Parliament is preparing to host the managers of private banks and the Central Bank
BAGHDAD (Iba) .. In a move described by a member of the Economic Commission parliamentary Nora Albjara, the mission to end the dilemmas faced by the Iraqi banking sector, revealed that its Committee agreed to host the managers of private banks and also manage the Iraqi Central Bank, in order to create legal frameworks for the development of this important sector, which is the main gate to attract investment and development the economic reality of Iraq.
Club journalists, economists in Iraq, the transfer of statements to a member of the Committee on Economics Nora Salem Albjara, stressed that its committee looked at several meetings of the topic problems faced by the banking sector recently, especially after the recent decisions announced by the Central Bank of Iraq to stop dealing with the North Bank and the withdrawal of government deposits from the private banks in full the decision issued by the Ministry of Finance, then the decision to impose the tutelage of the Central Bank to Warka Bank Ahli.
She said the Commission concluded that a strategy Mnchanha solve these problems through the host managers of all private banks in order to present the problems that hinder the work of their banks and ways to improve them, then we will decide these problems in the form of paragraphs will be displayed on the management of the central bank, and then will extend invitations to experts, academics specialized banks to raise views of both the private banks as well as the central bank, in order to find solutions to them.
As if there is a possibility to translate the conclusions of those meetings of the laws, she said Albjara, yes this is possible, as everyone knows that most of the laws approved in both during the former regime or after 2003 suffer from Tgratwoogod texts do not fit and the rapid developments taking place in Iraq on the economic level and other sectors, legal, social and others, here and on the grounds that Parliament exercises two roles are important and they control the executive branch as well as the legislation of laws that go by the authority mentioned, it is possible to collect all the proposals and exploited either to amend previous laws or adoption of new laws regulating the banking sector, and remove impediments his face.
She Albjara it as a member of the Committee on economic consideration for such a decision issued either by the executive authority represented by the Ministry of Finance or the Central Bank, as a mirror reflecting the validity of the Iraqi environment for the development and attract investment, which are always looking for stability and the legal environment appropriate and the guarantor of his works, and that is always going to be patient in Stockade any resolution that would tarnish this image.
Prior to the Central Bank of Iraq and a week ago from now to announce the imposition of the trusteeship full Warka Bank Ahli who Aaadahadd largest private banking institutions in Iraq, he manages more than 181 branches in cities across Iraq, which caused a wave of criticism of the Bank, especially as it is a guardianship fifth of its kind on the banks, but that the central bank defended his decision as it is one of the means by which to improve the functioning of the bank in case Tlkuh show in its business and also protect the interests of depositors and customers.
Of Jhthorteur Warka Bank Ahli filed a lawsuit against the Central Bank of Iraq and accused him of issuing a decision of the Trusteeship illegally, according to Deputy Managing Director, who explained that his bank called on the competent courts overturn the trusteeship because of doubts that there are points pushed for this resolution and mean competitors, and also doubts Banaaked The World Bank board at a late hour of the night to approve such an order, not to mention that Warka has not announced Avlasshuan reluctance was due to the decision of the Ministry of Finance to withdraw government deposits and hit a then $ 800 billion dinars for the state, in addition to the decisions of the Central Bank that do not have to do with any legal action, including closure of 50 branches of the bank and prevent it from entering the auction Alamlhouhty the stock market.
He continued that we Manfezon claim against the Central Bank of compensation for damage caused by us, and since 2009 has prevented the Bank from participating in the auction currency and it has nothing to do the position of the bank, and also decided to close 50 branch without justification.
Iraqi government's position was Dhaha through the Economic Committee, chaired by Deputy Prime Minister Ruz Nuri Shaways, who announced that the government is supportive of the development of the private sector of all kinds, especially the private banks that decide coverage system granting bank guarantees for foreign companies operating in Iraq for amounts less than $ 4 million. There are a number of recommendations and decisions that are in favor of the private sector will be adopted government.
Finance Minister Rafie al-Issawi said in a news conference in Amman and Iraq after the end of the meetings of the World Bank to discuss the budget of 2012, without counting the legal guardianship decision, accusing the central bank to exercise the powers are not right.
He said such a decision, according to the laws should begin to lift a recommendation or proposal to the Minister of Finance recommendation and after the failure of other solutions, then we have such as the Ministry of financial re-answer the central bank either the decision of guardianship or other solutions, they returned it that would negatively affect the reality of investment and will fear in the hearts of investors foreigners.
Chairman of the Board of Directors of banks, the economy Husam Obeid said in a statement that there Aalaama gap between public and private sectors in this country, and began to break four years ago when the Ministry of Finance has decided to withdraw government deposits from fully private banks.
And the slaves that in America alone, 235 U.S. banks suffer from failures in their work and the U.S. Federal Bank is working to address the failures and supports it, while we find here and all government departments including the Central Bank abandoned the private banks.
Member of Finance Committee Faleh Djiashiwcef For his part, the nature of competition among private banks to (unfair), and asserts that it is far from the applicable specifications of the competition by the World Bank.
Questioned Djiashi that there is who is behind such decisions and the means (the decision of the Trusteeship) on the Warka Bank NCB, noting that the parliament and the government stand by strengthening the private sector, but that does not intersect with the principle should be that there would be mechanisms to protect the citizen, but must be taken gradually and start better, such as providing a loan for the troubled bank or suffering from drought in liquidity, and this is what is universally applicable.
He revealed that in many cases 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.
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.
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.