The Central Bank of Iraq decided to refer the Babel Al-Ahli Bank to forced liquidation.

According to a document issued by the Central Bank of Iraq, addressed to the Bank of Babylon, and received by “Iraq Observer,”  “It was decided to refer the bank to forced liquidation based on the provisions of Article No. 69 of Banking Law No. 94 of 2004.” She added:  “Appointment of Ahmed Abdel Mahdi Neama as liquidator of your bank.”

text of the document:  https://observeriraq.net/wp-content/uploads/2024/09/IMG_3517.jpeg

US Treasury confirmed its support for Prime Minister Muhammad Shiaa Al-Sudani’s reform agenda.

The ministry said in a statement received by “Iraq Observer,” that

“Deputy Treasury Minister Wali Adeyemo met with Iraqi Prime Minister Muhammad Shia’ al-Sudani on the sidelines of the United Nations General Assembly to discuss

reforming the Iraqi banking sector,
financial relations with the United States, and
combating illicit financing.” The statement added,

“The Deputy Minister of Treasury congratulated Al-Sudani on the great progress Iraq has made in reforming the banking sector, which led to

expanding Iraq’s international financial communication and
increasing financial inclusion.”

Adeyemo affirmed, according to the Treasury statement,

“the Treasury’s support for the Central Bank of Iraq and Prime Minister Muhammad Shia al-Sudani’s reform agenda.”

The Deputy Minister of the Treasury praised the growth of the non-oil economy in Iraq by 6.0 percent, asking about “the steps the Prime Minister is taking to diversify the Iraqi economy from hydrocarbons, according to the US Treasury statement.”

It is noteworthy that the Central Bank continues to take procedures and requirements set by the US Federal Bank for the banking system in Iraq.

Publication Of The Environmental, Social And Corporate Governance (ESG) Standards Guide For Banks

Based on the decision of the Board of Directors of this bank No. (209) of 2024, which includes the adoption of the Environmental, Social, and Corporate Governance (ESG) standards guide for banks..For more, click here :       https://cbi.iq/static/uploads/up/file-172725786315494.pdf

https://cbi.iq/news/view/2677

The Economic Committee Supports Imposing Collection Fees On Services
The Parliamentary Economic Committee expressed its support for imposing collection fees on services.

Committee member Representative Yasser Al-Husseini told Al-Sabah that  “there is a trend to enhance non-oil revenues by imposing taxes and organizing collection better,” indicating that

“with regard to collection, the government has the right to impose fees on stable services such as water and sewage, but it must ensure continuity and quality.”

These services are before fees are imposed on them.

Al-Husseini believes that  “the imposition of taxes must be linked to the presence of new economic activities, and that the government is obligated to activate its real non-oil resources, such as ports for example, which can generate good profits, making them an important source of income.”

 He continued, “The government needs to address the gaps in collections and taxes to be able to transform these revenues into an actual source that finances the operational budget, employee salaries, and develops services.”

Why Is The Government Unable To Curb Foreign Banks’ Control Over Financial Policy?
Professor of International Economics, Nawar Al-Saadi, revealed the reasons for the government’s inability to confront foreign banks’ control over financial policy and foreign transfers.

Al-Saadi told “Baghdad Today”,  “The government’s inability to confront foreign banks’ control over financial and monetary policy and foreign transfers is due to several main reasons, including

internal challenges related to managing the economy, and
regional and international pressures.”

He added,  “Control over the banking sector in Iraq suffers from the influence of large international economic interests, especially   since many foreign banks dominate the Iraqi market through cross-border partnerships and interests.”

He continued,  “This limits the government’s ability to impose independent economic policies, and
these banks may be linked to a network of regional and international interests that pressure the government through multiple channels, which makes taking radical decisions difficult.”

He continued,   “There are pressing regional factors, as international and regional powers such as the United States and European countries exercise political and economic influence in Iraq, including the banking sector, which hinders the government’s ability to bring about radical reforms.

In addition, the Iraqi economy is fragile and dependent on  This greatly affects external support and oil prices, which increases the impact of these external pressures on financial decision-making.”

The professor of international economics added:

“As for bearing responsibility, the blame cannot be placed on the Sudanese government now, since
all successive governments ruling Iraq are all involved in these challenges, which are the main reason for the weakness of financial and administrative policies, and the widespread corruption in the banking system, in every way.”

This reinforces this phenomenon,” adding:

“Therefore, the matter requires broader coordination and a collective effort among all concerned parties to try to reduce the negative effects of foreign banks on the Iraqi economy.”

Al-Saadi concluded, “In general, it can be said that the Sudanese government, despite its promises of reform, is facing great difficulties as a result of external and regional pressures and international economic interests, in addition to the lack of preparedness of local institutions to deal with this situation effectively.”

On Friday (September 20, 2024), the expert in banking affairs, Nasser Al-Kanani, stressed the need for Iraqi banks to have a specialized committee working to address failures and problems in the banking sector.

Al-Kanani said to “Baghdad Today” that  “the Iraqi government’s step towards forming a higher committee aimed at developing treatments for the work of banks is an important step, although it came late, as  there are many problems and failures in the banking sector, and  this sector in Iraq is still not developed and does not keep pace with development.” banking in countries of the world.

He added,  “The Iraqi government is moving towards forming such a specialized higher committee, after the recent Iraqi talks in New York between the Central Bank of Iraq, the US Treasury, and the US Federal Reserve, which stressed the need to develop the Iraqi banking sector.”