•  
  •  
 

Document Type

Original Study

Abstract

ا The main objective of the establishment of the Iraqi Company for Bank Guarantees, is to help small and medium enterprises in Iraq, to access official funding sources through Iraqi private banks, the secured loans system aims, also, to encourage banks to adopt modern methods of risk assessment and to follow advanced administrative systems. This was done according to the approval of the Central Bank of Iraq in its letter 9/3/1974 on May 7, 2009 and the approval of the Ministry of Commerce / Companies Registration Department dated September 11, 2009 and in accordance with the provisions of Companies Law No. 21 of the year, and thus the company was transformed from a limited liability company to a private joint stock company, and the number of shareholders in the capital from private banks became 16. And the percentage of guarantee granted by the company depends on the nature of each loan, but the percentage can reach 75% of the value of the loan approved by the bank, and the company’s operations also focus on developing institutions and building capacities in participating banks, and the focus is on marketing the program to small enterprises. The company's operations cover various parts of Iraq through the network of branches of participating banks in various governorates, and the company works with participating banks and other partners to identify promising economic projects to help these small and medium enterprises. In the face of all these goals that the company seeks to achieve, which raises a question about the legal regulation of the bank guarantee contract for the case of the Iraqi Company for Bank Guarantees, and we have come to the conclusion that the approval of the company’s general assembly and the transformation into a private joint stock company by increasing the capital and the entry of new shareholders, so it has a legal entity Separate from its members, and operates separately from its members, the company is not bound by the actions of its members, members are not acting as its agents, it can own assets, property, enter into contracts, sue, be sued, and its shareholders cannot be held liable for any conduct of the company.

Download

Share

COinS