Thread: Iraq/Dinar News. 09/05 to 01/14/07

IMF says Iraq economic progress depends on better security
Reuters
Aug 3 2006 13:55

WASHINGTON, Aug 3 (Reuters) - The International Monetary Fund on Thursday said that Iraq has taken needed steps to get its economy back into shape but future progress was critically dependent upon an improvement in security.

"The Iraq authorities have taken important and decisive measures to bring their economic program back on track, although continued progress in the authorities' reform efforts will remain critically dependent on an improvement in the security situation," the IMF said.

The international lender was commenting after completing a review of Iraq's performance since a $705.6 million loan was approved for it in December last year.

((Reporting by Glenn Somerville; editing by Theodore d'Afflisio; Reuters Messaging: [email protected], e-mail: [email protected]; Tel: 202 898 8377)) Keywords: ECONOMY IRAQ

Leaked UK document sees "civil war" in Iraq
Reuters
Aug 3 2006 6:59

LONDON, Aug 3 (Reuters) - Iraq is more likely to slide into civil war than turn into a democracy, Britain's outgoing ambassador to Baghdad wrote in a leaked diplomatic cable, the BBC public broadcaster reported on Thursday.

William Patey's final cable from Baghdad gives a far more pessimistic assessment for prospects in Iraq than Britain has disclosed in public. It warns of the prospect of Shi'ite militia forming a "state within a state", like Hizbollah in Lebanon.

"The prospect of a low intensity civil war and a de facto division of Iraq is probably more likely at this stage than a successful and substantial transition to a stable democracy," he wrote, according to excerpts quoted by the public broadcaster.

"Even the lowered expectation of President (George W.) Bush for Iraq -- a government that can sustain itself, defend itself and govern itself and is an ally in the war on terror -- must remain in doubt," said the cable, sent to Prime Minister Tony Blair.

Describing the main Shi'ite militia, he wrote: "If we are to avoid a descent into civil war and anarchy then preventing the (Mehdi Army) from developing into a state within a state, as Hizbollah has done in Lebanon, will be a priority."

Patey did, however, also say that the situation in Iraq "is not hopeless".

The Foreign Office said it does not comment on leaked documents.

"Every day the capacity of the Iraqi security forces to manage their own security is growing," a spokeswoman said.

The view expressed in Patey's cable reflects pessimism that has settled among senior Iraqi officials as violence has increased in the three months since a new "unity" government took power.

A senior Iraqi government official told Reuters last month that "Iraq as a political project is finished", with the capital split into Sunni and Shi'ite districts and officials working to divide control of the country on ethnic and sectarian lines. ((London newsroom: +44 207 542 7947; editing by Sami Aboudi))

BAGHDAD, Iraq Aug 3, 2006 (AP)— Japanese Foreign Minister Taro Aso arrived in Baghdad on a surprise visit Thursday, bringing with him a loan of 3.3 billion yen ($29 million) to jump-start Iraq's economic development.

Aso, who is the first Japanese minister to visit the Iraqi capital since the U.S.-led invasion in 2003, said his country will continue to support Iraq's reconstruction despite withdrawing its humanitarian troops.

"The Japanese government will continue to support the Iraqis in the reconstruction. Our support has entered the second phase," Aso told reporters at a news conference with Iraqi Foreign Minister Hoshyar Zebari.

Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Originally Posted by jsfletcher

IMF says Iraq economic progress depends on better security
Reuters
Aug 3 2006 13:55

WASHINGTON, Aug 3 (Reuters) - The International Monetary Fund on Thursday said that Iraq has taken needed steps to get its economy back into shape but future progress was critically dependent upon an improvement in security.

"The Iraq authorities have taken important and decisive measures to bring their economic program back on track, although continued progress in the authorities' reform efforts will remain critically dependent on an improvement in the security situation," the IMF said.

The international lender was commenting after completing a review of Iraq's performance since a $705.6 million loan was approved for it in December last year.

((Reporting by Glenn Somerville; editing by Theodore d'Afflisio; Reuters Messaging: [email protected], e-mail: [email protected]; Tel: 202 898 8377)) Keywords: ECONOMY IRAQ

Just going to post this. Security is at the forefront of the IMF.

One bit of good news though is the 30 day break we thought parliament on is NOT true, they are working.

Originally Posted by Adster

Just going to post this. Security is at the forefront of the IMF.

One bit of good news though is the 30 day break we thought parliament on is NOT true, they are working.

That is good news! So they are still working on what we need! Yeeeaaaah!

posted by jsfletcher: A senior Iraqi government official told Reuters last month that "Iraq as a political project is finished", with the capital split into Sunni and Shi'ite districts and officials working to divide control of the country on ethnic and sectarian lines. ((London newsroom: +44 207 542 7947; editing by Sami Aboudi))

I'm not going to get too bent out of shape over this, cause I know how hard it is to see the light when you are right in the middle of the tunnel or trouble. You tend to only see the trouble and not the solution. It is human nature and it takes practice, faith and patience to be able to take your eyes off the problem and see the wanted outcome.

Some may say the official is being realistic, well I say "All things are possible to him who believes". So what are we believing for? What has to happen before "our wanted outcome" can take place?

Monica

WASHINGTON -(Dow Jones)- The International Monetary Fund said Thursday it approved two reviews of Iraq's economic reform program, keeping open a precautionary credit line to the government.

The IMF also said Iraq had taken some key reform measures in a tough environment and urged Iraq to continue to keep control of consumer price inflation.

The 15-month program, signed in December, is worth about $706 million in credit from the IMF. The Iraqi government has said it doesn't plan to draw down the credit. In granting the approval, it waived some end-June 2006 performance criteria, including one covering the handling of revenue of state-owned enterprises, budget accounting and a final audit of the central bank's 2005 operations.

"The Iraqi authorities have taken important and decisive measures to bring their economic program back on track, although continued progress in the authorities' reform efforts will remain critically dependent on an improvement in the security situation," the IMF said in a statement. "Substantial efforts have been made to maintain fiscal discipline and control recurrent spending, despite the difficult environment, and the Central Bank of Iraq's tightening of monetary conditions constitutes an important step in the right direction."

Ongoing violence and supply disruptions in the economy will continue to put pressure on prices, the IMF said.

"In this context, it is commendable that the Central Bank of Iraq stands ready to further tighten monetary and exchange rate policy to prevent high inflation from becoming entrenched," the IMF said. "Fiscal policy should be supportive by keeping public sector wages and pensions in check."

The government has a long agenda of needed reforms, including those to make the the pension system more affordable, the IMF said. Other priorities are improvements in transparency in the government's payroll, improvements in managing public spending and working toward a successor to the government's program for distributing food rations.

"There has been a welcome increase in targeted support for the poor, and reforms in this area will continue to be of central importance, including the development of a better targeted social safety net that will go hand in hand with the reduction in general subsidies," the IMF said.

The IMF called for "good faith" efforts to resolve the remaining debt claims of governments that weren't part of the Paris Club debt settlement reached in 2004. About two-thirds of Iraq's $120 billion worth of debt accumulated under Saddam Hussein is held by mostly Gulf countries outside the Paris Club. The Fund noted "excellent" progress in settling Iraq's private commercial claims.

Nasdaq 100 Flash Quotes

Originally Posted by Adster

Just going to post this. Security is at the forefront of the IMF.

One bit of good news though is the 30 day break we thought parliament on is NOT true, they are working.

How did you come to know this? Why were we deceived in the first place? How can we be sure to not be dupped in the future????????????

I'm beginning to sound like my 8 yr old daughter who never quits with the questions!

Hi

DID THEY ALL START OFF ON THEIR HOLIDAYS AND THEN DECIDE THEY DID NOT LIKE WHERE THEY WERE GOING AND TURNED ROUND AND WHEN BACK TO WORK????.

HOW THE HECK DO WE KNOW WHAT IS GOING ON OVER THERE AND WHAT THEY SAY HAS ANY TRUTH.

Is it correct to assume that they did actually complete and pass this new Investment law. Anybody know.

When the predictions were for the peg by the end of July I thought that would be great for my b-day present. Now into Aug and news is the same.

Each day becomes more intense with anticipation.

Would like to put on these dancing shoes.....

Kozmar