The Central Bank of Iraq imposed trusteeship, on Friday, on Economy Bank for Finance and Investment, the formation of committees of trusteeship will be composed of three people for a period of 18 months, subject to extension; it’s Mission preparing a report on the financial situation and the future prospects of the bank.
The CBI said: ”it decided to impose a trusteeship on the Economy Bank because of the problems in the management of real estate and other financial services and its inability to fulfill its financial obligations towards the clients.”
The Central Bank added:” Based on article number 40 of the Central Bank Act of 2004, which authorize the bank supervisory authority and control over the banks operating in Iraq and the implementation of the provisions of paragraph 1 of Article 59 of the banking Act 94 of 2004, the Central Bank has the right to put any bank under guardianship whenever it doesn’t meet its financial obligations.”
The statement noted that “the central bank will form committees tutelage, composed from three people for a period of 18 months, subject to extension; its mission preparing a report on the financial situation and the future prospects of the bank.” noting that “the Commission will manage the bank effectively .It will treat creditors fairly and equally; its style would maximize revenue from the sale and reduce any losses.”
The statement noted that the Bank will publish this decision in the official gazette “facts of Iraq”.