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USTDA ORIENTATION VISIT SUPPORTS DEVELOPMENT OF THE PRIVATE
BANKING INDUSTRY IN IRAQ
FOR IMMEDIATE RELEASE
ARLINGTON, VIRGINIA (June 17, 2004) –
Reconstruction and modernization of Iraq’s
banking sector is the focus of a U.S. Trade and
Development Agency (USTDA) sponsored orientation
visit that is taking place this week in New York
City and Washington, D.C. Representatives of 12
privately held Iraqi banks and the Deputy
Governor of the Central Bank of Iraq are
participating in the visit.
“The
development of a vibrant financial sector will
be key as Iraq moves into the future,” said
USTDA Director Thelma J. Askey in remarks to the
Iraqi delegation at USTDA offices in Arlington,
Virginia today. “USTDA is well suited to
provide assistance in this critical sector,
having built a solid reconstruction record in
the Balkans in the 1990s and most recently in
Afghanistan.”
The
orientation visit was designed to expose the
delegates to U.S. banks and to technology,
capacity, and regulatory practices in the U.S.
financial sector. In addition, the delegates
are meeting with U.S. Government officials and
representatives of international financial
institutions. USTDA sponsored a business
briefing today for U.S. firms to learn about
developments and opportunities in banking sector
in Iraq. One-on-one meetings were held between
the Iraqi delegates and U.S. firms to discuss
potential business partnerships.
Mr. Kevin
G. Woelflein, Senior Advisor to the Ministry of
Finance from the Coalition Provisional
Authority, is accompanying the delegation.
“Reconstruction and modernization of the private
banking sector is essential for economic growth
in Iraq,” said Mr. Woelflein. “This
visit has provided the delegates with a valuable
opportunity to learn about modern banking
practices and will help to make private banks
the core of the future banking structure in
Iraq.”
Private
banks are likely to play a significant role in
the future of the Iraqi financial sector and
many steps have been taken to encourage their
development. For example, modern legislation
has been enacted to govern important financial
institutions, such as the Iraqi Central Bank and
the Trade Bank of Iraq. In addition, a new
currency has been successfully put into
circulation and interest rates have been
liberalized. To attract investors, the Iraq
Banking Law permits foreigners to buy up to 50%
of an existing Iraqi bank without going through
the licensing procedure for establishing a new
bank or making a majority acquisition.
The
delegation is led by Faleh Dawood Salman,
Deputy Governor of the Central Bank of Iraq.
Other participants include officials from Al
Baraka for Investment and Financing Bank,
Investment Bank of Iraq, Bank of Baghdad,
Iraqi Middle East Investment Bank, Basrah
Private Bank for Investment, Islamic Bank,
Commercial Bank of Iraq, North Bank, Credit Bank
of Iraq, Sumer Bank, Gulf Commercial Bank, and
United Investment Bank.
Following today’s business briefing,
representatives of U.S. Government finance
agencies made presentations to the delegates.
Participants included April H. Foley, Vice Chair
and First Vice President of the Export-Import
Bank of the United States; Jay Brandes, Director
of the Iraq Reconstruction Task Force at the
U.S. Department of Commerce; and Dulce Zahniser,
Senior Advisor to the President of the Overseas
Private Investment Corporation.
Earlier in the week,
the delegation participated in meetings in New
York City with representatives of the Federal
Reserve Bank of New York, the Institute of
International Bankers, the Bankers Association of
Foreign Trade, the Business Council for
International Understanding, and the Arab
Bankers Association of North America. Following
today’s program at USTDA, the delegation will
have meetings at the U.S. Department of
Treasury, the International Monetary Fund/World
Bank, and the International Finance
Corporation.
The U.S. Trade
and Development Agency advances economic
development and U.S. commercial interests in
developing and middle-income countries. The
agency funds various forms of technical
assistance, feasibility studies, training,
orientation visits and business workshops that
support the development of a modern
infrastructure and a fair and open trading
environment. USTDA’s strategic use of foreign
assistance funds to support sound investment
policy and decision-making in host countries
creates an enabling environment for trade,
investment and sustainable economic
development. In carrying out its mission, USTDA
gives emphasis to economic sectors that may
benefit from U.S. exports of goods and services.
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