Thread: Archive News - Iraqi Dinar Think Tank - 22/06/2010 - 04/10/2010

Government adviser : the government delayed the formation of an impact on the important agreements for Iraq

A top Iraqi government ended its mandate, on Thursday, that the government delayed the formation of a negative impact on several economic agreements were signed with a number of Arab countries.

The Advisor to the Kurdistan News Agency (Akaniwz) that "the problems affecting the formation of the government towards the 14 agreements signed with Arab countries and European earlier because of a delay the formation of the government."

The advisor, who requested anonymity, that "the basic problem are such that there is fear conventions by States that concluded the continued delay in forming the Iraqi government because of the strong competition between the political blocs of winning elections."

"The fact that some States that Iraq has approached a number of conventions that have not done already, but only entered into without any real activate it."

He pointed out that "the prime minister called on the ministries, which entered into economic agreements and investment to make them work and not idle as it will contribute to the construction and reconstruction of Iraq."

The Iraqi government has concluded over the past four years more than 309 conventions, including approximately 130 investment and economic agreement with Arab countries and the aim of establishing a global investment projects and contribute to the economic reconstruction of the country.

http://www.aknews.com/ar/aknews/2/160191/

Iraq is planning to open more border crossings in order to stimulate economic

The government consultant said Thursday that Iraq will open all border points with neighboring countries in order to increase economic cooperation and trade with them.

He also explained reputation beyond agency Kurdistan News (Akaniwz) "The Iraqi government is seeking to open more border points with Jordan, Syria, Turkey and Iran during the next six years to boost the trade and economic relations between those States and Iraq."

He said, "will border crossings with neighboring countries, a pervasive role in stimulating the movement of trade and investment in Iraq, which will increase the rate of economic mobility to almost double."

He pointed out that "the border crossing points were in the past has caused security problems in Iraq, but today is a principal source of economic activity and trade, especially with Turkey and Iran, that Iraq had business relationships are deep and long-term with them."

Iraq seeks to open the crossings is new to the border with Turkey to increase bilateral trade to 20 billion dollars, because Turkey is a trading partner of the president of Iraq and the biggest investors in the country since the military operations led by the United States in 2003 and there is a single border-crossing between the two countries at present.

The head of the Kurdistan Regional Government Barham Saleh said during his visit to Turkey that "Iraq is seeking to open new border crossings with Turkey and the establishment of industrial and commercial zone on the Iraqi side of the border with Turkey."

It is hoped that the volume of trade exchange between Iraq and Turkey seven billion dollars by the end of 2010, recording an increase from what it was last year, which had reached six billion dollars.

And sends a quarter of Iraq's oil exports, or about 500 thousand barrels per day of northern city of Kirkuk to the Turkish port of Ceyhan on the Mediterranean, and seeks to become a major global producer of crude oil after he signed a series of agreements for the oil fields.

http://www.aknews.com/ar/aknews/2/160254/

Iraqi Finance receives 400 million dollars from the U.S. Treasury

The Iraqi Minister of Finance Baqir al-Zubaidi said Thursday that his ministry received 400 million dollars of the loan of 3.8 billion dollars U.S. Treasury.

The official website of the Ministry that "al-Zubaidi received 400 million dollars from the assistant U.S. treasury secretary, Charles Cullen and his entourage , which included Director of the Office for International Economics in the Middle East and North Africa, the U.S. Treasury and a number of aides and Treasury Department at the U.S. Embassy."

The Al-Zubaidi During the meeting, according to the site that "Iraq has made considerable progress in the relationship with the International Monetary Fund and the Convention chock SBA".

"The talks will be held with the Fund for the period from 13 July 17 for the second installment of the loan, amounting to 475 million dollars in addition to cooperation with the World Bank through a program of economic reforms in Iraq."

Zubaidi stressed that "this will help pave the way for a study loan, the second development policy at some 250 million dollars of the amount of up to 500 million U.S. dollars to be submitted by the International Bank for Iraq."

http://www.aknews.com/ar/aknews/2/160258/

Bank of Baghdad to Open in Mosul

In an effort to decrease the use of U.S. currency and stabilize the Iraqi economy, Gen. Raymond T. Odierno, commander of U.S. Forces – Iraq, has directed leadership on all enduring bases in Iraq to solicit, select and establish Iraqi banks on their installations.

In accordance, Maj. Tommie Stevens, Contingency Operating Base Marez/Diamondback, Iraq mayor and executive officer with the Regional Fires Squadron, 278th Armored Cavalry Regiment, 13th Sustainment Command (Expeditionary) and a Sherwood, Tenn., native, came to an agreement with Leila Anan Yeyia, executive manager for the Bank of Baghdad board, June 22 at COB Marez.

“This is an effort to reduce the amount of dollars that the United States has got floating around here in Iraq and to strengthen the Iraqi dinar,” Stevens said. “It’s important for Iraq to strengthen its currency.”

The Bank of Baghdad, a U.S. Treasury-approved bank that operates 25 branches across the country, chose a pre-existing building at COB Diamondback to renovate. The location is near the Mosul International Airport.

“Once the (Hercules Engineering Solutions Consortium) barriers and ‘T-walls’ are removed, it will be a very well-placed location for that bank to operate for the citizens of Mosul,” Stevens said.

Yeyia said it might take only a couple months to open the bank’s doors to the COB Marez/Diamondback public.

“The bank opening will create jobs,” she said. “There will be a lot of people involved in this facility. This is an opportunity for the economy to grow in the city of Mosul,” Yeyia said.

Stevens said the bank will give the the local nationals and foreign nationals the opportunities to make safe deposits, electronic funds transfers, electronically wire money home, open lines of credit, buy goods and electronically sell those goods.

“In Iraq we have a huge problem in how we manage our cash flow,” Yeyia said. “The facilitation of credit to vendors and local people is important, as are ATMs, EFTs, and point of sale devices. We use these systems to ensure the security of money. To facilitate the cash flow and economy of Iraq is one of the most needed things to do in our country.”

Stevens said there is no doubt that the opening of this bank will have an impact on stabilizing Iraq.

“I care how this benefits the citizens of Mosul,” Stevens said. “I think any soldier who serves the U.S. military cares about what our initiatives are, what our goals are, what we’re doing here. I think strengthening the Iraqi dinar is very important for the stability of Iraq. Everything we do at this point is to strengthen the government and people of Iraq, to get them unified and get that national identity back that they need to exist as a country.”


http://waronterrornews.typepad.com/h...osul-iraq.html

Iraq Business Forecast Report Q3 2010

Bright Growth Outlook Despite Political Impasse ; In spite of the delays in the formation of a new Iraqi government following March 7’s national elections, we maintain our sanguine outlook on the economy. Indeed, we believe that regardless of the formation of the next government, Baghdad will remain welcoming to foreign companies, and increasingly those in sectors other than just oil and gas. As such, we have kept our GDP forecasts for Iraq broadly unchanged this quarter: between 2010 and 2014, we are pencilling in average growth of 5.6% per annum. We see real growth coming in at a relatively subdued 3.8% and 4.5% in 2010 and 2011 respectively, before expansion accelerates towards the end of the five-year forecast period on the back of increases in oil production capacity.

At the time of going to print, over two months on from March’s polls, Iraq still does not have a new government. With the process of political horse trading still ongoing, in this report we outline three scenarios for coalition forming. Although we expect Baghdad to remain open to investment whoever is in charge, the eventual make up of the new government could have implications for long-term stability.

One path could lead to faster Sunni-Shi’a reconciliation and in turn enhanced political stability, while another could entrench Sunni disenfranchisement and potentially result in an uptick in sectarian violence. The third scenario, a government of national unity, would be unstable and liable to collapse.

For the foreseeable future, the cornerstone of the Iraqi economy will remain the oil sector. We stand by our view that given the multitude of challenges facing international oil companies in Iraq, realised production levels will come in far short of Baghdad’s targets. That said, output will still rise considerably over the coming years which, combined with our relatively bullish long-term oil price projections, should help to drive both oil sector and non-oil sector growth. As the government is the primary beneficiary of oil revenues, the public sector will be the primary driver of this non-oil growth. In addition, planned investment in infrastructure, particularly in electricity provision, should eventually help to boost private sector growth.

The improvements in the security situation mean that Iraq is now an increasingly viable investment destination, and Baghdad is keen to welcome in foreign businesses. Indeed, Iraq is luring greater numbers of foreign companies, and not just into the oil sector. For example, Emirates and Qatar Airways have recently announced plans to start up services to Iraq, and French shipping line CMA CGM is set to operate a renovated berth at the Iraqi port of Umm Qasr. Currency stability and a low inflation environment, both of which we expect to persist through the forecast period, are further factors that should enhance the business environment. However, investors must be prepared for a myriad of challenges, including endemic corruption, poor infrastructure, an unsophisticated financial services sector and Iraq’s cumbersome bureaucracy.

http://www.companiesandmarkets.com/S...010-317022.asp

Housing tops Iraq’s priorities in next five-year development plan

Under Iraq’s next five-year development plan two million housing units will have to be built in the country, a senior government official has said.

Anwar Jameel, a director-general at Iraq’s Housing and Reconstruction Ministry, said the details of the 2010-2014 development plan will be announced on Sunday.

“The plan includes the implementation of projects to solve the housing crisis by building about two million housing units,” Jameel, who heads the ministry’s Planning, construction and housing department, said.

She said the ministry with its nearly 14,000 employees is currently in charge of constructing scores of housing projects across the country.

Jameel did not say how much the two million housing units will cost and the amount of money Iraq intends to allocate for development in the next five-years.

Apart from housing, the ministry is in charge of roads, bridges and public buildings.

The ministry’s 12 state-owned firms were the construction and building arm of the former regime of Saddam Hussein.

The ministry’s building was burned and looted shortly after the 2003-U.S. invasion. So were the offices of its 12 companies along with their equipment and machines.

http://www.azzaman.com/english/index...07-01\kurd.htm

Iraq’s newly formed ‘Electricity Party’

It is almost impossible to unite Iraqis under one banner and one political party. But this does not mean Iraqis cannot have a unanimous voice.

Underneath their disparate opinions, divisive viewpoints and difficulties, there are potential forces that bring them together.

This unity relates to Iraqis’ awareness that they are under oppression and that their government and the residues the U.S. and its former administrator Paul Bremer left behind are all mired in corruption, and that their public services and utilities, despite promises and massive investments, are still worse than the time of former leader Saddam Hussein.

This unity regarding their worsening conditions is stronger than any faction, sect or group in the ‘new’ and ‘democratic’ Iraq.

This unity is a new party that is in the phase of creation and is rising from the corners of oppression, poverty, starvation, displacement, torture, corruption, abduction and rape. This is the poor’s party, the party of Iraqis eager to have services that are suitable for human beings.

Can we call the new creation ‘the Electricity Party’ which hopefully will take Iraqis out of their predicament, out of their quagmire of silence.

Iraq is torn by oppression and anger. Poverty is rampant and severer than any other part of the world. The corruption of its rulers and those holding the rein of power and meddling in the Iraqis’ bread and butter is so disgraceful that it has turned into a stigma of shame not only for the country but the world at large.

Look at Iraqi children and babies and the reports about their being exposed to banned weapons and white phosphorus. What about late night knocks on the door which instill fear into peaceful families.

They commit horrible crimes under the pretext of combating terrorism. And what about the warring political factions who, in their struggle for power, shed the blood of innocent people with total impunity.

This is the picture of the fires of hell which the Iraqis have been suffering from since the 2003-U.S. invasion.

And as if this is not enough. The whole country is out electricity apart from the Provinces of Arbil and Sulaimaniya as well as the Green Zone.

Will the U.S. and Iraqi engineering effort be ever directed to repair the national grid? Will the rampant corruption allow such effort to be exerted?

The situation is bitter and disgraceful. The solace we have is the latest spontaneous uprising by poor Iraqis protesting lack of electricity.

Iraqis are right to call for international supervision over their national grid. It is indeed logical to call for national observers to supervise the electricity file and audit the funds and companies involved in it.

Iraqis are tired of pretexts and excuses for their government’s drastic failure to meet their basic needs and improve their public utilities.

http://www.azzaman.com/english/index...07-03\kurd.htm

U.S. fear from the expansion of Chinese investment in Iraq

warned the Washington Post to expand Alastmthary China has played in Iraq , which may be at the expense of U.S. companies.

The newspaper said that Beijing did not participate in the US-led invasion of Iraq or in the bloody military battles that followed. Did not make any investments in reconstruction projects or efforts made by the West to entrenchment of democracy activist in the heart of the Middle East.

Added but with the withdrawal of American forces and Iraq's openness to foreign investment China and the small number of countries that did not participate in the coalition forces rushing in these investments. Such States expand its presence in the field of oil exploration in Iraq , and also in areas such as construction and government services and even tourism , while the American companies are not shown great interest in investing in Iraq.

The paper by the Iraqi Minister of Industry Fawzi Hariri, saying that the United States does not really know what I should do in Iraq. Alluding to attempts by personal ex-officio to attract American companies to his country , although there had been no significant development so far.

Pointed to the Washington Post that China got 3 decades, for two of the two Americas, of the total 11 contracts signed by the Iraqi Oil Ministry during the past two years , in an attempt to increase crude production by 450 % over the next seven years . They also re- negotiate a deal by 3 billion dollars dating back to the previous regime.

http://www.ipairaq.com/index.php?nam...onomy&id=27360

Economist : The percentage of the budget deficit this year is likely to exceed 20%

Expect an economist not a surplus of the current budget deficit and the high proportion of this year after Finance Minister Baqir Jabr earlier that the budget deficit this year could reach 20 billion dollars.

Was approved annual budget for the current year by the House by a deficit of more than 19 billion dollars to be filled from the difference in oil prices.

The expert said Abdul Aziz Hassoun in contact with the agency, the independent press (Iba) that the percentage of the public budget deficit are high due to the fluctuation in oil prices, especially after we entered the second half of the current year was not achieved something concrete can hold back the deficit, which was announced in the budget year 2010.

The Finance Minister Bayan Jabr has said in an interview with Al Arabiya television earlier that the percentage of the expected budget deficit for this year up to 20%, explaining that the amount of disability is between 18 to 20 billion dollars from the total budget amounting to 72.5 billion dollars. He pointed out that the percentage of deficit can be avoided through the surplus in the budget and through the teams a barrel of oil in global markets.

Was to rely on the price of a barrel up to 62 dollars, while the price of oil is currently in the rate of 72 dollars after last month fell to below 68 dollars after the crisis of Greece and the devaluation of the European single currency.

Hassoun pointed out that oil prices are currently unstable and may not remain within the rates, which threatens the survival of the percentage of deficit to accumulate and become the second financial year's budget.

He added that most of the budget to go for operational items that swallow any possible surplus of the government's budget expected to increase the percentage of disability and more than 20% and made by the Minister of Finance.

http://www.ipairaq.com/index.php?nam...onomy&id=27320

British newspaper : Iraq will be the largest source of oil in the world

British newspaper expected to become Iraq's largest oil exporter in the world in the coming years, ahead of Saudi Arabia, which ranked first at the moment.

The Independent newspaper said that the map of the main suppliers of energy in the world is about to change under the new forecasts suggest a doubling of Iraq's oil production four times over the next ten years.

The newspaper said that Iraq will replace Saudi Arabia as the largest source of energy in the world, giving Baghdad a decisive influence on the future price of oil.

The newspaper pointed out that Iraq aimed to raise the ceiling on production of crude oil to 9.5 million barrels by 2020, while not exceeding the rate of production of jewelry 2.5 million barrels a day.

They drew attention to the possibility of achieving the roof of the expected production through contracts signed with major companies in the field of oil over the past 12 months, and experts believe that the increase in production will come from the exploitation of oil fields developed, which was discovered rather than to discover new ones.

http://www.ipairaq.com/index.php?nam...onomy&id=27330