Thread: Iraq/Dinar News. Before Feb. 21, 2007

Finance Minister Baqer al-Zubaidi said Iraqi ministries could not spend most of the money earmarked for their projects in 2005.He said up to $9 billion of last year’s budget could not be utilized and they have been added to this year’s budget.

He did not say why the huge sum of money remained unspent while the country’s infrastructure and public utilities are in urgent need of rehabilitation.

The minister stopped short of saying which projects the ministries had to shelve but privately officials say investing the money would certainly have resulted in a flurry of economic activity in the country.

The government blames insecurity and mounting violence for the sluggish implementation of development and reconstruction projects.

If implemented the projects would have put many jobless Iraqis to work.

Projects worth $2.5 billion to develop oil fields in the country had also to be shelved, the minister said.

The Oil Ministry could not spend the money because it failed to find foreign companies willing to sign and implement contracts in the war-torn country.

The ministry is expected to invest heavily in the oil sector this year, but analysts doubt whether it can lure foreigners to work in Iraq.

Oil refineries are in need of a revamp as their output is nearly half their pre-war level and way below domestic needs.

Iraq, despite its massive oil wealth, currently relies on fuel imports in a bid to meet acute fuel shortages.

Dang, i hate when that happens, he probably hid that money in the pocket of a jacket he rarely wears and forgot he had it. Iraqi ministries failed to spend up to 50% of allocations last year, finance minister says | Iraq Updates

Iraq searches for oil compromise

Wednesday, February 14, 2007
AmeInfo
Norwegian oil company Den Norske Oljeslkep says that the first oil from the company's Tawke well in Kurdistan is on target to be extracted by the end of March this year.

Major international oil companies have hesitated to become involved in Kurdistan whose ultimate relationship to Baghdad has yet to be resolved leaving the ground to a few smaller concerns such as DNO who are seizing opportunities such as Tawke that is estimated to contain 100 million barrels of oil.

For its 55 per cent stake in the venture, the Norwegian firm is undertaking to meet all costs of its production sharing agreement including installation of pipelines and central processing facilities increased its investment.

The contract has yet to be endorsed in Baghdad, and while the Kurdish north and central government argue over oil licenses an even bigger issue is looming with regard to Kirkuk and its adjoining major oilfields.

Kurdish oil

The city, which is home to a majority Kurdish population but also to Arabs and other ethnic groups, is expected to hold a referendum sometime in 2007 on whether to be administered by a Kurdish regional government.

This would mean virtual independence with the region likely to be of much greater interest to the bigger oil companies not just from Europe, Asia and the US but also Iran and Turkey. Kirkuk currently produces about 700,000 b/d valued at some $15 billion a year.

Baghdad is hoping to avoid a rift on the allocation of oil resources with a petroleum council that would allow regions to negotiate oilfield development contracts with foreign companies but still give central government the final decision with all revenues deposited though into one national account

The new body would include a representative from each region, the petroleum minister, central bank governor and co-opted oil, financial and economic experts not necessarily all Iraqis.

If a compromise does emerge a further dilemma will be whether to go ahead with production sharing agreements with foreign oil companies. While maintaining a country's title to reserves these also give a guaranteed long-term share of profits to companies that invest the fields, pipelines and refineries.

PSA formula

Neither Saudi Arabia nor Iran have countenanced such arrangements and firmly retain state ownership of their oil production. However, given the present mayhem in Iraq some believe Baghdad is not in a strong position to avoid a PSA formula if it wants to ratchet up production in the foreseeable future.

With 115 billion of oil reserves Iraq should be one of the world's top three oil producers but its ill-maintained oilfields have been struggling to pump 2.5 million barrels-a-day in a good month. The government has ambitions to raise production to more than 4 million b/d in five years and longer term to 6 million b/d.

Some $20 billion is needed to repair the industry's infrastructure in order to double current oil output. But, expertise, as much as money is needed and without huge security improvements it will be difficult to lure foreign companies to Iraq other than areas in the north.

AmeInfo

Iraqis Announce New Crackdown Across Baghdad
Carlos Barria/Reuters



By MARC SANTORA
Published: February 14, 2007
BAGHDAD, Feb. 13 — The Iraqi government on Tuesday ordered tens of thousands of Baghdad residents to leave homes they are occupying illegally, in a surprising and highly challenging effort to reverse the tide of sectarian cleansing that has left the capital bloodied and Balkanized.

In a televised speech, Lt. Gen. Aboud Qanbar, who is leading the new crackdown, also announced the closing of Iraq’s borders with Iran and Syria, an extension of the curfew in Baghdad by an hour, and the setup of new checkpoints run by the Defense and Interior Ministries, both of which General Qanbar said he now controlled.

He said the government would break into homes and cars it deemed dangerous, open mail and eavesdrop on phone calls.

General Qanbar did not mention the role American forces would play in the crackdown, but his remarks were clearly timed to coincide with more aggressive efforts by American troops on the streets of Baghdad. The Americans have been establishing outposts — called joint security stations — to work alongside the Iraqi Army and police to end the sectarian bloodletting.

On Tuesday, senior American officers expressed surprise about the plan to resettle people who had moved from their homes amid sectarian cleansing. But they declined to be identified, saying they did not want to contradict the Iraqi general.

General Qanbar indicated that the plan would be carried out evenly across Baghdad. But critics said Prime Minister Nuri Kamal al-Maliki, who has come under intense criticism for pursuing a sectarian Shiite agenda, might be trying to appease his detractors and may not actually carry out the plan. Some feared that his government might not apply the same pressure to residents of Shiite areas.

Since the bombing of a sacred Shiite shrine in Samarra a year ago, the sectarian map of Baghdad has been almost completely redrawn, as Shiites pushed Sunnis from neighborhood after neighborhood.

The general faces a monumental task. Even without the daily violence, continuing sectarian killings and a lack of security forces to perform basic policing tasks, there is no system in place to investigate the veracity of people’s claims. In addition, thousands of people took over homes immediately after the invasion, claiming basic squatters’ rights.

Under the general’s plan, people who have illegally occupied homes will have 15 days to leave. While they are there, he said, they must protect the home, not steal from it or damage it.

“Anyone who does not follow this law will be treated according to the antiterrorism laws,” he said, adding that the government would set up committees to determine ownership.

General Qanbar, wearing a camouflage uniform and a red staff commander’s beret, made it clear that he reported only to the prime minister. Mr. Maliki appointed him as the overall Iraqi commander for forces in Baghdad in January. With the extraordinary powers he claimed, an increasing amount of authority is now consolidated in the prime minister’s office.

At least 10 formerly mixed neighborhoods in Baghdad are now almost entirely Shiite. East Baghdad, vulnerable to attack from Shiites in the Sadr City stronghold, is almost entirely under Shiite control. West Baghdad, where there are still fierce sectarian clashes, is a war zone of divided neighborhoods, where crossing from a Shiite enclave to a Sunni enclave without the right identification, or the other way around, can mean death.

The Iraqi cabinet proposed a plan last year to create space in West Baghdad for some 3,000 Sunni families who had been displaced, but nothing came of it.

It is impossible to know exactly how many people have been forced from their homes, but estimates by Iraqi and American officials range from tens of thousands to as high as 200,000.

Samantha Power, a public policy professor at the John F. Kennedy School of Government who has written widely on genocide, described the plan as either a public relations ploy that would never be enforced, or worse, a prelude to more sectarian cleansing and catastrophe.

“To do this in the middle of a war when tempers have been inflamed and militarization is ubiquitous seems to be putting the cart before the horse,” she said. “You haven’t stopped the willingness to ethnically cleanse, but you’re imposing the moral hazard of ethnic cleansing on the cleansee? Unless you create security first, you are paving the way for a potential massacre of returnees.”

General Qanbar did not explain how the houses would be checked except to say that people in homes that did not belong to them must have currently dated letters from the owners.

Apart from the resettlement issue, he promised swift justice for law breakers.

“All the people who have done terrorist operations or major crimes like killing, stealing, rape, kidnapping, bombing public or private buildings and who have bought, sold or made weapons or bullets, we will hand them over to the Major Crimes Court, which will hold emergency trials,” he said.

Skip to next paragraph
Reach of War
Go to Complete Coverage » The general also said all convoys — even those from the government — would be subject to search at the checkpoints. Government security forces have been infiltrated by criminals, militants and Shiite militias.

If they refuse to stop, he said, “They will be treated as illegals.”

Only hours before he spoke, there was more carnage on the streets of Baghdad.

In one attack, a suicide bomber killed 17 people and wounded 40 more at a Trade Ministry food warehouse in a poor Shiite neighborhood. At the site of the blast, there was little faith in the promises of politicians.

“I think the situation will get worse, and we can tell in advance that the security plan is a failure,” said Muhammad Saadi, 28, a worker at the warehouse. “The government can do nothing to stop the suicide bombers.”

Around him, the white foam of a fire extinguisher mingled with pools of blood, as moaning voices filled the air.

In recent days, new checkpoints have appeared around the city with tanks and heavy weapons meant to demonstrate a powerful show of force.

But residents expressed skepticism that checkpoints could provide any real security.

“These checkpoints are useless,” said Ahmed Aboud, 45. “You can bribe them with 5,000 Iraqi dinars and bring in all the explosives you want.”

http://www.nytimes.com/2007/02/14/wo..._r=1&th&emc=th

The Central Bank is planning to reduce inflation (14/02/07)

--------------------------------------------------------------------------------

A source at the Iraqi Central Bank said that the bank is preparing plans to reduce the rates of inflation which amounted to about 70% last year because of the oil derivatives prices which rose ten times.




Within last year's budget, the government anticipated the inflation would not exceed 20-25%; however, the consumer price index rose to 70% due to the rise in the prices of oil products and electricity rose it to 80%. If energy is excluded, the index would range between 30 and 35% only.
The fuel price, for example, increased from 50 dinars to 400 dinars after the removal of government subsidy on fuel gradually; most of the main petroleum products were subsidized by the government since the former regime.

Stopping the government subsidy was one of the recommendations of the IMF which requests the application of an economic reforms program by 2008 before approving to write off 80% of Iraq's debt to the creditor nations that are not members of the Paris Club.

Due to this escalation in prices, the Central Bank was compelled to increase the interest rate to 20 % after being 8% at the beginning of 2006, and the last intervention by the Central Bank was recorded in December of that year.

Iraq Development Program - The Central Bank is planning to reduce inflation

Project to help Iraqi banks modernize lending techniques
13 February 2007 (USAID)
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The introduction of credit officers in two Iraqi banks is strengthening customer relationships and streamlining loan processing for greater profitability, according to the U.S. Agency for International Development's (USAID) Izdihar project.

Following technical assistance and training from the Izdihar project, two Iraqi banks have introduced changes to establish more dynamic relationships with clients.

The banks recently created credit officer positions that combine a set of professional responsibilities previously divided among several departments. The creation of these new positions represents a major shift in the relationship between bankers and their clients. Individual credit officers will be responsible for building loan portfolios, analyzing credit risks, recommending credit extensions, overseeing repayments and serving as the borrower's relationship officer for the lifetime of the loan.

This is a crucial step in moving towards cash-flow based lending. Through a number of courses and direct professional assistance, Izdihar has equipped credit officers with the tools required to discharge their new functions.

Both banks are founding shareholders and members of the Iraqi Company for Bank Guarantees (ICBG). Established with technical support from Izdihar, ICBG is a new institution created and owned by 11 Iraqi banks to facilitate access to funding for small and medium-sized local businesses and to support the development of a modern cash-flow-based small and medium-enterprise (SME) lending industry in Iraq.

According to Izdihar's announcement, the introduction of credit officers helps improve customer service by streamlining customer relationship responsibilities and by facilitating the smooth processing of the loan guarantee applications.

In addition, the move takes direct aim at a second goal of the ICBG – enhancing bank profitability – by focusing credit officers on building sound, profitable SME loan portfolios.

U.S.-Arrests
U.S. forces arrest 27 suspects in Iraq
Baghdad, Feb 14, (VOI) – U.S. forces in Iraq arrested on Wednesday morning 27 suspects in a series of raids targeting al-Qaeda network in Baghdad and Ramadi city, the U.S. army said.
"During a series of raids in Ramadi, Coalition Forces detained 20 suspected gunmen with alleged ties to the al-Qaeda in Iraq networks.", the U.S. army said in a statement received by the independent news agency Voices of Iraq (VOI).
Computers and electronic devices were confiscated in the operation, the statement noted.
"In Baghdad, Coalition Forces detained four suspected gunmen and detained three more suspects in Karmah, all with alleged ties to the al Qaeda in Iraq network. ", the statement added, without giving further details.

U.S.-Arrests :: Aswat al Iraq :: Aswat al Iraq

Talabani calls for supporting investment and reconstruction in Iraq
He met with the ambassadors of France, Japan and Sweden
14 February 2007 (Iraq Directory)

Iraqi President expressed the need to strengthen relations with Sweden in all fields to serve the interests of both friendly countries. This came during a meeting between President Talabani, in his headquarters in Baghdad yesterday, and the new Swedish ambassador, Nicholas Trovia, who delivered his credentials as an ambassador of his country in Iraq.

Talabani, called on Swedish businessmen and companies to invest in Iraq, emphasizing that "the doors are open to everyone to invest and contribute in reconstructing the country "and hoped that" the current year would witness a better security status and stability in the country".

The President also talked of the progress of the political process in the country and the efforts to achieve the national reconciliation, in addition to developments in the security situation and the security plan to be applied in Baghdad. At the end of the meeting, the President expressed his thanks and gratitude to the Kingdom of Sweden, king, government and people, for receiving the Iraqi refugees who left Iraq in the past to escape the injustice of the previous dictatorial system.

On his turn, ambassador Trovia expressed the desire of his government in deepening relations with Iraq, pointing out that the Kingdom of Sweden will continue its support for the developing democratic process in the country. Talabani also met, last Wednesday, with the Japanese ambassador, Hissaw Yamakuchi, at the end of his functions as ambassador of his country in Iraq.

The President wished the ambassador Yamakuchi good luck and success in his next work, and to Japan and all the progress and prosperity. During the meeting, Talabani expressed the need for Japan to contribute in reconstructing the country through encouraging its companies and businessmen to invest in Iraq, particularly in the safe governorates.

On his turn, The Japanese ambassador confirmed his country's support for the Iraqi Government and people, expressing his hope that Iraqis would be able to eradicate terrorism and that peace and security would prevail in Iraq as soon as possible.

President Talabani also met with the French ambassador to Iraq, Bernard Bajulie, who transferred his country’s interest in the developments of the situation in Iraq and the French government’s desire to develop relations in a way that serves the interests of both countries.

During the meeting, the latest developments on the political field in the country were discussed; also, President Talabani pointed out to the deep historical relations between Iraq and France, and renewed his desire to develop and maintain them.

Talabani calls for supporting investment and reconstruction in Iraq | Iraq Updates

USD to IQD






View Chart


Monday, January 15, 2007 1251 IQD

Tuesday, January 16, 2007 1258.2 IQD

Wednesday, January 17, 2007 1243.6 IQD

Thursday, January 18, 2007 1240.4 IQD

Friday, January 19, 2007 1243 IQD

Saturday, January 20, 2007 1242.1 IQD

Sunday, January 21, 2007 1242.9 IQD

Monday, January 22, 2007 1238 IQD

Tuesday, January 23, 2007 1235.9 IQD

Wednesday, January 24, 2007 1237.2 IQD

Thursday, January 25, 2007 1239 IQD

Friday, January 26, 2007 1232.4 IQD

Saturday, January 27, 2007 1234.6 IQD

Sunday, January 28, 2007 1233.3 IQD

Monday, January 29, 2007 1225.9 IQD

Tuesday, January 30, 2007 1228.7 IQD

Wednesday, January 31, 2007 1220.4 IQD

Thursday, February 01, 2007 1228.7 IQD

Friday, February 02, 2007 1235 IQD

Saturday, February 03, 2007 1235.7 IQD

Sunday, February 04, 2007 1235.7 IQD

Monday, February 05, 2007 1228.2 IQD

Tuesday, February 06, 2007 1222.8 IQD

Wednesday, February 07, 2007 1223.5 IQD

Thursday, February 08, 2007 1221.7 IQD

Friday, February 09, 2007 1226.3 IQD

Saturday, February 10, 2007 1226.1 IQD

Sunday, February 11, 2007 1225 IQD

Monday, February 12, 2007 1225.3 IQD

Tuesday, February 13, 2007 1226.6 IQD

Wednesday, February 14, 2007 1224.4 IQD

Originally Posted by rvalreadydang

Finance Minister Baqer al-Zubaidi said Iraqi ministries could not spend most of the money earmarked for their projects in 2005.He said up to $9 billion of last year’s budget could not be utilized and they have been added to this year’s budget.

He did not say why the huge sum of money remained unspent while the country’s infrastructure and public utilities are in urgent need of rehabilitation.

The minister stopped short of saying which projects the ministries had to shelve but privately officials say investing the money would certainly have resulted in a flurry of economic activity in the country.

The government blames insecurity and mounting violence for the sluggish implementation of development and reconstruction projects.

If implemented the projects would have put many jobless Iraqis to work.

Projects worth $2.5 billion to develop oil fields in the country had also to be shelved, the minister said.

The Oil Ministry could not spend the money because it failed to find foreign companies willing to sign and implement contracts in the war-torn country.

The ministry is expected to invest heavily in the oil sector this year, but analysts doubt whether it can lure foreigners to work in Iraq.

Oil refineries are in need of a revamp as their output is nearly half their pre-war level and way below domestic needs.

Iraq, despite its massive oil wealth, currently relies on fuel imports in a bid to meet acute fuel shortages.

Dang, i hate when that happens, he probably hid that money in the pocket of a jacket he rarely wears and forgot he had it. Iraqi ministries failed to spend up to 50% of allocations last year, finance minister says | Iraq Updates

ratholing for revalue support possibly???

Where is this data from?

Originally Posted by michael16

USD to IQD




View Chart


Monday, January 15, 2007 1251 IQD

Tuesday, January 16, 2007 1258.2 IQD

Wednesday, January 17, 2007 1243.6 IQD

Thursday, January 18, 2007 1240.4 IQD

Friday, January 19, 2007 1243 IQD

Saturday, January 20, 2007 1242.1 IQD

Sunday, January 21, 2007 1242.9 IQD

Monday, January 22, 2007 1238 IQD

Tuesday, January 23, 2007 1235.9 IQD

Wednesday, January 24, 2007 1237.2 IQD

Thursday, January 25, 2007 1239 IQD

Friday, January 26, 2007 1232.4 IQD

Saturday, January 27, 2007 1234.6 IQD

Sunday, January 28, 2007 1233.3 IQD

Monday, January 29, 2007 1225.9 IQD

Tuesday, January 30, 2007 1228.7 IQD

Wednesday, January 31, 2007 1220.4 IQD

Thursday, February 01, 2007 1228.7 IQD

Friday, February 02, 2007 1235 IQD

Saturday, February 03, 2007 1235.7 IQD

Sunday, February 04, 2007 1235.7 IQD

Monday, February 05, 2007 1228.2 IQD

Tuesday, February 06, 2007 1222.8 IQD

Wednesday, February 07, 2007 1223.5 IQD

Thursday, February 08, 2007 1221.7 IQD

Friday, February 09, 2007 1226.3 IQD

Saturday, February 10, 2007 1226.1 IQD

Sunday, February 11, 2007 1225 IQD

Monday, February 12, 2007 1225.3 IQD

Tuesday, February 13, 2007 1226.6 IQD

Wednesday, February 14, 2007 1224.4 IQD