World Bank: Plan to restructure the Iraqi banks

[babyorca]

This day of network news (HNN) – 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.

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.

http://tinyurl.com/4l8xyd9

[Austin-Powers-for-PM]

So does this mean no RV until June 2013????

[Soldier]

Not a good sign. October of "2010." "Re domination by the end of 2010." No Re domination at the end of 2010 and "he was supposed to complete the plan by October, in October 2010 but postponed to June 2013." So what does this tell us?

[JuryPicker]

The sky is falling!! The sky is falling!!

[easyrider]

So does this mean no RV until June 2013????

ask yourself this 1 ? ok... do you think there is a chance in hell that the Iraqi's will be poor until 2013? I don;t think so with every thing going on the RV is going down this year sometime and sooner than later or Sh** is gona get ugly this is like a plague and has been mentioned in the bible that brother against brother will fight to the death nation against nation so with that said if this takes any longer someone might as well nuke the wholeME because its on fire right now. Someone put it out maliki and GOI if your listening. Form, complete and shabbs o yea RV this sucka.

Edited February 16, 2011 by easyrider

[magawatt]

I'm not a financier but I don't see hard coupling between restructuring the banking system and revaluing the currency. If the curency has an increased value from factors outside the banking system (like oceans of oil) the currancy should reflect that.

[wingsofhope]

This is not good

[wingsofhope]

babyorca, I cannot verify the links credibility. I went to your link and tried to connect to the newshound referenced address and continue to get "server not found". I went to the World Banks website under Iraq and found nothing there.

Have you any further info on this?

[InToWin]

This is the best smoke I have smelled in a while

[hurricanewayne]

restucture of bank is to make it earier for investment and thing of that nature would have nothing to do with value of money, just the way it is hadled.

[getherdone]

Link worked for me

[babyorca]

babyorca, I cannot verify the links credibility. I went to your link and tried to connect to the newshound referenced address and continue to get "server not found". I went to the World Banks website under Iraq and found nothing there.

Have you any further info on this?

Hi

I don't do Arab translation but this is where it come from http://www.swalefnalhelwa.com/news.php?action=view&id=1296

[Dinarius Rucker]

Not a good sign. October of "2010." "Re domination by the end of 2010." No Re domination at the end of 2010 and "he was supposed to complete the plan by October, in October 2010 but postponed to June 2013." So what does this tell us?

WHICH LINE SAYS "RE-DENOMINATION BY THE END OF 2010"? HAVE READ THIS THING THREE TIMES. I FEEL LIKE I AM BLIND... I

Edited February 16, 2011 by Dinarius Rucker

[babyorca]

If you hit the google translate this is what you get

[glo]

restucture of bank is to make it earier for investment and thing of that nature would have nothing to do with value of money, just the way it is hadled.

Exactly..Agree with you !!!!

I'm not a financier but I don't see hard coupling between restructuring the banking system and revaluing the currency. If the curency has an increased value from factors outside the banking system (like oceans of oil) the currancy should reflect that.

Agree 100 %

[wingsofhope]

I found the original article... It isn't what I thought

[007]

ask yourself this 1 ? ok... do you think there is a chance in hell that the Iraqi's will be poor until 2013? I don;t think so with every thing going on the RV is going down this year sometime and sooner than later or Sh** is gona get ugly this is like a plague and has been mentioned in the bible that brother against brother will fight to the death nation against nation so with that said if this takes any longer someone might as well nuke the wholeME because its on fire right now. Someone put it out maliki and GOI if your listening. Form, complete and shabbs o yea RV this sucka.

Amen!

If this RV doesn't happen soon...the Green Zone will be the RED ZONE...will be stumpped by the living deads..millions of angries..no more Goi and Maliki..

[tileman1814]

If anybody is going to restructure the financial system of Iraq is sure isn't going to be the world bank,it would be the IMF and I doubt thats going to happen.

I belive the RV is very close.The thought that they would wait until 2013 is crazy,The Iraqi economy would be in total colapse and all the countrys they owe would forclose on them.The UNSC would have no choice but to come in and take over the government and then the whole process would start over from scratch.

Semper Fi !!!

[venetia]

WHICH LINE SAYS "RE-DENOMINATION BY THE END OF 2010"? HAVE READ THIS THING THREE TIMES. I FEEL LIKE I AM BLIND... I

It was the message which was on the XE Exchange site through 2010.............

I agree with the other comments here. I can't see a connection with the currency value rising and any restructuring of the bank Stay strong guys!

[BanG]

ask yourself this 1 ? ok... do you think there is a chance in hell that the Iraqi's will be poor until 2013? I don;t think so with every thing going on the RV is going down this year sometime and sooner than later or Sh** is gona get ugly this is like a plague and has been mentioned in the bible that brother against brother will fight to the death nation against nation so with that said if this takes any longer someone might as well nuke the wholeME because its on fire right now. Someone put it out maliki and GOI if your listening. Form, complete and shabbs o yea RV this sucka.

I tend to agree with you here on this one, The budget must reflect RV dollars I would think as no company wants to work for nothing. JMO.

[TC987]

I am a bank auditor by trade. If I'm not mistaken the restructuring that they are talking about is actually "re-capitalizing" the banks. There is some agreement that was put into place by the all of the World Banks (including the Federal Reserve, if I'm not mistaken). This agreement caused banks around the world to add more capital, in order to be stronger. The agreement has been modified and extended on a couple of occasions, but I think the current agreement is called the Basel III agreement. I don't think it will have anything to do with the RV because the amount of capital needed for the banks will not change due to a change in the value of their currency. . . JMHO.

[merry1]

The world bank provides loans for restructuring emerging countries. The reason they put this off is largely because of Irags debt. they have a debt ration of 70% to GDP. IMO, this is article is huge! We heard from Shabibi they would redenominate at the end of the 2010. It didn't happen, then we heard that he would do it as soon as the GOI was in place. we are still waiting for that to happen. but the bigger event here is this article saying the restructering of the banks won't occur until 2013. If the systems aren't in place, i.e. the training, the banks mergered, and the debt to dgp not dropped considerably, and lets not forget the potential violence that is erupting in the M. E. the WB will not grant the loans that Iraq needs for restructuring. And without the money to restructure all that potential profit stays in the ground.

[Soldier]

ask yourself this 1 ? ok... do you think there is a chance in hell that the Iraqi's will be poor until 2013? I don;t think so with every thing going on the RV is going down this year sometime and sooner than later or Sh** is gona get ugly this is like a plague and has been mentioned in the bible that brother against brother will fight to the death nation against nation so with that said if this takes any longer someone might as well nuke the wholeME because its on fire right now. Someone put it out maliki and GOI if your listening. Form, complete and shabbs o yea RV this sucka.

I'm not sure on what you mean poor. Iraq has billion upon billions of dollars (American). How can a country with billions be poor? I think what you mean by poor is no buying power. If they RV those billions will go away but they will have buying power.

In my opinion, would you want buying power or billions.

[legacyman73]

Thanks for the post..