Central Bank announces near the establishment of guarantee of deposits company

by **Ponee** Wed Jun 08, 2016 10:22 am

The Central Bank of Iraq Tuesday, reporting the approval by the Cabinet on deposit guarantee system, which includes the establishment of company to contribute to encourage citizens to deposit their money in banks or government civil rather than keep them in their homes.

The central bank said in a statement Alsumaria News received a copy of it, “The Council of Ministers approved the draft deposits guarantee prepared by the bank system,” noting that “under this system will set up a company to guarantee deposits with capital of 100 billion dinars and includes the private and government banks.”

He explained that “the banks will put a certain percentage of deposits in the company as a way to ensure payingdepositors in case of bank’s inability or being subjected to liquidation,” noting that “this would motivate people to deposit their money in banks rather than under mattress, which misses investing these funds opportunity and stimulate the economy as well as the risks keeping in their homes.”
He added that “funds outside the banking system more than $30 trillion dinars.”

The Council of Ministers approved, on Tuesday (June 7, 2016), to issue a bank deposits guarantee system provided by the Central Bank of Iraq and the State Council with the failure to extend the government deposits in state banks rules.

Alsumaria.tv