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[size=18]Council of Ministers accused of violating the Central Bank instructions for dealing with private banks
Ali Aldhargam - 28/03/2012 PM - 8:46
While the detection of the Executive Director of the Association of Iraqi banks Abdul Aziz Hassoun of the Banking Act that required the Iraqi Central Bank of Iraq that was imposed on the guardianship and the Warka Bank three weeks ago, ending the guardianship after one month.
Government documents revealed the existence of correspondences within the Council of Ministers accuses the bank of violating instructions on how to deal with private banks, as well as the Ministry of Finance has decided to withdraw government deposits from the last usually him the decision unlawful.
Government documents obtained revealed the existence of formal correspondences between the Economic Commission of the Council of Ministers and the Government that it causes the problem that led to the decision to take custody of the Central Bank.
And showed the documents "that the presence of banking system integrated is one of the most important pillars of the national economy and confidence in him and to encourage dealing with him, which is the gateway to the development of all sectors of the economy, and encourages local and foreign investors to enter the investment market and gives confidence to the national economy and safeguard in dealing with the State, whether with public or private .
Here, any blow to the banking sector Ahli lose confidence in the banking system as a whole and lead to a decline in dealing with the various agencies and the reluctance of investors to enter the investment market, and even contracts tainted by a kind of uncertainty and loss of confidence.
And showed the documents to the Economic Committee of the Council of Ministers had positions distinct in their support to domestic banks and the private sector in general, as had previously decided Commission decision number 188 refers to allowing for the ministries in dealing with private banks without restriction or condition and also urged companies self-financing for the deposit and the opening of bank accounts the private banks.
Book of the Iraqi Central Bank to the ministries and departments not related to the Ministry No. 9/3/711 in 12/9/2010 indicates that the central bank had the values of banks and urged the civil authorities concerned to deal with it, and Egged legal justification or prevent a financial deal to do with them to get different banking service to the public interest, has been awarded Warka good assessment for the years 2007 to 2009.
Senior government source who declined to be named, said the government institutions and called for huge amounts of money in the bank (Warka), which gives them the benefit of 6% it is not possible to keep them frozen and must be subject to credit after keeping reserves certain, enlarging bank credit, and is supposed to be subject to the control of the bank First, the central Powell.
But .. what has subsequently raises the surprise and puzzlement, where he was the Warka Bank for Investment and Finance to shake because of government decisions issued by the Ministry of Finance and the Central Bank where the Ministry of Finance issued a book number 402 in 15/9/2009 to all ministries and departments not related to the Ministry contrary to the Word above from the decisions of the Economic Committee of the Council of Ministers and the Central Bank, which prevented all ministries, authorities and official bodies from opening a bank account with the private banks out of hand and turn them into state banks (Rafidain) to protect their money from the public treasury dispersion!!.
In light of the decision of the Ministry of Finance this, started the problem of liquidity crunch experienced by the Warka Bank now has been the withdrawal of all government deposits and suddenly and immediately resulted in the withdrawal of 800 billion Iraqi dinars during only three months, has caused the panic among the public, which led to the withdrawal of deposits from by companies and individuals depositors and the reluctance of others to deal with the bank to deal with him fell to 5% and amounted to what has been withdrawn during the period amounted to 1600 billion dinars, the equivalent of one billion and five hundred million dollars!.
Could have collapsed bank collapse immediately, but the strength of its assets prevented that, and in fact must commend this power possessed by the Bank Ahli Iraqis in such circumstances, where he remained steadfast request the support and assistance from government authorities and the central bank to rescue it from the problem that left the force. The hope that the progress of the Ministry of Finance and Central Bank serious support to the bank as a national bank , but that did not happen.
Adding to the complexity of the problem is that the central bank instead of addressing the problem and find a solution, create a new crisis of the bank in terms of:
The central bank has approved the plan Warka Bank for the year 2009 and included open new branches in all governorates of Baghdad, has been to confirm this approval letter of the Central Bank No. 9/3/377 in 2/2/2009.
The Warka Bank to promote approval of the request to open branches referred to in the plan, but the Central Bank of the delay in action to detect them without the bank's hand in it, note that the central bank was aware of these new branches and approved by the by agreeing on a plan the bank, which included These new branches, in addition to the bank's knowledge of those branches by the clearing house in Baghdad and other provinces, and the reports of transfers and letters of guarantee and credits and balances monthly sent to the Central Bank on a regular basis at the end of each month from all branches and is subject to scrutiny by the inspectors and the bodies rotating.
Been received from the Central Bank of any Note or objection to any of the branches, including the new branches.
Same sources revealed that the Warka Bank Tdilma submitted to Prime Minister Nuri al-Maliki and the latter's decision to conduct the necessary protection of private banks.
Iraq's parliament and through his committee considered the legal decision of the Ministry of Finance on government deposits in violation of article 25.26 expressly of the Iraqi Constitution, and that any prevention in such matters must be issued by a law.
Hassoun said in his speech, for the latest central bank data, and through contact shows that the central works on solving the problem of Warka and there are serious efforts to end the problem.
With regard to the meetings that will be within the Economic Commission Parliamentary with the directors of private banks and then officials of the central bank, the goldfinch that the parliamentary committee is very interested in this matter no problems suffered by the Iraqi private sector in general and banking in particular, were inform us officially through the Central Bank to participate in the these meetings, noting that some lawmakers are contributing continuously to examine these problems and brainstorm to solve serious.
Member of the parliamentary economic committee said Nora Albjara preparation for these meetings that would solve some problems in the private sector, especially that of gravity is located here on the biggest responsibility of Parliament as the legislative authority of the laws governing the work of the government and the private sector.
She said the drafters will use experts, banks are competent in addition to the relevant members will listen to domestic banks and the central bank later so they can be putting in place mechanisms to pass some obstacles, including the problem of custody of the Warka Bank the last reservation by the measure may send negative messages to foreign investors and limit their desires to enter Iraq, let alone measures from being burdened the private sector.
Banking expert d. Majid picture revealed that many members of parliament concerned sector economics and finance, including MP Ahmad Chalabi, and Albjara, and even the Finance Minister Rafie al-Issawi, as well as central bank officials have reached a recent agreement to provide support to the Warka Bank to help him to continue his works normally.
The expert also warned of the repercussions of the collapse of one of the largest private banks in Iraq, because its collapse meant the collapse of a large part of the private banking system would be a very negative impact on the economy and the private sector. Alluding to what is owned by the Warka of the possibilities of very large assets, especially assets that Hao is enough to solve the problem of the original but Macltna spend here on how to organize these assets and restore credit to spend on the problem of liquidity.
He stressed that the Central Bank Law and if the latter is required to impose guardianship on the Bank to be paid within a period of one month only select the type of problem. Especially that of Warka, and has already provided assistance to Iraqi banks and helped them to stand again by buying shares of a particular share, but he follows the wishes of the departments of banks.
It is noted that the Iraqi Central Bank decided three weeks ago and put Warka Bank under the trusteeship and the appointment of financial management and administrative staff from a central, for reasons attributed to the presence of drought in the liquidity of the bank and the failure of the partnership agreement with the Bank of British Jad.
And the Central Bank of Iraq's decision to the judge and the Ministry of Finance to withdraw all government deposits from private banks and placed in a government exclusively caused significant damage to domestic banks, has resulted in the withdrawal of large amounts of liquidity. It is obligatory to oppose the move by the big banks, economists and members of Parliament, as well as Finance Minister, who had previously agreed to grant a large loan to Urkae However, the Rafidain Bank hindered the implementation of it.
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