Across the plan to restructure the Iraqi banks to 2013
An adviser to the World Bank on Tuesday a plan to restructure the financial system of Iraq was postponed to 2013 because of delays in signing contracts and foreign officials to postpone trips to Iraq because of security concerns. :sads:
And decided to Iraq in 2006, restructuring the banking sector to allow direct investment in banks and get rid of the heavy debt burden on major banks owned by the state after decades of war and economic isolation.
The main objectives of the program is to restructure the two largest Iraqi state-owned and two Rasheed Bank and the Bank of Mesopotamia and the restructuring of the Audit Department at the Central Bank and the development of the private banking sector.
Said Majid picture unit manager project management of the Prime Minister and Advisor to the World Bank he was supposed to complete the plan by October, in October 2010 but postponed to June 2013 because of the security situation in Iraq and delayed measures the signing of contracts by the World Bank and the Iraqi government.
He said the external debt and internal Bank of Iraq $ 28 billion debt, while Rasheed Bank, one billion dollars. The government borrowed most of the foreign debt owed by the banks. He said that the picture of contracts restructuring programs and training has been delayed about six months because the experts were not ready to come to Iraq because the security situation. He added that the program crashes also because of the failure of policy makers to take decisions on the actual implementation of the plan. He said he did not oppose a restructuring, but professionalism is absent, as well as a true understanding of the problems.
He said that the picture of focus in 2011 will be the implementation of training programs for departments such as the Audit Department at the Central Bank and the unity of management of each branch of the Rafidain Bank and Rasheed Bank. He said that changing the organizational structure will be a priority and that he was also signing contracts with foreign companies for this purpose and will start work early next month. He added that the main objective of the restructuring is to reach a sound banking system because banks and sophisticated five state-owned controls about 90 percent of the entire banking sector activities.
He explained that the picture of the restructuring plan also aims to transform the Iraqi banks to other financial companies, such as specialized development banks and Islamic banks to encourage investment and development of the real economy.
He said that of the big problems that Iraqi law does not allow banks to invest directly in the real economy on behalf of others. He added that he expected to take years to change that one.
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