The governor of the Central Bank Ali al-Alaq, on Tuesday, the agreement of Baghdad and Arbil to subjugate the banks in the Kurdistan region to control the Central Bank of Iraq.
Alaq said during a press conference with the Minister of Finance of the region in Arbil, that “it was agreed with the head of the provincial government to exercise the branch of the Central Bank in Erbil work and supervisory authority and control over the banks of the region and non-bank financial institutions.”
He added that “the Central Bank has the direct support of the Prime Minister of the region and the Minister of Finance to facilitate the work of the Central Bank branch and the performance of its oversight work to develop the banking sector in the region and provide ways to coordinate between them,” adding that “was also discussed on the licensing of government banks belonging to the region and Their status and their legal adaptation to make them subject to the Bank and its control and in such a way as to enable them to develop their role. ”
He explained that “the agreement was reached between the government and the region to avoid double taxation between the two sides, and the banking sector will be the first link to solve this problem so that the branches of banks in Baghdad or the region are not subject to tax accounting twice and recognition of the debt issued by the central government or territory under the agreement or under the method Which is tax-related.”
Source: Journal News