Trade Bank of Iraq’s Clarification on Al-Sharqiya’s news podcast on December 9, 2022, on Al-Hassad program
Press Release
Iraq – Baghdad
December 11, 2022
Trade Bank of Iraq’s Clarification on Al-Sharqiya’s news podcast on December 9, 2022, on Al-Hassad program
Trade Bank of Iraq (TBI) enjoys the trust of major international banks worldwide through its vast network of 420 correspondent accounts it holds with them. Accordingly, TBI represents Iraq’s gateway to the world in executing letters of credit, letters of guarantee and foreign remittances with the abroad financial institutions both for the government and private sector.
In reference to Al-Sharqiya’s news podcast on December 9, 2022, on Al-Hassad evening program, we clarify that no loans were granted for fictitious projects as reported, but there are several loans that have been granted under previous administrations to clients with unknown places of residence. As it was not possible to notify them on the addresses listed in our bank’s records, the management was forced to take legal procedures against them and inform them through the local Iraqi newspapers. As a result, Iraqi courts have issued decisions and rulings in absentia against some of the defaulted clients. Other clients made financial settlements with the bank and they are committed to its payment with interest. Therefore, the total of defaulted loans mentioned in the report of Al-Hassad program is inaccurate. Also, we would like to point out that some of the names mentioned in the report are not defaulted and are committed to repaying loan amounts with interest on an ongoing basis.
In addition, the Trade Bank of Iraq (TBI) publishes on its official website, with full transparency, all of its financial statements audited by one of the four major international companies specialized in this field. Which clarifies all the financial details of the bank, including defaulted loans.
We reiterate, the circulation of such information without verifying the exact sources adversely affects the Bank and its relationship with correspondent banks around the world, which in turn, negatively impacts the economy of Iraqi in general.
Trade Bank of Iraq (TBI) management is keen on preserving public money and has worked in the last two years in cooperation with the Office of Financial Supervision, the Commission of Integrity, and the Supreme Judicial Council on this matter. Approximately (one Trillion and Five Hundred Billion Iraqi dinars) have been collected through legal procedures, attachments on movable and immovable property and travel ban rulings against several defaulted clients; this is in addition to concluding financial settlements with other defaulted clients and taking additional guarantees on the loans. And to strengthen the bank’s financial position, provisions have been made progressively for doubtful debts.
The work continues in full swing to follow up on the bank’s defaulted clients to recover all the amounts of defaulted loans plus interests, noting that, so far, the Trade Bank of Iraq has achieved profits and financial returns from this year, 2022, at the highest rate compared to previous years.
