Warka news letter

[retep2010]

Dear Warka Clients,

With regards to the rumors that have been circulating against our bank by ill competitors please note that our bank is well supervised and monitored by the highest financial authority in Iraq CBI and we operate under their firm guidelines and regulations where deposits are guaranteed by the CBI.

Best regards,

Warka Bank for Investment and Finance

[PacoTaco]

Are there members on here that can verify they can use their Warka debit card and also work their account before all this shenanigans? From what I have read this is still one of the only ways to date for us to invest in the isx over in Iraq and I think that has huge potential too!

Sorry, I should have posted my reply/question to this post under the Warka forum somewhere and not under rumor.

[THUNDER BUTT]

Dear Warka Clients,

With regards to the rumors that have been circulating against our bank by ill competitors please note that our bank is well supervised and monitored by the highest financial authority in Iraq CBI and we operate under their firm guidelines and regulations where deposits are guaranteed by the CBI.

Best regards,

Warka Bank for Investment and Finance

Do you have a link or a copy of original letter?

Thanks!

Thunder

[rhino92698]

Do you have a link or a copy of original letter?

Thanks!

Thunder

It's on the Warka website.

http://www.warka-bank.com/news.php

[Frank61]

Are there members on here that can verify they can use their Warka debit card and also work their account before all this shenanigans? From what I have read this is still one of the only ways to date for us to invest in the isx over in Iraq and I think that has huge potential too!

Sorry, I should have posted my reply/question to this post under the Warka forum somewhere and not under rumor.

I can verify that my Warka ATM card works.

[SexyDinar]

Dear Warka Clients,

With regards to the rumors that have been circulating against our bank by ill competitors please note that our bank is well supervised and monitored by the highest financial authority in Iraq CBI and we operate under their firm guidelines and regulations where deposits are guaranteed by the CBI.

Best regards,

Warka Bank for Investment and Finance

Well............Sounds to me that with this newletter they are trying to pull the wool over our eyes because I contacted them and this was the response I got:-

"""No bankruptcy shall take place where it is important to note that in

accordance with the regulations set and applied throughout the entire Iraqi

banking industry there is no insurance on deposits and this is the general

law currently implemented in Iraq and set for all banks.""""""

This stipulates that "DEPOSITS ARE NOT GUARANTEED!"

I am getting my money out ASAP, it has taken 3 days just for them to transfer funds from IQD to USD and now I am sending instructions to transfer monies back to US but don't know if I will receive them.

Read more:

[sgtmoreno]

Well............Sounds to me that with this newletter they are trying to pull the wool over our eyes because I contacted them and this was the response I got:-

"""No bankruptcy shall take place where it is important to note that in

accordance with the regulations set and applied throughout the entire Iraqi

banking industry there is no insurance on deposits and this is the general

law currently implemented in Iraq and set for all banks.""""""

This stipulates that "DEPOSITS ARE NOT GUARANTEED!"

I am getting my money out ASAP, it has taken 3 days just for them to transfer funds from IQD to USD and now I am sending instructions to transfer monies back to US but don't know if I will receive them.

Read more:

Please consider this:

I am just as concerned about my Warka investment like anyone else BUT this is an investment and we should all remember to invest ONLY what we can afford to lose. I have a master debit card from Warka that does work. I used it to purchase MOST of the money I have in my account into physical currency. I bought Dinars at online company and the transaction has gone through. Like Adam has advised us, we should diversify our investment. I've kept what I want to afford to lose in Warka, but I at least have something still in it. Our forum is a great tool for HELPING us to make wise decisions on OUR own. Don't just listen and follow the herd. Be Wise.

Hope this helps.

GO RVVVVVVVV!!!!!!!!!!!!!!!!!!!!

[kaka]

donot turst any news now.any thing can happen remember it is IRAQ lol better keep your dinar in your hand

Edited September 22, 2010 by kaka

[Phoenix]

Well............Sounds to me that with this newletter they are trying to pull the wool over our eyes because I contacted them and this was the response I got:-

"""No bankruptcy shall take place where it is important to note that in

accordance with the regulations set and applied throughout the entire Iraqi

banking industry there is no insurance on deposits and this is the general

law currently implemented in Iraq and set for all banks.""""""

This stipulates that "DEPOSITS ARE NOT GUARANTEED!"

I am getting my money out ASAP, it has taken 3 days just for them to transfer funds from IQD to USD and now I am sending instructions to transfer monies back to US but don't know if I will receive them.

Read more:

Edited September 22, 2010 by Phoenix

[QTen]

Please consider this:

I am just as concerned about my Warka investment like anyone else BUT this is an investment and we should all remember to invest ONLY what we can afford to lose. I have a master debit card from Warka that does work. I used it to purchase MOST of the money I have in my account into physical currency. I bought Dinars at online company and the transaction has gone through. Like Adam has advised us, we should diversify our investment. I've kept what I want to afford to lose in Warka, but I at least have something still in it. Our forum is a great tool for HELPING us to make wise decisions on OUR own. Don't just listen and follow the herd. Be Wise.

Hope this helps.

GO RVVVVVVVV!!!!!!!!!!!!!!!!!!!!

Why do people say "invest only what you can afford to lose." That is the most asinine thing I have ever heard.

[Phoenix]

Escape from Warka?

Feeling trapped in your Warka account?

Having second thoughts?

It appears a few other people may feel the same way.

But what is one to do? How can one quickly escape from "Warka"?

It looks as if some have come up with a novel solution...and that is to use their Warka card to purchase physical dinar here in the states.

By doing this they are simply converting the electronic dinar listed in their Warka accounts to physical dinar held by themselves at home.

It appears that by doing so it gives the dinar holder an added measure of peace of mind that they will in fact have access to their IQD when the revaluation occurs.

I do not have a Warka account and give no recommendations or advice to anyone and this post should not be taken as advice in any form.

This post is nothing but the reporting, observation and notation on the novel and interesting actions and ideas of current Warka account holders on this forum and has been put forward by me to all as nothing more than an interesting observation.

These observations and conversations can be found here:

~Best of luck to ALL!~

Phoenix

[sgtmoreno]

Why do people say "invest only what you can afford to lose." That is the most asinine thing I have ever heard.

Asinine, as you say, I believe is when a person works for a year earning six figures and puts all of it into this investment instead of putting only that which he feels he is comfortable to invest and if something were to happen to that money he will not have AN'y regrets. True story by the way. Just food for thought, everyone is entitled to do what they want. I respect ypur "asinine" comment.

[Phoenix]

So it is TRUE Warka Bank Stock has been HALTED from trading on the ISX and there is a chance it may NEVER trade again!

This means if you hold Warka stock you cannot sell it now and there is a strong chance that you will never be able to sell it in the future!

Everyone wondered why the GOI pulled all of their money out of Warka and the public pulled over 1 Billion out afterwards (3.2 Billion dollar bank run) well it seems the old saying "where there is smoke there is fire" is true and things are about to get real hot for the owners of Warka Bank.

Warka rights mystery deepens

Posted on 28 July 2010. Tags: Banking & Finance, ISC, ISX, Warka Bank

So far two subscription periods for Warka Bank’s ID 150 bn rights issue have come and gone without any official announcement of the results. The last date for existing shareholders to subscribe was May 16. As most of them did not take up their rights, there was a subsequent public offering open to everyone except those eligible to participate in the first round. These subscribers (if any) had until July 2 to get their money in.

Apparently the chairman, who holds about 60% of the shares, did not take up his own rights, which would naturally lead you to conclude that he must have had new investors lined up to invest in the public offering. (Otherwise what would have been the point in doing such a huge capital increase in the first place?) But if that had been the case, it seems that there should have been an announcement by now confirming that the second round shares had been taken up and revealing the identity of the new owners.

But no such announcement has been forthcoming and it now appears that the public offering is going to a final sixty-day third round. As the stock must be suspended until the new shares are either taken up or cancelled, this would mean that BWAI would not resume trading until some time in September at the earliest.

In the meantime, however, the Iraq Securities Commission has further complicated the process by requiring the bank to reaudit its 2009 financials. In an announcement dated June 6 (and posted on the ISX website on June 9), the ISC claimed to have found “abnormal figures” in the accounts and requested the company to replace the auditor and redo them.

All this leaves the minority shareholder with nothing but unanswered questions: Did the chairman actually have any investors to take up the second round shares? Will they subscribe during the third round? Did they ever exist in the first place? Did the ISC’s report scare them away? Was the timing of ISC announcement, right in the midst of a public offering, a coincidence? What will the bank’s new auditor conclude?

And when, if ever, will the shares resume trading?

http://www.iraq-businessnews.com/2010/07/28/warka-rights-mystery-deepens/

~Best of luck to ALL!~

Phoenix

Edited September 22, 2010 by Phoenix

[cgbrown]

Right not it seems the best advice is move with caution.

[Doc31]

It looks as if some have come up with a novel solution...and that is to use their Warka card to purchase physical dinar here in the states. By doing this they are simply converting the electronic dinar listed in their Warka accounts to physical dinar held by themselves at home. It appears that by doing so it gives the dinar holder an added measure of peace of mind that they will in fact have access to their IQD when the revaluation occurs.

Interesting ... plus (the probable) cash advance expense if it is necessary to convert back to USD to purchase and/or the spread via the vendor (buy back 900 vs 1050 purchase) ... still a relatively expedient methodology ... and certainly ingenious!

I don't know what will come of the whole Warka thing ... but I have never had a good feeling about the arrangement and counselled my group that I would not be doing it ... if they did ... they needed to investigate a great deal more.

Peace

Doc31

Edited September 22, 2010 by Doc31

[Nelson0528]

Well............Sounds to me that with this newletter they are trying to pull the wool over our eyes because I contacted them and this was the response I got:-

"""No bankruptcy shall take place where it is important to note that in

accordance with the regulations set and applied throughout the entire Iraqi

banking industry there is no insurance on deposits and this is the general

law currently implemented in Iraq and set for all banks.""""""

This stipulates that "DEPOSITS ARE NOT GUARANTEED!"

I am getting my money out ASAP, it has taken 3 days just for them to transfer funds from IQD to USD and now I am sending instructions to transfer monies back to US but don't know if I will receive them.

Read more:

It would be interesting to see what your inquiry said, that might have triggered this information in repsonse. Perhaps they misinterpreted your questions? Just curious. Can you post your inquiry too? Thanks for the updates!

[Nelson0528]

So it is TRUE Warka Bank Stock has been HALTED from trading on the ISX and there is a chance it may NEVER trade again!

This means if you hold Warka stock you cannot sell it now and there is a strong chance that you will never be able to sell it in the future!

Everyone wondered why the GOI pulled all of their money out of Warka and the public pulled over 1 Billion out afterwards (3.2 Billion dollar bank run) well it seems the old saying "where there is smoke there is fire" is true and things are about to get real hot for the owners of Warka Bank.

Warka rights mystery deepens

Posted on 28 July 2010. Tags: Banking & Finance, ISC, ISX, Warka Bank

So far two subscription periods for Warka Bank’s ID 150 bn rights issue have come and gone without any official announcement of the results. The last date for existing shareholders to subscribe was May 16. As most of them did not take up their rights, there was a subsequent public offering open to everyone except those eligible to participate in the first round. These subscribers (if any) had until July 2 to get their money in.

Apparently the chairman, who holds about 60% of the shares, did not take up his own rights, which would naturally lead you to conclude that he must have had new investors lined up to invest in the public offering. (Otherwise what would have been the point in doing such a huge capital increase in the first place?) But if that had been the case, it seems that there should have been an announcement by now confirming that the second round shares had been taken up and revealing the identity of the new owners.

But no such announcement has been forthcoming and it now appears that the public offering is going to a final sixty-day third round. As the stock must be suspended until the new shares are either taken up or cancelled, this would mean that BWAI would not resume trading until some time in September at the earliest.

In the meantime, however, the Iraq Securities Commission has further complicated the process by requiring the bank to reaudit its 2009 financials. In an announcement dated June 6 (and posted on the ISX website on June 9), the ISC claimed to have found “abnormal figures” in the accounts and requested the company to replace the auditor and redo them.

All this leaves the minority shareholder with nothing but unanswered questions: Did the chairman actually have any investors to take up the second round shares? Will they subscribe during the third round? Did they ever exist in the first place? Did the ISC’s report scare them away? Was the timing of ISC announcement, right in the midst of a public offering, a coincidence? What will the bank’s new auditor conclude?

And when, if ever, will the shares resume trading?

http://www.iraq-businessnews.com/2010/07/28/warka-rights-mystery-deepens/

~Best of luck to ALL!~

Phoenix

Great post! Excellent food for thought. They are one of, if not THE, largest Private banks in Iraq. Perhaps they are looking to partner with some larger Westermn Banks in preparations for the coming Open markets. WOuld perhaps explain the stock offering without a lot of fanfare. As for the ISX and all the electronic issues, well, I guess we're back to the mushroom farm on that one! I think the GOI did an injustice to the private banking sector though; when they pulled monies and did not bother to curb panic in the private sector, by issuing some guidance or PR on their decision. They pulled significant liquidity from the Private banks to effect their reserves; possibly in response to the Private sector banks carrying too much reserve cash; but, regardless of the reason, the Private banks alwats have the ability to borrow from the CBI to replenish their reserves as needed. Remember Shabs has a Constitutional responsibility to maintain the health of the Economy in Iraq. I just wish the GOI as a whole would doa better job of keeping their Public in formed. I truly suspect, the GOI was just moving funds around to stay in compliance with Constitutional requirements and to prepare the entire Private sector for Trade in the near future. No link, JMO. Any thoughts?

[Nelson0528]

Oooo, that was yucky!!! Here is a cleaned up version...

Great post! Excellent food for thought. Warka is one of, if not THE, largest private banks in Iraq. Perhaps they are looking to partner with some larger Western Bank in preparations for the coming open markets? That would perhaps explain the stock offering without a lot of fanfare. As for the ISX and all the electronic issues; well, I guess only time will tell us the truth on that one. I think the GOI did an injustice to the private banking sector though; when they pulled monies and did not bother to address panic in the private sector, by issuing some guidance or PR on their decision. They pulled significant liquidity from the private banks which affected their reserves; possibly, in response to the private sector banks carrying too much reserve cash. But, regardless of the reason, the private banks always have the ability to borrow from the CBI to replenish their reserves as needed or required. Don't forget that the Individual Nations/National Reserve Banks set the reserve requirements for each economy. The Basel group basically provides guidance, not regulations. Also remember, Shabibi has a Constitutional responsibility to maintain the health of the economy in Iraq. I just wish the GOI as a whole would do a better job of keeping their public informed. I truly suspect, the GOI was just moving funds around to stay in compliance with Constitutional requirements and to prepare the entire private sector for trade in the near future. No link, JMO. Any thoughts?

Edited for poor typing, horrible proof reading, spelling and grammar. Please forgive me...

[Phoenix]

Great post! Excellent food for thought. They are one of, if not THE, largest Private banks in Iraq. Perhaps they are looking to partner with some larger Westermn Banks in preparations for the coming Open markets. WOuld perhaps explain the stock offering without a lot of fanfare. As for the ISX and all the electronic issues, well, I guess we're back to the mushroom farm on that one! I think the GOI did an injustice to the private banking sector though; when they pulled monies and did not bother to curb panic in the private sector, by issuing some guidance or PR on their decision. They pulled significant liquidity from the Private banks to effect their reserves; possibly in response to the Private sector banks carrying too much reserve cash; but, regardless of the reason, the Private banks alwats have the ability to borrow from the CBI to replenish their reserves as needed. Remember Shabs has a Constitutional responsibility to maintain the health of the Economy in Iraq. I just wish the GOI as a whole would doa better job of keeping their Public in formed. I truly suspect, the GOI was just moving funds around to stay in compliance with Constitutional requirements and to prepare the entire Private sector for Trade in the near future. No link, JMO. Any thoughts?

According to this the CBI has stopped all dealings with Warka Bank and if this is true the loss from a massive 3.2 Billion Dollar bank run will be impossible to recover it would seem:

CBI suspends all transactions at Warka Bank; Issues an order to cease all dealings

Posted: September 20, 2010 by Justhopin in Iraqi Dinar/Politics

Iraq, Dinar, IQD, CBI, warka, Government, Central bank, Business, Central Bank of Iraq, Financial services, Basra, Banking Services

Basra, September 19 (Akaniwz) – complained about a number of local residents and Iraqi traders in the province of Basra from the way it treats the Warka Bank Ahli Recently, with official source in a branch of Bank Central Bank of Iraq issued an order to cease all dealings branches Warka until decide that the committee overseeing the Warka Bank this topic.

Said Mohammad Rahim Ragab (dealer) told Kurdistan News (Akaniwz) on Sunday, “I deal with Warka Bank for more than a year, where did they deal with customers on a good level, but recently turned all parallel.”

He explained that “the large sums that are deposited in the Warka Bank became trapped and I can not withdraw their payments do I need in my work, which requires me to permanent financial liquidity.”

He added that “the way pursued by Warka Bank in recent times by giving us small amounts and in the form of payments did not meet our need for traders in the market.”

The citizen says Abdel Wahab Mahmoud told (Akaniwz) “We left the government banks in order to get the best deal and more benefits with private banks.”

He added, “Warka Bank will cause people moving away from private banks, especially since he Italm Biidaatna and invest in his own work and turn blind us to these funds can not be retrieved only through a few batches are not consistent with the amount of funds deposited by us in the bank.”

While he says the press for the return of peace (Akaniwz) that “most journalists and media workers, particularly those working in media institutions outside the province of Basra or outside Iraq receive their salaries through the current accounts in banks, notably the civil Warka Bank.”

He explained that “all branches of the Warka Bank in Basra to refrain from paying full salaries to journalists, but fragmented into two or more.”

He added, “Media and the employee is not a dealer or a businessman to take on the financial crisis as he was waiting for a specific amount at the end of the month to subsistence livelihood is unjust and unfair to withhold funds or pay him in the form of payments are very few.”

For his part, an official at a branch of the Warka in Basra (l Akaniwz) that “the Warka Bank is going through a financial crisis, the fact that the scarce funds to be deposited in the bank are not sufficient to meet the requirements of customers.”

He added that “the bank’s administration recently decided to walk things clients as possible through the provision of the required amounts in the form of payments.”

However, “But even this ended as of the day after that we got a formal letter from the Central Bank was not to act until after the amounts provided to the Committee overseeing the Warka Bank official request shows the names of customers and the amount of obligations.”

“The book also provides that the exchange will be a decision of the supervisory committee and at rates as it deems appropriate and fair.”

Noting that “the supervisory committee called Warka Bank by providing them with an official letter that contains all of the amounts derived from credit and the amounts deposited by customers a week.”

In the same context, the source stressed that “the province of Basra alone, 13-branch of the Warka Bank which makes the jobs of dozens of staff of Warka in danger against the backdrop of the repercussions of the crisis experienced by the bank.”

This declined to branch manager of the Shatt al-Arab Sudanese Majed Hameed, to give any statement to the Agency (Akaniwz), saying that the central problem and include all provinces and senior management is only responsible for the comments.

http://www.aknews.co...knews/2/182432/

http://currencynewsh...e-all-dealings/

Read more:

Edited September 23, 2010 by Phoenix

[Nelson0528]

According to this the CBI has stopped all dealings with Warka Bank and if this is true the loss from a massive 3.2 Billion Dollar bank run will be impossible to recover it would seem:

CBI suspends all transactions at Warka Bank; Issues an order to cease all dealings

Posted: September 20, 2010 by Justhopin in Iraqi Dinar/Politics

Iraq, Dinar, IQD, CBI, warka, Government, Central bank, Business, Central Bank of Iraq, Financial services, Basra, Banking Services

Basra, September 19 (Akaniwz) – complained about a number of local residents and Iraqi traders in the province of Basra from the way it treats the Warka Bank Ahli Recently, with official source in a branch of Bank Central Bank of Iraq issued an order to cease all dealings branches Warka until decide that the committee overseeing the Warka Bank this topic.

Said Mohammad Rahim Ragab (dealer) told Kurdistan News (Akaniwz) on Sunday, “I deal with Warka Bank for more than a year, where did they deal with customers on a good level, but recently turned all parallel.”

He explained that “the large sums that are deposited in the Warka Bank became trapped and I can not withdraw their payments do I need in my work, which requires me to permanent financial liquidity.”

He added that “the way pursued by Warka Bank in recent times by giving us small amounts and in the form of payments did not meet our need for traders in the market.”

The citizen says Abdel Wahab Mahmoud told (Akaniwz) “We left the government banks in order to get the best deal and more benefits with private banks.”

He added, “Warka Bank will cause people moving away from private banks, especially since he Italm Biidaatna and invest in his own work and turn blind us to these funds can not be retrieved only through a few batches are not consistent with the amount of funds deposited by us in the bank.”

While he says the press for the return of peace (Akaniwz) that “most journalists and media workers, particularly those working in media institutions outside the province of Basra or outside Iraq receive their salaries through the current accounts in banks, notably the civil Warka Bank.”

He explained that “all branches of the Warka Bank in Basra to refrain from paying full salaries to journalists, but fragmented into two or more.”

He added, “Media and the employee is not a dealer or a businessman to take on the financial crisis as he was waiting for a specific amount at the end of the month to subsistence livelihood is unjust and unfair to withhold funds or pay him in the form of payments are very few.”

For his part, an official at a branch of the Warka in Basra (l Akaniwz) that “the Warka Bank is going through a financial crisis, the fact that the scarce funds to be deposited in the bank are not sufficient to meet the requirements of customers.”

He added that “the bank’s administration recently decided to walk things clients as possible through the provision of the required amounts in the form of payments.”

However, “But even this ended as of the day after that we got a formal letter from the Central Bank was not to act until after the amounts provided to the Committee overseeing the Warka Bank official request shows the names of customers and the amount of obligations.”

“The book also provides that the exchange will be a decision of the supervisory committee and at rates as it deems appropriate and fair.”

Noting that “the supervisory committee called Warka Bank by providing them with an official letter that contains all of the amounts derived from credit and the amounts deposited by customers a week.”

In the same context, the source stressed that “the province of Basra alone, 13-branch of the Warka Bank which makes the jobs of dozens of staff of Warka in danger against the backdrop of the repercussions of the crisis experienced by the bank.”

This declined to branch manager of the Shatt al-Arab Sudanese Majed Hameed, to give any statement to the Agency (Akaniwz), saying that the central problem and include all provinces and senior management is only responsible for the comments.

http://www.aknews.co...knews/2/182432/

http://currencynewsh...e-all-dealings/

Read more:

I agree that something out of the ordinary is going on; but, extraordinary describes EVERYTHING going on over there at the moment. These Arabic to English translations are usually spotty at best and if you take 3 different translations, you will likely get 3 very different ideas/viewpoints from them. To me it looks like several points in the post alluded to reserve issues, which are governed by CBI. Remember they are keeping cash in circulation at ridiculous levels to curb inflation. It is the absolute interpretation that CBI has suspended dealings with all Warka branches, where I am suspect in the translation. Not saying it is right or wrong; just significant enough to warrant further investigation. There have not been very many news reports out on this that I have seen personally. Maybe there are hundreds, which is what I would expect if something of this magnitude was in fact a reality, but I am still waiting to read them. My original point was, to get back to it, that we need to try not to jump to conclusions based on a single news report; especially when translated between languages without a common root. We have been conditioned here, due to the many dissappointments we have experienced through the years, to assume the absolute worst in a situation as it unfolds. The reality is everything is not always as it seems. I think we owe it to the members to try and nail down the facts, not just the reports, before we propagate mis-information, through Rumor, that will affect the members (and everyone else) in such a negative way. What do you think? I would just like to see a little more visibility in the news and perhaps a statement from the CBI on the issue. After all it is one of the biggest lending institutions in Iraq, don't the people warrant some answers? Oops I forgot, they still can't pick a PM. Cheers!

[Phoenix]

Maybe some mood music while this gets sorted out?