Iraq’s Cabinet approves deal with Ernst and Young on banking reforms

BAGHDAD, January 3 — Iraq’s Cabinet approved a contract with Ernst & Young on Tuesday to conduct a study on restructuring Rafidain and Rasheed banks. The company will provide recommendations for both banks, in addition to studying the merger of industrial, real estate, and agricultural banks into a single financial institution.

A statement from the Cabinet read:

In the realm of banking-sector reform, the Cabinet has given approval for the following:

1. Direct contracting with Ernst & Young to conduct a study on the restructuring of Rafidain and Rasheed banks. The company is tasked with providing recommendations and proposing a roadmap for this restructuring within a period of six months.

2. Direct contracting with the Industrial Bank and Ernst & Young to study the merger of industrial, real estate, and agricultural banks into a single financial institution. This study will be conducted by specialized experts from Ernst & Young, who will offer appropriate recommendations, specify the required timeframe for the merger, and outline the mechanism for transferring balances to the new bank.

3. Direct contracting between the National Insurance Company and Ernst & Young to explore the merger of the National Insurance Company with the Iraqi Insurance Company into a single entity. Ernst & Young’s experts will provide suitable recommendations, determine the required timeframe for the merger, and outline the mechanism for transferring funds to the new company. This is an exception to the government contract execution instructions (2 for the year 2014) and the regulations issued accordingly.