» Home » Business News Iraq Directory Services Plans Subscription Contact us Site Map Help About Iraq New Iraqi private banks with a capital exceed $100 million Iraqi investors have announced the establishment of two new private banks, which are: Al Mansur Investment Bank, with a capital 55 billion dinars (about 38 million dollars), and Tigris and Euphrates Bank for Development and Investment, with a capital of 25 billion dinars (about 17 million dollars). The founders of the two said banks have called citizens to underwrite in a portion of the capital, which does not exceed five billion dinars for the first bank and 3.350 billion dinars for the second. These are limited percentages and represent an unprecedented issue, as 49% of the capital used to be introduced for underwriting, while the founders used to keep 51% of the total. The announcement for the establishment of the two new banks comes a few days after the end of underwriting in two other private banks: Ashur International Bank and the Islamic National Bank, in which Iraqi investors and Arabs residing in the UAE have participated in establishing them, which gave them strength and increased the demand for underwriting in their shares. Iraqi investors in the fields of banks expect that the number of private banks would noticeably increase, in case the security conditions improve. They confirmed that the anticipated size of investment in Iraq is very high and might not be contained be the current banks (20 banks), whose total capital does not exceed one billion dollars, which is a very small sum, compared to what Gulf and Middle Eastern banks posses of huge capitals and monetary deposits. Bank managers in Baghdad refer to the significance of supplying with the necessary atmosphere and supplies for their banks, so as to be able to execute all banking transactions without limits, including opening credit accounts, which are considered one of the most bases for the banking activity in the world. They stressed the need of establishing traditions that reinforce the work of Iraqi banks and grant them a more effective international dimension and that their work does not confine to practicing regular banking transactions. Ghaleb Kabba, chairman of Al Basra National Investment Bank, has called the banking sector to participate in operations with economic benefits for the projects of the private and public sectors and in all productions sectors, in addition to creating joint investment funds, participating in their administration and establishing industrial and agricultural companies. The Secretary-General of Iraqi money market, Talib Al Tabatabani, has called for activating the activity of the private banking sector in a way that enables it to reach its ambitions and objectives in the multi-activity investment field. He said that establishing joint money companies, which are related to agricultural, industrial, tourist, service, housing activities and other development activities, is considered a necessary matter, within the framework of increasing the activity of banks. In this regard, he pointed out that the Iraqi stock market considers the banking sector as the major source, which provides investors with renewed energies. Source: Dar Al-Hayat © 2002-2004 Iraq Directory - All Rights Reserved