According to bank documents, on June 28, 2019, MIGA issued guarantees of up to US$66.5 million covering BBAC's branches in Iraq against the risk of expropriation of mandatory reserves held at the Central Bank of Iraq, for a period of up to 5 years.
Lebanon-based BBAC is one of the main commercial banks among Lebanese banks operating in Iraq. BBAC's foreign branches are required to maintain reserves at the central banks of their respective jurisdictions, based on the volume of customer deposits. Mandatory reserves affect BBAC's overall risk-weighted assets (RWA) at the consolidated level, resulting in less headroom for other assets at a given level of capital.
*Contactb information not provided at the time of disclosure*
ACCOUNTABILITY MECHANISM OF MIGA
The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/