Central Bank: Helping Warka Bank depend on the auditor's report
Translated by Iraqdirectory.com - [3/29/2012]
The Central Bank of Iraq Adviser said on Tuesday that providing assistance to the Warka Bank after the debacle, and the imposition of guardianship will depend on the auditor's report, and expressed his belief the bank's ability to overcome the present crisis.
Mudher Mohammed Saleh told the (Voices of Iraq) agency that providing assistance to Warka Bank after the debacle and the imposition of guardianship by the Central Bank "will take place after issuance of the auditor who was appointed to his report which will outline the development of the bank, and the size of its assets and their adequacy," and determine "Is that the bank viable or not."
The Central Bank of Iraq has decided to impose trusteeship on the Warka Bank after the failure of his negotiations with Standard Chartered Bank, which began in April 2011 to buy a stake in it, which is not the first time facing the bank decisions against it, where it was written off the bank from trading the Iraqi Stock Exchange in February 2010, according to the ninth paragraph of Article V of the modified instruction number three for the year 2011.
The law provides cancellation of the listing if the company continued to stoppage of circulation for six months without taking appropriate action to resume.
According to Saleh, the Warka Bank "able to re-organize its position," adding that the "bank is good but it faced a bump," and it has deposits and loans hard to collect".
Saleh explained that there are many ways to overcome the crisis, the bank, including "give it long term loan to pay off and re-organize the mess," it could "sell part of its assets to buy another bank," and also can share with another bank."
Warka Bank is one of the largest Iraqi banks; it was set up in 1999 and has 130 branches in different governorates of Iraq, which belongs to the family of "Saad Bonia" the known family in Iraq.
Iraq includes seven state-owned banks, 23 private banks, many of which belong to well-known merchant families and eight Islamic banks in particular, while the banking sector is dominated by, Rafidain and Rasheed government banks.