Central: we will ensure troubled banks .. and we have new measures to boost liquidity

BAGHDAD / Wael grace

Reduce the Iraqi Central Bank of dealers concerns with private banks and concerns of non-payment of "deposits" owed by those banks, after news leaks about the reluctance of some private banks to give deposits to customers, while the "central" said he can ensure that money through the "reserve legal "available at each bank.Central and revealed Iraqi series of actions may enhance liquidity, while the Finance Committee, said in the House of Representatives that it filed a complaint to the Ministry of Finance against some banks that suffer administrative Problems caused not give deposits to its clients, and revealed that she put in the budget of 2015 article calling for the legislation law to guarantee deposits.
This comes as one of the private banks that face Problems in providing depositors' money to have the "wrong policies of the State" in dealing with the economic crisis faced by the country, and non-payment amounts for contractors and ministries in addition to the failure to approve the 2014 budget director, led to the lack of said liquidity of the banks and their reflections on the depositor, while noting that he has, for example, debt, 100 billion dinars, the size of the Ministry of Education have not paid yet.
Central reassurances
said Underwriter and cabinets in the Iraqi Central Bank Ihsan Yasiri that "the complaint was repeated against some private banks lagging in their work, such as Bank of the economy is under the central tutelage, and Warka, which was lifted earlier custody but did not stand up by himself. "
He adds Yasiri "long" that "North Bank also faces a problem with one of the top depositors, where the withdrawal of recently all his account of the bank, an amount that huge, and today they are negotiating with him to resume trading again, "while noting that" the state institutions involved in the problem of liquidity, because it is not paid to contractors and dealers with their dues, and they have money in the bank as well. "
On the other hand assured Yasiri depositors at those banks that "CBI re sponsor their money through legal reserve which each bank, which is launched in the real crises, and not because of the small numbers can be overcome." Director of the Central Bank also revealed that the latter has a series of measures for the award of the general budget, which is facing a deficit of billions of dollars, through the rationalization of the indiscriminate import, and release funds to the specialized, such as industrial, agricultural, commercial and mortgage banks, until the release of loans and advances.
The Iraq Stock Exchange has confirmed that the The Central Bank of Iraq to impose their guardianship on some private banks, led to "shake the confidence" of citizens out, low cash liquidity and price traded.
The central bank has put in (the fourth of June 2014), Bank of the economy to invest, under guardianship, attributing this to his commitment to the advancement of the bank and protect its customers.
As previously central bank that Warka Bank was placed under guardianship, 2012, to find work, before deciding filed in, (the sixth of February 2014).
banks under control
so said Jabbar Abdul Khaliq, a member of the Finance Committee In the House of Representatives that "the banks are obliged to give deposits to clients", while noting that some banks experiencing administrative problems, and we had to raise the complaint against her to the Finance Ministry.
He said Abdul Khaliq "long" that "civil control by the Iraqi central bank, where banks provide monthly budget to the Central, and the latter used his powers to stop the work of the bank if the disposal of his money out of contexts, and when finds that liquidity has less than deposits then will be to declare bankruptcy. "
Deposit Insurance Act
during that Massoud Rostam, a member of the other said in committee Parliamentary money, that "the Commission wanted to avoid the occurrence of future problems such as not to give the banks deposits, install a paragraph in the budget to enact a law on behalf of the (deposit guarantee)."
He added, Rustam "long" that "with the neighboring countries and the world at large experience in this subject, and has advanced laws to protect the Customer deposits with banks, "he said, adding that he had formed a sub-committee within the Commission to discuss the talk of the failure of some of the private banks to give deposits to dealers with him.
In the meantime, he said the north bank manager Munther student in an interview with the (long-Presse), that "liquidity crunch experienced by the public banks do not belong to his bank alone."
He adds demanded that "his bank, for example, has a debt to the Ministry of Education in the amount of 100 billion dinars, has not yet been received by the due to failure to approve the 2014 budget, and not to launch state appropriations in the current budget for the ministries and Contractors who we gave them loans and facilities worth 433 billion dinars from last year, when we want them to repay say the money for the government, and others say the money has agents and dealers in areas fell to the organization "Daash."
On the other hand the north bank manager talked about the presence of two million displaced and displaced people in Iraq He said that they have deposits and savings accounts they retracted also because of the exceptional circumstances in which they went through. The owners sold the shares of the displaced Maldém of shares in banks, while the student said that his bank has 85 billion dinars in the Kurdistan region is facing problems due to known and recovered dispute with Baghdad over the budget of the financial crisis.