Photo By Sgt. 1st Class Gaelen Lowers | Maj. Andrea Singer, liaison officer with the 326th Theater Financial Management...... read more read more
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BAGHDAD, Iraq— Soldiers, civilians and individuals from the local Iraqi community celebrated the opening of the Bank of Baghdad, Sept. 29, at Victory Base Complex, Iraq, as part of the Army Central Command’s “Banks on Bases” program.
The initiative was created to assist in strengthening Iraqi business and banking infrastructure by transitioning to the use of Iraqi dinar and other E-Commerce tools, while reducing the flow of U.S. currency throughout the region, said Brig. Gen. Mark Corson, commander of the 103rd Sustainment Command (Expeditionary), and Maryville, Mo., native.
“As part of implementation, it has been the collective goal to begin writing all contracts with non-U.S. vendors to be paid through Electronic Funds Transfer, or in Iraqi dinar,” said Corson. “This creates an environment where all hubs and spokes, which are primary locations for established, thriving Iraqi businesses after U.S. forces are gone, have internationally recognized Iraqi banks to accommodate the needs of these established contracts.”
This “forced business” will help the Iraqi financial system become stronger and give the Iraqi population more confidence in it, said Dr. Younes Brouche, deputy chairman of the Board of Directors for the Bank of Baghdad.
“What we want is [for] the Iraqi people to have more trust in banking and to put their faith in others to help Iraq and the Iraqi economy,” said Brouche. “We carry a great weight because in Iraq there is one branch for every 40,000 Iraqis. With more trust from them, I hope to be able to have more expansion, which will help service them with more efficiency. Our goal is to help the Iraqi people transition from the mattress system to the financial system.”
Corson echoed Brouche’s sentiment by saying it is understood that certain criteria would have to be met in order for Iraqis to trust the banking system.
During Saddam Hussein’s reign, it was not uncommon for him to visit state-owned banks to seize funds, said Corson. By having a strong relationship with the U.S. government, each private bank that has been chosen will receive a “stamp of approval,” which goes far in creating that base of trust, and meets the strict requirements identified by the U.S. Treasury.
Currently, many of Baghdad’s local businesses use the finance offices to cash their checks, said Maj. Andrea Singer, liaison officer with the 326th Theater Financial Management Center, based in Kuwait, and an Omaha, Neb., native, who has seen this project through “from cradle to grave.” One of the goals of this program was to take the burden off the financial management companies, so they no longer have to cash the business and payroll checks.
“That is a lot of cash floating around the battlefield,” she said. “With the Banks on Bases initiative, those local contractors can come to the bank, they can open payroll accounts, they have access to an ATM, and they can pay their employees through direct deposit versus having to go to the finance office and take out all the cash to pay their employees, many of whom are local or third country nationals.”
Most of the coordination by Singer was conducted with the help of the individual finance companies at VBC, said Capt. Michael Wallet, executive officer for the 15th Financial Management Company, Special Troops Battalion, 3rd Sustainment Brigade, 103rd ESC, and Wadsworth, Ohio, native.
“We play a behind-the-scenes role,” he said. “Without us, most of this probably wouldn’t have gotten done. One of the most important parts of this bank opening, as a financial management company, is that we can come to the bank and withdraw dinar to pay workers, and I don’t have to put soldiers out on the road, which can be dangerous.”
The Bank of Baghdad has more than 40 branches open throughout the country of Iraq, and has three more branches opening up on U.S. bases in the near future, said Singer. Besides reducing the U.S. footprint in Iraq, the initiative has also improved U.S. and Iraqi relations.
“I think the biggest thing for me is how important partnerships like this are between the U.S. and the local community,” said Singer. “These folks, just like us, want to have a better life. We are here to help them, and they know it. They want this country to be successful just like we do. I think that if we take these opportunities and build on them, then this will be a very successful partnership.”
The opening of this bank, and others like it, strengthens the Iraqi economy, said Wallet. It shows that Iraq and its people are moving toward financial independence.
Soon, there won’t be a Victory Base Complex, and the land will be given back to the government of Iraq to do with as they wish, said Corson.
“This bank will be a beacon for the people of Baghdad to come and invest their money, have proper modern banking services and to really make an investment in their future,” he added. “We are excited about that proposition for them.”
| Date Taken: | 09.29.2010 |
| Date Posted: | 10.11.2010 10:05 |
| Story ID: | 57890 |
| Location: | BAGHDAD, IQ |
| Web Views: | 392 |
| Downloads: | 5 |
This work, Bank of Baghdad is open for business, by SFC Gaelen Lowers, identified by DVIDS, must comply with the restrictions shown on https://www.dvidshub.net/about/copyright.
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