Increase of Bank capital 2010

[haggisbasher]

Now that this round of the Banks requirement to increase their capital to 50billion iqd is over and some Banks raised their capital to 75 billion ie Warka,

Is it still the securities commitee intention to increase Banks to level of 75 billion iqd in the next financiel year in 2010,

It was their plan for all Bank to increase to 100 billion iqd then changed it to the level which it is now,,

I was just thinking of how much more paid shares we may get,what do you think.:happy:

[diamondback]

The banks will start issueing corporate bonds so that the shares are not diluted hence the value of the shares will rise. These are not my words but from an article I posted from the newsletter of securities broker association.

[MarkOne]

Now that this round of the Banks requirement to increase their capital to 50billion iqd is over and some Banks raised their capital to 75 billion ie Warka,

Is it still the securities commitee intention to increase Banks to level of 75 billion iqd in the next financiel year in 2010,

It was their plan for all Bank to increase to 100 billion iqd then changed it to the level which it is now,,

I was just thinking of how much more paid shares we may get,what do you think.:happy:


I think, as far as Banks are concerned, it was the CBI that issued the capital requirements. I also believe the CBI will continue to require higher capital requirements as Iraq's economy improves so that Iraq's banks will be able to successfully do business in Iraq and the surrounding countries.

[keithff15]

yes CBI was the main involver in applying the capital requirements and it went very well with the other matters, this played a huge contribution in improving Iraq's economy
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[haggisbasher]

Well i have been updating my portfolio with estimates for only free & paid up shares i recivied during 2009 and found that due to banks instructions to increase their capital to 50 billion IQD,I managed to gain some 5,000,535.paid shares @ 1IQD,....
also.
given 9.580,247 free shares on stock i have.giving me a total of 14,580,782 shares added to existing total..not to bad for 1 year trading.
also i read a post on the forum that if private banks want hold goverment accounts they need to have at least 100 billion capital,so that says to me that another round off paid up shares from some banks some time in the near future so start building up some IQDs
to take full advantge...all i can say is 2010.bring it on am ready.

[BettingOn Iraq]

Well i have been updating my portfolio with estimates for only free & paid up shares i recivied during 2009 and found that due to banks instructions to increase their capital to 50 billion IQD,I managed to gain some 5,000,535.paid shares @ 1IQD,....
also.
given 9.580,247 free shares on stock i have.giving me a total of 14,580,782 shares added to existing total..not to bad for 1 year trading.
also i read a post on the forum that if private banks want hold goverment accounts they need to have at least 100 billion capital,so that says to me that another round off paid up shares from some banks some time in the near future so start building up some IQDs
to take full advantge...all i can say is 2010.bring it on am ready.

Kudos, Great job!! :rock::cash::cash::cash:

[dim sum]

Well i have been updating my portfolio with estimates for only free & paid up shares i recivied during 2009 and found that due to banks instructions to increase their capital to 50 billion IQD,I managed to gain some 5,000,535.paid shares @ 1IQD,....
also.
given 9.580,247 free shares on stock i have.giving me a total of 14,580,782 shares added to existing total..not to bad for 1 year trading.
also i read a post on the forum that if private banks want hold goverment accounts they need to have at least 100 billion capital,so that says to me that another round off paid up shares from some banks some time in the near future so start building up some IQDs
to take full advantge...all i can say is 2010.bring it on am ready.

if this is correct, then the only private banks eligible for GoI business accounts would be North Bank and United Bank (already at the 100,000,000 paid up capital limit) ...if what some in the Iraqi banking industry say is true (that banks are being hurt (I believe the article called it a crisis) by the fact that the GoI is not doing business with them, then the other Iraqi private banks better hurry up & reach the mandated limit (in order to qualify for GoI business.)

Many banks are close (Bank of Baghdad 85,000,000 / al-Mansour 75,000,000 / Warka 75,000,000 / Economy Bank 70,000,000 / Credit Bank 70,000,000 / Dar es Salaam 67,000,000)

Can you recall the article in which the GoI stated the 100 billion Dinar requirement as I must have missed it.

Thanks! :yes:

[haggisbasher]

Hey DS i read on iif yeasterday,seaview posted it under the title of To allow goverment insitutions to open accounts with private banks.
last i heared that they were not have accounts thus the big sell off bank stock IMHO.

[Seaview]

To allow government institutions to open accounts in private banks

Prime «Association of Iraqi private banks» Fouad Al_husnevi in a statement to «life», that the Iraqi government has given directives to the self-financing services and insurance, to open accounts in the Iraqi private banks (eligibility), to provide investment opportunity for the private sector and providing facilities to businessmen. He said the directive came after a meeting with Iraqi Finance Minister Baqir al-Zubaidi and a delegation of «Business Council, the Iraqi National», which was submitted proposing to create an investment fund dedicated to private sector financing and concessional interest rates. The Al-Zubaidi said all private bank capital is 100 billion Iraqi dinars (85 million) has a chance to open up government funds, up to 4 million dollars for each adoption, what constitutes a qualitative leap in the performance of private banks (33 banks), which exceeds the total capital of 1.5 billion.

Officials in the private banks, pointed out that «the past year has seen the most negative towards the resolution of banks, when it issued the Ministry of Finance in January (Jan) decided last year to prevent government departments to open accounts in private banks and withdrew all the money and deposited in the accounts of government ».

The Chairman of the Board of Directors of «Ashur International Bank for Investment» Wadi Handal in a statement to «life», said the decision to disrupt the financial situation has caused the private banking sector and led to an imbalance in the balance of cash available in many banks, and delays in opening letters of credit.

On the incompatibility of laws and legislation with the requirements of private banks, Handal said that article 28 of the Banking Act which prevent their entry into the investment sector, is one of the obstacles that impeded the growth of the sector, calling for reconsideration this year.

http://translate.googleusercontent.c...RvChewpyg0nOBQ (http://translate.googleusercontent.com/translate_c?hl=en&ie=UTF-8&sl=ar&tl=en&u=http://www.iraqdirectory.com/DisplayNewsAr.aspx%3Fid%3D11359&rurl=translate.google.com&usg=ALkJrhgSrQ3HluoK60CtRvChewpyg0nOBQ)

[dim sum]

To allow government institutions to open accounts in private banks

Prime «Association of Iraqi private banks» Fouad Al_husnevi in a statement to «life», that the Iraqi government has given directives to the self-financing services and insurance, to open accounts in the Iraqi private banks (eligibility), to provide investment opportunity for the private sector and providing facilities to businessmen. He said the directive came after a meeting with Iraqi Finance Minister Baqir al-Zubaidi and a delegation of «Business Council, the Iraqi National», which was submitted proposing to create an investment fund dedicated to private sector financing and concessional interest rates. The Al-Zubaidi said all private bank capital is 100 billion Iraqi dinars (85 million) has a chance to open up government funds, up to 4 million dollars for each adoption, what constitutes a qualitative leap in the performance of private banks (33 banks), which exceeds the total capital of 1.5 billion.

Officials in the private banks, pointed out that «the past year has seen the most negative towards the resolution of banks, when it issued the Ministry of Finance in January (Jan) decided last year to prevent government departments to open accounts in private banks and withdrew all the money and deposited in the accounts of government ».

The Chairman of the Board of Directors of «Ashur International Bank for Investment» Wadi Handal in a statement to «life», said the decision to disrupt the financial situation has caused the private banking sector and led to an imbalance in the balance of cash available in many banks, and delays in opening letters of credit.

On the incompatibility of laws and legislation with the requirements of private banks, Handal said that article 28 of the Banking Act which prevent their entry into the investment sector, is one of the obstacles that impeded the growth of the sector, calling for reconsideration this year.

http://translate.googleusercontent.c...RvChewpyg0nOBQ (http://translate.googleusercontent.com/translate_c?hl=en&ie=UTF-8&sl=ar&tl=en&u=http://www.iraqdirectory.com/DisplayNewsAr.aspx%3Fid%3D11359&rurl=translate.google.com&usg=ALkJrhgSrQ3HluoK60CtRvChewpyg0nOBQ)


Thanks folks (I wasn't around much yesterday :blush:)

[dim sum]

if the lack of GoI business & deposits was declared a "crisis" by (I think) a Warka rep, looks like the GoI is artificially mandating that any bank which wants to grow rapidly (via government contracts) must get up to the 100 billion Dinar paid up capital limit PDQ.

Perhaps this will spur on some private bank mergers with foreign banks, or, some Iraqi private banks merging amongst themselves...:yes:

[haggisbasher]

if the lack of GoI business & deposits was declared a "crisis" by (I think) a Warka rep, looks like the GoI is artificially mandating that any bank which wants to grow rapidly (via government contracts) must get up to the 100 billion Dinar paid up capital limit PDQ.

Perhaps this will spur on some private bank mergers with foreign banks, or, some Iraqi private banks merging amongst themselves...:yes:

DS i totally agree with that scenario but DB post about the issue of corperate bonds to reduce the delution paid up shares causes,does this mean that that us little investors have been cut out of this opertunity,
peronally i dont mind delution as i am in this hold posision for 5 more years.

[RoyalBeluga]

DS i totally agree with that scenario but DB post about the issue of corperate bonds to reduce the delution paid up shares causes,does this mean that that us little investors have been cut out of this opertunity,
peronally i dont mind delution as i am in this hold posision for 5 more years.

Personally I'm in this position until my investment increases 100 fold however long it takes, anything less will be disappointing but better than nothing :giggle:

[Kickabuck]

Makes you wonder about United...just what did they know in advance :cool-too: I'm not aware of any offer that even comes close to their 300% capital offer, and when that happened they were at 1.67 I think. Now, back out for meetings again at 1.90 :biggrin: That's the bank that has my attention :cool:

[opportunist]

The banks will increase their capital. The question is whether its paid up or free?

I think the days of free shares are gone. The banks will use the paid up shares to strengthen their balance sheets.

We shall see.

[dim sum]

DS i totally agree with that scenario but DB post about the issue of corperate bonds to reduce the delution paid up shares causes,does this mean that that us little investors have been cut out of this opertunity,
peronally i dont mind delution as i am in this hold posision for 5 more years.

but there are other ways to reach the 100 billion Dinar target...mergers & acquisitions are also viable alternatives and may be a quicker route to reaching this goal.

[BettingOn Iraq]

Makes you wonder about United...just what did they know in advance :cool-too: I'm not aware of any offer that even comes close to their 300% capital offer, and when that happened they were at 1.67 I think. Now, back out for meetings again at 1.90 :biggrin: That's the bank that has my attention :cool:

Those were my same thoughts, Kickabuck. Especially with another general meeting so soon after the 300% capital offer, 6 months ago. United seem to be quite agressive compared to North, where there hasn't been any recent free shares, paid up shares or dividends. Last time for North was 08/24/2008, 12% dividends. Although, since North is already at it's required capitalization, they don't need paid up shares for that purpose but it sure would be nice.

[opportunist]

The banks will increase their capital. The question is whether its paid up or free?

I think the days of free shares are gone. The banks will use the paid up shares to strengthen their balance sheets.

We shall see.

Warka is giving a teaser 35% and a whopping 150% paid up. More will follow. The days of free shares in the banking are going bye bye. The other sectors will be better.

I am not a fan of paid up shares per say.

[buck74]

Yes haggi it is looking quite good for us ISXers, as you and I have known for several years. This is the point many cash holders miss. They look at the market, and see it trading sideways, anf think things are going nowhere. But the free paid up shares are putting us in a postion to sit with the big dogs down the road.

Buck


Well i have been updating my portfolio with estimates for only free & paid up shares i recivied during 2009 and found that due to banks instructions to increase their capital to 50 billion IQD,I managed to gain some 5,000,535.paid shares @ 1IQD,....
also.
given 9.580,247 free shares on stock i have.giving me a total of 14,580,782 shares added to existing total..not to bad for 1 year trading.
also i read a post on the forum that if private banks want hold goverment accounts they need to have at least 100 billion capital,so that says to me that another round off paid up shares from some banks some time in the near future so start building up some IQDs
to take full advantge...all i can say is 2010.bring it on am ready.

[haggisbasher]

yes buck i feel something major is drawn near,the Iraqi ecconomy is expanding and going into a new phase,all i need now is 20m for for my Warka paid shares plus what ever the other banks i hold ie,BOB,MEIB,will be offering,now if i could raise 100m iqd,i could cover all my bases.got a little time to get it together,best of luck.cheers HB