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Iraqi parliament calls into question the integrity competition among financial institutions Iraqi
Date: Thursday, 08.03.2012 0:32
Baghdad: Naseer Ahmed
Questioned a member of the Finance Committee's parliamentary deputy Faleh Djiashi there like plots being hatched among the banking institutions of Iraq aimed at Tsagatha, is unlikely exercise effects of deviation or another to make decisions punitive against its competitors, comes after the issuance of Central Bank of Iraq the day before yesterday's decision to impose the trusteeship of financial and administrative on the Warka Bank , although the latter did not declare bankruptcy court did not issue a decision to do so.
He had earlier announced the Central Bank of Iraq on Monday issued a decision which put Warka Bank Ahli under full guardianship, Buallala that there are foot-dragging in the process of fulfillment of deposits, and that he is suffering from drought in monetary liquidity.
Member of Finance Committee parliamentary deputy Faleh Djiashi said in a statement quoted by the Assembly of the Iraqi Journalists economist's (Citizen), that the Warka Bank and although it was founded at the end of the nineties of the last century, but everyone recognizes that the pace of quick steps and big, cosmic represent the province of Muthanna, which saw the opening of for several branches, even in small districts, but, unfortunately, was closed by order of the Central Bank, which arranged financial obligations for the benefit of customers, and even generated lawsuits before the courts.
He continued, including the central bank is responsible exclusively for monetary policy in Iraq and is responsible for the work of banks, whether governmental or civil and here on the part of the reserve and responsibility should be no interference from the central to correct the path of the reluctance of banks in the performance of its business, because the major negative impact on the reality of investment and attract investors, and the Iraqi economy as a whole and the success of the Iraqi private sector development.
He said the national economy can not develop without a banking system that is active in the Iraqi arena.
And on the reasons which called for the Iraqi Finance Ministry to issue a decision to withdraw government deposits from the general private banks and put them in government banks, causing the withdrawal of liquidity of private banks and adversely affected since the year 2009,? Djiashi said that the Ministry of Finance is responsible for fiscal policy, of course, but its effect on the work of private banks, and unfortunately even today there is no suitable environment for the growth of private banks that are effective.
And revealed a member of the House of Representatives that he often Chksna a conflict and the intersection between fiscal policy and monetary, and since the central bank independent in its decisions, unfortunately, I find the continuing effects of the Government to the Central Bank and a blatant interference by the government in the affairs of the bank and as if reminiscent of what was acting by the former regime with the Central Bank, and there are characters inherited the former is thought that contributed to the Ministry of Finance to take such decisions.
I am confident that I am at the Central Bank figures there is still capable of technocratic policy-making policies keep pace with more advanced countries.
He said the high price of the dollar has recently shown us how fragile our economy and the ground soft, which is based upon our monetary policy, and we hope from banks to contribute strongly to the rebuilding of Iraq and the financing of large projects as a party to the investor, and I think that the decision to the guardianship of the bank last precedent may not be repeated again.
He expressed his Djiashi surprise extreme of the resort's central bank and directly to resolve the latest in a series of solutions prescribed by its own law for the year 2004, namely the imposition of trusteeship, but we find that all the world's central banks step in to support banks her in the event of a financial crisis and was done recently in America, But even now in Iraq will not get to the mentality of a sophisticated adopt this style, even if the central in this way for the accused by the government and the integrity that he step in and side of the ambulance Ksrv particular, and I think it is afraid and did not benefit from the text of a legal constitutional obligation applied only an ambulance national banks.
I expect that in the coming years, and when the government financial institutions Mtfhh system market will be the creator and governor of the central monetary policy sober.
A member of parliament that calls into question the principle of fair competition among banking institutions of Iraq, stressing that he is sure that the competition in accordance with management criteria set forth in Principles of the International Monetary Fund and the World Bank and, if any, are very limited in Iraq, and I do not rule out the existence of effects on the sources of decision miscarriage in order to compete because the dishonest.
For his part, between a member of the Finance Committee Secretary Hadi said everyone agreed that there is reluctance in the bank in question any Warka, and here we have the central bank is obliged to resolve dilemmas and financial re-deposits and the payment of letters of guarantee and this Satmn customers and shareholders, and we have seen the recent intervention of the U.S. government to resolve the financial crisis.
Hadi described the solutions by the late Central Bank was compelled to find quick solutions in terms of loans and liquidity facilities, and then we will not have the results we require guardianship.
He had earlier admitted to the Iraqi Central Bank in a report issued by the Directorate of banking and credit control department inspection, that the reason for the lack of liquidity to the Warka Bank and also the rest of the private banks is the decision of the Ministry of Finance 402 on 15/1/2009 and ordered by all ministries and government departments to withdraw their deposits from private banks , and do it Warka and returned $ 800 billion dinars during the period of one month.
Decision of the Ministry of Finance said he called the deputy governor of the Central Bank of the appearance of Mohammed Saleh b (the straw that broke the back of private banks) and admitted that the decision was taken suddenly and no one knows the reasons that called for it, and turned the private banks of the banks in the true sense to just financial institutions rely solely on market banking.
We confirmed our reservation for the conduct of the Ministry of Finance as the above is bad for the banking and financial system does not know her reasons for that, and here we had committed a fatal error
Report of Inspection Committee also recognized the error seriously committed by the Central Bank and by any Committee is part of the bank, which showed that the central imposition of the death on the Warka to close all branches that have not obtained approval of a final (50 branches), causing the withdrawal of customer deposits in those branches at once, affecting negative impact on liquidity.
Banking sources revealed that the Central Bank and after approval to close the 50 branches despite the presence of Movqat principle to open initiative also issued another order is irrelevant where decided to keep the Warka of the stock sale and purchase of foreign currency in the bank, causing a shift customers Warka banks another civil, which increased the suspicions of collusion of former officials in the Central with these banks.
He has Warka, one of the largest Iraqi banks at all and most modern in terms of the application of electronic banking more than 128 branches and the number of employees exceeded 885 employees, while the number of clients 128 thousand customers among them foreigners, while the preparation of deposits 89 A and deposit.
With a report issued by the Central Bank also revealed that the Warka managed to get the approval of a loan from the Rafidain Bank, with the consent of the Minister of Finance not be disbursed the loan amount up to now because of obstacles placed Rafidain Bank, and here it will be incumbent on the central bank granting Warka loan fast and urged the government banks to Cooperation with Warka granting loans and be patient in demanding payment. and urged him also to participate with Arab and international banks.
An official of the Association of Iraqi banks for his part stressed that the Warka Bank did not declare bankruptcy, according to figures available, our imam Vemogodat Warka cover liabilities and increase it much, but stopped payment on the borrowers and the problems of government decisions caused the lack of cash to Warka.
The source revealed for the Warka had previously, and lend a hand to banks announced Avlasshma in 2005 and two each from the Bank of the pond and the Iraqi Islamic, and the experience of Warka was the rehabilitation of the two banks assisted the CBE board and is currently working of these banks do not have a problem, here are the private banks also help Warka in this ordeal.
Ben's decision to the tutelage of the Central illegal it did not apply the necessary conditions for the guardianship, and must begin with the Central by the other and, unfortunately, give the Central Bank Law of 2004 wide powers of the Bank in its decision-making, and began its sudden and will leave a negative impact on the sector liquidator in general.
CBI reply in the words of his deputy, the appearance of Mohammed Saleh these opinions that his bank is the garrison of the device the Iraqi financial, guardianship here does not mean liquidation but is a form of protection, and any failure of the Bank or stumbling here'd take action and we shall manage the Department Warka until they returned to put it correct.
For its part, objected to a member of the Economic Commission parliamentary Nora Albjara decision of the Central Bank of Iraq's recent imposition of a trusteeship and asked him to find a solution more realistic like those in place worldwide during the financial crises, because such decisions will lead to catastrophic results, overlooked the bank is that the citizens of Iraq from the category of customers of banks will be reluctant to deposit their money in banks, and this will lead to a decrease in deposits in any of these banks' liquidity and thus will be unable to stand the last execution of its functions and in particular the exploitation of liquidity in the investment projects, and we will reach to the investment sector is paralyzed after a period of time.
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