The establishment of the Iraqi Deposit Guarantee Company to guarantee deposits announced in Baghdad last week. The Iraqi Deposit Guarantee Company launched after years of the collapse of some private banks and stand in the way of the development of the banking sector. It has a number of dealers with 22% of adults after the project to localize the salaries of state employees. There were several banks collapsed in Iraq in the years that followed the year 2003, including Al-Warka, Basra, Dar-e-Salaam, and others. The depositors are still demanding their money after the bankruptcy of banks through protests that they organize periodically in front of the buildings of financial institutions such as the central bank. The capital of the Iraqi company to guarantee deposits is 100 billion Iraqi dinars. There are 42 private, governmental, and foreign banks operating in the country.
The adviser to the Governor of the Iraqi Central Bank, Walid Eidi informed a news outlet that the company is designed to enhance the confidence of Iraqi citizens in the banking sector. The government of Iraq has launched 2 projects; the one is the localization of the salaries of 7 million people including state employees, retirees, and social welfare. The other one is the deployment of electronic payment tools throughout the country. It would increase the number of customers with the banking sector. Eidi also stressed that all participating banks will inform their customers that their deposits are insured with a company to guarantee deposits. He pointed out that the establishment of this company is designed according to the international standards and it will make its way towards leadership.
Eidi explained that this company will secure the banking system by maintaining the money of depositors and enhance the banking culture. He pointed out that the company has the right to invest its money by depositing it in banks as fixed deposits and buying governmental and other securities. The Iraqi Deposit Guarantee Company doesn’t supervise cash deposits for the value of credit facilities, bank deposits with the central bank, the legal reserve for banks, deposits of members of the board of directors of the contributing bank, and bank deposits deposited with another bank. It is noteworthy that the Iraqi Deposit Guarantee Company is a joint-stock company and provides cover to ensure public deposits with banks operating inside Iraq only.