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RR RUEHBC RUEHDA RUEHDH RUEHKUK
DE RUEHGB #0273/01 0331430
ZNR UUUUU ZZH
R 021430Z FEB 10
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 6422
INFO RUCNRAQ/IRAQ COLLECTIVE
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 BAGHDAD 000273 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/I/ECON 
 
E.O.12958: N/A 
TAGS: EFIN ECON EAID PGOV PREL IZ
 
SUBJECT: ANBAR ACTING GOVERNOR READY TO HELP "ANBAR BANKERS" 
 
SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT ACCORDINGLY. 
 
¶1. (SBU) SUMMARY: Acting Governor of Anbar Province Fuad Jatab Hamad 
and Deputy Governor for Administrative Affairs Hikmat Jasim Zaidan 
spoke at PRT Anbar's Monthly Bankers' Roundtable January 28.  The 
two publicly confirmed banks' vital role in attracting investment to 
the province and pledged to remove provincial-level obstacles to 
business in the banking sector.  PRT Anbar had been hosting banker 
roundtable meetings for about a year, and the Iraqi participants 
took ownership of their organization at this meeting and renamed it 
"Anbar Bankers."  Although PRT Anbar still plans to engage regularly 
with the "Anbar Bankers," the birth of this provincial bankers' 
committee shows how a little PRT coaching can assist Iraqi 
stakeholders in creating an entity that will endure after the USG 
draws down in the provinces.  END SUMMARY. 
 
ACTING GOVERNOR: BANKS ARE IMPORTANT FOR INVESTMENT 
 
¶2. (SBU) PRT ANBAR invited Acting Governor of Anbar Province Fuad 
Jatab Hamad and Deputy Governor for Administrative Affairs Hikmat 
Jasim Zaidan as guests of honor at its Monthly Bankers' Roundtable, 
January 28.  They told representatives from Rafadain, Dar Es Salaam, 
and North Banks that Anbar's budget for 2009 and 2010 is less than 
the 2007 and 2008 budgets.  The officials said their government 
wanted to work with the banks to attract investment to foster 
provincial growth.  Fuad said, "Investment projects and security 
support each other to help build Anbar's economy" and emphasized 
that the government and the banks should become "one team" to help 
create jobs that keep people from joining insurgent groups.  He said 
the provincial government had approved 24 of the 85 projects it was 
considering and would be able to "double that" if banks cooperated 
with the investors. 
 
PROVINCIAL GOVERNMENT PLEDGES TO HELP BANKS 
 
¶3. (SBU) To show his commitment to partner with the banks, Acting 
Governor Fuad asked the bankers what obstacles they faced in doing 
business and promised that the provincial government would help 
where it could.  All of the bankers described the types of loans 
they offer.  The managers of both North Bank and Dar Es Salaam Bank 
(both private) asked for the Acting Governor's help in securing 
parcels of land upon which they could build branch offices.  Fuad 
replied that he would "use the province's power to give land to 
state and private banks any way he can."  He suggested that the 
banks build a large building, use part of it for a branch, and lease 
the rest out as a rental property to other entrepreneurs. 
 
 
¶4. (SBU) The Rafadain Bank manager said that he wished that 
state-owned banks like his had the same technology as the private 
banks so they could provide better customer service.  The Deputy 
Governor said he had written a letter to the Minister of Finance 
(MOF) to see how the state-owned banks could benefit from the 
experience of private banks.  PRT Anbar also distributed a survey 
written in conjunction with the Governor's office on the kinds of 
technologies each bank is using. 
 
¶5. (SBU) The Dar Es Salaam Bank manager wanted the Provincial 
Government's help to push for more electronic funds transfer (EFT) 
payments throughout the province.  He argued that it was hard on 
pensioners to wait in long lines at state banks to collect their 
payments and that Anbar should follow Baghdad in making these 
payments electronically.  He asked the Acting Governor to lobby the 
MOF to allow the private banks to also distribute funds to 
pensioners under the "Smart Card" electronic payment system.  Fuad 
Qpensioners under the "Smart Card" electronic payment system.  Fuad 
said he was already in talks with the Ministry of Finance to make as 
many government payments as possible by EFT. 
 
¶6. (SBU) The Dar Es Salaam bank manager also expressed concern that 
banks were never allowed to foreclose on houses, even if they were 
offered as collateral for a loan and the loan was never repaid.  He 
said that prior to 2004, foreclosure was never a problem, but in 
2004 a new law was passed that makes the repossession process very 
difficult for the banks.  He said his bank had approximately 2,000 
such non-performing loans, a real disincentive for it to lend any 
more money.  He asked Fuad to lobby Parliament to allow the 
foreclosure of houses so real estate can be viable as collateral. 
Fuad said he would look into the issue. 
 
AFTER A YEAR OF PRT COACHING, 
"ANBAR BANKERS" TAKES ON LIFE OF ITS OWN 
 
¶7. (SBU) For almost a year, PRT Anbar has been hosting these monthly 
bankers' roundtables, with the eventual goal of getting the bankers 
to formalize and take ownership of their group, independent of the 
PRT.  With little debate, the bankers decided at this meeting that 
they would be known henceforth as "Anbar Bankers," and that they 
would meet next month with additional bankers to decide how to 
 
BAGHDAD 00000273  002 OF 002 
 
 
organize the group.  They also resolved to have at least one meeting 
open to the public so that they could hear exactly what customers 
want from their banks. 
 
USD-C DISTRIBUTES ANTI-COUNTERFEIT PENS 
 
¶8. (SBU) The United States Forces Iraq Central Division (USD-C) 
distributed to all the bankers anti-counterfeit posters, flyers, and 
special currency pens that can detect fake notes.  The bankers were 
very appreciative and interested in the technology.  They said help 
detecting counterfeit checks would be even more beneficial because 
check denominations are generally higher than the largest Iraqi bill 
(about $21USD). 
 
COMMENT 
 
¶9. (SBU) One year ago, the Provincial Government had little nice to 
say about the banking sector, and certainly would never have thought 
of the private banks as "partners."  The Acting Governor's offer to 
help remove some of the obstacles that banks face may indicate a 
serious commitment to factor them into the province's investment 
strategy.  Equally remarkable, the birth of this provincial bankers' 
committee may show how a little PRT coaching can help Iraqi 
stakeholders create something that will sustainably outlast the USG 
presence.  PRT Anbar still plans to engage regularly with the "Anbar 
Bankers," even as they move forward on their own.  PRT Anbar will 
continue to help organize a web-based seminar sponsored by J.P. 
Morgan Chase for the Anbar Bankers. 
 
HILL