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DATE  21 July 2003


PR No. 21








The CPA today announced measures for reviving the economy of Iraq. The Trade Bank of Iraq (TBI) has been established as a separate government entity, independent of the Central Bank of Iraq. It will provide financial and related services to facilitate the importation and exportation of goods and services to and from Iraq. 


The TBI will provide expertise and a point of contact within Iraq to bolster confidence between trading partners that funds will be received in exchange for goods delivered.  It is standard practice for specialist banking services to intermediate between the parties to provide such confidence.  The TBI will work with commercial banks (the Operating Consortium), and other export-import banks, such as ExIm in the U.S. and ECGD in the UK. 


Existing Iraqi banks are presently ill-equipped to support import-export trading activities.  They lack sufficient expertise and international links.  Moreover, existing financial institutions within Iraq are fully engaged in reestablishing basic banking services and have limited capacity for specialized trade services. The TBI will facilitate the transition from state owned enterprises to greater privatization. 


The operations of the TBI will be directed by a President and Board of Directors.  The new interim Minister of Finance, due to be selected by the Governing Council shortly, will act as the interim President, and will help select the Board of Directors. 


The Coalition Provisional Authority has today, 21 July, issued a Request for Proposal, to encourage offers of assistance and partnership from international banks interested in helping establish the TFI.




  1. The TBI has been established under Order Number 20 which is printed in full below:




Pursuant to my authority as Administrator of the Coalition Provisional Authority (CPA),

and under the laws and usages of war, and consistent with relevant U.N. Security Council

resolutions, including Resolution 1483 (2003),

Noting the letter of May 8, 2003, from Permanent Representatives of the United States of

America and the United Kingdom of Great Britain and Northern Ireland to the President

of the United Nations Security Council (S/2003/538),

Underscoring the requirement that the Development Fund for Iraq (DFI) must be used in

a transparent manner to meet the humanitarian needs of the Iraqi people, for the

economic reconstruction and repair of Iraq's infrastructure, for the continued

disarmament of Iraq, and for the costs of Iraqi civilian administration, and for other

purposes benefiting the people of Iraq,

Reaffirming the commitment of the CPA to using effectively the resources of the DFI for

the aforementioned purposes,


Noting that Iraq currently lacks financial institutions capable of facilitating imports and

exports of goods and services to and from Iraq,

Noting the importance of economic trade to revitalizing the Iraqi economy, stimulating

economic growth and providing employment for the Iraqi population in order to provide

for sustainable development,

I hereby promulgate th~ following:

Section 1


There is hereby established an institution to be known as the Trade Bank of Iraq

(TBI). The TBI shall be an independent governmental entity, and is hereby

authorized to perform such activities as are necessary to accomplish its purposes,

consistent with the Charter of the TBI.

Section 2


The TBI shall provide financial and related services to facilitate the importation

and exportation ~of goods and services to and from Iraq in order to benefit the

CP A/ORD/17 July 2003/20

economy of Iraq. The Administrator may promulgate additional regulations,

orders, memorartda or other documentation that further define the purpose of the


Section 3

President, Charter and Board of Directors

The Administrator shall appoint a President of the TBI. The President shall be the

chief executive officer of the TBI. The President, with concurrence of the CPA

Director, Economic Development, shall issue a Charter for the TBI, effective upon

issuance, which will specify, among other things, the functions, powers, financial

structure, governance, and reporting requirements of the TBI. The Charter for the

TBI shall establish a Board of Directors for the purpose of governing the activities

of the TBI.

~ Section 4

Initial Capitalization

The authorized capital of the TBI is $100,000,000. The Administrator may

provide initial paid-in capital for the TBI from the DFI, in an amount not to exceed

$5,000,000. The remaining $95,000,000 will exist as callable capital only in the

event the TBI is unable to meet its current obligations. The Administrator may

provide any reqyired callable capital from the DFI.

Section 5

Contractual and Other Authorizations

In general, the President, on behalf of the TBI, is authorized to hire and pay the

salaries of staff, procure goods and services, and enter into contracts and engage in

such other acts as may be necessary or advisable to conduct the business of the

TBI. In particular, the President, on behalf of the TBI, is authorized to enter into a

short-term contract with an Operating Consortium of financial institutions from

various countries selected by the Administrator. Under this contract, the members

of the Operating Consortium shall provide, for a limited period of time, training,

operational and technical support to the TBI and such other support as the

President may deem advisable and necessary, including but not limited to,

advising, issuing and confirming letters of credit on behalf of the TBI.


Section 6

Distribution of Profits

Profits generated by the operations of the TBI will be distributed to the DFI from

time to time as determined by the President in consultation with the Administrator.

J 2 CPA/ORD/17 July 2003/20


Section 7

Auditing and Review of Operations ~

To ensure that the TBI is managed transparently and for the benefit of the Iraqi

people, the President may obtain the services of an independent certified public

accounting firm for the purposes of auditing and publicly reporting on the TBI's


Section 8

Transition ~

The TBI shall take appropriate steps to deal with issues relating to its operations

that are associated with the assumption of government responsibilities by an

internationally recognized representative government of Iraq in accordance with

Resolution 1483.

Section 9

Entry into Force

This Order shall enter into force on the date of signature.


L. Pdt1'1 Administrator

Coalition Provisional Authority



17 July 2003/20





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