Thread: Archive News - Iraqi Dinar Think Tank - 24/01/201 - 23/07/2011

US withdrawal will not affect relations with Iraq - MP
A State of Law Bloc MP disclosed that there is a U.S. desire to retain some of its units in Iraq following the date for their total withdrawal at the end of the current year.

"It is clear from their political messages," MP Saleh Al-Hasnawi noted.

He declared to Aswat al-Iraq that the withdrawal will not affect the relations between the two countries.

"The Iraqi position is not clear; a matter that should be resolved by Iraq and by respecting the will of the Iraqi people", he elaborated.

The security agreement between Baghdad and Washington signed in November 2008 stipulates that the U.S. forces should withdraw from all Iraqi territories, space and waters by the end of this year. By June 2009, U.S. forces withdrew from all Iraqi cities and villages.

"There is a conflict in political opinions, some support an extension of the U.S. forces stay, while others oppose.

As of now, no decision has yet been made," Hasnawi added.

http://www.zawya.com/story.cfm/sidZA..._with_Iraq__MP

20th May 2011

Iran And Iraq Near Oil Deal

A long-running dispute over oil fields on the Iran-Iraq border might soon be resolved, according to Ali al-Sjeri, the Iraqi minister of state for foreign affairs.

Speaking to Aknews, he said that talks were now at an “advanced stage”.

“The Iraqi government looks forward to good relations with neighboring countries, without affecting Iraq’s economic interests and the violation of our sovereignty,” he said.

Just a few years ago, Iran sent troops across its border to occupy an oil field in southern Iraq, and Iraq accused Iran of stealing its crude oil and of espionage.
In coming to a deal, Prime Minister Nouri al-Maliki must balance relations with Iran against the anger that Iran’s actions have stirred up

http://www.iraq-businessnews.com/201...near-oil-deal/

Iraq VP calls for immediate amendments on security plans

Iraqi Vice President Tarek Al Hashemi urged security officials to introduce immediate amendments to the security plan in light of mounting security violations.

Al Hashemi called for an urgent stand to accelerate the appointment of security ministers, a source told Alsumaria.

The series of security violations in Baghdad on Sunday require taking immediate measures including the upgrade of security forces readiness few months ahead of US Forces withdrawal from Iraq, he added in a statement released by his office.

http://www.alsumaria.tv/en/Iraq-News...ity-plans.html

ONGC sizes up assets in Iraq

State-owned explorer ONGC Videsh Ltd (OVL) has submitted pre-qualification bids for 12 blocks in Iraq in line with the Centre’s strategy to strengthen the country’s energy security. The auction of the oil and gas blocks will take place early next year.

“We have submitted the pre-qualification bids to be considered for the fourth round of auction. The names of the successful firms will be announced in June and they will have to bid for the blocks in January,” company sources said. OVL is the overseas arm of ONGC.

“We will scout for joint venture partners after the pre-qualification round. We are quite optimistic of making to the next round as we have past experience in that country,” the sources said.

The blocks on offer are in the provinces of Babil, Basra, Dhi Qar, al Muthanna, Najaf, al Diwaniyah and Wasit in the south, Diyala and Nineveh in the north, and al Anbar in the west. The bidding will be for seven gas and five oil blocks.

This will be the fourth round of bidding for foreign companies; the earlier auctions were held in July and December 2009 and October last year.

At present, OVL is the sole licensee of Block 8, a large onland exploration region in the western desert of Iraq. It had secured the block in 2001. However, the terms of the contract are being renegotiated by the Iraqi government following changes in their oil and gas laws. Iraq has proven oil reserves of 143.1 billion barrels and gas reserves of 129 trillion cubic metres.

http://www.telegraphindia.com/111052...y_14017195.jsp

Arab-Chinese Economic Forum kicks off tomorrow with the participation of Iraq in Doha

from Iraq to take part in the meeting of senior officials of the China-Arab Economic Forum which kicks off on Sunday in Doha, Qatar for three days.

The ambassador said Qais al-Azzawi representative of Iraq at the Arab League, told the Kurdish news agency (Rn) announced today that "Iraq has involved a large delegation of senior officials in the ministries of foreign trade, as well as Iraq's ambassador to Beijing, the representative of Iraq at the Arab League, to discuss the role of Chinese investment, and increase the size of trade with Iraq. "

And that "there are large projects currently being implemented in various provinces of Iraq, including the Kurdistan Region to Chinese companies, particularly important in the field of oil, we also have a variety of commercial exchanges of goods, the Iraqi market is full of Chinese goods."

He said al-Azzawi, "The Platform for the meeting includes a consultative meeting attended by the Permanent Representatives of the Arab League, and the Secretariat, and officials from the Chinese side, and general manager of Western Asia under the chairmanship of Qatar, being the host of the meeting."

He pointed out that "the volume of trade exchange between Arab countries and China of 48 billion dollars annually, and the Arabs aspire to increase trade exchanges," noting that "there are Arab projects in China will be discussed."

http://www.aknews.com/ar/aknews/2/241286/

The UK Should Benefit From Iraq

Tony Blair’s former political strategist, John McTernan, has said that, since the UK’s troops are leaving, “our businesses should head there.”

The last 100 UK troops, who were training domestic forces, pull out on Sunday. Writing for The Telegraph, he stated about the Iraq War: “The first thing to be noted is that our intervention was, by and large, a success. There have been two elections, and strong political figures are emerging.

“There are still huge security issues to confront, and regular assassinations and bombings, but the fact remains that Iraq is now a successful democracy.”

Having visited Iraq, McTernan expressed a strong sense that Britain (we are sure he meant to write the United Kingdom, which includes Northern Ireland) has a good image there. Yet UK companies are not investing there, even though Iraqis would willingly do business with them.

They are asking “Where are your companies?” and “Why aren’t they bidding for work with us?”

With so many opportunities in the country, from manufacturing and agriculture to oil and gas, it is surprising how few UK companies are getting involved.

McTernan explains that the surprise is that the UK is not in there taking advantage of the part it played in liberating the country: “There may be only one country in the world today where a majority – the vast majority – of the population still support the invasion of Iraq: but that country is Iraq itself. And we should be quietly proud of what we have done for its people.”

http://www.iraq-businessnews.com/201...fit-from-iraq/

19th May 2011

SOMO: Iraq oil exports exceeded 2 million bpd in 4 months

Iraq's State Oil Marketing Organisation (SOMO), affiliated to the Ministry of Oil said on Wednesday that Iraq exports of crude oil during the last 4 months exceeded 2 million barrels per day adding that the prices rate exceeded $ 100 per barrel.

During an interview with Alsumarianews, SOMO General Director Falah Al Ameri said that the rate of Iraq exports of crude oil since the beginning of January and till the end of April 2011 reached 2.165 million barrels per day with an average price of $102.59 per barrel in comparison with 1.600 barrels in 2007 and 1.850 barrels in 2010.

Iraq exports from Basra crude oil to East Asia countries especially India increased to 65% in comparison with 28% in 2006 and 60% in 2010. “India and China own huge refineries and oil markets are steady in East Asia,” he said.

“Oil markers, known as crude oil benchmarks used in East Asia are stable and aren’t subject to fluctuations similar to that of USA and Europe. To that China and India ask for additional quantities of oil because of the great economic growth in the two countries,” Al Ameri added. Iraq also started to provide south Korea with 166000 barrels of crude oil per day and it will increase the quantity to 250 barrels during the upcoming year after a deal with Seoul to develop economic projects in Iraq, the same source uttered.

“Iraq exports 80% of Kirkuk oil to Europe and 20% thereof to America”, SOMO GM said.
Iraq exports his crude oil from the ports of Basra and Khawr Al Amiyya on the Arab Gulf and from Ceyhan Turkish port on the Mediterranean; it also exports oil by trucks towards Jordan. 90% of Iraq exports are from Basra oil while the other quantity of exports comes from Kirkuk. Nowadays, Iraq produces 2.700 million barrels of crude oil per day

http://www.alsumaria.tv/en/Economics...-4-months.html

18th May 2011

Parliament: will migrate most of the foreign workers from Iraq

Iraq decided to deport foreign workers are members, including Asians during this month in an attempt to solve the unemployment crisis in the country, according to the Labour and Social Affairs parliamentary elections.

And submitted to Iraq after 2003 many of the Asian workers, especially to the Kurdistan region because of the security it enjoys.

And works most of the foreign workers in the submission of applications in the cleaning business and secondary in the kitchen in the reception and delivery of patients, cleaning floors in private hospitals, as well as in hotels, cities eligibility games.

And many workers prefer Asians to come to Iraq despite the security situation compared with the Gulf countries, and Asian workers are paid lower wages than those charged by the local group, ranging between 100 to 300 dollars a month.

A member of the Committee on Labor and Social Affairs parliamentary Kazem Al-Shammari, during an interview made by the Agency (Rn) «We have agreed with the Ministry of Labour and Social Affairs and the Interior Ministry to deport all Asian workers from Iraq and the withdrawal of licenses companies that Bastqtabhm from their countries».

According to press reports, there are three companies specialized hands to bring foreign workers to Iraq is licensed by the Ministry of Labour.

Shammari said that «this agreement comes to reducing poverty in Iraq through the development of radical solutions to the problem of unemployment and to support local industrial projects».

Shammari explained that «the Ministry of the Interior would arrest all foreign workers currently in Iraq and deported to countries that were brought them».

http://www.alsabaah.com/ArticleShow.aspx?ID=7732

New ways of development funds and financial institutions

Considered the advisory board with representatives of six ministries, experts and advisers in the ways of organizing new laws are consistent with the philosophy of government in the development of funds and financial institutions.

The head of the Thamer Ghadban, who chaired the meeting through a statement read by NMC: that Iraq is in transition, and the political vision of the government is moving towards a market economy, and activating the private sector, stressing the need to organize new laws are consistent with the philosophy and vision of the government in this phase.

He added that the main tasks is to find means of financing and concessional lending lead to stimulate the private sector and open new horizons of labor.

The statement said the meeting discussed the primary task of the Commission's work in terms of a new law takes into consideration the new philosophy of government, the study of financial laws governing and regulating the work of financial funds and determine the reference Graduate her, After reviewing the international experiences that have achieved success in the management and development loan funds. The Committee is composed of competent representatives of the ministries of planning, finance, trade, agriculture, construction, housing, employment and social affairs, as well as a number of experts and advisers in the body.

http://www.alsabaah.com/ArticleShow.aspx?ID=7731

Transforming NGO Microfinance Institutions to Non Bank Financial Institutions

For a long time now, the discussion continues within different circles and corridors in Iraq, on whether microfinance institutions (MFIs) can operate as NGOs and continue providing micro-loans to low-income entrepreneurs who lack access to finance for their ideas and enterprises. The NGO Directorate and the Central Bank of Iraq, both of whom recognize the importance of financial intermediation for micro, small and medium enterprises (MSMEs) applaud the work of MFIs with a few reservations on ownership of the fast growing assets of the lending NGOs, on interest rates (which is the lowest among MENA microfinance industries and globally), and on the transformation of NGO-MFIs to Non Bank Financial Institutions.

There are 12 microfinance institutions, operating as NGOs, providing access to finance for those living in poverty and those without access to banks, namely the un-banked. As of December 2010, these MFIs, operating in all 18 governorates of Iraq, boosted an outstanding loan portfolio of $106.4 million and 75,182 active clients, growing by 28.4% and 27.7% respectively since 2009. The support of USAID has been instrumental in the sustainability of these NGO-MFIs, and USAID-Tijara continues to provide technical assistance and lead the sector’s development. However, in order for NGO-MFIs to scale-up, institutional transformation to NBFIs is recognized as one of the most effective strategies for achieving a significant scale by offering a wider range of services, accessing commercial sources of capital and improving operational efficiency through enhanced systems, controls and transparency in reporting that would result from links to the Central Bank and other banking expertise.

The banking system, comprising of state, private and foreign banks, is highly liquid with total deposits amounting to $33 billion in 2009. Bank liquid reserves to bank asset ratio increased from 98% in 2004 to 156.6% in 2009, compared to 14% for Saudi Arabia and 12.32% for UAE in 2009. According to CBI, total bank loans amounted to $5.8 billion as of June 2010. This compares to around $22.4 billion for Syria and approximately $250 billion for Saudi Arabia. While there is a steady rise in credit to private sector as a percentage of GDP, at 6% in 2009, Saudi Arabia and UAE record above 50%, and even low success economies such as Libya and Syria record 16% and 21% respectively. Although the banking sector is the main component of the Iraqi financial system, the banks offers few credit facilities, and the credit culture is poor. USAID, through the recently incepted Iraq Financial Development Project (IFDP), in partnership with CBI, is working to address the infrastructure of the financial sector through targeted reforms, credit information systems such as credit bureau, and enhancement to the national payment systems to enable cost-effective financial intermediation.

Success achieved by the NGO-MFIs need to be accordingly considered within the Central Bank’s reform priorities, and clear guidelines need to be issued for NGO-MFIs that are considering transformation in order to access mainstream commercial capital for their target clients: the poor and the un-banked. NGO-MFIs CHF and Amalkom have demonstrated not just commitment, but also the capability to ‘mainstream’ towards a regulation institution and access the $90 million line of credit from OPIC, however unclear guidance from CBI and correspondence with the NGO Directorate has stalled the process, or in other words, delayed the deployment of enterprise financing that the young entrepreneurs in Iraq need.

Read www.microfinancegateway, www.sanabelnetwork.org for more information on microfinance and MSME financing.

T. Keyzom Ngodup is co-founder and Executive Director at Ideas sYnergy, an Iraq based development consulting company committed to economic and social development through market-based solutions that help build and scale innovative businesses for sustainable and inclusive private sector development.

http://www.iraq-businessnews.com/201...-institutions/