Warka bringing a lawsuit against the Central Bank of Iraq

Thursday, March 8, 2012 13:38

Bank of Iraq

BAGHDAD / Baghdadiya News / An official source at the Board of Directors Warka Bank for Investment filed a lawsuit against the Iraqi Central Bank, which recently issued an order placing the bank in question
Under full guardianship (administrative and financial) and the election of new board of directors of the central bank to manage it.
The source, who preferred not to be named L / Baghdadiya News / that the bank has filed a lawsuit before the competent courts decision not to put legal guardianship issued by the Iraqi Central Bank on Thursday, 1/3/2012, call an extraordinary session held on 1481/29 2/2012. "
"The objection was submitted for decision to develop a trusteeship over the legal limit of objection which is five days from the date of issuance of the decision."
The central bank had announced last Thursday on the status of the Warka Bank under the trusteeship system, stressing that it will set a new administration soon.
The deputy governor of Central Bank of Iraq Qasim appearance in a press statement that "the Bank put under guardianship Warka Bank to oversee the work through insolvency", in reference to cases of bankruptcy or disability.
And Qassem pointed out that "the Warka Bank had entered last year in talks with the bank," Standard Chartered, the British "to sell one of his shares, but the talks reached a dead end," noting that "the central bank gave the bank an opportunity to participate, Standard Chartered, but that did not happen, So we had no financial authority but to intervene as a trustee, "according to (RTRS).
Qassem added that "the central bank sought new Department for Warka Bank, will be given one month to appoint an auditor to determine how to restructure, and if it needs to sell shares to raise capital."
Qassem added that "if the bank has capital, failed in its banking operations and faced an intractable problem, the central bank intervenes in accordance with its law in his capacity as a trustee and appoint a new interim administration."
The Executive Director of the Association of Iraqi private banks Abdul Aziz al-Hassoun said, in August 2011, that the Warka Bank needs to be about 100 billion Iraqi dinars (90 million) to boost its liquidity, while confirming the Iraqi market for securities that the Board of Governors in the Iraqi Stock Exchange decided to write off the inclusion of company Warka Bank from the market, in accordance with paragraph IX of Article V of the instruction number three amended for the year 2011, which provides for the write-off company from the listing if the stoppage of circulation for six months without taking appropriate action to appeal, pointing out that the Warka Bank is dependent on trading Since the eighth of February 2010. "
The Warka Bank for Investment and Finance, which was established in 1999.130 branches and 350 ATMs in all parts of Iraq.
The central bank set a three-stage plan to raise banks' capital to 213 million by June 2013 to stimulate lending at a time when Iraq is recovering from the sanctions and the U.S. invasion in 2003.
Includes Iraq, seven banks, state-owned and 23 private banks, eight Islamic banks in particular, according to the site's central bank, while dominated by the banking sector, banks, Rafidain and Rasheed Aovernmaan, and are under way to restructure in order to pay off the debts that have accumulated after years of war and sanctions.
To the description of the Iraqi Finance Minister Rafie al-Issawi Iraqi Central Bank's decision to impose the latter and the financial and administrative tutelage on one of the Iraqi private banks to "illegal".
He al-Issawi told / Baghdadiya News / "The decision to custody of the Warka Bank Ahli is illegal and is a grave mistake signed by the Central Bank.
Close to the al-Issawi said of his part that the latter "will be held this afternoon at the Amman conference to shed light on the results of this decision."