13/05/2012 12:50

BAGHDAD, May 13 The Central Bank of Iraq (ICB) stated today that its committee set up to study and resolve the assets of Warka Ahli Bank will pay the depositors in the bank before the owners of capital.

Warka Bank suffered from a severe financial crisis and the ICB decided in March to put its guardianship on the bank because of the deterioration of its fiscal policy.

The ICB's committee of trusteeship was commissioned to resolve the assets. Warka Bank's assets are still being studied to allow a final report to be submitted to the ICB.

ICB deputy governor Muzher Mohammed said: "Warka Bank has large assets and millions of dollars were granted to investors and the committee of trusteeship is seeking through legal methods to return the money that some refuse to pay."

According to economic reports, Warka Bank wanted to free itself from its financial crisis by negotiating with British bank Standard Chartered to sell some of its shares, but the talks reached a dead end.

The ICB states that article 59 of its banking law allows it to put custody on banks that face financial problems. The custody is represented by appointing an interim administration

According to law, the guardian assigned by the ICB can seek through the ICB to request the Minister of Finance to save the bank if possible.

The ICB is responsible for maintaining price stability, implementing monetary policy and regulating the banking sector.