American Contractor

IMPORTANT IRAQ DATES

Today is the day for the UNSC meeting on Iraq in regards we all hope to the Iraq Chapter Seven. My speculation is that Iraq will continue to remain under Chapter Seven closer to the end of the year or may very well be removed. After the first round of Oil Bids I am not so sure if some of the permanent members of the UNSC will vote yes at this time. Kuwait has nothing to do with this as it is all in the hands of the UNSC. Iraq's problem with Kuwait is the war reparations and recovering property this is one of many UN resolutions and this is not the same as Chapter Seven in regards to Iraq being a threat to it's Arab neighbors. The recent signing of the SOFA agreement last Dec 2008 inside the agreement Article 25 is very important in lifting the Chapter Seven however, it is up to a vote with the permanent members of the UNSC and not everyone is voting yes.

The Iraq Parliament Speaker along with other members of the Iraqi government as reported did travel to Kuwait and did deliver documents and currency to the Kuwaiti government.

IMF SBA LOAN

The IMF SBA 'loan' estimated 5.5 billion and the total is just speculation because the actual total has not been confirmed as of yet is not a loan it is a quota. Iraq has loans and they have quota's. The current IMF Loan Iraq is possibly pursuing is just a quota and not a loan.

Iraq has a quota with the IMF the current amount is for 1.8 billion dollars at the IMF. This is a line of credit that exists that the Iraqi government can pull from if they feel they need the money at any time.

This quota was part of the agreement at the meeting held in Amman Jordan.

This is the quota in reference to Iraq directly from the International Monetary Fund (IMF) web site.

http://www.imf.org/external/np/tre/quota/status.htm

There is a difference between a loan and a quota from the IMF.

It has been reported in Arab media statements by the Iraq Finance Minister Jabr al-Zubaydi, that Iraq will not be needing any loans from the World Bank.

Last January in the Wall Street Journal there was an article about western banks helping Iraq.

Article excerpt: From the Wall street Journal 28 Jan 2009

Western Bank Giants Prepare to Revamp Iraq’s Financial System
Representatives from J.P. Morgan Chase and Citibank reached a handout to their Iraqi counterparts today, saying they were ready to work with local banks to help modernize the financial system in the war-torn country. Iraq’s banking system needs a complete overhaul, from boosting international wire transfer capabilities to setting up ATMs to establishing widespread use of credit cards. Like many sectors that languished under the Saddam Hussein regime, banks in Iraq remained relatively cut off from the modern financial world during the years of the dictatorship.
http://blogs.wsj.com/iraq/2009/01/28/western-bank-giants-prepare-to-revamp-iraqs-financial-system/

I've mentioned before that the Iraqi banking system is small and fragile and is in badly need of investments to build back up their infrastructure. The Iraqi banking needs guidance and technical expertise, training, cash to get the Iraqi banking industry into the 21st century.

The Iraq Central Bank (CBI) is about to approve if they have not already to start opening CHASE Banks in Baghdad. And I would not be surprised if CITI bank is also very soon will be opening branches in Baghdad. The time frame well..there is more information to follow. This is major and doing this will get the foreign investments that the Iraqi government would like to see a major western bank a bank branch in downtown Baghdad. There is no link to this info it is based on open source mediums. You can believe it or not and when it happens just remember that the American Contractor blogger was the first to mention CHASE BANK in Baghdad.

The article in the WSJ was the first inclination that something is more happening just a matter of time. Plus a few months ago the CBI was working on approving more international banking licenses and that was reported in the media.

RV UPDATE

There really is none and it is business as usual. There a Technical meeting in regards to Iraq.

There is more to follow.

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