Thread: Central Bank of Iraq

Update - Trade Bank of Iraq to Launch Private Equity Fund

The state-run Trade Bank of Iraq plans to set up a $500 million private-equity fund to invest in projects in the country, and will next month look to identify a global player to act as the fund’s general partner, according to a report from Reuters.

Hussein Al-Uzri, president and chairman of the bank, said it aims to launch the private-equity fund this year, which will invest in medium-sized projects in industries including oil services, power and hotels.

The bank also plans to open branches this year in London and Beirut, and eventually aims to open offices in North America, east Asia, and possibly China, as Iraq attempts to attract investment to fund its rebuilding.

“Iraq will need major investment in infrastructure — in housing, oil, power, and so this will need capital investment into the country, and we are counting on the private sector, both Iraqi and foreign, to participate,” Uzri told Reuters.

Iraq expects private investment to triple to $30 billion this year, a senior government official told Reuters last month. Overall, Iraq needs $600 billion of investment to rebuild, according to the National Investment Commission (NIC).

Launched in 2003, Trade Bank of Iraq has been widening its product offerings beyond trade finance and plans to add eight domestic branches this year to its current 15, Uzri said.

The bank had $15 billion in assets at the end of 2010, a level it aims to expand by about 15 percent this year. It earned net profit of $386 million last year, and is looking to increase that by about 20 percent in 2011.

Uzri, who was in the Indian capital for a global banking industry conference, declined to identify the firms on the short list to help manage the planned private-equity fund, which intends to raise money from investors.

“What we want is somebody that is of course recognised internationally but at the same time, that they would invest time and money in Iraq,” Uzri said.

“We want to make sure that for them, this is … strategic, they want to come here, they want to put people in, and time,” he said.

Security remains a concern for investors in Iraq, and Trade Bank of Iraq’s headquarters was devastated by a deadly bomb blast last year.

Still, Uzri said it has become much easier to pitch the Iraq investment story than during 2005-2007.

“Almost every day we have visitors from abroad coming in,” he said.

Once a privatisation law is passed, the bank eventually intends to bring in investors to take a minority stake, with a foreign strategic investor a possibility, he said.

http://www.iraq-businessnews.com/201...e-equity-fund/

Iraq May Legislate on Currency Exchange

According to a report from AKnews, a number of bankers in Baghdad have demanded that the Iraqi parliament legislates to regulate and protect their businesses from market changes because of the sudden decisions taken by the Iraqi government.

Ali Abdul-Zahra, owner of an foreign exchange bureau, told AKnews that banking in Iraq is still precarious and that regulation is needed on the opening of forex services.

“The law is supposed to prevent any economic decision that may disrupt the currency market which negatively affects the work of the offices.”

“The circulation of hard currency (dollar) at the present time follows the decisions taken by the Iraqi government in particular with regard to the entry of goods into the country.”

fadil Taher, the owner of Qusour Exchange office in Baghdad told AKnews that “the exchange work in Iraq is subjected to unjustified controls and in need of great facilities by the concerned authorities.”

“The banking offices suffer from the problem of mobile money-changers who affect the Iraqi market and this must be addressed by the Iraqi government to prevent the currency exchange outside of regulated offices.”

“The well-known banks do not deal with unknown external financial dealers and they work according to the regulations of money laundering law, which is adopted by the Iraqi Central Bank (ICB).”

http://www.iraq-businessnews.com/201...ency-exchange/

Central Bank plans to build housing units and low cost in all Iraqi cities

A member of the Council of the province of Najaf on Thursday, the determination of the Iraqi Central Bank building and the role of low cost and sold to citizens in all governorates Hire.

Khalid said that the initiative Aljcami Central Bank includes the construction of hundreds of thousands of housing units throughout Iraq, including Najaf share of about 30 thousand units, indicating that this number will eliminate 75% of the housing crisis experienced by the province.

He added that the project includes a contract with the Central Bank of investment companies for the construction of the role of the low-cost bank pays directly to investment companies and allocated through the relevant ministries and provincial councils of citizens and citizen remain indebted to the Central Bank repaid within 25 years.

http://radionawa.com/Ar/NewsDetailN....944&LinkID=155

Central Bank of Iraq: Iraq has succeeded in providing cover for foreign currency

The Central Bank of Iraq adviser said on Thursday that the bank has succeeded in providing financial cover for foreign currency in addition to that he managed the success of price stability of the Iraqi dinar.

He said the appearance of Mohammed Saleh told the Kurdish news agency (Rn) that "the Iraqi Central Bank was able to success by providing a cover for foreign currency, notably in successful monetary policy and compatible with the nature of the Iraqi economy."

He added that "monetary policy pursued by the Central Bank of Iraq focuses on the need to deepen the financial system in Iraq through the revitalization and modernization of a permanent Iraqi banks and other financial institutions."

He explained that "the Bank is working according to the vision of monetary and financial fit with the nature of the Iraqi economy and consistent with the general structure of the international economy that Iraq follow the steps in the economic advancement of the World as part of the global economy, not isolated him."

The Central Bank of Iraq in the second of February last that the Board of Finance Sitoss payments in 2013, according to the plan developed by the Central Bank.

The central bank last week that the government and private banks began using the electronic clearing system.

And the World Bank allocated $ 10 million to restructure state banks and activate the electronic dealings.

Announced earlier in the unit restructuring Iraqi banks for that unit has been extended and banks for a period of one year because of security concerns.

Iraq had decided in early 2006 to restructure banks in order to get rid of heavy debt.

The Ministry of Finance of Iraq for its efforts during the next year to develop an integrated plan to develop e-government banks and financial relations in the activation of this aspect.

The Iraqi government is still limited in its financial transactions on the government banks approved by 85%.

And called on the Ministry of Finance earlier in the Iraqi Central Bank to take resolute action in granting licenses for the establishment of private banks.

http://www.aknews.com/ar/aknews/2/224125/

Economic expert criticizes political banks to grant loans to the degrees of

Expert criticized the economic policy on behalf of the beautiful banks to grant credit for scores of private and ignore the rest of the staff.

He said the name in a statement to the Agency by news Sunday that the economic policy in Iraq Germouhdp and non-fixed and there is a contradiction between the position and another in the ministries and departments, and that the policy pursued by the banks to lend to certain groups such as special grades and leave the staff of the marks, Central policy is incorrect and influence to create confusion in the economy.

He added the name of the right of every Iraqi citizen to enjoy a loan or advance degree in isolation from the functional, indicating that the owners of lower grades need them more.

He called for an economist to the revitalization of the economic cycle in an atmosphere of supply and demand in the market.

http://radionawa.com/Ar/NewsDetailN....287&LinkID=155

Iraq’s Per Capita Income to Double by 2015

An economist from the Central Bank of Iraq (CBI) has said that per capita income in the country is projected to more than double within the next four years as a result of a sharp increase in Iraq’s oil output and higher market prices for oil, according to a report from RFE/RL’s Radio Free Iraq (RFI).

Majid al-Suri told RFI that per capita income in Iraq is expected to reach $10,000 by the end of 2015 compared with about $4,500 at present.

He said the projections are based on data provided by the Oil Ministry showing that oil contracts signed with major energy firms such as ExxonMobil, Shell, and BP will boost Iraq’s oil production to an estimated 12 million barrels per day, including 3 million barrels that will be used domestically.

But he said he does not expect the considerable increase in oil revenue to guarantee proportionally higher living standards for the populace due to the “rampant corruption” in the country and the “mismanagement of public funds.”

Iraq affairs analyst Bassim Jamil Anton told RFI that emphasis should be placed on promoting other economic sectors to help increase Iraq’s per capita income rather than putting all of the country’s development prospects on the oil sector.

He said Iraq can only hope to match the prosperity of its oil-rich Arab counterparts with growth in such potentially promising sectors as agriculture and tourism and by attracting foreign investment.

Anton said that despite the continuing terror attacks in some parts of Iraq, economic progress is being made and the number of Iraqis living below the poverty line is projected to decline in the coming years to some 5 million people from the current 7 million.

He said that in the meantime, the government’s priority should be lowering the country’s high unemployment rate of 30 percent.

http://www.iraq-businessnews.com/201...ouble-by-2015/

Raise the international protection of Iraqi funds for the end of next June

Detect the appearance of Mohammed Salih, adviser to the CBI that the hybrid will strip the protection of Iraqi funds deposited in the Development Fund for Iraq and also earned from oil exports.

The end of June, and under Security Council Resolution No. 1958 and explained that 95% of the proceeds resulting from the Tsidiralnaft and its derivatives, developed what is known as the Development Fund for Iraq, established after the occupation of Iraq to protect Iraqi funds to prosecute the creditors, noting that five per cent of the proceeds go to the Commission Compensation in Geneva to compensate Kuwait for the results of entering Iraq in 1990 and Salih stressed that the money deposited in the Development Fund for Iraq, or that it was deposited at the disposal of the government of the Iraqi Ministry of Finance and Central Bank of Iraq. Saleh explained in a statement to the correspondent of news agency, Baghdad International on this protection issued by the President of the United States of America in 2004, according to the validity of the hybrid conferred upon him, renewed on an annual basis, indicating that this protection include the protection of Iraq's money and oil revenue from any prosecution that may govern the courts against Iraq, noting that this protection expires at the end of the month of May has extended this protection to the end of the month of June to agree with the end of the term of protection of United Nations funds, ethnic prosecutions.

Saleh added that the United Nations had asked Iraq to submit its report before the beginning of the month of May next to the UN Security Council to demonstrate the mechanism that will be under transition of Iraq's money from the Development Fund for Iraq to the new arrangements which Tertoeha the Iraqi government, adding that the aim of presenting this report to know the United Nations Ststqta the mechanism by which money damages amounting to 5%, as well as to learn how to organize accounts.

Salih stressed that Iraq form a ministerial committee headed by Deputy Prime Minister for Economic Affairs Ruz Nuri Shaways and membership of the Minister of Foreign Affairs and Minister of Finance and Chairman of the Financial Inspection Office and the Governor of Central Bank of the drawing mechanism and arrangements for investigating the safety of funds of the Republic of Iraq prosecutions and resolutions issued against Iraq by the trade creditors and the interest of Iraq to emerge from this international protection replied Saleh said that Iraq should be based on the same at this stage because it is not possible to provide permanent protection by the United Nations must be to come on to raise him protection, indicating that the Iraq of the few countries that have received such protection and which should be completed and Iraq relies on itself in the management of his money, whether or tens of billions of dollars.

http://www.baghdadiabian.com/news.ph...n=view&id=4170

Medium optimized for the integration of banks

Brings together financial experts and economists of the need to reform the banking sector in order to activate its role in economic development processes and supports the trend of the recommendations issued by the economic seminars in this regard.

It seems clear from the Iraqi Central Bank's procedures and decisions on the restructuring of banks and raise their capital from the merger of Union Bank is qualified to reform steps are going in the right direction.

The objective behind the decision of the central raised the capital of private banks formed part of his quest to strengthen their capacity to respond to the requirements of real development in the country and the expansion of banking services required.

By contrast, the resolutions of the merger and the European Union definitely belonging to banks that are unable to provide financial solvency sufficient, so that they respond to the requirements of reform, but it seems that these decisions are having difficulty in implementation as they relate to abandon the personal autonomy of the moral for the benefit of the other we see that these difficulties that delayed the investigation This goal of any merger or union back to the banking sector still lacks a culture of dealing with the developments and processes of development, economic growth and that its requirements mergers to create sufficient capital to accommodate these goals.

In return, the decision to the Iraqi Central Bank is obliged to micro-banks that are not possess sufficient capital to perform the functions of development, what is the solution over these variables under the prescribed period for the implementation of the resolution, which started the countdown and the banks that were unable to raise their capital to withdraw from the financial market?

We note that the privileges and title master of the situation in blocking the implementation of the merger and the Union as the need requires building the institutions of banking sober and with financial solvency and the adequacy of capital and hence the vulnerability of the art of negotiation in this area is reflected in the important decisions and the right In such a case requires the selection of independent third party do the job any management of the negotiation between the banks, which tend to merge or union and find that best represents this mediation are the companies financial investment that is empowered by law to exercise this role, where, according to international reports that these companies are leading such activity in the brokerage operations of banks in most countries of the world advanced.

It seems that the mediation of these companies enough to resolve the bottleneck and facilitating mergers and the European Union and thus ensure that activate the role of corporate financial investment in this area and will be reflected on the evolution of capital market and its positive impact in the activity of the Iraqi Stock Exchange with the introduction of an important activity and is vital for investment companies, thus ensuring a meaningful contribution and effective in repairing the important aspect in the financial sector.

http://www.alsabaah.com/ArticleShow.aspx?ID=4169

International private bank transactions in Dahuk

Opened in the Governorate of Dohuk on a private bank to activate international transactions of foreign companies.

The Undersecretary of the Ministry of Finance and Economy in the Kurdistan Regional Government Rashid Taher statement carried by news agency «Nina» News: «that the bank is equipped with all the technology in the banking industry, has created took two years, as Chairman of a special foreign companies».

Opened in the Governorate of Dohuk on a private bank to activate international transactions of foreign companies., "Said Undersecretary of the Ministry of Finance and Economy in the Kurdistan Regional Government Rashid Taher, a press statement carried by the agency« Nina »News:« that the bank is equipped with all the technology in the banking industry, took established for two years, as Chairman of a special foreign companies ».

http://www.alsabaah.com/ArticleShow.aspx?ID=4294

18/03/2011

Central Bank: Our next issue of currency cash allowance damaged

An advisor of the Central Bank of the appearance of Mohammed Saleh, said that our future work on the issuance of currency.

Saleh said in a statement (of the Agency news) today: "that our future is to work on the issue of currency within the system of cash currency reform to help, but this program takes time.

Saleh added: "The policies of the Central Bank of damage and the burning of damaged currency after investigating the cause of damage and there are conditions and instructions prior to splurge, noting that there are some people who offended in use."

He said the central bank adviser: "Iraq currently trading currency in Mtzmrp because he is one of the developing countries and underdeveloped in the use of money, so the Central Bank of the receipt of all categories and the be destroyed within the standards and laws in line with the rules of the Bank".

http://www.ikhnews.com/news.php?action=view&id=10128