NEW YORK, 20 August 2003 — Five consortiums led by US banks, along with a lone British bank, have made the final round as applicants to head the newly-established Trade Bank of Iraq, The Wall Street Journal reported yesterday.
A selection panel will hear presentations from the six finalists today in Bahrain, and US officials expect to make their decision within days, the report said, citing Peter McPherson, the head adviser to the US Treasury in Baghdad.
Bids from three groups of banks have been rejected, the report said. The final consortia are led by US firms Bank of America Corp, Bank One Corp, Citigroup Inc., J.P. Morgan Chase & Co., and Wachovia Corp.
Britain’s HSBC Holdings Plc is the only bank under consideration as a single entity. An HSBC spokeswoman said the company was “looking at the possibility of participating in the financial reconstruction of postwar Iraq” but she had no immediate comment on the newspaper report.
The winning bidder will manage Iraq’s trade bank, which will make it possible for Iraqi agencies and oil concerns to buy big-ticket items from other countries using letters of credit.
US estimates indicate business at the bank could swell considerably, from $100 million a month initially to as much as $500 million a month, when the country’s oil sector recovers, the newspaper said.
The selection could prove sticky, as several of the groups of finalist banks include a partner from a country that opposed the war in Iraq, according to The Journal. US officials have indicated an interest in selecting a winner with a broad international base and ties to the Middle East.
