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Iraq begins paying Warka Bank depositors
28/05/2012 11:28
BAGHDAD, May 28 (AKnews) - The Central Bank of Iraq (ICB) stated today that it began to pay the small depositors in Warka Ahli Bank for Investment after the bank suffered a financial crisis and was put under custody.
The ICB decided in March to put Warka Bank under its custody because of the deterioration of its fiscal policy.
Deputy governor of the bank Muzher Mohammed Saleh said: "There is payment for small depositors in Warka Bank and this payment depends on the rate of sale of real estate and some property belonging to the bank.
"Warka Bank is still under the custody of the ICB which is awaiting the report of the financial supervisor to decide whether the bank will return to work or not."
According to economic reports, Warka Bank wanted to free itself from its financial crisis by negotiating with British bank Standard Chartered to sell some of its shares, but the talks reached a dead end.
The ICB states that article 59 of its banking law allows it to put custody on banks that face financial problems. The custody is represented by appointing an interim administration
According to law, the guardian assigned by the ICB can seek through the ICB to request the Minister of Finance to save the bank if possible.
The ICB is responsible for maintaining price stability, implementing monetary policy and regulating the banking sector.
By Raman Brosk
RN/DM/AKnews
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28/05/2012 11:28
BAGHDAD, May 28 (AKnews) - The Central Bank of Iraq (ICB) stated today that it began to pay the small depositors in Warka Ahli Bank for Investment after the bank suffered a financial crisis and was put under custody.
The ICB decided in March to put Warka Bank under its custody because of the deterioration of its fiscal policy.
Deputy governor of the bank Muzher Mohammed Saleh said: "There is payment for small depositors in Warka Bank and this payment depends on the rate of sale of real estate and some property belonging to the bank.
"Warka Bank is still under the custody of the ICB which is awaiting the report of the financial supervisor to decide whether the bank will return to work or not."
According to economic reports, Warka Bank wanted to free itself from its financial crisis by negotiating with British bank Standard Chartered to sell some of its shares, but the talks reached a dead end.
The ICB states that article 59 of its banking law allows it to put custody on banks that face financial problems. The custody is represented by appointing an interim administration
According to law, the guardian assigned by the ICB can seek through the ICB to request the Minister of Finance to save the bank if possible.
The ICB is responsible for maintaining price stability, implementing monetary policy and regulating the banking sector.
By Raman Brosk
RN/DM/AKnews
[You must be registered and logged in to see this link.]
