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  1. #1
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    Iraqis stuff money in mattress amid banking sector instability

    Iraqis stuff money in mattress amid banking sector instability

    Saleh Majid owns an electrical supplies shop in Baghdad’s busy Shorja market area. And every day after the close of business, he takes all the money he has made that day home with him; he won’t deposit it in any Iraqi bank.
    This is because Majid had been a customer of Iraq’s Warka Bank for Investment and Finance, the country’s largest privately owned bank. In early 2012, the Warka Bank was declared insolvent by Iraq’s Central Bank and placed under management appointed by the Central Bank.

    http://www.middle-east-online.com/english/?id=65074


    Unfortunately for customers like Majid, this meant they lost money. Majid was only able to get about 20 percent of his savings back.

    First Published: 03-27-2014


    All is Lost..............or is it?

  2. #2
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    Quote Originally Posted by tmorr37 View Post
    Iraqis stuff money in mattress amid banking sector instability

    Saleh Majid owns an electrical supplies shop in Baghdad’s busy Shorja market area. And every day after the close of business, he takes all the money he has made that day home with him; he won’t deposit it in any Iraqi bank.
    This is because Majid had been a customer of Iraq’s Warka Bank for Investment and Finance, the country’s largest privately owned bank. In early 2012, the Warka Bank was declared insolvent by Iraq’s Central Bank and placed under management appointed by the Central Bank.

    http://www.middle-east-online.com/english/?id=65074


    Unfortunately for customers like Majid, this meant they lost money. Majid was only able to get about 20 percent of his savings back.

    First Published: 03-27-2014


    Ouch... even with a merge, acquisition or name change Warka will struggle for years. Iraqi's may not have much to hold on to, but I do know they retain one thing for a very long time - memories ...and bad ones stick around for generations. Warka's only hope for survival is foreign investment, so not looking too good on that front either.

    Life's like a box of camels, you never know how many are going to spit at you.

    Oh well... keep trudging through the desert I will, there's a mirage out there with my name it.

    Side note: Everyone knows you keep your IQD Cash in a sock, a mattress is the first place Ali Baba & The "Shorted" Thieves will look.

  3. #3
    Supporter and Investor! haggisbasher's Avatar
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    Warka Bank has won several supreme court actions against the CBI, they were found liable and is in the process of getting back Billions IQDs for damages, and losses incurred on current account holders and shares in ISX portfolios share losses,itcould take till after Iraqi elections are finished before dust settles and the CBI get all parties together, I think the supreme court ruling is that since all the parties damages involved are caused by the same actions of the same cause by the CBI that they are all linked.

    Did I get it correct,wot do you think....
    Last edited by haggisbasher; 03-29-2014 at 06:51 PM.

  4. #4
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    Quote Originally Posted by haggisbasher View Post
    Warka Bank has won several supreme court actions against the CBI, they were found liable and is in the process of getting back Billions IQDs for damages, and losses incurred on current account holders and shares in ISX portfolios share losses,itcould take till after Iraqi elections are finished before dust settles and the CBI get all parties together, I think the supreme court ruling is that since all the parties damages involved are caused by the same actions of the CBI that they are linked.

    Did I get it correct,wot do you think....

    Yes, thing is, if Warka gets all that it is due back... $$$ ... customers are on the run (local and otherwise) ... once bitten... twice shy. It will take years to clean up this mess. Yes you / I may get our deposits back but the bank will be in a tail spin ... how do you save it? By offering what others won't ? Like outrageously high interest rates on CD's etc. ... perhaps that's the delay here... Warka's original offerings back to the customer were far too lofty, and the CBI is saying, "Hey, we'll cover the losses but lets be reasonable" - and quite possibly, there was no way Warka was going to be able to pay out at the levels they were touting to us. Just a thought - we may have to take discounted returns in order for Warka to settle up with depositors / investors. I know a lot here would just be happy to get their original deposit back.
    Last edited by ChinaGirl; 03-29-2014 at 06:23 PM.

  5. #5
    Supporter and Investor! haggisbasher's Avatar
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    I expect to see massive amounts of cash inflow to Warka bank to cover any run on the Bank from the CBI and funds to cover government projects, got a couple years left in Iraq before I pull out and cash in,so I will maybe buy big when Warka comes out trading and sell for a profit,

    Am hoping we are near to announcement for Warka Bank soon,

  6. #6
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    I'll take 50 Cents on the dollar.
    All is Lost..............or is it?

  7. #7
    Supporter and Investor! investindinar's Avatar
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    I agree...

    Quote Originally Posted by haggisbasher View Post
    I expect to see massive amounts of cash inflow to Warka bank to cover any run on the Bank from the CBI and funds to cover government projects, got a couple years left in Iraq before I pull out and cash in,so I will maybe buy big when Warka comes out trading and sell for a profit,

    Am hoping we are near to announcement for Warka Bank soon,
    haggisbasher, I think you're right on the money... no pun intended.

    No doubt about it, the elections will be a determining factor regarding how long we have to wait until Al Warka can settle with the CBI and allow account holders the right to make withdrawals. I'm expecting that the CBI will concede some form of cash restitution to Al Warka for damages which will be reflected in a higher stock price, and possibly, cash dividends to shareholders. I would much rather have cash dividends than stock dividends.

    I just hope we don't have to wait another year, but at least even if we have to wait that long, we'll get interest at 7% per annum compounded semi-annually.

    investindinar
    Last edited by investindinar; 03-30-2014 at 12:13 AM. Reason: Corrected sentence.
    What? Me worry?

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