Iraq stock exchange (ISX) leaves 2009 on rise
December 29, 2009
Iraqi Stock Exchange concluded its meetings in the current year, and continues to have a break until the fourth of January next, amid trading more than usual, characterized by the predominance of banking sector by 94 % of trading, more than half are non-Iraqi investors.
According to them, didn't know the reasons for circulation of billion shares, of «Bank of Baghdad» by non-Iraqi investors, but the bank entered into partnership with each of the «United Gulf Bank» banking arm of the company «Kuwait Projects Holding Co.», and «Iraq Holding Company», which acquired 49 % of its capital, but the «United Gulf Bank» sold its stock in the «Bank of Baghdad», which exceed 31 billion shares worth 80 billion dinars (68 million dollars), to the Kuwaiti «Burgan Bank», with approval of the Central Bank of Iraq in April last year.
The partnership of Iraqi banks with Arab banks and foreign investors raises undecided between the Iraqis about their economic viability, and the deadlock that has accompanied the entry of Jordanian banks and the Gulf in partnership with some Iraqi banks, as Iraqi shareholders have failed to reap the desired results.
On a related issue, Managing Director of «Al Warka Bank» Mohammed al-Samarrai, said the decision of the Iraqi Ministry of Finance to withdraw state funds from private banks in 2009, made a major crisis in the private banking sector, eroding confidence in it, calling to re-examine paragraph 28 of the Code private banks, which impede their entry into the investment process.
He added that the current year has seen the most negative resolution towards the private banks, which prevented the government departments to open state accounts, because it shook the financial situation, and upsetting the balance of amounts of cash available in these banks, and delaying the opening credits, because many of the accounts of government departments has been the guarantor to the opening credits.(Source)ISX