The National Approach: The privatization of Rafidain Bank is unacceptable and inconsistent with the law

Tuesday 26 October 2021 19:44
 
Baghdad / NINA / - The National Approach Alliance confirmed: "The decision to privatize Al-Rafidain Bank is rejected and contrary to the law and will lead to the transfer of the hegemony of the state to the control and control of influential political parties."

The coalition said in a statement: "What the Ministry of Finance announced regarding the decision to restructure Rafidain Bank, which includes in one of its mechanisms announced by senior specialists in the position of authority, options to privatize that sovereign institution, which is rejected and calls for a national stand from the elites, academics and specialists with the insight of public opinion. The danger of this emergency approach to Iraqi society.”

He added: "The privatization of government banks and subjecting them to the principle of partnership with the private sector in ownership contradicts Article (29) of the Investment Law of 2006, which prevented privatization activities in the fields of oil and gas extraction and the government banking sector, and that the transfer of ownership of this bank, which represents the state's financial sovereignty From the state to the private sector, or involving it in its ownership, an exclusive sovereign right of the state is taken away and transferred to merchants and businessmen, and this is a dangerous trend that threatens the state’s economic structure.”

The statement explained: "Some of the justifications put forward for this project, such as the bank's losses from the foreign debts it owed, the exchange rate adjustment losses, the war losses and the looting of its branches, all arose from the state's policy or circumstances that the bank as a government institution had no choice or will in its occurrence and its effects." It is correct that the state’s policy in the aforementioned field be reviewed and not go to a decision in which the oldest national banking and financial institution is wasted and neglected,” noting: “This wrong decision will transfer the state’s dominance over more than (80%) of the assets of the Iraqi banking market to the control and control of personalities or Influential political parties by entering the process of transformation towards privatization and partnership in the ownership of the bank, which includes controlling the sovereign state funds and deposits of state ministries and government institutions.

He continued: "One of the so-called proposals to restructure the Rafidain Bank includes selling the bank's shares and establishing joint ownership with traders and investors. ".

He pointed out: “Some fears also result from the dismissal of many cadres and employees of the bank and its branches, as the decisions of the bank’s board of directors will participate in drafting the partners in the ownership of the bank from merchants and investors who are looking to reduce production costs, of course, for the purpose of increasing their returns and profits to the highest extent. The severe fears of this decision is the formation of a mixed company for the new bank with the participation of private banks. The Iraqis watched and followed its negative role in the currency auction and the depletion of the Central Bank’s reserves in the most difficult economic conditions that the country passed through without any positive development activities for the national economy.”/ End 8

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