Iraq raises foreign banks' capital to $ 50 million in two phases

Author: AB, ASJ
Editor: AB, HH 06/18/2016 17:26 Number of Views: 23

Long-Presse / Baghdad

A source at the Central Bank of Iraq, said on Saturday that the bank decided to raise the foreign banks' capital to $ 50 million in two phases.

The source said in an interview with the (long-Presse), said that "the Iraqi Central Bank decided to raise the foreign banks' capital to $ 50 million in two phases," noting that "the first phase include a capital raising to $ 25 million during the period lasts until 31 December 2016 ".

The source, who asked not to be named, said: "The second phase is to raise capital to $ 50 million during the year as well, that is, until 31 December 2017," noting that "the decision raised to $ 50 million instead of $ 70 million, It came after meetings between the Iraqi Central Bank Governor Ali Mohsen Keywords and a delegation of Lebanese banks visited Iraq several times in the past three months. "

The source continued, "The capital increase will allow the banks to open 15 branches in the Iraqi market," explaining that "the minimum capital exact money to open a foreign bank in Iraq was $ 7 million, but the central bank found that the advancement of the banking sector requires the lifting of foreign banks' capital , in a position to work in the Iraqi market. "

The Lebanese banks objected to the Iraqi Central Bank's decision to raise their capital to $ 70 million, because of the Iraqi banking market is not conducive to profitability because of the security, political and economic conditions and have applied to the central bank reversed his decision, but he refused to categorically continued delegations to negotiate to while reaching agreement to $ 50 million in two phases.