Posted on 07/24/2003 12:13:11 PM PDT by knighthawk
The ANZ Bank has been approached to join a coalition of the willing to establish war-battered Iraq's first international bank.
Leading the coalition is prominent US banking house JP Morgan, which has also put out feelers to other banks from the US, Britain, Spain and Poland.
All these countries sent troops to fight alongside the US in the Iraq war, strongly suggesting the bank licence – should ANZ enlist – will represent the first spoils of the war for Australia.
Banks from Germany, France and Russia have not been invited to join the venture. These countries were vocal opponents of the Iraq war.
Details of the deal were first released over BBC Radio yesterday.
ANZ chairman Charles Goode, caught on the hop by the premature announcement, said in Sydney yesterday the board had not been told about any negotiations for a licence.
The bank's media spokesman Paul Edwards was cagey.
"We are having some preliminary discussions with JP Morgan about participating in a consortium of banks financing trade with Iraq.
"It is trade finance only, and involves no on-the-ground presence.
"It's natural for us. We have the largest trade finance business of the Australian banks and have played a role in the past supporting customers like the Australian Wheat Board exporting wheat to the Middle East.
"The discussions with JP Morgan are an extension of that, supporting Australian exporters by providing trade finance.
"Discussions with JP Morgan are at a very early stage and no commitments have been made at this stage."
Mr Goode, speaking earlier at an Australian Institute of Company Directors function, called on Australian businesses to engage more with the country's east Asian neighbours.
"Australia's capital investment in East Asia is very low, averaging only around $110 million per annum over the last five years," Mr Goode said.
Mr Goode refused to comment on the state of negotiations between ANZ and the Thai Military Bank.
The state-run TMB approached ANZ in April as part of a capital raising to see if the Australian bank wanted to take a 10-20 per cent stake.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.