July 23, 2010
Iraq: domestic credit activity and proceeds deposited in the Central Bank
A report prepared by the «Bank of the Middle East» Iraq's investment for the occasion of the annual meeting, that the global financial crisis did not affect the Iraqi banks, because the assets of cash abroad, calculated to cover the need for transactional customers, they are moved away from investing abroad due to lack of financial returns.
He said the local credit activity as well as guarantees, and financial cash surpluses are usually invested in the Central Bank transfers in the treasury, which is a safe investment, and it affects the banking activity, particularly banking operations both in the volume of deposits or credits and letters of guarantee.
He referred in this field to the Iraqi market for securities described in the report as a local market basis force banks and listed companies.
The report said the bank sought to create mechanisms and studies of the mortgage loans for housing and trade, but non-conventional means, to protect the borrower from the waste of the loan without any of the estate, in addition to granting loans to owners of small and medium enterprises for their advancement.
He pointed out that such investments and other looking for a quiet environment, the more improved security conditions increased investors and their money went to Iraq to higher employment and production.
He explained that the bank is moving towards proliferation in the central and southern regions, where initiated the establishment of new branches as part of the comprehensive plan.
He noted that the assets of the bank late last year amounted to 557.540 billion dinars a decrease of 2,13 percent higher than it was at the end of 2008 due to lower investment by 58.92 percent.
Fixed assets rose by 29.3 percent and current accounts and deposits by 4.97 percent and cash balances increased by 63.6 percent and credit cash by 285.75 percent.
The General Authority approved the Bank's conversion of 11 billion dinars from the accumulated surplus is a summary of the profits realized during the past year, the bank's capital to increase from 55 billion dinars currently to 66 billion pounds by issuing new shares to shareholders free in preparation for a capital increase to 100 billion dinars this year.
