Al-Taif Bank to resume percentage-based withdrawals
Shafaq News- Baghdad
Depositors at Iraq's Al-Taif Islamic Bank will be able to withdraw part of their funds starting next week under a percentage-based payout system, nearly a month after the central bank placed the lender under guardianship, the bank said on Thursday.
Withdrawals will be capped at fixed percentages to keep payouts orderly. Branches across the country have already received cash, with further steps under way to ease access.
The percentages will be based on the balances available in each account, a measure the committee running the bank announced on September 19 to ensure fair distribution.
A Month Under Guardianship
The Central Bank of Iraq (CBI) placed Al-Taif Islamic Bank for Investment and Finance under guardianship for 18 months on September 2, citing violations that had damaged the bank's financial position and depositors' funds. Acting CBI Governor Nizar Nasser Hussein appointed Imad Mohammed Hamad to run it.
The move froze banking services and halted all withdrawals and deposits. On September 6, depositors protested outside the bank's branch in Baghdad's Karrada district, demanding access to their money.
The CBI has insisted the bank is not bankrupt, calling the guardianship a precautionary step to protect depositors. Most deposits at Al-Taif are guaranteed, according to Hussein, and the central bank would step in to cover any shortfall.
Under a phased plan announced by the CBI on September 8, withdrawals and other obligations are being settled gradually, with salary payments given priority.
