Tuesday, November 10, 2015


Iraqi delegation headed by Finance Minister Hoshyar Zebari held with experts and senior IMF officials talks to study the financial and economic situation of the country and ways to support the Fund for Iraq.
A statement from the Ministry of Finance, received all of Iraq [where] a copy of it, that “the financial and technical talks between the government delegation to the representatives of the financial, oil and planning ministries and the central bank with senior experts of the International Monetary Fund officials IMF take place in the Jordanian capital, Amman, to study the country’s financial and economic situation and ways to supporting the Fund for Iraq.

Finance Minister Hoshyar Zebari and Governor of the Central Bank Ali Allaq and financial and economic adviser to the prime minister Mohammed Saleh and directors of budget departments, accounting, public debt, and representatives of the Ministry of Oil and Planning and the Central Bank in these discussions.
Consultations are taking place to reach a memorandum of technical understanding for the monitoring program Fund to strengthen public financial management and strengthen cash management and provide stability to the financial sector in the country, it is scheduled to continue these consultations several days.
The Central Bank of Iraq expresses its warm greeting,
We would like to inform that as part of the Warka Bank rehabilitation plan the Central Bank of Iraq hereby approves the practice of all your banking activities in accordance with your banking licenses issued by the Central Bank of Iraq in accordance with Central Bank of Iraq bylaws and regulations which includes the entry into the CBI bid auction for the purchase and sale of foreign currency.
Best regards,
Salman Eidan Abdullah
Director General
Warka Bank for Investment and Finance
Their concerns stem from the SBV purchasing the banks and bearing their debts, which delegates believe may necessitate using State budget funds.
According to a document from SBV Governor Nguyen Van Binh, however, the restructuring of the three banks taken over by the central bank will not require State budget funds.
Governor Binh explained that under the principal direction from the Politburo and the government it was determined that financial institutions would not be subject to the Law on Bankruptcy, in order to secure stable macro-economic, political, and national security.
The SBV was therefore forced to buy weak commercial banks as a last resort, with no other possible solution being available.
The central bank has directed Vietcombank to manage and supervise the Construction Bank and Vietinbank to do likewise with Ocean Bank and GP Bank.
Both Vietinbank and Vietcombank have strong financial capacity, are of large scale with stable business performance, and possess the strongest management ability in Vietnam’s banking sector, according to Governor Binh.
He also explained that the SBV buying the banks for VND0 means there is no money spent. In accordance with related laws, existing debts must be repaid before subsequent debts, so the damage to the State Budget is negligible.
Governor Binh said the charter capital of the purchased banks is zero because of their losses. With strong efforts in handling bad debts by related agencies and the SBV the charter capital of the banks will be gradually recovered.
Vietinbank and Vietcombank will not bear any cost and will not provide any capital to the three banks, merely assigning personnel in management and supervision tasks.
The capital provided by the SBV to the purchased banks is in the form of credit and the banks are obliged to repay such sums to the SBV.
Governor Binh concluded the report by writing: “Therefore, the solution of purchasing weak commercial banks for VND0 is being conducted by the SBV with strong cooperation from related ministries and follows legal requirements and the directions from the Prime Minister to not use State budget funds and not cause any damage to the State, the SBV, or State-owned commercials banks involved in managing and supervision tasks. The purchasing and handover of weak commercial banks contributes to the security of the deposit system, stabilizing the monetary market and the belief among depositors in the banking system and the plans and solutions for restructuring financial institutions.”

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