for Finance and Investment, a private bank that the proposal of the Finance Committee met the parliamentary support of most of the private banks because of the volume of interest to both parties.

"It must include this step some mechanisms such as the establishment of a private insurance company with a capital contribution of a large mission guarantor of citizens' deposits in banks will guarantee the company in the event of any problem to compensate the citizen without going into the details of the problem."

Sabri al-Khalidi, an economist said that the legislation of any law, whether to protect the deposits or other must go towards the private sector at the same time be a factor insurance exists to support the process in order not to occur cons in this area.

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