Delays in the development of Iraqi banks hinders their ability to grant guarantees for projects

Delays in the development of Iraqi banks hinders their ability to grant guarantees for projects
 

        #1 
Private bank in Baghdad (for «United Bank NET») 

Monday, June 2, 2014 (00:00 - GMT)

BAGHDAD - Naseer Goldfinch

id not succeed until the Iraqi banking sector today keep abreast of developments in banking, especially in terms of the amount of capital which prevented from being able to conclude agreements with major foreign investment companies to give guarantees for the implementation of major projects that have remained the preserve of government bank one.
And operating in Iraq seven state banks, three of which sector, in addition to the 31 banks waged and 10 Arab and foreign countries operate according to the principle of participation, either with Iraqi bank or a separate branch of the Turkish and Iranian banks, Lebanese, Bahraini and Kuwaiti and UAE.
He announced «Gulf Commercial Bank» he planned to raise its capital from 250 billion to 300 billion dinars (200-258 million dollars) during the month when the General Assembly meeting of the bank in the last week of the month. The Chairman of the Board of Directors Munir Hassan al-Jubouri said in a statement, that «the bank's administration completed the necessary procedures to hold the annual meeting of the Public Authority, to discuss the activities of the bank and the report raise capital to 300 billion dinars, through capitalization of part of the profits generated in 2013 by 45 billion dinars, and IPO of shareholders and citizens with five billion dinars, equivalent to 2 percent of the current capital ».
He described the deputy governor of the Central Bank of the former, the appearance of Mohammed Saleh, said in a statement to «life», the Iraqi banking sector activity b «Almtlki». He said: «our banking sector is still in need of development», pointing to the failure of the concerned authorities in the establishment of the Institute banker takes it upon himself this difficult task that will reduce disparities with international banks.
And the continuing problem of letters of guarantee, he said: «inability of private banks to give letters of guarantee for foreign companies operating in Iraq, which could reach the cost of projects for billions of dollars, due to lack of capital covers such amounts, push the central bank to solve the simplified a possibility to give a letter of guarantee through retail cost of the project ».
He added: «So far ministries do not accept what is known as Takaful letter of guarantee, which means that foreign banks sober ensure global company in front of a local bank, and the latter gives the letter of guarantee, which is one of the most important conditions for bidding and implementation of projects in Iraq».
Ahli bank manager told «life» that the flaw exists in the Banking Act, which specifically formulated to rein in the banks and not developed.
He added: «So far the state refuses to open bank accounts for the benefit of Ministries in private banks and accounted for in the government, and this differentiation opportunities in the state caused by talking about the development of the private sector. The other thing that the majority of letters of guarantee for companies granted by the government bank controls nearly a third of liquidity in the country, more than 10 trillion dinars (8 billion dollars) ».
The director of the bank that the work of the private banks are currently limited to buying dollars from the central bank auction and sell it to customers or transferred abroad in exchange for kickbacks, and some secondary activities ».
Previously, the central bank governor proxy, Abdel Basset Turki, to announce the existence of efforts to drastically change the laws in the banking sector, according to the directives of «IMF», stressing that the new laws will be greater than the conduct of monetary policy in the country. He explained during a seminar held by the Central Bank to discuss amendments to its law, passed in 2004 and the Banking Act and the law against money laundering, to be «IMF» asked to play the role of development and exceeded only stay on the organization of monetary policy, pointing out that «the central bank has already taken this guidance, a the process of preparing an economic development plan that will promote the economic reality of Iraq and the banking sector in particular ».


[You must be registered and logged in to see this link.]