Iraq Banks Told to Raise $7 Billion

The Central Bank of Iraq has instructed private banks to raise at least $7 billion in fresh capital over the next three years to be able to handle an expected oil-fueled construction boom, according to the Wall Street Journal.

Ahmed Ibraihi, Vice Governor of the Central Bank of Iraq, told the newspaper on Wednesday that these banks, numbering 32, now have a minimum capital requirement of 50 billion dinars each.

"We are taking these measures in order that companies which are implementing big projects in Iraq, including oil contracts, would start to deal with our banks," Mr. Ibraihi said.

[Click here to read Mark DeWeaver's take on the banks' new capital requirements.]

Iraq has clinched some 11 multi-billion dollar deals over the last 11 months with international oil companies to raise its crude-oil production capacity to 12 million barrels a day from the current 2.4 million barrels a day.

Mr. Ibraihi was in Istanbul to reassure the more than 20 international oil and gas companies who won these mega projects that they can deal with local banks to help them implement their projects in Iraq.

One Response to Iraq Banks Told to Raise $7 Billion

  1. Mike "ACTION" Jackson 29th October 2010 at 23:49 #

    Many nations have learned that they need to increase their velocity of capitalization ahead of the increases of their gross domestic basis value. Your actions to create an ever increasing basis value will stimulate an euphoric sense of new vistas for the Iraqi people and foreign investors.

    Next: A steady value increase of the Iraqi Dinar will serve not only increase foreign capitalization, but also place it in a position of strength with the Chinese Yuan. The ID should not be under valued which allows China to possibly monopolize a significant portion or Iraq's oil production revenues.

    And Then Add: Quarterly national celebration of Iraq's GDP by giving cash bonuses to the citizens which rewards achievement and perpetuates the positive future of Iraq.