Central intends to liquidate the eligibility banks .. and parliamentary committees calls to wait

Central intends to liquidate the eligibility banks .. and parliamentary committees calls to wait

12/12/2016

BAGHDAD world

described a number of members of the House of Representatives, the central bank's policy of status violation of private banks to the conditions under the trusteeship and liquidation, which caused the erroneous policy of wasting a lot of money and the loss of the rights of depositors and distort the global reputation of the Iraqi banking sector.

The central bank decided to put four community banks under guardianship, is «Bank of the economy», and «Elaf Bank», and «Development Bank», and «United Investment Bank», after he violated the terms and the law of Iraqi banks, and decided to liquidate «Basra Bank» Permanently.

He said the Iraqi parliament member Faris Taha Knight, said that «everyone is surprised at the way the central deal with private banks, regardless of the reasons that led him to take the trusteeship and liquidation decisions, there are alternative measures that would evaluate a course of action of these banks and the rehabilitation or at least integrated into other Bmassarv financially to strengthen them ».

He explained that « the decision of Basra , Al - Ahli Bank of liquidation will result in the loss and waste a lot of money, some of the government institutions and the other is a deposit for the citizens, investors and companies operating in the province of Basra, not to mention the bad reputation that will inflict the Iraqi banking institution globally, and today we are in dire need of a banking sector discreet capable to win the confidence of foreign investors. »

It is noteworthy that these banks inflicted departments in major irregularities due to the financial policies or not to raise their capital, prompting the central bank to be placed under guardianship or rehabilitated or liquidated.

And ratified by the Federal Court of Cassation , the decision to imprison both owner «Basra Bank» and its director Hassan Kubba 10 years for embezzling more than 310 billion dinars ($ 250 million) from «Rafidain Bank», in one of the biggest embezzlement cases.

The jockey, that «liquidation decisions mean the loss of depositors ' money in final form, the law on banks and the Central necessary to be a sponsor and guarantor for all bank deposits, whether in government or private banks, and there is a recurring problem is the non - payment of these funds to customers for many years , or since disbursed in the form of sporadic and small amounts, what the reluctance is evident in dealing with private banks on the cause although most solid institutions and manages its affairs professionally ».

And witnessed the financial and banking sector in Iraq , a rise in the number of financial and banking institutions, working in Iraq seven state banks, 3 of which sector, while the number of private banks rose to 24, and Islamic banks to 11 banks, while Arab and foreign , bringing the 19 banks, there are 4 under incorporation. And it operates in the currency of financial institutions dealing Guarantees and bonds and smart card market and number 6, in addition to 42 company money transfer, 10 of which are under incorporation and 12 financial investment company.

A legal representative of the depositors in the «Basra Ahli Bank» winds Mohammed, said that « the bank of the oldest private banks in Iraq, was founded in 1993 and included in the capital until it reached 75 billion dinars in 2011».

He added, « the central development and tutelage of the bank because of the irrational administration and errors in the Board of Directors and Chief Commissioner, in addition to a rig in conjunction with the Rafidain Bank and waste of money was worth about 310 billion dinars».

After a year of custody, the Central decided to liquidate «Basra bank» that the trustee did not recover any money, but on the contrary, lost some of them, with the bank debt of companies and people of around 470 billion dinars, which is sufficient to cover all entitlements in the event of recovery.

Knight revealed that «parliamentary committees approached the central bank to wait in the liquidation decision until the settlement of all these financial details, in order to prevent the loss of any of their customers and the bank 's rights».

And the reasons for private banks placed under guardianship, said a source at the Central Bank, that «custody decisions are not issued until after pointing irregularities relating to either the existence of liquidity is less than 5 percent of the bank 's capital, or dubious business exciting and we call for doubt and suspicion, or wallow in banking management, here bank 's management placed under the supervision of specialists from the Central that seen the previous and current operations until the stability of the bank, is done then guardianship ».

A spokesman for the «Union of Entrepreneurs of Iraq» Ghalibi Abbas, said that « the central bank and the financial system as a whole, as well as experts in the banking sector, diagnosed since the imbalances experienced by private banks».

He added that «the World Bank have already CBI recommended that the restructuring of the private banks, through either merged or linked to joint agreements with major international banks, and until this moment are not implementing the recommendation, and the continued gap between civil our banks global and regional banks».