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There is money in Iraqi Kurdistan's public banks, but no reserves: central bank director
Iraq, February 27, 2014
The Director General of the Central Bank in the Kurdistan Regional Government (KRG), Adham Karim Darwish, announced that there are no reserves in Kurdistan’s public banks and that private banks have sent them money.
Despite the current financial crisis in the KRG, no Kurdish banks have faced bankruptcy yet.
In an exclusive interview with Basnews, Darwish confirmed that due to the instructions given to banks by the KRG’s Central Bank, no private or public banks have faced bankruptcy in spite of the current financial crisis that has been sanctioned by the central government of Iraq.
“We won’t say that these banks are problem free. It is clear that banks in both the KRG and the rest of Iraq face many problems. Some of the banks, especially private ones, have opened recently and have less experience. Yet none of the banks have gone belly-up,” Darwish explained.
He pointed out that, “In recent years, we have benefitted from the private banks in the KRG; we have asked them to loan us money. But with the current financial crisis, we have not asked them yet because they cannot cover such debt for the long term. However, many of them have expressed their willingness to provide assistance and deposited money in public banks, including individuals.”
There are currently 73 private banks in the KRG, whose capital is estimated to be around 18 trillion Iraqi Dinar, 15% of which has been put in the Iraqi Central Bank in Baghdad. This is based on the Central Bank’s rule that without this, private banks are not allowed to open and operate in the whole of Iraq.
“In addition to the 73 private banks, there are 84 public banks. We don’t say there is no money in the public banks, but rather capital reserve. When Baghdad refuses to send us our budget share, these public banks do not have the full ability to provide us the required budget,” Darwish explained.
The Central Bank in Baghdad currently has USD $80 billion in reserves. According to the rule of the central bank, 17% of this money should be deposited in the Central Bank branch in the KRG, but the central government has neither sent this share nor have they agreed to send the $3 billion that they owe the KRG.
Regarding the revenue from oil exports and the request for debt relief from other foreign banks, Darwish said that, “This revenue doesn’t go to the Central Bank, but rather to the Ministry of Finance. The Central Bank has not asked for debt relief from any foreign banks, but perhaps the KRG has.”
(ekurd)
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)There is money in Iraqi Kurdistan's public banks, but no reserves: central bank director
Iraq, February 27, 2014
The Director General of the Central Bank in the Kurdistan Regional Government (KRG), Adham Karim Darwish, announced that there are no reserves in Kurdistan’s public banks and that private banks have sent them money.
Despite the current financial crisis in the KRG, no Kurdish banks have faced bankruptcy yet.
In an exclusive interview with Basnews, Darwish confirmed that due to the instructions given to banks by the KRG’s Central Bank, no private or public banks have faced bankruptcy in spite of the current financial crisis that has been sanctioned by the central government of Iraq.
“We won’t say that these banks are problem free. It is clear that banks in both the KRG and the rest of Iraq face many problems. Some of the banks, especially private ones, have opened recently and have less experience. Yet none of the banks have gone belly-up,” Darwish explained.
He pointed out that, “In recent years, we have benefitted from the private banks in the KRG; we have asked them to loan us money. But with the current financial crisis, we have not asked them yet because they cannot cover such debt for the long term. However, many of them have expressed their willingness to provide assistance and deposited money in public banks, including individuals.”
There are currently 73 private banks in the KRG, whose capital is estimated to be around 18 trillion Iraqi Dinar, 15% of which has been put in the Iraqi Central Bank in Baghdad. This is based on the Central Bank’s rule that without this, private banks are not allowed to open and operate in the whole of Iraq.
“In addition to the 73 private banks, there are 84 public banks. We don’t say there is no money in the public banks, but rather capital reserve. When Baghdad refuses to send us our budget share, these public banks do not have the full ability to provide us the required budget,” Darwish explained.
The Central Bank in Baghdad currently has USD $80 billion in reserves. According to the rule of the central bank, 17% of this money should be deposited in the Central Bank branch in the KRG, but the central government has neither sent this share nor have they agreed to send the $3 billion that they owe the KRG.
Regarding the revenue from oil exports and the request for debt relief from other foreign banks, Darwish said that, “This revenue doesn’t go to the Central Bank, but rather to the Ministry of Finance. The Central Bank has not asked for debt relief from any foreign banks, but perhaps the KRG has.”
(ekurd)
[You must be registered and logged in to see this link.]
