Thread: Iraqi/Dinar news until March 1st, 2007

The Iraqi debt burden has become little

The Iraqi debt burden has become little
Translated by IRAQdirectory.com - [26/02/2007]
The efforts of creative Financial minds, the fine Iraqi diplomacy and the support of friends had a great role in reaching the Paris Club agreement to drop 80% of Iraq's debts to the (19) States of the Club, in addition to (56) States outside the Club.

The problem of Iraq's foreign debts, was one of the most serious dilemmas faced by Iraqi economy after security at the present stage; it was not expected that the day may come when economic analysts and experts in the world would predict that Iraq, whose economy was one of the largest economies in the Arab world and after it was one of the most important petroleum exporting countries, would borrow money, request others’ help and be tied by foreign debt of more than $125 billion in addition to the compensations which were adopted after 1991 and amounted to $ 35 billion of which Iraq paid more than $ 17 billion.

The mechanism of debt reduction is 30% directly at the beginning of 2005, and this reduction program was based on emergency aid, just like the post-conflict with the IMF which is a reduced international program in terms of conditions.

There are 30% we obtained after the (Stand by) agreement was signed with the International Monetary Fund, and at the second half of 2005 we will get the remaining (20%).

In fact, when we reach the year (2008) the debts will be reduced to (80%); this means that we will pay back only (20%) of the debt, and the payment will be over (23) years beginning of the year (2011); this means we have (6) years of permit from (2005 till 2011); however, we may be able to get rid of the remaining (20%) or change them into bonds and investments by agreement with some of the creditor States, which means that we may be able to restructure the debt before (2011), especially that there are some countries which cancelled their debt on Iraq by 100% like the United States, Australia and Malta.

It can be said now that the burden of the debt has become little upon the coming years’ budget.

There are a number of options that could ease the burden of the remaining debt depending on our negotiation strength, through convincing the debtors to change their debt into contracts and investments; we could also buy the debt from the market if Iraq's financial capabilities are developed in future. Debts are bought and sold; they are sometimes sold at 10 or 20% of their nominal value or according to the buyer’s capacity to pay.

There is also another method, we have managed to follow but achieved an unsteady success, when the government converted its debts into bonds; these are all good economic issues that Iraq has not entered before; however we achieved some steps ahead in ending the subject of commercial creditors, big and small.

Because of these bold steps, Iraq occupied a status among the nations entering the international market after it has settled its commercial debt; a solution which guarantees Iraq good relations with the world and with the international economic community, as well as create a proper investment environment.

http://www.iraqdirectory.com/DisplayNews.aspx?id=3258

Solving the problems of Saudi exports to Iraq through Kuwait

A joint committee from the two countries is currently sharing debate
Translated by IRAQdirectory.com - [26/02/2007]
The Saudi Ministry of Commerce announced that it is working on solving the problems facing Saudi exports to Iraq through Kuwaiti territory.

The ministry said that a Saudi-Kuwaiti committee is currently exchanging debate to ease the strict Kuwaiti procedures which are disrupting and delaying the arrival of Saudi products to Iraq.

Eid Al-Qahtani, Director of the Saudi Exports Development Center, said that the government is making serious efforts to end the suffering of Saudi exporters, noting that the opening of direct access with Iraq needs political decision.

Al-Qahtani said in a statement that “the main problem facing Saudi exporters lies in the lack of laboratories on the Kuwaiti outlets which requires their entry in the form of convoys”.

He said that Saudi exporters suffer from the imposition of fees by the intermediary country (Kuwait), in addition to other obstacles like assembling them and walking them in the form convoys, and that is very similar to the process of restricting the Saudi exporters to allow others who are the sons of Kuwait in export.

He said that the problems of exporting through a mediator are many and complicated; among the most prominent ones are the additional costs and the time factor, especially that some materials may be damaged, in addition to suspending equipment which are often rented, and exposure of Saudi exporters to some provocations.

He explained that security in Iraq is bad for Iraqis themselves; however, the merchant must find ways to avoid problems which his trade may be exposed to.
According to unofficial statistics for 2004, the total amount of Saudi exports of non-oil goods and commodities to Iraq were about 1.8 billion riyals compared to one billion for 2003.

A previous export studies suggested that finding direct export channel between the Kingdom of Saudi Arabia and Iraq would reduce export costs on Saudi traders by about 20%.

http://www.iraqdirectory.com/DisplayNews.aspx?id=3259

To modernize the Iraqi Central Bank

To modernize the Iraqi Central Bank
Translated by IRAQdirectory.com - [26/02/2007]
An expert in the Iraqi Central Bank expected that positive effects, in the long perspective, will result from the monetary policy of the Bank in fighting inflation through raising the exchange rate of the Iraqi dinar. The Director-General of the Statistics and Research Center in the Iraqi Central Bank, Madhar Muhammad Salih, said that the Bank seeks within its reforms to establish a modern and developed infrastructure for the central banking in Iraq through strengthening the payment systems that link the Central Bank to the banks working with automatic systems. He pointed out that this mechanism will enable the Central Bank to lend banks daily, when they are exposed to some of problems in the availability of liquidity, as well as reducing the risk of manipulation and fraud since this mechanism contains a high level of secrecy and confidentiality.

Salih revealed that there are procedures related to the development of bonds’ auction and remittances of the Central Bank, as well as encouraging open market operations; stressing its deep impact on liquidity ratios and growth of cash blocs. He explained that the sales rates in an auction increased from 200 billion dinars, after being 100 billion dinars each auction previously.

Salih called on following a coordinated financial policy with the Central Bank monetary policy to reach an economic stability based on the promotion of investment expenditure and reduce consumer spending in a way that helps in operating unemployed energies in economy, whether materialistic or human, as well as fighting against poverty and achieve the welfare of the poor within the social protection systems, stressing the need to focus the consumer expenditure upon these sectors, which requires reconsidering the support activities that must be given to the production sector as a priority, but not at the expense of the health, service and educational sectors.

http://www.iraqdirectory.com/DisplayNews.aspx?id=3260

Which Kirkuk?
Published: 2/26/2007
BY FERAI TINC

Why is the Democratic Society Party (DTP), which has so far preferred to hold its tongue on the Kirkuk issue, now saying that intervention in Kirkuk would disturb the Kurds living in Turkey and that they would consider an attack on Kirkuk an attack on Diyarbakir? Is it a coincidence that these remarks came at a time when people are talking about the possibility of Turkish officials meeting with Iraqi Kurds? In addition, can we also ask if it’s a coincidence, considering that southeastern Anatolia would be the primary beneficiary of these meetings and all kinds of cooperation in every area? Indeed, is this a coincidence or the concerns of those who benefit from this atmosphere of conflict?

Iraqi Arabs I met at an international meeting said that Turkey ’s remarks on the Kirkuk issue are strengthening our hand for bargaining. I told them that hoping for help from Turkey will bring them nothing. The Iraqi people can never reach a consensus by relying on foreign threats, because it can’t be permanent. Today, Iraq is under occupation and in such a country, no social consensus, which is the foundation of a state, can be forged. Each step which aims to prepare Kirkuk’s fate will be temporary, as long as today’s conditions remain unchanged.

Anyhow, what’s important for Turkey is to reach this consensus. If a consensus pleasing everybody can’t be reached on Kirkuk , this will worsen the region’s safety problems. As the lack of stability in Kirkuk and its turning into a field of conflict would create a new focal point for international terrorism, this very much concerns Turkey ’s safety. However, how to allocate the oil wouldn’t concern Turkey , but the Iraqi people. Besides, it’s completely dishonest to try to score political points through Kirkuk . Those who argue Turkey should intervene in Iraq over Kirkuk are trying to score points through Turkish nationalism, and those who threaten that this would galvanize the Kurds living in Turkey are trying to cozy up to certain circles by fomenting Kurdish nationalism. This cozying up and messages not to launch operations against the terrorist PKK in Kandil, northern Iraq etc. are the tactics of certain politicians who only promise to give pain to the people. I consider the recent remarks of the DTP provincial leader in Diyarbakir part of this.

Some say intervention in Kirkuk will disturb the Kurds living in Turkey . Which intervention are they talking about? Are they talking about an intervention in Iraq , which is under occupation? Not only the US , but also all of its neighbors are already intervening in Iraq . Can one say that northern Iraq isn’t under occupation now? Or how it would be realistic to say that Baghdad is under more occupation and Basra under less? Occupation is occupation.

Look, Iraqi President Jalal Talabani and Iraqi Kurdish leader Massoud Barzani discussed the oil matter two days ago. Were they alone? Of course not. After the meeting, when Barzani said that they had reached a consensus, Iraqi Prime Minister Nouri al-Maliki wasn’t there, but the US Amabassador to Iraq Zalmay Halilzad was.



I LIKE THE GREEN PART - THE GUY IS RIGHT, ISN'T HE? U.S. OBVIOUSLY PUSHING...WE HAVE THE US Ambassador working for us now...LOL

Iraq's government has fulfilled all requirements and procedures to apply for the membership of the World Trade Organization (WTO), a USAID official in Baghdad said on Saturday, according to independent news agency Voices of Iraq (VOI).

Noozz.com | IRAQ

Here are the current poll results from Nozz.com: Do you think that Bush's new Iraq plan, with both a reconstruction and troop surge, will regain the political momentum for the Iraqi government and disarm the militias?

Yes 117 68%

Unsure 15 9%

No 39 23%

I thought that I would post it here for RC members - to see how others feel about what happens in Iraq these days....

13 December 2004
GENERAL COUNCIL 13 DECEMBER 2004 Accession working parties established for Afghanistan, Iraq
The General Council, on 13 December 2004, established working parties to examine, respectively, the membership applications of Afghanistan and Iraq.



Afghanistan was invited to attend meetings of the General Council, and as appropriate, meetings of other WTO bodies as an observer.

Ambassador Assad Omer, Permanent Representative of Afghanistan, in thanking members, said that after two decades of conflict, his government has significantly improved the economic climate.

“The peaceful completion of our first direct presidential elections ... has heralded a new era of political stability”, he said.

Ambassador Omer said that his country hoped to re-establish itself as the land bridge for trans-continental trade.

“We believe that participation in the international trading system will lead to more trade, investment, technology transfer, employment and income growth throughout the economy”, he said.

Iraq was invited to continue attending meetings of the General Council and, as appropriate, meetings of other WTO bodies as an observer.

Trade Minister Mohammed Mustafa Al-Jibouri said his country viewed the decision as “yet another contribution on the part of the WTO to Iraq's efforts to reform its economy”.

He said that since the General Council's decision last February to grant observer status to Iraq, his government has started accession preparations in earnest, including the drafting of its Foreign Trade Regime Memorandum and the creation of a National Committee for WTO Accession.

“The new Iraq looks with great optimism at achieving political stability, economic prosperity and social development ... we believe that our reintegration into the world trading system is an essential element to fulfil those aims,” he said.

Regarding another membership request, that from Iran, the Chairman, Ambassador Shotaro Oshima of Japan, reported on his recent consultations. He said that although it was clear that a large part of the membership continued to be supportive of an early and positive action on this request, there was still no consensus at that stage to accept the request and to set up a working party for this purpose.

ACCESSIONS
Iraq
A request for accession under Article XII was received by the Director-General of the WTO on 30 September 2004. A Working Party was established at the General Council meeting on 13 December 2004. Iraq submitted a Memorandum on the Foreign Trade Regime in September 2005, Foreign Trade Regime in September 2005, followed by Replies to Questions raised by Members in November 2006. The Working Party has not yet met.

Major weapons cache seized in Iraq


By LAUREN FRAYER Associated Press Writer
© 2007 The Associated Press

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BAQOUBA, Iraq — U.S. and Iraqi forces have seized a large weapons cache that includes parts for sophisticated roadside bombs that are believed to originate in Iran, U.S. military investigators said.

Details of the find were expected to be announced Monday at a news conference in Baghdad.

But military officials told The Associated Press that the arsenal is one of the biggest found north of the Iraqi capital and contains components for so-called EFPs — explosively formed projectiles that fire a slug of molten metal that can penetrate armored vehicles.

The U.S. military has said elite Iranian corps are funneling EFPs to Shiite militias in Iraq for use against American troops. The area where the cache was found is dominated by Sunni insurgents but also includes pockets of Shiites.

Earlier this month, U.S. officials showed reporters in Baghdad pieces of EFPs they said were directly traceable to Iran.

An informant tipped off Iraqi police to the weapons stash Saturday, the military said in a statement to the AP. It was discovered near Baqouba, the provincial capital of Diyala province, about 35 miles northeast of Baghdad.

Along with the EFPs, the weapons cache contained more than two dozen mortars and 15 rockets. There were enough metal disks to make 130 EFPs, the military said.

The origin of the weapons seized Saturday was being investigated, said Lt. Col. Michael Donnelly, spokesman for Multinational Division-North.

"This local tip led to what is the most potentially lethal IED cache seized in northern Iraq in the past eight months," Donnelly said.

Last week, U.S. troops found a suspected Shiite weapons hideout in the southern city of Hilla that also included parts to make the lethal roadside bombs. The New York Times reported that the stash included a bomb-rigged fake boulder made of polyurethane that was apparently ready to be placed for an attack.

A statement from the U.S. military Monday said that 63 weapons caches have been discovered during major U.S.-Iraqi security sweeps around Baghdad that began Feb. 14. The arsenals included anti-aircraft weapons, armor-piercing bullets, bomb components and mortar rounds, the statement said.

So which shell do we look under today?

Business Day - News Worth Knowing
Doubt on whether Kurds endorse Iraqi oil law


Description of Selected News
Kurdish officials to back Iraq oil law