Thread: Archive News - Iraqi Dinar Think Tank - 28/03/10 - 21/06/10

2nd Update: Iraq Central Bk Chief: Bond Sale Would Fund Budget

Iraq's central bank is pushing the government to sell bonds to fund an estimated $19.5 billion budget deficit and help wean the fragile country off of external support as it rebuilds, its governor said Sunday.

"The government has planned this [a bond sale] as part of the financing of the budget," Sinan Al Shabibi said in an interview in Bahrain.

"We are pushing for both [bonds and T-bills] to deepen the market. Any kind of financing is welcome," Al Shabibi said, adding that plans for a bond sale "aren't progressing yet" but that he expected them to do so "quite soon."


"We are suggesting, and expect, the government to use all options available," Al Shabibi said. The central bank monitors all issuances to make sure it doesn't affect monetary policy, he said.

Al Shabibi also said a planned re-basing of the Iraqi dinar, by knocking three zeroes from it, could be expected next year, with the move requiring "a lot of field work."

Iraq--still battling sectarian conflict after years of war--is banking on a boost in oil production to stimulate the economy.

The government plans to boost its production of crude oil to 4.5 million barrels a day in 2014 from the current 2.4 million barrels a day. Iraq sits on the world's third-largest oil reserves.

Al Shabibi said he hopes that international banks will also be involved in financing the government's reconstruction effort.

While the central bank is talking to many international banks interested in setting up in Iraq, the country's security situation is still a sticking point, he said.

"We are talking a lot to them, they are welcome," he said. "They are very sensitive to security questions. I think security problems are exaggerated, and we try to explain that."

He said a planned pullout of U.S. troops from the country "will be a sign of security."

"We don't want to depend on the state for financing," Al Shabibi said, adding that economic growth hinges on oil "on the quantity side" as well as how oil prices hold up.

A budget deficit this year, estimated at 22.9 trillion Iraqi dinars ($19.5 billion), has had Iraq turn to the International Monetary Fund and World Bank for loans.

The budget shortfall will be financed mainly by oil income and a loan from the IMF, though the central bank is "encouraging financial diversification."

"The government is still in negotiations with the World Bank" for a $500 million soft loan, Al Shabibi said, after the IMF approved a $3.6 billion loan in February.

Iraq began to accumulate debt from mostly European creditors in the 1980s, building up the government's debt to almost $140 billion. "We were indebted to almost every country," Al Shabibi said.

Next year, the country will begin paying back $7.8 billion owed to the Paris Club group of creditor nations, who in 2004 waived 80% of about $40 billion lent to Iraq.

"The repayment will start next year until 2028," Al Shabibi said.

Debts owed to Arab states, including Saudi Arabia and Kuwait, haven't been settled. Asked for a timeline for that, Al Shabibi said: "This is a question of negotiations." He said a condition of the Paris Club debt deal was to "seek comparable treatment from other creditors."

Meanwhile, the $3.6 billion IMF loan has "not yet materialized," he said. "The loan is ready but I think there is still a lot of discussions on budget."

The IMF said at the time that about $455 million of the loan--meant to help Iraq meet balance of payment requirements--could be disbursed immediately, with the rest to be given in the coming two years.

http://www.zawya.com/story.cfm/sidZW...0086?cc&pass=1

Toyota agency opening in Arbil step to refurbish Kurdistan’s private sector – official

Iraqi Kurdistan Region Prime Minister Burham Saleh said on Sunday that the inauguration of an agency of Japan’s giant Toyota in Arbil is a “significant step to develop the private sector in the region”.

“The move is indicative of the confidence in the region’s government and the stability it is boasting,” Saleh said in an address on the occasion.

He noted that a businessmen’s conference will be held soon in the Iraqi Kurdistan Region in association with the United Arab Emirates (UAE).

http://en.aswataliraq.info/?p=131821

UAE trade minister in Arbil

The trade minister of the United Arab Emirates (U.A.E.) has arrived on Tuesday in Arbil, the capital city of the Iraqi Kurdistan Region.

The minister is accompanied by a delegation of U.A.E. businessmen, traders, and investors.

She will have a meeting later today with Barham Salih, the regional prime minister of Kurdistan.

http://en.aswataliraq.info/?p=131902

Nostalgia Qadu: Iraq can not form the next government without entering into new alliances

According to a member House of Representatives outgoing nostalgia Qadu "The Iraqi List, can not alone form the next government without entering into new alliances," he said, "The positive atmosphere prevailing political scene now may be a new incentive for Iraq to engage in negotiations to form the next government," he said.

And demands that the Iraqi List, which won 91 seats in the recent elections to exercise their constitutional right its mandate to form the next government.

The Qadu in contact with the Independent Press Agency (Iba), "The Masdr of special decisions of the judiciary to reject the resolutions of accountability and justice for excluding some of the winners of the membership of the House of Representatives next will give new impetus to the more serious negotiations to form the next government."

The forces and political figures have called for the need to seek political blocs winner of the last elections to form the next government.

He Qadu "The court's endorsement of federal election results will put the political blocs to their responsibilities clear commitment to the constitutional limitations on how long to hold the first meetings of the new Council of Representatives."

Article 52 of the Iraqi Constitution to invite the President of the Republic of the House of Representatives to convene by a presidential decree within fifteen days from the date of certification of the election results, and the meeting will be held under the chairmanship of the oldest member, to elect the Speaker and his two deputies, may not be extended for more than the period mentioned above.

Regarding began to be traded on a candidate of the settlement explained Qadu "The candidate settlement relating to Balaitlavi especially in light of the alliance, the new form the biggest bloc has the right to nominate a prime minister," indicating "Not having reached a nomination from the candidate names for this position interfere with new crises," according he said.

The four candidates competing for the new alliance for the post of prime minister Nuri al-Maliki, the next they are a coalition of state law, all of Ibrahim al-Jaafari and Adel Abdul-Mahdi, and Baqir al-Zubaidi of the Iraqi National Coalition.

http://www.ipairaq.com/index.php?nam...itics&id=25359

China''s CNOOC confirms oilfield deal in Iraq

China National Offshore Oil Corporation (CNOOC), the nation's largest offshore oil producer, confirmed it has clinched a deal to develop the Missan oilfields in southern Iraq, state media reported on Tuesday.

The state-run firms CNOOC and Turkish Petroleum Corp (TPAO) have bagged a 20-year technical services contract to increase the output of the Missan oilfields, located 350 km southeast of Baghdad, to 450,000 barrels per day (bpd) over the next six years, CNOOC said in a statement carried by the China Daily.

CNOOC will earn USD 2.3 per barrel on the incremental oil production once the daily output has been raised by 10 percent from its current level and will recover its expenditure through a cost recovery mechanism, said the statement.

The Chinese company will act as the operator and hold a 63.75 percent stake in the project. The Turkish company will hold an 11.25 percent stake, and the Iraqi Drilling Co will have the remaining 25 percent stake in the project, said the statement.

"It is a pleasure for CNOOC to participate in rebuilding of the oil industry in Iraq," Fu Chengyu, CNOOC chairman and CEO was quoted as saying. CNOOC and its partner will carry out an active investment plan on the development of the fields to increase output, Fu said.

The CNOOC-TPAO deal is the 11th since last year with international oil companies to develop the war-ravaged country's vast oil reserves.

China is the world's second-biggest oil consumer after the US.

http://www.zawya.com/Story.cfm/sidZA...20in%20Iraq%20

CBI dollar sales down to $127m

The Central Bank of Iraq’s (CBI) dollar sales went down to reach $127.903 million in its daily auction on Tuesday, compared to $227.996 in the previous session.

“The demand hit $7.540 million in cash, covered at an exchange rate of 1,183 Iraqi dinars per dollar, and $120.363 million in foreign transfers outside the country, covered at an exchange rate of 1,173 Iraqi dinars per dollar,” according to a CBI news bulletin received by Aswat al-Iraq news agency.

None of the 15 banks that participated in today’s session offered to sell dollars.

http://en.aswataliraq.info/?p=131896

Minister of Oil: Maysan province would become the second-largest producer of oil in Iraq

Oil Minister Hussain al-Shahristani said that Iraq's Maysan province, becoming the second-largest producer of oil in Iraq after decades thanks to the Basra oil licensing rounds, pointing out that the production ceiling will rise to up to one million barrels per day during the next six years.

Shahristani said during the signing ceremony of the three service contracts oil with a consortium of oil companies of the Turkish National Company / Konuk / Chinese on Monday attended by the reporter, The province of Maysan, which has about eight billion barrels of oil reserve will be the second largest province oil producer. This came after the signing of service contracts of the three where it is hoped that the ceiling of production / 450 / thousand barrels per day and if we add the production of field "Halfayah" which was referred to a coalition of several companies earlier in the production will reach about one million barrels per day over the past six to come."

Shahristani said that the plans of the Ministry of Oil "is not confined to the production of crude oil but also has another project, a giant of building a refinery in an interview .. indicating that the process will be integrated the beginning of oil production and exports as well as Tsenaih through the refinery, which was a contract for design with an international company".

Preble, director of the Chinese oil company during the signing ceremony that China look to invest in Iraq is not about oil, but also seeks to invest in human development through rehabilitation and training Iraqi cadres as well as the transfer of modern technologies to extract oil in Iraq.

The director of the Turkish National Oil Company, Muhammad Wisal The volume of investment expected which was established by the company at about / 15 / million dollars, will be agreed with the Chinese company during the upcoming meetings which will take a month .. He pointed out that the two companies Stbeshran serious work by the end of this year, will start production within three years.

http://al-iraqnews.net/new/economic-news/9313.html

Minister of Oil: The oil market is balanced there is no need for OPEC meeting

Oil Minister Hussain al-Shahristani said Monday that there is a balance between supply and demand in oil markets, so no need for OPEC to call a meeting to discuss output levels.

Shahristani said at a news conference attended by the reporter that the market does not suffer from oversupply and there is a balance between supply and OPEC production and demand, indicating that the instability of oil prices due to the debt crisis of Greece and the status of the global economy. He pointed out that this has nothing to do the basics of supply and demand.

He's oil minister that OPEC does not intend to call for an extraordinary meeting to discuss output policy. It is scheduled to hold its next meeting of the Organization in October, pointing to the impact of large stocks in industrialized countries to reduce prices.

Shahristani said he expected the rebound in oil prices rising above 80 dollars a barrel, but did not say when this would happen.

And U.S. crude fell briefly below 70 dollars a barrel, the lowest price in more than three months before recovering to 72 dollars per barrel. The price has fallen more than 15 dollars from its peak reached two weeks ago.

The government data showed U.S. crude stocks at the point of delivery reached a record high, adding pressure on the price of oil.

For his part, said Falah al-Amri, the representative of Iraq's OPEC during the conference that he is continuing with oil trading above 70 dollars a barrel is no need to take any action on the part of OPEC.

http://al-iraqnews.net/new/economic-news/9295.html

Ministry of Oil expects to increase Iraq's oil exports to two million barrels per day

Chief Iraqi Oil Marketing Organization (SOMO) Falah al-Amiri said Monday that the Iraqi oil ministry expects that the average oil exports two million barrels a day in the last three months of 2010.

And Ameri added in a press statement MEMRI correspondent "I think that exports will be better this month Means that it will exceed 1.9 million barrels per day, and I think we'll get to the level of two million barrels per day (exports) during the fourth quarter of this year."

It is said that Iraq's oil exports had declined slightly in the April To 1.767 million bpd from 1.79 million bpd in the previous month.

http://al-iraqnews.net/new/economic-news/9297.html

State law and the Iraqi National meet in Jaafari's office to nominate a Prime Minister
Neighbourhood: Al-Alam reported, citing coalition sources of state law, the Alliance coalition rule of law and the Iraqi National Congress, will hold a meeting regarding the formation of the Committee of Ten in charge of naming the Prime Minister

The meeting will discuss three mechanisms for the selection Crumpton voiced skepticism about the President to be announced later on the final machine.

He said the meeting will be held in the office of record Prime Minister Ibrahim al-Jaafari.

It quoted the world Abbas al-Bayati, a member of a coalition state law that the Committee of Ten will hold an important meeting to establish timetables for implementation contained in the agreement signed between the coalitions.

On the other hand, accused the coalition deputy Khalid al-Asadi the rule of law the election commission that it has taken its decision not to change the outcome of the count in the province of Baghdad since the beginning of this process with the presence of substantial evidence indicating vote-rigging, saying they were not neutral in the elections.

Dr. Al-Asadi, told Al-Alam TV news Monday dissatisfaction with the coalition of the work of the Commission, stressing that with the present coalition, the interests of the Iraqi people to their interests into account to speed up the formation of the government would not submit to the appeal back to the Commission's decision to install the results of counting and sorting.

http://aljewar.org/news-24589.aspx