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You can't have an Iraqi Oil and Petroleum Law with out having a state owned National Oil Firm.
The former Iraqi Oil Minister stated that the Iraqi Parliament will vote during the next month on establishing the state-owned National Iraqi Oil Company, Iraq Directory reported.
Oil Ministry will open 50 gas stations in Baghdad 24 hours a day as the fuel crisis worsens and the oil industry is unable to keep up with demand. Iraqis wait for hours in line for gas that has skyrocketed in price since the 2003 invasion. Gas was subsidized, but that subsidy must be drawn down, according to terms of the economic structural adjustment program of the International Monetary Fund.
If you are interested in seeing a different outlook on Iraq and the economy and business look at this video.
Robert Zoellick, a nimble negotiator who has crisscrossed the globe as President Bush's trade chief and as the country's No. 2 diplomat, is the White House's choice to be the next World Bank president.
This is a start we will see what happens at the next meeting. Just waiting for the demands from the Persians to be extraordinary.
Halliburton is in talks with other oil services company to enter Iraq but said will wait for better security to do business there. For Big oil your still looking at a few years or so to enter Iraq.
The UAE is asking the United States to set a timetable in Iraq.
On Monday the Associated Press (AP) news decided to print this article on yahoo news about the Iraqi Army making plans just in case the inevitable happens which is a full withdrawal of the U.S. Military. In my opinion this is old news the Iraqi Army is always preparing for the withdrawal of U.S. Forces just as soon as they are fully capable of securing and defending there own country. It is articles like these from a left leaning news organization that empowers America's enemies to keep up the fight and continue full speed recruitment to the insurgency and terror groups working inside Iraq.
Keep in mind if the United States announces it will start a withdrawal of the troops it would still take approximately 9-12 months to safely withdraw 160,000 troops from Iraq. It will not happen overnight. It would be a phased withdrawal and I am not going into any specifics about the military but all you defeatist out there it's not going to happen so quickly as you all think. The day will come when Iraq can secure and defend it's own country and it just might take a little longer then what some have in mind.
When you deposit money in a US Bank it is federally insured through Federal Deposit Insurance Corporation (FDIC). Iraq does not have a FDIC per se as in the real world but almost and will be I am sure getting one in the future.
The Iraqi Company for Bank Guarantees Ltd. (ICBG) was started in late 2006 in Iraq and is privately owned by 11 Iraqi private banks. The ICBG is organized as a non-banking Financial Institution (NBFI) and is structured as a Limited Liability Corporation (LLC) and will eventually fall under the oversight of the Central Bank of Iraq (CBI) and its laws and regulations.
The initial money to start up was three million usd and was further funded by a grant from USAID at five million usd. The investment portfolio acts as a guarantee fund to support the company when losses occur in the guaranteed loan portfolio. The guarantee will not exceed 75% of the loan amount and the accrued interest.
The ICBG provides partial guarantees of loans to small and medium sized business in sectors such as Manufacturing, services, tourism,construction,trade and agriculture. The loan guarantee program supports cash flow based lending and the participating banks require personal guarantees and suitable collateral.
The ICBG loans generate income sources from the fees and the interest from the investment portfolio to support operations. ICBG charges a 2% loan guarantee fee per year only on the guarantee portion and interest of the loan.
The ICBG Participating banks:
Bank of Baghdad
Middle East Bank for Development and Investment
Basrah International Bank for Investment
National Bank of Iraq
Sumer Commercial Bank
Al Warka Bank for Investment
Mosul Bank for Development and Investment
North Bank
Ashur International Bank for Investment
Gulf Commercial Bank
Investment Bank of Iraq
The objectives of the company are to:
Support commercial bank lending to SME's through the provision of loan guarantees
Enhance access to credit from private banks for eligible Small and Medium Enterprises (SME) Iraq.
Support the use of modern credit methods and sound banking practices in providing loans to SME's.
Assist private banks to develop new market sectors.
The following is from there Brochure of Frequently asked questions:
Questions by a participating Bank
How does a participating bank access the guarantee program?
The bank completes a participating bank agreement (PBA) with ICBG which defines the obligations of both ICBG and the bank. The bank must be licensed with the Central Bank of Iraq and be fully compliant with all CBI regulations.
Does the ICBG deal directly with SME borrowers?
No, only with banks.
What types and terms of loans does the ICBG Guarantee?
ICBG may guarantee eligible for both working capital and fixed asset acquisition.
Working capital loans may not exceed 360 days in tenor.
Fixed assets loans may be from 1 year to 5 years.
All loans should have monthly repayments.
Is a grace period for repayment applicable?
Grace period is decided by the bank and subject to the borrower's cash flow projection.
Do the applicant bank have to pay any loan guarantee fee?
A 2% loan guarantee fee is charged per annum on the guaranteed portion of the loan and the accrued interest. The fee is calculated and payable on the reduced balance.
What is the maximum loan guarantee coverage?
All guarantee applications submitted during the first year of operations maybe granted guarantee coverage up to 75% of the approved loan. Accrued interest is guaranteed for a period not exceeding 90 days.
What is the maximum amount of loans that can be guaranteed by ICBG?
ICBG will guarantee loans with volumes ranging between the ID equivalent of USD 5,000 and USD 250,000.
Are personal guarantees and collateral required for loans guaranteed by ICBG?
The ICBG loan guarantee program supports cash flow based lending. However, the participating banks are authorized to require personal guarantees and suitable collateral.
What sectors of the economy does the ICBG loan guarantee program support?
Manufacturing, services, tourism, construction, trade and agriculture.
Questions by a SME borrower
How does an SME borrower access the guarantee program?
The borrower requests a loan from its bank (which must be a participating bank with ICBG), the bank performs normal loan underwriting due diligence, and will then decide whether to present the application to the ICBG for guarantee.
Does the ICBG guarantee loans for start-up business?
Start up businesses are included in the ICBG loan guarantee program.
What are the eligibility criteria governing an SME borrower?
Borrowers must satisfy the following:
Be citizens of the Republic of Iraq and between the ages of 21 and 65.
May be sole proprietorships, partnerships, limited liability companies, or joint stock companies.
Enterprises must be registered with the appropriate Iraqi government authorities.
The borrower must have at least 2 full time employees and not more than 29 full time employees.
The borrower must not be a subsidiary of, or affiliated through common ownership with, a company or branch of an enterprise that has more than 250 employees, nor can the enterprise hold a majority stake in larger companies.
Have not defaulted under any payment obligation to financial institutions or other creditors.
Owners and managers may not be related to members of the bank's board of directors or senior management.
What are the interest rates chargeable on ICBG guaranteed loans?
ICBG guaranteed loans should bear market rates on interest.
Do I have to pay any fee for obtaining the loan guarantee application?
All applicants are requested to pay a non-refundable, application fee of USD 100 in its ID equivalent.
One of the main benchmarks the U.S. is hoping to have accomplished is the Iraq Oil and Petroleum law which is supposed to be completed by the end of May according to the Iraq Ministry of oil Mr. al-Shahristani.
The article brings up the current issues the Iraqi government is facing.
This was an email question and answer to the CEO of Al-Warka Bank Mr. Saad al-Bunnia on 6 June 2006. I appreciate him taking part and answering the questions set forth by American Contractor.
Do not Copy or distribute any portions of the text just provide the link url to the location by using the permalink below.
The CEO al-Bunnia answers have not been changed or edited in anyway.
Start of Interview.
AC Question:
What is your opinion on the current rate of the Iraqi Dinar? Do you think an increase in value will occur and if you do when do you think it will happen? What would the economic conditions in Iraq be like for the increase in value of the Iraqi Dinar?
CEO Al-Bunnia:
As you well know, any currency rate in any country depends on the stability of that country in terms of political and security. We hope everyday that both the political and the security situation in Iraq will be more stable than what it is at the present time. The current exchange rate is, in my personal opinion, not a true rate because the dollar exchange rate in Iraq depends on the supply and demand of the said currency. If it was not for the daily intervention of the central bank of Iraq in selling in the range of 500 million dollars per month, one would expect the exchange rate to reach as high level as 5000 dinars to the one dollar. I believe that an increase in value of the Iraqi dinar will not be seen in the short term as the Iraqi government depends on the sale of the dollar to pay the expenses of the government from salaries to the internal contracts. Also, due to the high salaries which are being paid now to the public sector, most government employees will not accept a decrease in their salaries as they were very deprived in the days of the old regime. If this magic wand be struck on Iraq, then I am sure that we will over come all the neighboring countries in their standard of living .
AC Question:
How long have you been in the banking business in Iraq?
CEO Al-Bunnia:
I have been in the financial sector since 1989 after my return from London were I was studying for my master degree, I returned to Iraq after the end of the Iraqi-Iran war were I took the position of the financial director of the al-bunnia group of companies which comprise of 45 industrial,agro-industrial,agricultural and construction companies. I took control of the bank after the death of my father in may of 2003 were I strived to take the bank to be the number one bank in Iraq.
AC Question:
How many branches does Warka Bank currently operate in iraq?
CEO Al-Bunnia:
We started in April 2003 with one branch in Baghdad and now we have 30 branches and hope to open three new branches this month. These branches are located in most of the provinces and in hot areas as I believe that we must be present in these trouble areas because we have to show people that life must keep going and no one , including the insurgents ,should deprive our rights to grow and live in our fathers land.
AC Question:
Do you plan on in the future on opening any future Warka bank offices outside of Iraq?
CEO Al-Bunnia:
Due to the present political struggle and the international court orders that is implied on the Iraqi funds , it is a delicate situation for us to open branches in foreign countries. To over come this problem, we have applied for representation offices for warka bank in Jordan and Bierut which would mean a step towards our aim.
AC Question:
Are you currently working on getting your electronic banking or your Internet banking online? When do you think this will be completed?
CEO Al-Bunnia:
My team and I have been working on this project since may of last year when we bought the core banking system from a reputable English company that specializes in the banking sector. We had very hard time with them to reach were are now. I am happy to inform you that internet banking is only one week away when some of the IT staff returns from Jordan after taking their final training and adding the final touches to the system. I am also happy to inform you that next week we will have SMS,Mobile and phone banking for our customers.
AC Question:
When you have the Internet banking completed will the overseas depositors be able to view their accounts on a secured web site?
CEO Al-Bunnia:
My team and I have been working on this project since may of last year when we bought the core banking system from a reputable English company that specializes in the banking sector. We had very hard time with them to reach were are now. I am happy to inform you that internet banking is only one week away when some of the IT staff returns from Jordan after taking their final training and adding the final touches to the system. I am also happy to inform you that next week we will have SMS,Mobile and phone banking for our customers.
AC Question:
I would like to talk about your services as a bank to your customers. There are a few web sites that report that Warka Bank is very non-responsive to customers that are trying to communicate with Warka Bank in reference to their deposits or information about setting up a new account. The feeling is that Warka is bogged down with emails and this is the reason for the delays in responding back to customers and potential customers. Is this true? If not can you elaborate on the reasons why Warka Bank is slow to respond to queries from your overseas depositors and future overseas depositors?
CEO Al-Bunnia:
To move from a labour intensive operation to electronically generated data is not an easy thing to do especially when people are not used to work in such an environment. As you know the infra-structure in Iraq and especially in Baghdad is very poor. We have overcome most of the telecommunication problems as Iraq had no internet service in the old dark days. If you believe it or not, we had to do our own communication network in order to have the core banking system in operation. I hope that these delays in response will not occur as our overseas customers will be able to obtain all the information on their account through the internet. I am also working now with a software company were it is building me a system that even account opening will be on the net.
AC Question:
I know for over a year that Iraq Govt. CBI and Iraqi customs have been attempting to put a stop to the smuggling of Iraq Dinar out of the country. Do you think the smuggling has increased or decreased as the new Iraq government is almost completed? What is your feeling on the Iraq Dinar speculators that are holding the Iraq Dinar outside of Iraq?
CEO Al-Bunnia:
It has always been the case since many decades ago that Iraqi currency is not allowed to be exchanged or exported outside Iraq. The law is still on now. Nothing deters the Iraqi businessman(smuggler ) from looking at an opportunity and grasping it which will generate him huge profits. Even with sadam stringent fist and control could not stop the smuggling of the Iraqi dinar before the invasion of Kuwait (as after wards there was no value to the Iraqi dinar).My advise to those Iraqi dinar speculators is that they are taking the risk of by buying Iraqi dinar because I really do believe that the currency will be changed in the near future once the government is stabilized and settled and also there is a large number of fraudulent currency moving in the economy in which it will be difficult to control. The reason for that falls in two points. The first point is that the central bank of Iraq is putting an RFP to the supply of printing money machines.
If these changes happen, then how could these speculators return their money when even the international couriers will not ,by their law, accept to deliver the money. A customer of ours did this move and his money was never received by the bank because it was stolen by the people that work in a very well known courier company.
AC Question:
Warka Bank has a program that allows someone to invest in the ISX. Did something occur that triggered Warka bank to do this for their depositors? Can you tell how this come about that Warka is now offering a way to invest in the ISX through a proxy? The stock that is purchased is it in the name of an individual or a company? Can you tell our readers what the name of the company or the individual is?
CEO Al-Bunnia:
As you are aware that foreign investment law is actually into operation in Iraq according to the new constitution. There is also an approval from the prime minister office to start this law. Unfortunately, no one is working on this law as there is no system being incorporated for this purpose at isx. In order to overcome this hurdle, and moving along with the law, we managed to establish a company called showneeze which belongs to the bank were we buy the shares in this name according to the laws and regulations were buy these shares are bought for our foreign customers were each customer has his own share profile in quantity and price bought or sold according to each trading session. Once the law is implemented, in the isx, then we will transfer these chares for our customer in his name with a minimum fee. I believe that this is the time for our customers to buy the shares that they want were we are giving them the opportunity to make good profits since once the country is back to normal and foreign people can buy shares , believe me no one will be able to grab a handful of shares as this could be seen in the neighboring countries. The price of shares are now at its lowest that it will ever get. An example of this would you believe that price of one pepsi cola bottle equates to 100 shares of pepsi colla Baghdad. No one believes this but this the opportunity that I am talking about. or the share capital of a company which is 3 million dollars with assets of 60 million dollars price of share is six dinars.
AC Question:
What are the things that your bank is doing to acquire more depositors specifically in Iraq?
CEO Al-Bunnia:
Retail banking is very hard business in Iraq. In the past rich people are used to put their monies in their homes and not declaring it into the banking sector because they are afraid that it will be confiscated by the old regime. Middle class people could hardly have any savings due to the very low salaries that they used to get. We are attracting those middle class clients to our bank by insuring that their salaries are paid to their accounts in the bank were we give them a loan to buy things that they could not buy with their salaries like household goods. We attract major companies due to the services that we provide them wit like salary payment system, documentary credit, purchase of the dollars from the central bank at a very marginal rate and foreign bank transfer .
AC Question:
Where do you see your bank in 3 years?
CEO Al-Bunnia:
I see the bank in three years time to still be the number one bank among the people of Iraq were I aim the bank to be called the people bank. This I hope will eliminate the competion of foreign banks coming into Iraq as they will only attract the cooperate banking sector.
AC Question:
Are Iraqi’s getting more comfortable with depositing their salaries and money inside the banking institutions in Iraq? If not what is Warka Bank doing to eliminate this fear of depositing money in Iraqi Banks?
CEO Al-Bunnia:
Yes they are for the reasons that I mentioned earlier . we are attracting them to be able to take their families and go to holiday by giving them deferred and installment holidays . there are other services which I would like it to be a surprise when the time comes.
AC Question:
Warka Bank has been very good at providing a service to the overseas depositors by enabling them to set up bank accounts with your bank. How is it that no other private Iraqi Bank has taken this step in allowing citizens outside of Iraq to open bank accounts with them? Is Warka Bank following a gray area in Iraqi banking laws in the opening of the overseas accounts?
CEO Al-Bunnia:
People think that warka bank follows, as you say gray area in Iraqi banking laws. I do not blame them for their thinking as how come warka bank managed to increase its share capital from 1.5 billion dinar to 30 billion dinar with reserves of 20 billion dinars. How could warka bank in a period of 2.5 years manage to be the number one bank in everything. The answer is very simple; I have a reputable name that all the people in Iraq trust and know I do not steel and take commissions from bank business transactions.
I dedicate all my time and effort on the running of the day to day operation of the bank.
I aim to be the best in everything. And above all , I have the full support of my faithful management and staff of the bank.
End Of Interview
Interview Date June 6, 2006
DISCLAIMER: Do not copy or distribute this material without express written permission from American Contractor
Despite with all that is happening in Iraq one thing is for sure and that is the Banking sector is slowly but surely getting better however, it still has a long way to go to get anywhere near or as close to your local bank in the western world.
Last month in Amman Jordan a Banking Conference was held and over 200 banking owners and representatives attended the event. A variety of topics were discussed and a plan was developed to get the Iraqi banks on the path to the 21st century.
The Iraqi Banking industry is currently dominated by seven State owned banks and included is the two largest commercial banks the Rafidain and Rasheed. The other five State owned Bank are Real Estate Bank, Agriculture Bank, Industrial Bank, Iraq Bank, and the Trade Bank of Iraq. All these banks control 90% of the total banking assets in Iraq.
It has been reported the two large State Banks during the Iraq war had suffered the most. Rafidain lost an estimated $300,000,000 to looters and many of it's branches were completely looted and burned. The Losses at Rashid Bank totaled $69,000,000. Many of the private banks transferred their bank-notes to the vault at the Central Bank of Iraq before the war and avoided the heavy losses that were incurred by both State Owned banks.
Adding to the looting and as if that was not enough for the banks to endure the Iraqi banks had a few more problems, the damage to the banking industry and the loans to bank customers prior to the war. Banks made efforts to assist customers to have their loans out of past due status and become current. The Iraqi banks had a problem with accurately recording what accounts were past due and by how much in total loans outstanding.
With the war going on and the heavy damage to over 200 State Owned Enterprises (SOE) the only banks that could loan money to these SOE's were the State banks Rashid and Rafidian. The private Iraqi banks were forbidden by law to create loans to SOE's which turned out to be a good thing for them. As all the SOE business were either extremely damaged or destroyed and render the plants useless the Coalition Provisional Authority (CPA) had removed all assets and liability from the two State Owned Banks. The State owned banks were now free and clear to a point.
The banking industry began to piece there operations slowly and gained more deposits from Iraqi's looking to deposit there money in a safe place. The Iraqi banks would accept the deposits from customers and then would deposit the cash at the Central Bank of Iraq (CBI) earning 20 percent interest. The bank owners felt depositing the banks money in the CBI had great benefits. It allows the bank owner to somewhat sleep good at night knowing his banks assets and deposits are safekeeping at the CBI. Security is very good and he's not paying for it. Plus knowing that your earning 20 percent guaranteed on your money is not bad.
When the CBI started the 20 percent interest to encourage banks to increase their frequent deposits to the CBI it had created a liquidity problem. When bank customers would place a withdrawal of there deposit the bank would not have it at the branch which would be a common problem with most of Iraqi banks. Bank officials would advise the customer come back at a later date and at times would site security problems as to why the bank has no money to fulfill the customer needs. After the customer left it would be a week or two when the same customer would come back depending on the security at the time the customer returns.
If a roadblock or maybe a checkpoint stops the customer from proceeding further as he is making his way to the bank to make that withdrawal the customer would just give up and return home not wanting put himself in any danger.
Before the war there were 18 private banks and all opened just about in the 1990's and as of late 2006 there were 25 private banks licensed by the Central Bank of Iraq. After the initial invasion of Iraq and things started to settle down as settle down gets in a War zone there was an expectation of bank mergers would begin from larger more technology wise western and Arab banks. The feeling was that this would encourage competition and rise in technology know how in the poorly structured Iraqi banks.
The private Iraqi banks that have partnered and have direct foreign investment are:
Commercial Bank, 49% owned by al-Ahli United Bank of Bahrain (through an Iraqi holding company)
Bank of Baghdad, 49% owned by the United Gulf Bank of Bahrain
National Bank of Iraq, 49% owned by the Export and Finance Bank of Jordan (renamed as Capital Bank)
Credit Bank of Iraq, 75% owned by the National Bank of Kuwait and 10% by the International Finance Corporation (IFC)
Dar as-Salaam Bank, 70% owned by Hong Kong and Shanghai Corporation (HSBC)
Economy Bank, 49% held by the A'aya Company of Kuwait
Mansour Bank, 60% owned by the National Bank of Qatar
To date no bank mergers have taken place. The following banks have started operations.
Tigris and Euphrates Bank
National Islamic Bank
Bank Audi (Lebanon)
There are an additional 17 applications pending at the Central Bank for new banking licenses.
Two foreign banks have been licensed by the CBI. The T.C. Ziraat Bankasi of Turkey (the state agriculture bank) and the Arab Banking Corporation. The Arab Banking Corporation just maintains an office in Baghdad and it is not a retail-banking store.
The Central Bank of Iraq has approved licenses for the following banks however none have opened any bank branches in Iraq. Most likely waiting for more stability and calmer days before opening any banking facilities.
Bank Melli (the national bank of Iran)
Al-Ahli United Bank (Bahrain)
Commercial Bank of Kuwait
Housing Bank for Trade and Finance (Jordan)
Arab Bank Ltd. (Jordan)
In Northern Iraq the Emerald Bank and the Kurdistan Investment Bank are operational. The Audi and Byblos Bank both from Lebanon will be opening soon, along with the Intercontinental Bank. The western bank Standard Chartered Bank has an office in Erbil.
Interest Rates on a one year Iraqi Dinar Loans:
Gulf 16%
Ashour 14%
Mosul 14%
Middle East 14%
North 12%
Investment 15%
Baghdad 12%
Dar as-Salaam 15%
Commercial 17%
Even with these rates the loans out to the banks customers are low. The CBI one-year ID loan is 14.6% from the CBI web site. The average interest rate paid to banks depositors is 7.3% and a lot of the deposits are in non-interest bearing accounts. If you are trying to develop and grow a lending industry it makes it tough when the CBI currently pays 19% on 14 day deposits and 20% for 30 day deposits. You can't blame bank owners for depositing the banks funds at the CBI and not pursuing a good lending service to the average working Iraqi or businessmen. The bank owner is incurring no risk with the banks money. Not a bad deal. Let’s hope within the next 90 days new rules will help to get money down to the average working Iraqi.
More to Follow.
American Contractor
“It’s very difficult to predict whether the oil law will pass or not. If I were to make a guess — perhaps it will after an uproar,” Tariq Shafiq - Oil Expert
More missing oil!!
Still having problems with the Iraq Oil and Petroleum law let's hope for the end of May.
Iraq's draft oil law has gaping holes that must be filled before multinationals will invest their capital or technology, one of its authors said on Friday.
Apparently the post The target Rate Announced in Amman Jordan has caused a commotion.
The plan rate of 1250 came from a speaker who is very well known in the finance world at the Banking conference in Amman Jordan. I have a document pdf file that lists additional information about the meeting in Amman.
In June of last year American Contractor had requested an email interview with a CEO of a private Iraqi bank and was accepted. The CEO was advised that it would be published on the blog shortly after the interview.
After reading some of the answers to the questions submitted it was decided more research needed to be done surrounding the banking sector and dinar speculation.
In the interview I have asked questions about Iraqi dinar speculation, dinar smuggling, banking operations and branches, exchange rates. I had also asked about the reprint and counterfeit dinars. The email interview from the bank CEO was informative and gave a different outlook to all who are interested in Iraq.
The question and answer interview will be published soon. Just keep checking back.
In last months meeting in Amman Jordan at the Iraqi Banking conference the target rate for the the Iraqi currency is 1250.
This is from the U.S. State Department referring about the Iraqi Dinar currency restrictions by the banks who are not to engage in speculative purposes.
The currency of Iraq is the Dinar (IQD - sometimes referred to as the New Iraqi Dinar). The Iraqi currency is fully convertible and can be exchanged freely with any other currency. The new investment law allows investors to bank and transfer capital inside or outside of Iraq, which provides considerable flexibility for foreign investors.The Government of Iraq’s monetary policy since 2003 has focused on maintaining price stability and a stable exchange rate. Banks may engage in spot transactions in any currency, but are not allowed to engage in forward transactions in Iraqi Dinar for speculative purposes. The Central Bank of Iraq (CBI) can intervene, when necessary, in order to maintain stability in the foreign exchange market. There are no taxes or subsidies on purchases or sales of foreign exchange.
Iraq is getting closer and closer to a civil war according to the House of Saud.
Cairo- In the wake of the so-called "neighbours-plus" conference, Saudi Foreign Minister Saud al-Faisal in comments published Saturday said the situation in Iraq is only getting worse and that civil war could break out in the already-divided country. "The situation in Iraq is only getting worse," al-Faisal, who was considered one of the key players in the Egypt conference, told al- Hayat newspaper. "We fear that the situation will deteriorate into a civil war."
As you walk into the Baghdad International Airport (BIAP) you can't help but notice this huge billboard sign referring to the removal of Iraqi Dinar Currency out of the country. The rules and regulations are from the Central Bank of Iraq (CBI) and signed off by the good Dr. Shabibi who is the Governor of the Central Bank.
It is forbidden to carry more then 10,000 Iraqi Dinars or us dollars out of the country. And anything in excess of this amount has to be processed through the bank. This is in compliance with the AML laws that are in place and also to control and minimize currency flight. As you can see the rules are in place since October 2005. Just a warning if you are in Iraq think twice about smuggling Iraqi currency.
DO NOT COPY OR DISTRIBUTE THIS PHOTO.
The US government is wanting to open up and have been opening up State owned Enterprises or (SOE's) inside Iraq in order to create jobs and get more Iraqi's back to work. There are over 200 SOE's and just recently the Iraqi government along with their US partners and funding have opened up manufacturing plants in the south and other areas.
I had posted in the past about manufactures opening up and being funded by the USA.
The UN-brokered economic compact signed this week with great fanfare aims to create a liberal free market in Iraq, but US officials admit that for now this approach will take a back seat to more statist job creation schemes.The deal was approved on Wednesday at a conference in the Egyptian resort of Sharm el-Sheikh by the leaders of more than 50 countries, who agreed to fund reconstruction if Iraq meets certain economic benchmarks.
The agreement urged Iraqis to set up what the US State Department's pointman on Iraq, David Satterfield, described last month as "the basis for a liberal, investment-friendly, investor-friendly economic regime."
But, while the language echoes Washington's dreams for transforming Iraq before the March 2003 invasion, officials on the ground admit that, in the short term, reviving state-owned industries to create jobs will take priority.
If this is true it is another blow to the already weakened Iraqi government. This is being reported after the meeting in Egypt in which the governments of Kuwait and Saudi Arabia have already made it known for their distrust of the Maliki government, saying it is too closely related to Iran.
Excerpts of the article.
A new report claims to reveal documents confirming Iraqi Prime Minister Nouri al-Maliki held telephone conversations with anti-coalition leader Muqtada al-Sadr and then ordered Iranian commanders to areas where they would not be "arrested or killed" by American troops.
PM Maliki had a great thing going he had Iraqi police commanders and Iraqi Army Generals going after the illegal militias in Iraq and doing it very well. So what did he do to reward there accomplishments PM Maliki fired them.
A department of the Iraqi prime minister's office is playing a leading role in the arrest and removal of senior Iraqi army and national police officers, some of whom had apparently worked too aggressively to combat violent Shiite militias, according to U.S. military officials in Baghdad.Since March 1, at least 16 army and national police commanders have been fired, detained or pressured to resign; at least nine of them are Sunnis, according to U.S. military documents shown to The Washington Post.
Although some of the officers appear to have been fired for legitimate reasons, such as poor performance or corruption, several were considered to be among the better Iraqi officers in the field. The dismissals have angered U.S. and Iraqi leaders who say the Shiite-led government is sabotaging the military to achieve sectarian goals.
As I read this I am not sure what to think have you ever read Stuart Bowen report it is about 650 pages or more. No wonder his former employees are complaining.
Excerpt from article
The inspector general who uncovered cases of waste, fraud and abuse in the U.S.-led reconstruction effort in Iraq is under investigation by a presidential panel, according to the White House.Stuart Bowen Jr., the special inspector general for Iraq reconstruction, is under investigation after complaints were made by former employees about his work habits and work he required employees to perform. The investigation is headed by the integrity committee of the President's Council on Integrity and Efficiency, which is made up of inspectors general appointed by the president.
If they plan on having the Iraq Oil and Petroleum Law finished and passed by the end of May of 2007, like the Sec Def Gates said Washington time is running out fast.
Excerpt from news article.
Kurdish and Sunni Arab officials have expressed deep reservations about the draft version of a national oil law and related legislation, misgivings that could derail one of the benchmarks for progress in Iraq laid down by President George W. Bush.
A five year plan has been adopted known as the "International Compact"
Read the article here I know it is from the Iranians but hey they have media reps there also it is just there are the first one to post something like this first.
The international covenant and Iraq’s neighbors meeting or better known as the International Compact for Iraq (ICI) started today in Sharm Sheikh, Egypt. The Iraqi government has a strong showing on their part. Let’s hope that something happens that is good for the Iraqi people.
As you read this it would appear that the Iraqi government has a strong showing at the Egypt conference, a sort of unity and togetherness. The Iraqi government is already perceived as a weakened government and the inability to do anything in support of it's people in Iraq.
When the Iraqi government enters into an agreement with other member nations of the ICI they often wonder if the Iraqi government will act on their agreed terms. History of Iraq would say they would not. They will all come back to Baghdad and possibly continue the same way they left. A weakened government and soon to be weaker when they don't follow through with what they agreed too at the Egypt conference. I have hope but the reality is with the current government I am not expecting too much.
Below is the list of who all is attending the Egypt meeting.
Deputy PM Barham Saleh
Foreign Minister Hoshear Zeebari
Oil Minister Hussein Shihristani
Planning Minister Ali Baban
Finance Minister Baqer Jabr
State Minister of Parliarment Affairs Safa’a Safi
National Security Adviser Mufaq Ruba’ai
Central Bank of Iraq governor Dr. Sinan Shabibi
Iraqi government Cabinet members MP’s
Hassan Senaid
Humam Hammodi
Haider Ibadi
Firiad Rawindozi
The Germans are being very realistic concerning the International Compact of Iraq. The meeting will lead to other public and private meetings in the future.
Russia will not be forgotten just because they have been rejected they will not be any oil contracts for Russia is not true. It is all a game. Russia will get their oil contract just not today.
Germany warned on Wednesday against too much expectations of the upcoming conference on the future of Iraq to be held in the Egyptian resort of Sharm el-Sheikh."The conference should not be overloaded with too much expectations. However, it is also quite clear that the stabilization of Iraq requires the assistance of neighbor states as well as the international community," said German foreign ministry spokesman Martin Jaeger on Wednesday.
German Foreign Minister Frank-Walter Steinmeier will leave for Egypt on Thursday to join top diplomats from around the world for the two-day conference on stabilizing Iraq.
The Sharm el-Sheikh conference starts on Thursday with the launch of the International Compact with Iraq (ICI), an initiative providing a framework for Iraq's security and economic development. A ministerial meeting of states neighboring Iraq will also be held there on Friday.
UPDATE:
The Iraq Slogger had this article also.
The Russians came to the ICI meeting in Egypt and holding the carrot of the debt owed by the Iraqi government and wanting a little oil. Well Iraq government said no.
Iraq, struggling to rebuild its war-shattered economy, has declared unacceptable an offer from Russia to forgive the debt it is owed by Baghdad in return for access to a major Iraqi oilfield.
But Iraq has accepted an Egyptian offer to forgive $800 million in debt, Iraqi Finance Minister Bayan Jabor said on Thursday and three eastern European countries have offered an 80 percent writedown of debt owed to them.