Oil Bids Announcements Delayed
Ministry of Oil delays conference to announce firms winning bids to develop oilfields.
I did warn you not be shocked when this announcement was postponed.
More to Follow…
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Ministry of Oil delays conference to announce firms winning bids to develop oilfields.
I did warn you not be shocked when this announcement was postponed.
More to Follow…
June 23, 2009 – Oil Minister al-Shahristani questioning at Iraq Parliament
June 29-30, 2009 – bids from International Oil Companies to be revealed
July 25, 2009 – KRG Parliament Elections
Mid July, 2009 – U.N. Security Council Special Sessions meeting on Iraq
Mid August 2009 – Ratify Oil Contracts w/Iraqi Parliament
August 21st to September 19th 2009 – Ramadan
October 16-17, 2009, Getenergy for Iraq 2009, to be held in Istanbul, Turkey – New Post
October 2009 – International Compact with Iraq– Date to be Announced – Baghdad
December 7-9, 2009 Iraq Petroleum Conference London U.K.
December 31, 2009 – Development Fund for Iraq (DFI) expires
December 31, 2009 – Article Seven U.N. Charter expires
January 16, 2010 – Iraq Referendum Vote (SOFA Security Agreement)
January 16, 2010 - National Parliamentary Elections
Important Iraq Dates Update
A new date and conference has been added to the Important Iraq Dates. In October you have the Getenergy for Iraq 2009, which is hosted in Istanbul, Turkey. The Iraq Ministries of Oil, Higher Education, and Science and Technology will be host.
Iraq Chapter Seven Update
The information that is coming out in regards to Iraq Chapter Seven changes every week and there is new information being reported in a London Arab Newspaper Al-Hayat dated 23 June. They have not posted the story on Al-Hayat web site. Good luck viewing there web site.
Information from the position of the US Embassy has leaked out about there stand on the Chapter Seven. What is being proposed is a New United Nations Resolution be imposed and at the same time lifting the Chapter Seven from Iraq as long as Iraq pays the war reparations to Kuwait in future bilateral talks. A signed agreement between the two countries.
There will be a special session at the United Nations Security Council (UNSC) next month (July) for Iraq as you fully aware of this by looking at my Important Iraq Dates. At about the same time is when PM Maliki will be visiting the United States. Do you think this might be a coincidence?
Nothing as of yet is concrete or set in stone this is the current position of the US Embassy Baghdad in regards to Iraq and Chapter Seven which the U.S. fully supports Iraq being removed.
My guess is that Iraq will not be removed at the earliest until after the Special Session UNSC meeting next month.
If you go back and read the SOFA agreement in the articles it states Iraq is no threat to any of its Arab neighbors and just another reason Iraq will have the Chapter Seven lifted soon.
On another matter and still looking at getting more information on this. The Iraqi government is proposing a 70 Billion dollar plan to rebuild infrastructure in Iraq. The Iraqi government does not have the money so it is looking at lines of credit, direct investment, or by partnering with the private sector. The Iraqi government is also asking one more thing, and that is Companies don't get paid for five years or maybe longer. Ouch!
Now thats a great way to get foreign Companies to invest in your country tell them your not going to get paid for five years or more.
The Iraqi government wants a list of all Iraqi's that make more than 1.5 million dinar that hold a Ration Card.
Remember those stips on the IMF SBA loan I mentioned a few newsletters days ago, I am sure you all are paying attention. Well, the Iraqi government wants a list of all the names of Iraqi's that make more then (salaries) 1.5 million dinar and those people that do will be dropped from the Ration Card distribution. This all a Trade Ministry operation and the acting Trade Minister is not playing. Maybe ...Just maybe they will say something about currency! Maybe PM Maliki will talk about that when he comes to the US of A next month and talk about trop withdrawal, Politics and economics. I hear is going to some Investment Conference also.
The GOI is still needs to work on those other Stips for the SBA Loan like the State owned Enterprises, those former Iraqi employees there are still paying salaries too. Surely the GOI is not going to fire them and add more to the unemployment line or would they.
There will be more to follow...
Please keep the emails coming I read and enjoy every one of them even the hateful one's.
The American Contractor blog just gives you a different view of things and is just his opinion and commentary.
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Important Iraq Dates
June 23, 2009 – Oil Minister al-Shahristani questioning at Iraq Parliament – New Post
June 29-30, 2009 – bids from International Oil Companies to be revealed
July 25, 2009 – KRG Parliament Elections
Mid July, 2009 – U.N. Security Council meeting on Iraq - New Post
Mid August 2009 – Ratify Oil Contracts w/Iraqi Parliament – New Post
August 21st to September 19th 2009 – Ramadan
October 2009 – International Compact with Iraq– Date to be Announced – Baghdad
December 7-9, 2009 Iraq Petroleum Conference London U.K.
December 31, 2009 – Development Fund for Iraq (DFI) expires
December 31, 2009 – Article Seven U.N. Charter expires
January 16, 2010 – Iraq Referendum Vote (SOFA Security Agreement)
January 16, 2010 - National Parliamentary Elections
Update:
I added one more date that is important and it all depends on what happens on the 29-30th in reference to the First Round Oil Bids. It is the oil Bids need to be ratified by the Iraqi Parliament by either mid-August or the end of August 2009, my sources are still working on the exact date but as you know when you are dealing with the Iraqi Parliament anything can happen or nothing at all. Stay tuned...
IRAQ and KUWAIT and THE BOXES
On 30 May I had written in reference to Iraq and Kuwait, I know you don't like me mentioning what I said in the past but I have to so you know that my information for the most part is solid. I am sure they are people out there in the forum world that are on there game and truly do know what they are talking about and that is great. I just give a different perspective on things.
Well, anyways on 30 May I had mentioned Chapter Seven would not be solved in 30 days because of what the media reports were reporting on the different responses from the Kuwaiti Parliament and the Iraqi Parliament because it did get ugly and PM Maliki had to step in.
I said in the 30 May post that the Kuwaiti government wants there funds owed and there property back. Well, the funds might take awhile to settle like next month maybe (Look at Important Iraq Dates). I believe next month July, the Iraqi Parliament Speaker Iyad al-Samarrai, will be heading to Kuwait and meet and greet Kuwaiti officials and to deliver two boxes to the Kuwait Central Bank. This is the property I was talking about.
What inside the boxes I don't have a clue but what some say (sources) say it is documents and not money. The delivery of the boxes to the Central Bank of Kuwait is very important and will be in line with the U.N. Security Council Resolutions(UNSC). Remember they have a date UNSC and Iraqi officials next month (July) that is why the Iraqi Parliament Speaker is going to personally deliver the two boxes before the meeting with the UNSC. I am working on the exact date and when I am advised you will know. Or if you find out some news drop me a line.
Today also the KRG Political Campaign officially starts. This is the break out as what I know right now. 19 Political party's, 5 Political Alliances, and 507 individual political candidates. The KRG government Parliament elections is July 25. If you forget just look at the Iraq Important Dates I will always have this and updated at all times.
The German Company Deutsche Bahn, will be building Iraqi Railways in Iraq. The Deutsche Bank will be financing this project.
Continue to pay attention for the continuation of the Treasury Bills because it is a key moment more so then the IMF Loan which the Iraqi government is very nervous about.
More to follow..
June 23, 2009 – Oil Minister al-Shahristani questioning at Iraq Parliament – New Post
June 29-30, 2009 – bids from International Oil Companies to be revealed
July 25, 2009 – KRG Parliament Elections
Mid July, 2009 – U.N. Security Council meeting on Iraq - New Post
August 21st to September 19th 2009 – Ramadan
October 2009 – International Compact with Iraq– Date to be Announced – Baghdad
December 7-9, 2009 Iraq Petroleum Conference London U.K.
December 31, 2009 – Development Fund for Iraq (DFI) expires
December 31, 2009 – Article Seven U.N. Charter expires
January 16, 2010 – Iraq Referendum Vote (SOFA Security Agreement)
January 16, 2010 - National Parliamentary Elections
THE IMF SBA LOAN
We are getting close but at the same time we are still far away from the IMF SBA loan for Iraq. Just yesterday in the Azzaman News just reported the Iraqi Parliament has passed the legislation to authorize the Central Bank of Iraq (CBI) to sell 2.4 Billion U.S. Dollars. This is good news and in step of what the American Contractor has been saying on the blog site for the last three weeks. T-Bills before the SBA Loan.
To accomplish the IMF SBA Loan the Treasury Bonds must be sold and then later the IMF SBA Loan will be accepted by the Iraq Government. I know there are groups out there that think RV before the SBA Loan or SBA Loan then RV and that's okay just that I don't agree that you need an RV before the SBA Loan. Just not going to happen. They are other pre stipulations that the Iraqi government will have to adjust before an RV will have a chance of succeeding and if you been reading the American Contractor Blog site then you already have an idea what some of those benchmarks are going to be.
AC has updated the Iraq important dates as there is two new dates listed. The Oil Minister will be front and center at the Iraq Parliament for his grilling in front of the Oil and Gas Committee just as I said in the last lengthy however, informative news letter on 20 June. If you have not read it feel free to log on and read it.
The other new Iraq important date is that the U.N. Security Council will have another meeting in Mid July 2009, to talk about Iraq and the lifting of Chapter Seven. Mostly to see what Iraq and Kuwait have agreed to with respect to each other countries and for the Kuwaiti files to be on track of getting resolved. Iraq will most likely get there monthly payment to Kuwait reduced to a lower payment from 5% to possibly 1%.
The next move on the T Bills is for the small and fragile Iraqi banking industry to step up and purchase the T Bills and assist the Iraqi government in gaining an infusion of badly needed funds to continue government services and programs. The next big thing besides the Oil Contracts coming up although as I have said don't be shocked if it is postponed, is the International Compact Iraq in Baghdad in October 2009. When I receive the actual date I will post it in the Important Iraq Dates.
RV UPDATE
There is still no evidence of a shift of the Iraq Dinar currency anytime soon especially when the Central Bank of Iraq has to execute the sale of the Iraqi government 2.8 Billion Treasury Bills. You have to consider also the meeting next month with the United Nations SC. Oil Contracts, serving arrest warrants for corrupt figures, acting Trade Ministry, first 30 days of oil exporting from northern Iraq.
The U.S. Dollar is still alive and well inside Iraq. Just maybe the CBI is creating the scarcity of the dollar in order to devalue the dinar...just thinking out loud.
In my next post I will talk about the already happening pricing and 3 digits it is interesting something no one mentions any where.
More to Follow...
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Iraq Chapter Seven and the IMF
Everyone would like to see for the most part Iraq get out from under Chapter Seven Resolutions as soon as possible. As I've mentioned in previous newsletters and commentary Kuwait has a major problem with releasing Iraq from Chapter Seven. Last month in May, the Iraqi government had a few setbacks just before negotiations with officials from the United Nations (UN) and the International Monetary Fund (IMF).
First, PM Maliki had announced that he was going to start a cabinet shuffle and replace a few cabinet members and you had the Iraqi Parliament with there quest to question several Iraqi government ministers such as the Trade Minister and Oil Minister and other Ministries.
PM Maliki knew of the allegedly corruption problems of the Trade Ministry office and I am sure PM Maliki wanted to fix the problems with his Trade Minister Abdul Falah al-Sudani. You remember that in March security officials went to the Trade Ministry office and attempted to serve arrest warrants before it was foiled by the Trade Ministry's own armed guards. Then in mid May Trade Minister al-Sudani was trying to flee to Dubai and possibly back to the U.K. since he is a holder of dual passports and was arrested and now out of jail after posting a $42,000 bond.
Then you had the problem with Kuwait who made it known that they wanted Iraq to remain under Chapter Seven until Iraq makes good on the war reparations and retrieving back Kuwaiti property. This is still unresolved and both parties will continue talks.
All that I have mentioned ties into the IMF loan and in a indirect way the Chapter Seven and I will give my commentary and analysis on both.
My prediction still is the IMF loan that is reported to be somewhere in the 5-7 Billion dollars will be only after the Treasury Bills (3-5 Billion usd) is approved by the Iraqi Council of Representatives (COR). The Treasury Bills will be sold by Central Bank of Iraq and buyers will only be from the Iraq banking sector. The Treasury Bills will pay 2 percent interest and will have a life of one year.
The Iraq COR will decide the actual amount whether it will be 3 Billion USD or more or less we will just have to wait and see what happens. Then you will see the IMF loan come into play and progress through the Ministry of Finance and Central Bank of Iraq officials and eventually the COR.
I am going to start talking about some of the stipulations that the IMF will possibly place on the Iraqi government that has been reported in either open source or from my network of professionals if and when they accept the IMF loan.
Structural Reforms to the Monetary and Economic Policies
Privatization of State Owned companies
Food Subsidies (Ration Card)
Technical Support
Restructuring of State Banks
You already know about the Central Bank of Iraq (CBI) just recently changed the interest rate from 9 to 7 percent. This was a signal to the Iraq banking industry to start generating loans to the Iraqi business and individuals instead of hosting the banking capital inside the CBI and earning interest with out any risk to the banks capital. If this move by the CBI does not create the activity it is trying to obtain it will most likely adjust the interest rate again. Some may think this is all done in agreement with the IMF as part of the SBA loan conditions. Remember those benchmarks?
The Privatization of State owned business could possibly be another stipulation from the IMF for Iraq to receive the SBA loan. This will prove difficult for the Iraqi government considering this is an election year and the Iraqi government would be hard pressed to stop the subsidies of the government workers. Even though the State owned enterprises have or most have been closed for several years the Iraqi government still continues to pay the salaries of the Iraqi workers who are currently not working. The Iraqi government refuses to fire the former State owned workers.
The Ration Card is another complex problem for the Iraqi government and I will explain my perspective on this. As you know the Iraq government Ministry Trade has sole responsibility for the ration card and its distribution to the Iraqi people. All Iraqi's have a ration card some have
more than one ration card and I'll explain but first let me give you some background info.
The former Ministry of Trade al-Sudani, was arrested as you know and was replaced by the Premier PM Maliki since then the now acting Trade Ministry is the State Minister for Parliamentary Affairs, Safa al-Din al-Safi, and now is learning the affairs of the Trade Ministry.
The Iraq Ministry of Trade has oversight over various imports, including food staples, automobiles, and construction materials. The Iraq Trade Ministry also is responsible for the program to provide monthly food items for Iraqi's, things like sugar, rice, milk, tea, cooking oil, and soap and all at deep subsidized prices.
Under the old Trade Minister there were frequent shortages, food that had been sitting for long term and distributed long after the food had expired and inedible or unfit for consumption. This would cause outrage with the Iraqi people. Now you see why they had problems at the Iraq Trade Ministry.
Each Iraqi uses the ration card to obtain these items in the following increments. You thought you had it rough in the good ole USA look at this list.
4-5 liters of Cooking Oil
2 kilos of Sugar
5 kilos of Flour
3-5 kilos of Rice
½ kilos of Salt
300 grains of Tea
3-5 kilos of Powdered Milk
2 kilos of Laundry Detergent
2 bars of Hand Soap
1-2 kilos of Beans
Each Iraqi Ration card holder after picking up these items that I have listed pay 25,000 Iraqi Dinars or $15 US Dollars.
This is each Iraqi's security net and they collect these rations each month. I made a statement earlier that some Iraqi's have more than one ration card. Let me explain this if you have a family of six people and all will have a ration card. At the height of the conflict say four people in your family fled to Syria for safety reasons and the other two members stayed.
The other two members that stayed inside Iraq collected the other four family members that fled to Syria rations for the month. The reason which is very common is that you have to maintain the ration card by getting the rations every month because if you stopped using it then that
person will be dropped from the rolls of the ration program. And to get back on the ration program is very hard.
Now the security so they say, has been better then last year and the other four members that were living in Syria decide now to come back home to Iraq. Now they still have their active Ration Card and can continue receiving the rations each month without having any disruption in receiving their monthly items thanks to the other family members continuing to receive the items.
Now if the IMF in regards to the SBA loan program had a stipulation for the SBA loan to reduce the subsidies of the ration distribution program how hard do you think that will be considering Iraq is still suffering from high unemployment, electricity for 2-4 hours a day, no water, and basic services. I am not saying it is not possible just very tough to do especially in a election year.
It will be awhile before Iraq can raise the standard of living for the people of Iraq and even if they do get the IMF loan it will still be only a third of the budget deficit. The IMF loan at the end of the year or into 2010 and before that the International Compact donors give there reconstruction funds in October 2009. I will keep updating the important Iraq dates at the top of the newsletter.
IRAQ OIL MINISTER
As you know the COR has been wanting to question the Oil Minister Hussein al-Shahristani, in front of the Oil and Gas committee of the Council of Representatives. To ask questions about the allegedly oil corruption and the lack of Iraqi oil exports in the last several years. And most likely questions about the first round bids which would be announced at the end of the month.
The Oil Minister will appear for his questioning session by the Oil and Gas Committee next week on Tuesday, 23 June, where he will answer questions from the committee.
The questioning is just in time before the announcements for the first round bids on 29-30 June. As I have said in the last newsletter do not be surprised if the bid announcements are postponed to a later date.
The Russians are engaging the Iraqi government on all levels and want to be assured that they will be obtaining Iraq Oil Contracts just like in the old Iraqi Regime days. They are a permanent member in the UN Security Council and they most likely will vote no in the lifting of the Chapter Seven from Iraq. They are using this as leverage against Iraq.
Iraq can afford to wait till the end of the year when the Chapter Seven officially expires. Either the resolutions will expire or be extended into 2010 and it all depends on the oil contracts. If you have problems with the Oil Ministry officials this could create delays in ever passing a agreeable Oil and Gas Law and the issuing of new Oil Contracts.
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American Contractor writes commentary and opinion about subjects about Iraq.
Iraqi Central Bank discusses possibility of removing zeros from Iraqi currency to increase dinar's morale value without affecting its real value.
Just reported in Arab Media...
It has been in interesting week with the Iraqi Council of Representatives (CoR) meeting last Wednesday which is the final day for this week to meet and will again next Tuesday. I guess the CoR was a little upset with what PM Maliki had to say to them in reference to there quest to question Ministers.
PM Maliki threatened the CoR that he would expose their corruption if the questioning of Ministers continues. After that statement from PM Maliki if I was a Parliament member I too would take a week off and really think about my position in my pursuit of the questioning of the Ministers. As you can see tensions were high in Iraqi CoR. PM Maliki made comments that he would uncover the corruption cases which he said involves 90% of the Iraqi Parliament. PM Maliki said he would rather not do this because it would hurt the Iraq's people confidence in the political process.
All political bodies such as the Supreme Judicial Council, the State, CoR, and Executive Authority are all allegedly succumbed to corruption. PM Maliki was saying “ Only 10% of the Parliament would go for this because the other 90% employs less than 10 actual bodyguards...rest are 'fictional names.'
PM Maliki is talking about one of the benefits of being a Iraqi Parliament member you get to have 30 bodyguards paid by the Iraqi government. Each bodyguard salary is 860,000 Iraqi dinars. Another benefit to being a Iraqi Parliament member is you get your own Armored vehicle that is exempt from traffic laws. Plus $50,000 USD to improve the Parliament member standard of living such as buying a house.
As you can see there are other great benefits to being a Iraqi Parliament member and they want to increase the current members of Parliament from 275 to 300 members.
You have seen reports of Iraqi's that want to stop the upcoming Oil bids to be announced on the 29th 30th of June by executives of Iraq South Oil Company and 20 other people who have submitted signed documents to stop the bids from being announced. They say the licensing will be selling 80% of the Iraqi reserves to International companies. I am not sure on the percentage of 80% but that is what the current reports are saying and will just have to wait and see what develops in the next few weeks. However, don't be shocked if the bidding process is postponed to a later date. The bidding contracts will be for 20 years.
The Iraq Oil Minister Hussein al-Shahristani, is refusing to pay those oil companies for the projects that they have completed in the North. The companies that are expecting payment are DNO International – Norway, Addax Petroleum – Canada, Genel Enerji – Turkey. The Oil Minister has suggested that the KRG pay the companies from there 17% of the oil proceeds and the KRG have rejected that idea.
In April of this year it has been reported that Iraq is considering a third Stand-By loan with a total anywhere from 4-7 billion dollars and recently it has been reported that this deal has not been finalized as the Finance Minister and CBI Director have already met with International Monetary Fund (IMF) officials in the last few days.
The reason that there has not been any agreement between Iraq and the IMF in reference to their billion dollar loan is the CBI and the Iraqi government are waiting on the very soon planned of the sell of 5 billion dollars worth of Treasury Bonds (1 year T-Bonds). The Treasury Bonds will have interest rate or 2%. Just as I have written in the June 6, 2009 newsletter the information is all there. The sell of the bonds still has to be approved by the Iraqi Parliament and that has not been done as far as I know and with the CoR being off this week it will not be this week for sure.
Remember also that what ever amount is approved in regards to the Iraq Treasury bills by the Iraqi Parliament whether it is 4 billion or 5 billion Treasury Bonds to sell with a 1 Year expiration date will set the parameters of how much of the IMF loan Iraq would be willing to accept. I am sure the Iraqi government will want to get the least amount from the IMF if the Iraqi government has to go in that direction to minimize those IMF conditions that will be certainly be imposed on the Iraqi government and Central Bank of Iraq (CBI). Examples of conditions from the IMF, how about Oil and currency...get the picture.
The IMF loan the third SBA loan agreement is for next year 2010 so the Iraqi government has plenty of time to decide what exactly they are going to do as the 2009 fiscal year end 31 Dec.
Another factor in deciding to get the IMF loan or not is the rising oil prices. This would be considered and the higher the oil price the better it is for Iraq.
I will say that the Iraqi government is very nervous about the SBA loan from the IMF and they will take there time in deciding anything about this particular IMF loan.
RV UPDATE
There is no evidence of any pending RV or anything with the Iraqi Currency to date. If you look at the important Iraq dates at the top of this document the Iraqi government has a lot of work to do before they can even structure a currency policy shift. Some may think other wise and that is okay as I believe we can all learn from each other and seeing different point of views on the subject and I am definite not afraid to admit when I am wrong. I provide these newsletters as commentary/opinions only based on research and networking with professionals.
Chapter Seven, still no word or announcements my prediction is that it will be the end of the year 31 Dec when it will either be lifted or extended into 2010.
THIS IS AN ARTICLE PUBLISHED IN BAGHDAD NEWSPAPER AL BAYYNA AL JADIDAH NEWSPAPER JUNE 15.
The Parliament Is Busy With Its Own Interests Such As Property, Loans, Grants, And Travel While It Has Left The Iraqi People Starving In Poverty; What Has The Parliament Provided For The People So That They Are Now Calling To Increase Its Number Of Members?
We are grateful for the suggestion that Parliament should increase the number of its members to 300. This will allow its numbers to divide evenly amount the increasing population. However, the Parliament is semi-absent in its role and is pre-occupied with its self-interests and never even thinks about the Iraqi people.
The Iraqi people are suffering from the Parliament because most of its members are giving false statements and do not fulfill their promises regarding providing services, eliminating unemployment, and stopping bombings. The Parliament always issues statements that have no impact on the reality of Iraq. We wish that the Parliament would allocate a few hours of its precious time to look into the Iraqi people's problems and discuss laws that would decrease their suffering a little. The Parliament excels in delaying the discussion of many important issues, such as the retirement pension of employees, military pensions, housing projects, electricity, water, cell phone services, and the shortage in medicine. These vital issues have been delayed for over a year. Instead, the Parliament Members are running like dogs for their permanent diplomatic passports, their real estate, their 0% interest loans, their luxurious vehicles, and never ending supply of bodyguards. Meanwhile, the skin of the Iraqi citizens is being barbecued in the heat of day, being bitten by bugs at night, and there is a near complete lack of electricity and water. Additionally, the fortunate citizen must stay up all night to draw water from the grid. Then, he must pay over half of his salary to the local generator operators for maintenance of his generator. We won't even mention unemployment, which forces many of our youth to join hands with terrorists and gangs.
This is our glorious Parliament, who, with all of its benefits was unable to accomplish anything. After all the sacrifices and patience during the Saddam era, what did the Iraqis get from the Parliament... ABSOLUTELY NOTHING!
The Iraqi people wish that they could turn back time and undo their mistake of voting for these people.
And, it gets worse the Parliament is expanding. The people can no longer handle the cost of additional Parliament Members, either financially or mentally.
Increasing the number of Parliament members means one thing: screwing the Iraqi people let all the poor people go to hell as long as the Parliament President is safe what significance does a million Iraqis have in comparison with the Parliament elite?
We say stop this at once! The people are fed up! We never had this type of situation during the era of the dictator.
END OF ARTICLE
June 18, 2009 UNSC meeting with UNAMI
June 29-30, 2009 – bids from International Oil Companies to be revealed
July 25, 2009 – KRG Parliament Elections
August 21st to September 19th 2009 – Ramadan
October 2009 – International Compact with Iraq– Date to be Announced – Baghdad
December 7-9, 2009 Iraq Petroleum Conference London U.K.
December 31, 2009 – Development Fund for Iraq (DFI) expires
December 31, 2009 – Article Seven U.N. Charter expires
January 16, 2010 – Iraq Referendum Vote (SOFA Security Agreement)
January 16, 2010 - National Parliamentary Elections
May 23rd American Contractor (AC) predicted the Deputy Prime Minister Barham Salih, had intended to resign his post as Deputy Prime Minister because he was engaging in the KRG elections that are going to beheld July 25th and since the announcement in Arab newspapers of Salih intended resignation a few days ago it is now looking like Salih will stay on as Deputy Prime Minister until important issues have been resolved. The DPM will continue to politic for his position in the KRG while at the same time attempt to pass positive legislation and resolve issues with in the Council of Representatives. DPM Salih will also remain at his current post until a successor has been named.
The Iraq Council of Representatives (CoR) is still adamant in questioning Ministry members even though the First Deputy Parliament Speaker Khalid al-Atiyah's, is trying to block the questioning of the Ministry of Oil Hussein al-Shahristani, which is also a weak attempt as the CoR will continue to push for the questioning of the Oil Minister. We hope to see some headway on this while PM Maliki is meeting U.S. Officials in Washington. The Oil and Gas committee has summoned the Oil Minister to CoR to be questioned about his failure in his Oil Ministry policies. Expect a committee to handle the questioning when the time comes for those interviews.
As the KRG is pumping oil in the north they are finding out that the oil from the Taqtaq oil field is of better quality than the oil from other Iraq fields. The KRG expect by the end of the year 2009 to be exporting 250,000 barrels per day.
The Iraqi Constitution is going to be amended and the final stages of this amendment is getting close. This another reason why the DPM Salih has stayed on to get things done.
The American Contractor has added new important Iraq dates above. The 29-30 June 2009 is when the Ministry of Oil Hussein al-Shahristani, will reveal for the first time in front of the whole world the opening of the bids from national and international oil companies. These bids will be for the cost of the barrel and the quantity of production. The bids will be for six of Iraq's biggest oil fields and two gas fields.
There has been two killings of officials one was the Iraqi Sunni MP for Accord Front Harith al-Ubaydi, killed in Baghdad after he attended Fridays prayers and an accidental shooting of the Iraqi Kurdish former deputy minister Bayiz Muhsin, accidently killed himself by a hunting rifle.
The indicators for a pending RV is not seen on the ground. The US Dollars are still being used the Oil and Gas law as predicted in my last newsletter dated 27 May stated that don't expect the Oil and Gas law until possibly next year as just reported in the Arab media to expect the Oil and Gas Law to be decided on next year's Council of Representatives. Chapter Seven don't think will be decided until next year in early 2010. The Russians and Chinese are waiting to see on what happens with the end of the month bids and to make sure that they get a share of the oil contracts before they decide to vote on the UN Security council in lifting the Chapter Seven. If one permanent member votes no than the Iraq Chapter Seven issue is unresolved.
The Oil Minister Hussein al-Shahristani, I think is safe for right now as the second round bids are at the end of month.
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Oil company executive arrested on terrorism charges.
More to follow in the next newsletter.
The Public Integrity Commission (PIC) has hundreds of arrest warrants to be served and just recently had served 317 warrants for having forged academic certificates in the last provincial elections. The PIC are concerned at the amount of counterfeiting that is going on.
Rumors are rampant in the Dinar world concerning an RV that is pending soon. We are looking into this and hopefully will provide information on this soon.
The Iraqi Parliament has just recently lifted the immunity of two members of the Parliament. More on this later as we are trying to find out what is going on with the Oil Minister Hussein al-Shahristani, resignation or questioning?
American Contractor does have good sources read the next paragraph.
In my 23 May 2009 Newsletter, I briefly mentioned that the Iraq Deputy PM Barham Saleh, would resign. I didn't go into details then and now I can say it is about getting close for him to lead the Patriotic Union of Kurdistan as their Prime Minister. According to ALARA ONLINE online news who is just the first report it after I mentioned it on 23 May.
Iraq deputy PM to quit to take up Kurdish role
One of Iraq's two deputy prime ministers, Barham Saleh, will resign within days to lead the main Kurdish bloc in elections in the autonomous Kurdish region, an aide said on Saturday.
Read the Article Here:
ALARA ONLINE NEWS
PM Maliki did speak to the Ambassador to Kuwait in Baghdad about the battle between the two countries.
HEADLINES IN BAGHDAD MEDIA dated 6 June.
Pakistan to Open Embassy in Baghdad
Security Council moves to lifting sanctions on Iraq
Over 70 MP's demand to legislate law compelling officials to abandon their foreign nationalities (Remember Trade Minister with Dual U.K., Iraqi Citizenship)
Government pressure to conceal truth in ministers questioning
MP's for taking Oil companies with contracts in the region off of Blacklist
Five Baghdad headlines that I have picked out of many. This is all for the street ground truth in Baghdad, Iraq.
Have you noticed that some of the things I've written in the Summary now are showing up a few days later in the media. It does help to establish credible contacts.
KUWAIT vs IRAQ
Surely everyone is following the current battle between the Iraqi and Kuwaiti Parliaments. In Baghdad, every newspaper is filled with articles on this topic. Let me get you up to speed on what is happening so far in this battle between the two countries Parliaments and then I will detail some of the quotes that have been published in the Arab newspapers. It is shocking.
You have read where Kuwait had sent a high level delegation to the U.N. Security Council with a letter that justifies Iraq's continued presence under Chapter Seven of the UN Charter (which was enacted after the Iraqi invasion of Kuwait 1990).
Iraq is blaming Kuwait for not being removed from Chapter Seven. In response to the actions of Kuwait, Iraq is now refusing to pay the remaining compensation that it owes Kuwait for the invasion during the Saddam regime (as per UN). In addition to skipping out on the debt, now the Iraqi Parliament is demanding that Kuwait pay compensation to Iraq for allowing the US forces to use Kuwaiti territory to Invade Iraq.
As I have said in my earlier newsletters that if you think the Chapter Seven will be lifted in June you are sadly mistaken. This is going to get ugly and fast.
The Kuwaiti Parliament has launched some vicious attacks against the Iraqi Parliament. Listed below are some quotes in the Arab media.
Kuwaiti Parliament To Iraqi Parliament: If it were not for Kuwait you would not be able to speak freely as Parliament members...You all would be in prison or refugees in Exile!
Kuwaiti Parliament Member Khalid Al Tahous addressed the Iraqis saying, We gave you glory and dignity, and we freed you from oppression -but your Parliament is being ungrateful. It should be forcing your government to pay its debt to Kuwait.
Kuwaiti Parliament Member Saídoun Al Utaibi criticized the Iraqi Parliaments statements by
saying, They are ungrateful towards Kuwait.
Kuwaiti Parliament Member Hussein Al Huriti said, Kuwait did its part to help the Iraqi people.
The Iraqis were being crushed by the fist of a dictator who destroyed his country, brought
suffering upon his people, and plunged the region into wars that wasted many resources.
Kuwaiti Parliament member Falah Al Sawagh said, ìWere it not for Kuwait -Saddam and his aides would have perched on the chest of the Iraqi people for decades. Iraq should be grateful to Kuwait and Kuwaitis.
Kuwaiti Parliament Member Naji Al Abd Al Hadi said, the Iraqis should urge their government to reveal the fate of the Kuwaiti prisoners and to follow international regulations.
Kuwaiti Parliament Member Hussein Muzid, The broken record of Iraq is playing once again to stop us from being given what is rightfully ours. We will not be quiet we will not stop in demanding our rights. The Iraqi Parliament's bullshit means nothing, because no one stands between a Kuwaiti and his rights.
Kuwaiti Parliament Member Mohamed Al Hayif, Those who demanded that Iraqis debt be cancelled should shut up, especially after the recent anti-Kuwait statements made by Iraqi Prime Minister Nuri Al Maliki and the Iraqi Parliament.
Kuwaiti Parliament Member Mohammed Al Huwaila said, Kuwait saved Iraq and its people from oppression that had lasted for decades. The Iraqi Parliament should have urged their government to pay Iraqís compensation to Kuwait instead of making hostile statements.
Kuwaiti Parliament Member, Saíad Zunaifer said, Kuwait gave freedom to the Iraqi people, and they are enjoying this freedom as we speak. Kuwait had a large role in freeing Iraq from imprisonment under the Tyrant Saddam Hussein. Now, the Iraqi people are enjoying democracy and the ability to make their own decisions.
Kuwaiti Parliament Member Salim Al Namlan said, The Iraqi Parliament should have sent a delegation to thank Kuwait. If it were not for Kuwait, they would have not been able to become Parliament Members and speak freely. They would have either been prisoners or refugees in exile.
Kuwaiti Parliament Member Waleed Al Tabtabaei said, The Kuwaiti government should withdraw the Kuwaiti Ambassador from Iraq if this goes on.
Kuwaiti Parliament Member Jamían Al Harbash refused any leniency regarding the Iraqi debt issue.
Kuwaiti Parliament Member Dulaihi Al Hajiri said, If revenge was on Kuwaitis mind, then the Iraqis would not be enjoying the freedom that they have today. The Iraqi Parliament Members statements show nothing but their hatred of Kuwait -which is something they have in common with the Saddam regime.
From the Iraqi side, Kurdish Coalition Parliament Member Mahmoud Othman responded to the Kuwaiti Parliament Members statements saying, Iraq must take action in response to demand to withdraw the Kuwaiti Ambassador from Baghdad. The Iraqi governments weak position regarding Kuwait, and the routine visits to our southern neighbor over the past five years, has given the Kuwaitis the impression that Iraq is weak. The Kuwaiti Parliaments demands are unreasonable and wrong. Kuwait should have cooperated with Iraq in finalizing the compensation file instead of conducting its international campaign to keep Iraq under UN Chapter 7.
After reading the above quotes from Kuwaiti Parliament members I think we can all agree the event of having the UN Chapter Seven against Iraq lifted anytime soon is mute.
It is going to get worse as the Iraqi Parliament members prepare to hold a public referendum to determine whether or not Kuwait is part of Iraq. No I am not joking.
Iraq will pursue the issue of Kuwait to pay compensation to Iraq that allowed the US forces to invade Iraq. Just so you know Kuwait population consists of 30% Iraqi 40% Saudi, Omani, Bahraini origins, and 30% Iranian. Nice combination.
We will have to see how this plays out which I do think it is going to get a little heated between the two countries as you will see other regional players take sides on the matter or become neutral.
IRAQ ARAB NEWS ARTICLE:
From his side, Iraqi Parliament Member Waíel Abdul Latif said, Now that the Kuwaiti government has taken a position regarding this issue, the Iraqi government must do the same. The Parliaments intervention will force the government to take serious and realistic actions to end the compensation issue. The Kuwaitis are aware more than anyone else -that the Iraqi people are not responsible for Iraqis past debts. The Kuwaiti Parliament should have a clear understanding of this problem.
After the invasion of Kuwait, the UN Security Council imposed sanctions on Iraq, such as paying compensation and freezing Iraqis assets abroad. Thus far, Iraq has paid more than 13 billionUSDÖ and still required to pay an additional 41 Billion USD to Kuwait. The UN Security Council forces Iraq to pay 5% of its oil revenue as compensation. Repeatedly, since the downfall of the Saddam regime, Iraq asked countries to cancel their past debt or decrease the amount of compensation.
IRAQ EDITORIAL ARAB NEWSPAPER
We say to the Kuwaitis, You of all people know that the Iraqis are made courage, kindness, nobility, generosity, and bravery. You also know the patience of the Iraqi people. Our people began civilization and taught humanity and writing. We are above answering questions from your kind because what you say means nothing. Nothing surprises us from a paranoid neighbor like you, especially after you held the hand of the worst dictator of our age. A dictator who sold his own people cheap in a relationship that caused us nothing but destruction and ruin. Your motives are as clear as the sun.
We call on you to use dialogue and reasoning in solving all issues. Lastly, we ask you: What will happen if you withdraw your Ambassador and cut you ties with us? Allah is merciful to those who know their own size
The Oil Minister Hussein al-Shahristani from what I am hearing is doing everything he can to stall from appearing in front of the Council of Representatives Oil and Gas committee. It won't be long just a few more days. Either al-Shahristani will appear and get a shellacking or he will resign.
In this Summary I have included PM Maliki speech that he had made while he attended the Iraq Investment conference in London U.K. On 30 April of this year. I do have all his speeches translated and also others like the CBI Director Shebebe.
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Prime Minister Al-Maliki addresses London conference on investment in Iraq
[Speech by Iraqi Prime Minister Nuri al-Maliki at a conference on investment opportunities in Iraq, held in London on 30 April - live]
In the name of God, the Merciful, the Compassionate. God's peace and blessings be upon you.
Iraqi and British ministers, heads of international and British-Iraqi companies, and businessmen attending this esteemed conference: My greetings to you and thanks for your attendance. I wish this conference success. I would also like to send my greetings and thanks to British Prime Minister Gordon Brown for giving us this opportunity and for calling for this conference, which will hopefully succeed in fulfilling our desire to develop the infrastructure of the Iraqi economy and public services, God willing. Once again I would like to express my thanks and appreciation to all those who responded to this kind initiative to hold this conference. I would also like to seize this opportunity to convey in the name of the Iraqi Government and people our thanks to the government of her majesty the queen and the British people for their support for the Iraqi Government and people during the years which followed the fall of the former regime. Honourable audience: During the dictatorial era, the Iraqi people suffered from a despotic regime, which adopted the ugliest policies of repression, oppression, discrimination, and marginalization. The Iraqis reaped nothing in 35 years other than executions, mass graves, imprisonment, and internal wars, during which internationally banned chemical weapons were used.
This is in addition to launching war on our neighbour Iran and invading the sisterly State of Kuwait. The armed groups and terrorist organizations adopted the same subversive policy adopted by the former regime. This increased the magnitude of destruction in all state establishments and the infrastructure. It is a source of pride for us to say today that the army, police, and security forces, supported by the Iraqi people and friends and by the success of national reconciliation, have managed to rescue the country from the abyss of civil war, which targeted the unity and sovereignty of Iraq and sought to disrupt its social fabric. Our success in consolidating security and stability is of paramount importance to our armed forces and security services because it enables them to take over from the multinational forces full responsibility for security in accordance with the agreement we signed with the United States on the withdrawal of foreign troops. Moreover, it is a golden opportunity to activate the economy, which is the most important thing. Security and economic prosperity are interconnected. We cannot talk about stable security without an economic progress that activates markets, achieves justice in the distribution of wealth, and provides more job opportunities for the unemployed. Likewise, we cannot talk about economic progress without having a stable security. This means security and economy must be given equal attention. Iraq today is a democratic country, in which freedoms are respected. It is a country governed by law and constitution. It adopts the principle of peaceful rotation of power on the basis of elections. Elections were held four times and the world stood witness to their fairness and transparency. Iraq is getting ready for the second parliamentary elections at the end of this year. This will bolster the political process and the building of state institutions and stabilize the political system. Ladies and Gentlemen: Among the most serious challenges we faced after 2003 was the heavy economic legacy we inherited from the former regime. The state used to monopolize everything. It was the side that planned, executed, disbursed funds, employed, and bought and sold under a centralized totalitarian regime, in which the private sector was marginalized and isolated from world developments. The process of construction stopped during the dictatorial regime. Not a single school or hospital was built as of the early 1980s.After our assumption of the chairmanship of the national unity government in 2006, and in spite of the difficult circumstances in Iraq at that time, we decided to move ahead and reform the national economy, support the private sector, and provide the necessary conditions that guarantee a sound and well-studied shift from the centralized government economy to the free and mixed market economy that establishes a base for diversified production base that can fulfil the needs of development. We are working for an open economy that is integrated with the economies of the countries of the region in a manner that achieves prosperity for our people. We have made a large stride along the path of economic reform by creating an appropriate legislative environment for work and investment. A number of laws were enacted, including an investment law, an investment system, and other laws regulating economic activities. We are firmly committed to openness on the world by joining the World Trade Organization and by continuing to take measures that facilitate contractual and financial mechanisms, remove bureaucratic barriers, reform the banking system, open doors for world banks and financial institutions and expertise, and ensure the freedom of transfer of funds from and to Iraq. We concentrated our efforts on combating financial and administrative corruption, which we consider the other face of terrorism. Developing the private sector is an expression of our faith in this sector's importance and historic role in bringing about major changes in the process of economic growth and in effectively contributing to our GDP. Businessmen are the main motivators of growth. Neglecting them will lead to economic crises and recession. Today we are more eager than ever before to have an active and distinguished private sector that plays a key role in economic life side by side with state institutions. We will remove all obstacles preventing its development or renewal of its activity so that it can contribute to bringing about the desired economic transformation. Ladies and Gentlemen: The diversification of the sources contributing to the GDP is considered one of the important factors that secure the attainment of reasonable rates of economic growth and that keep the economy far from the fluctuations caused by dependence on only one source of income. The reactivation of these sources, represented by agriculture, industry, housing, services, and other sectors, will greatly help reduce unemployment rates and offset the deficit in the balance of payment and balance of trade. This will also reduce the effect of foreign fluctuations, reduce inflation rates, and avoid severe economic cycles. Full dependence on income from only sector, represented by oil, will pose a number of threats. Restructuring the economy has become essential for economic reform. The Iraqi economy has witnessed a noticeable stability in the monetary and financial sectors during the last two years. This happened as a result of stability in the exchange rate of the Iraqi dinar against the US dollar and the drop in inflation rates from 53 per cent in 2006 to 7.6 per cent in 2008. This drop in inflation rates proves the stability of the economic situation and reflects positively on the chances of providing a secure investment environment that secures a future vision that is built on firm and solid foundations. The size and nature of the goals set for the investment policy depend on the volume of the investments that are required to develop the infrastructure, something which exceeds the ability of the Iraqi economy to provide at present. The economy needs about $187.7 billion for the period between 2007 and 2010 to counter the effects of the drop in oil prices and adopt an! economic policy, in which the private sector plays a distinguished role. The Iraqi economy has maintained its balance this year in spite of the changes that occurred in world economy and the large drop in oil prices as a result of the global financial crisis. This balance was maintained through the mechanisms and arrangements made by the government to deal with this crisis and alleviate its effects. This reassures investors and encourages them to enter the Iraqi market. Cutting time short is essential to make up for the years of deprivation the Iraqi people lived for 35 years and for the stoppage of the machine of building and reconstruction for tens of years. The Iraqi Government, which is trying to develop and establish investment, development, and industrial zones and economic cities to receive world companies, is working hard towards this end in cooperation with the various international organizations like the United Nations, the Organization for Economic Cooperation and Development, and the EU, in addition to bilateral cooperation with the Arab and foreign countries. We have a strong desire for cooperation and for opening the doors for investors willing to enter the Iraqi market. The Iraqi Government highly appreciates the stance adopted by the countries which participated in the two International Compact conferences held in Sharm al-Shaykh and Stockholm. These two conferences were an international demonstration in support of the measures and reforms made by the Iraqi Government in the various fields. It pleases me to extend my great thanks to the countries which expressed their willingness to participate in the upcoming International Compact conference, which will he held in Baghdad in October this year.Honourable audience: While trying to diversify our sources of income and end the state of almost complete dependence on oil revenues, and while trying to open the doors for direct foreign investments and enable the Iraqi private sector to play an increasing role in economic activity, we are working hard at developing the Iraqi oil industry in a manner that is commensurate with the large oil and gas reserves Iraq has and with the large financial needs and the need to improve services and create jobs. We do this with a feeling of responsibility towards the world by providing it with oil and gas supplies out of our desire to stabilize world markets and reach prices that are fair for both producers and consumers. We look forward to the presence of the British oil and gas companies in Iraq to develop the oil extraction industry there. We assure you that the national unity government is committed to creating a climate that attracts direct foreign investments. We wil! l continue to take all measures, including the completion of legislative reforms, to provide more incentives and guarantees. Iraq possesses natural resources and human capabilities in the form of qualifications, expertise, and scientific potential that are sufficient to launch a large development plan after the elimination of the obstacles represented by financial and administrative corruption, unemployment, terrorism, and debts. In spite of all these capabilities, Iraq continues to need an international effort to contribute to the process of building and reconstruction. The government was eager to activate the economy by establishing the National Investment Commission and presenting an investment draft law, which was approved by the Council of Representatives. This law opens the door for national and foreign investments alike in a manner that will help develop the Iraqi economy and provide many job opportunities to citizens and help rebuild the infrastructure for the prosperity of the Iraqi people. The Iraqi Government has also presented an oil and gas draft law to the Council of Representatives. Approving it will ensure the just distribution of wealth in all Iraqi governorates in a manner that achieves economic growth and development in all domains. The government drew up an ambitious plan to rebuild the infrastructure in the fields of agriculture, industry, housing, health, higher education, electricity, transportation, and tourism. These are open for direct investment by the private, public, and mixed capital. I think you will be briefed on this during this conference. From this podium and in the name of Iraq and its government, I call for partnership with the friends who are willing to work with us. Oil and gas companies, oil service companies, contracting and equipping companies, engineering companies, investors, financial houses, banks, and development establishments can benefit from the large opportunities provided by the promising Iraqi market. You will find that the people of Iraq are friendly and hospitable people who love progress and prosperity. Thank you for your attendance. We hope to meet with you in Baghdad. God's peace and blessings be upon you.
The Oil and Gas committee just asked for the Oil Ministry Hussein al-Shahristani for his resignation…this is developing.
More to follow.
I mentioned in one of my posts a few days ago that if Iraq does not improve their energy infrastructure and oil wells that Iraq oil exports will drop.
Let's hope they get to the 70 of the most important oil wells in Iraq that have been depleted due to bad extraction methods. I could make a list of how bad the Oil wells are but some other time. I will say the reports are that if nothing is done to get the production levels up very soon than the production level will start to drop from the current levels.
The Wall Street Journal agrees and is saying the same thing.
WSJ Article
Experts warn that because of dilapidated equipment and years of neglect, Iraqi oil production will decline and continue to do so unless Iraq enlists expertise assistance from foreign oil companies.
Baghdad -- Iraqi Oil Minister Hussein al-Shahristani says he is ready to face questioning by critical lawmakers, but said parliament members have an impure agenda in their accusations against him.
Mr. Shahristani has come under increasing fire for failing to boost oil production during his three years as the oil minister. The Iraqi parliament plans to summon Mr. Shahristani to answer allegations of mismanagement and corruption.
New developments in the cause of lifting the immunity from certain Parliament members may have come to a close. It looks like the immunity of those in parliament have been lifted on the condition that the Iraq Council of Representatives (CoR) withdraw there petitions to question the Ministries. The powers to be are asking that the (CoR) can only question Ministry members only when they have sufficient evidence of any wrong doing.
Hopefully this would give the investigators of the Integrity commission more credibility to start acting on the many cases that they have ongoing and cases that just have been sitting on the shelf. In the last few months many arrest warrants have been served on warrants for Iraqi's being accused of various crimes.
You remember a few weeks ago the Iraqi Ministry of Finance had decided to sell treasury bonds at a 2 percent interest rate. The majority of the funds will be given to the Ministry of Electricity and in financing the water projects and waterways. The treasury bonds will be included in the 2010 year budget just as soon as it is approved by the Council of Representatives (CoR) they haven't approved anything as of yet with everything else that is going on with the Parliament.
When the Iraq government submitted the 2009 budget to the Iraq parliament out of the gate it was already facing a 27% deficit before a single dollar made it to the government coffers. Iraq depends on oil sales to pay for the 2009 budget which has been seriously lacking since the high price of oil last year. An economic expert in Iraq recently stated that the treasury bond sell is not sufficient to plug the deficit and meet the needs of the Iraqi economy, and that the Ministry of Finance cannot issue more treasury bonds.
There were several options for the Iraqi government to close the deficit gap. And issuing one year treasury bonds was one of them. Other options were.
To seek foreign loans (London Investment Conference April 29)
Relying on Surplus from previous budgets
Resorting to funds that are unused to various Ministries and governates
The Central Bank of Iraq in regards to the treasury bonds expressed reservations about the deal and everyone is waiting on approval from the Iraqi Parliament. That is why the meeting with the Council of Representatives will be coming up with the Ministry of Finance and the Central Bank of Iraq Director. Just so you all know the Council of Representatives rejected treasury bonds before. I am confident that the CoR will pass the treasury bills it is just a matter of when. I am sure it will be after the two meeting of minds between the MoF and CBI.
The Iraqi government is confident that they will be able to cover the 2009 budget deficit after selling the treasury bonds, loan from the IMF for 7 Billion dollars, the KRG government pumping oil in the Al-Turiq and Taqtaq oil wells in Northern Iraq. The Iraq government is counting on the higher oil prices next year to help them recover from the deficit in the budget.
The bonds the Iraq government plans to issue is 2.4 billion dollars for the electricity contracts and the other 600 million dollars will be for the water and railway projects.
The buying of the treasury bonds will be up to the banks and not the CBI and will be conducted in U.S. Dollars. It is not known if the Iraq government will be selling more treasury after the 2010 bonds have been fully paid back and they like to think that the selling of treasury bonds is for emergency purposes only.
When talking about investments in Iraq the Iraq government is looking at economic reforms and getting away from the complex system they have been operating under. The 'One window' system instead of the long drawn out mind boggling system that nobody know how to navigate the complex system of how to secure your investment.
Iraq is attempting to improve the investing climate for foreign investors which is not going as well as expected due to Investment law not completed as it needs to be amended and also the fact that the GoI is looking at tax exemptions for investors, and talking about leasing land for 50 years with a renewal of 100 years which would be good for those foreign investors that are thinking of coming to Iraq. Look for in the future for foreign investors to own land in Iraq.
Important Iraq Dates
July 25, 2009 – KRG Parliament Elections
July 31, 2009 – Iraq Referendum Vote (SOFA Security Agreement)
January 16, 2010 - National Parliamentary Elections
August 21st to September 19th 2009 – Ramadan
October 2009 – International Compact with Iraq– Date to be Announced – Baghdad
December 31, 2009 – Development Fund for Iraq (DFI) expires
December 31, 2009 – Article Seven U.N. Charter expires
More to follow...
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