Dinar Iraq News
CBI Governor: Iraqi Banking System Restructuring to be Complete by end of 2014
Posted 03 Feb 2014
CBI has received many applications, by many banks, but so far has not
been approved, but the licenses of two foreign banks to operate in the
country.
The newspaper quoted the “National” American Abdel Basset
Turki, Governor of the Central Bank of Iraq, saying, “We’re going to
give approval of the two banks in the region, but not in GCC and will be
scrutinized.”
The speculation in the Iraq conference in Dubai, the
financial lenders to two Lebanese banks, some of them already in the
Kurdistan region.
And the country is looking to open its doors for
foreigners to work by modernizing infrastructure, and increase services
and strengthen the banking sector, which includes mostly private banks.
And
imposed on the capital increase for the lenders of the private sector
in an attempt to improve risk management and enhance corporate
governance and shareholders’ equity separate from the bank’s management.
The private banks raised the increase to 250 billion Iraqi dinars last
June.
Turki said that “five of the lenders are expected to face the
problems now, in addition to the Warka Bank, which was considered a
dominating by Standard Chartered Bank a few years ago,” noting that “the
Bank of Basra was being liquidated.”
Two of the banks, the
government suspended their operations since the 2003 war as a result of
their inability to repay government debt dating back to the Saddam
Hussein regime. It is scheduled to be completed restructuring efforts by
the end of this year.
According to Turkish “We moved in late to do
the restructuring., And I think we should have been doing it before, but
I think that by the end of 2014 will be all about. Has been solving the
problems of financial and accounting in a good way, and the only
problem remaining is administrative.”
According to Standard
Chartered, the percentage of Iraq’s debt to GDP in 2003, about 800 per
cent. After many debt relief programs, write off about 80 per cent of
the debt in the Paris Club, the debt has declined in the country, so it
should be external debt is about 25 per cent of GDP by the end of 2013.
Said
Andrew McCartney, a specialist in global banking International Finance
Corporation, “The banking sector in Iraq is evolving and diversified its
economy away from oil, the main challenge in the banking industry is
how to engage in the profitability and sustainability.”
source:
http://www.iraqdirectory.com
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