Thread: Iraq/Dinar News until 5/23/07 Midnight CST

Banks and companies continue to operate and Exchange Iraqi declining indicators
/2007Business and Economics-number readings : 22-10 / 05 / 2007






رغم.Despite the unfavorable conditions of security and political instability, has tried to banks and corporate treasurers continue their activities and strengthen its relationship with shareholders, the Bank of Mosul invited its shareholders to subscribe to the capital increase, in accordance with rule 55 / First 10%, and making a capitalization rate of 15% in accordance with rule 55 / II from the date of May 31 instant, and being in a sub-underwriting Bank of Mosul, Baghdad and Mosul so that the new capital 25 billion dinars instead of 20 billion dinars. also called tent company of the financial investment Msahimha to attend the annual meeting on the 17th of this May Bank in the country to discuss the annual agenda. 55/ .Company Secretary and the insurance capital increase of 570 million dinars to one billion dinars in accordance with rule 55 / First and Second.

ومن.On the other hand bourse saw the Iraqi retreat in between the two main indicators Wednesday May 2 this Monday, May 7 and this has decreased the number of shares traded index of 956 thousand shares to 439 thousand shares, while the value of trading volume remained close. .The number of executed transactions has seen some relative improvement.

المصارف والشركات تواصل نشاطها والبورصة العراقية تتراجع مؤشراتها

I don't have a sub. so i only have part of the article:

Iraq's finances
Published: May 11 2007 03:00 | Last updated: May 11 2007 03:00

Creditor countries agreed last week to large reductions in Iraq's debt, encouraged by its government's commitment to a series of reforms. These aim to make Iraq "economically sustainable" within five years.

The agreement will write off $30bn of the estimated $60bn-plus owed to non-Paris Club creditors - mainly Iraq's neighbours. Last year, the Paris Club agreed to forgive 80 per cent of Iraq's $43bn debt to it. Repayments to official creditors will begin only in 2011, with interest falling due between now and then capitalised. And private creditors have also settled debt to the tune of $19bn through cash and debt exchanges. The write-offs should reduce Iraq's debt to $36bn by 2012 - or 30 per cent of gross domestic product, according to the IMF
FT.com / Lex - Iraq's finances

Does anybody know a site where we can check how much debt does the country have? Thanks.

Originally Posted by SpongeDinars

Does anybody know a site where we can check how much debt does the country have? Thanks.

I know i've seen info on that i may have it somewhere too, but i did find this, pretty interesting answers to different questions regarding their debt.

IRAQ: The Regime's Debt

And, on that score, Mr. Bush has Iraq's national security adviser, Mowaffak Al-Rubaie, on his side as well. Dr. Rubaie has been in Washington most of this week, trying to get Democratic lawmakers to back off their calls for timetables and for withdrawals. He hasn't had any notable success, however.

I spoke with Dr. Rubaie earlier.

(BEGIN VIDEOTAPE)

COOPER: Lawmakers here want Iraq to meet benchmarks, things like security, oil revenue sharing, political reform. Are there any benchmarks that you would accept?

MOWAFFAK AL-RUBAIE, IRAQI NATIONAL SECURITY ADVISER: Well, we have accepted all the benchmarks not being imposed by the United States government. But we have imposed these. And we have chosen to -- these benchmarks on our government.

And I can tell you, the hydrocarbons law is going to be ratified soon, God willing. And, also, the budget is going to be executed well before its time. And there is a very, very serious discussion going on, on the de-Baathification and replacing with it with the accountability and justice law.

There are a lot of serious discussion going on for the constitutional reform and constitutional review. So, things are happening. And we need to walk this last mile of this long marathon. And we need the helping hand. We need the United States' support to be with us, because it's pivotal.
COOPER: But, Dr. Al-Rubaie, as you well know, there are a lot of people who are going to be listening to you who simply don't believe what you're saying. You say we're in the last mile. This time last year, you said that most U.S. troops could return home by the end of 2007.

You also said that the Iraqi security forces could take over more responsibility for the security in Baghdad, that the U.S. troops could go out outside of Baghdad, that U.S. -- that Iraqi troops knew Baghdad better.

Clearly, that didn't work in the past. Those statements turned out not to have been accurate. Why should Americans believe you now?

AL-RUBAIE: Well, I'm not asking anybody to believe or disbelieve.

But I'm telling the truth from the -- from reality on the ground. And this is -- a lot -- a number of people, a large number of people, they don't -- do not understand the nature of the fight, the nature of this war.

This is an ideological war. This is a -- a long-term war. This is a war on a global scale. This is a war, if it gets out of control, it will spill over to Europe and America in no time. And it will disturb the oil flow in the Gulf.

This is a war we cannot afford not to -- not -- but to fight it. And I think it -- it's wrong to pull out. And it's -- you need to give it its time. And this enemy is not a simple enemy. This is a very sophisticated, amorphous enemy. It changes its shape, its form, its tactics always. And it can hit and it can attack anywhere and everywhere. COOPER: You're also saying that Iraq needs time, that this is a long-term thing. You have also told the lawmakers in Washington that Iraq needs help with creating an air force and even a Navy.

That -- many Americans who hear that just think, at a certain point, the clock runs out, that it has been many years so far, and there have been many promises and many -- you know, for years, we have been hearing that the Iraqi security forces were accelerating the improvements of the Iraqi security forces.

And, yet, we don't see changes on the ground. We don't see that improvement. Are you frustrated?

(CROSSTALK)

AL-RUBAIE: Well, the achievements, a lot, I can tell you, over the last four years.

And what happened in Iraq is not something minor and simple, like a coup d'etat or a revolution. What happened is a hurricane. What happened is a huge, major shift, from the old order of 1,000 years of persecution, of dictatorship, of religious supremacy, of prosecuting minorities, to a completely new order, which is called democracy, human rights, accountability, and transparency, and all this.

This paradigm shift needs some time. You cannot -- it needs strategic patience. And it needs time. You cannot fit this major shift and the strategic objectives in the election cycle of Washington. You cannot do that.

(CROSSTALK)

COOPER: How come is it that the insurgents, that the -- whether it's al Qaeda terrorists or whether it is sectarian groups who use violence to achieve their objectives, they don't seem to need more time to become more efficient. They don't seem to need more time to learn military training.

They seem to be doing pretty well with the enthusiasm that they have now. How come Iraqi troops, government troops, need so much time, when the insurgents seem to have whatever the training that they need?

AL-RUBAIE: I think we made a remarkable progress over the last three years.

In June 2004, we had only one battalion in the Iraqi army. Now we have 11 divisions. And, in June 2004, we did not have policemen. We did not have national police, local police, an intelligence service. We didn't have anything.

Now we have Iraqi security forces, several hundreds of thousands of them. And what we need, we need some refinements, some tuning. We need some training. And we need some equipment and logistical support. We need to build the system within the Iraqi security forces. COOPER: Right, but the only people who don't seem to have military training...

AL-RUBAIE: In a very short period of time, we're going to be self-reliant.

And we're building our self-reliance strategy. And I think it's not it's not going to be long before we reach to the self-reliance stage.

COOPER: You -- clearly, you believe this is an important time for your country. You believe that Iraqis need more time to show progress, that America must give Iraq more time.

How is it possible that the Iraqi parliament was considering taking a two-month vacation this summer? Does that send the right message to U.S. troops, who are dying on the streets of Baghdad?

(CROSSTALK)

AL-RUBAIE: This is the annual recess of the -- of 10 months' work. But, even that, the government managed to apply some pressure on the council of representative, and they're canceling July recess. And they probably will take August only. And we are even working on August to -- for them to take only one week in August.

COOPER: So, they may take still -- they still may take an entire month vacation?

AL-RUBAIE: They may well take -- well, we're working on August. And we would like them to take one week in August only.

COOPER: Again, there -- as you know, there's great skepticism in the United States about what is happening in Iraq and about statements made.

I just want to ask you about a past statement you made. You said that -- after Abu Musab al-Zarqawi, the former al Qaeda leader, was killed in June of last year, you said U.S. and Iraqi forces uncovered a huge treasure of intelligence and documents regarding Qaeda.

And you said -- and I quote -- "The beginning of the end of al Qaeda in Iraq, that's what it was. Now we have the upper hand. We feel that we know their locations, the names of their leaders, their whereabouts, their movements, through the documents we found during the last few days."

In a speech earlier this month, President Bush said Iraq remains the central front -- you just said it -- of al Qaeda's global campaign, and they're behind the spectacular attacks in Iraq.

How is it possible that al Qaeda has remained so strong, when, in the past, you were saying you thought they were in their final days?

AL-RUBAIE: This is an organism, if you like, al Qaeda, a very strange organism. And it is -- it regenerates. And it generates a new generation of terrorists. And we need to figure out, one way or another, how to fight this enemy.

COOPER: Just one more question.

Back in early 2006, in December -- or, actually, the end of 2006, in December, when you were calling for U.S. troops to pull back outside Baghdad, to have U.S. -- to have Iraqi troops take the lead inside Baghdad, you said that the concern was that Iraqi troops would become too dependent on American troops.

You said -- quote -- "We will develop what I call dependency syndrome on coalition forever and forever and ever."

That's precisely what Democrats are now saying is happening. And that's why they say a withdrawal, or a timetable, or strong benchmarks with teeth are essential, or else the Iraqi forces are just going to be dependent.

Why do you no longer -- are you no longer concerned about dependency?

AL-RUBAIE: No, I don't think we're concerned about dependency, for a very simple reason, because we have a very clear path to -- for progressive -- and assuming responsibility more and more, by the day, and taking...

(CROSSTALK)

COOPER: But what changed? What changed, because you were concerned about dependency last year? Why not now?

(CROSSTALK)

AL-RUBAIE: Take, for example, in Baghdad.

Last year, Baghdad was under the command of an American general called General Thurman. And now Baghdad is under the command-and- control of general -- an Iraqi general called General Abboud. And he is commanding and leading and controlling 2.5 Iraqi army division and 11 or 13 Iraqi police, national police, brigades.

So, now Baghdad is under the command and control of an Iraqi command.

COOPER: So, you're saying Iraqi forces control Baghdad?

AL-RUBAIE: And there's a huge shift. There's a sea shift from last -- last year to this year.

COOPER: But, I mean, to Americans, it seems like the sea shift is more U.S. troops in Baghdad now, in these joint units out in neighborhoods. If Iraq is -- if Iraqi troops are so much in command, why are there now more American troops in Baghdad?

AL-RUBAIE: Well, we need -- we need the upsurge -- we needed the upsurge, and we need the upsurge to clear some areas of these neighborhoods and to hold them and to build them. And that's why it will always be shortage of troops. But, when we have this upsurge, let's the best use of it. And let's clear these areas and hold it and build it.

COOPER: Dr. Al-Rubaie, appreciate your perspective. Thank you, sir.

AL-RUBAIE: Thank you very much, Anderson.

INVESTMENT LAW (13) ON THE GAZETTE:
Number 28 4031 142 7 argument is e-January 17, 2006
Investment Law No. (13) of 2006, Al-Ahram
http://www.uruklink.net/iqlaw/4031/4031.html

THIS IS THE PDF OF FOREIGN INVESTMENT LAW - THIS LAW IN OCTOBER OF 2006 DID NOT HAVE A No.# to it yet:
http://www.export.gov/iraq/pdf/investment_law_1006.pdf

NOW IF YOU READ THE FOLLOWING TWO ARTICULES ABOUT THE WHAT THEY CALL THE "Investment Law No. 13 of 2006" and cross ref the Articule #'s to the PDF copy of the "FOREIGN Investment Law" they are the same LAW. So the FIL was done January 17th - ENACTED when it was POSED to the Gazette.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2844
A Law for Investment in Iraq
A Law for Investment in Iraq
Dar Al-Hayat - [29/12/2006]
The Iraqi Presidency Council issued Investment Law No. 13 of 2006, containing provisions for regulation, rights and encouragement for investors, encompassing Iraqis and non-Iraqis, designed for the phases of establishment and operation. The law aims to attract and encourage investment and the transfer of modern technologies to the country; to encourage both the Iraqi private sector and foreign investment in the country; to protect the property rights of investors and their profits, and the expansion of exports and enhancing the competitive edge at home and abroad.

The law covers all branches of investment, production and service activity, except for the extraction and production of oil and gas, banks, and insurance companies. However, it did turn out that the extraction activities for other minerals, in addition to the mineral refining and oil refining sectors, are covered by the law like other branches of industry, investment and other sectors like agriculture and tourism, health, etc.

The law does require the participation of an Iraqi partner with foreign investors, except for the purposes of licensing or enjoying tax exemptions and privileges and facilities. The law also stipulates the establishment of a National Commission for Investment to take up the task of implementing these provisions. It allows regions and governorates, provided they are not ensconced to the region, to form investment commissions in their own areas that enjoy licensing authority and the granting of exemptions and facilities and the management of investment projects there. In order to facilitate the licensing process, the bill authorizes the issuance of establishment approvals (investment licenses) through the establishment of the so-called 'single window' in the region or province.

The investor enjoys, regardless of nationality, all the advantages and facilities, guarantees and exemptions. In housing projects, the investor has the right to acquire the land needed for the project.

The rights, privileges and facilities in the new law include the following:

(1) Enjoying a tax exemption for a period of ten years from the year of operation, with an exemption on import duties for importing the requirements in the establishment phase, and the phases of expansion, development and modernization of equipment and machinery, means of transportation and materials, and the operational phase of the import of raw materials and intermediary and spare parts.
(2) Allowing capital and earnings in and out of the country and the opening accounts in banks inside and outside Iraq.
(3) Circulation in the Iraqi market for securities, bonds, equities, and the setting up investment portfolios.
(4) Rental of the land needed for the project for the period of 50 years; a renewable term. The right to own land also in housing projects.
(5) Facilitating the investor's enjoyment of additional advantages, especially according to the international bilateral agreements between Iraq and its government, or according to multilateral agreements. Including the right of the foreign investor to sell his project in whole or in part.

After nearly half a century of providing tax exemptions and generous assistance to the industry in Iraq, starting from the 1950s, the result was loss-making government projects that could only be resolved by selling them off. Project administrations, enterprises and factories became addicted to State assistance and protection. The projects were powerless to face up to competition, at home and abroad, accompanied by a qualitative and quantitative underdevelopment, and in terms of price, with unsustainable spin-off industries that feed key inputs into these sectors. They failed to catch up with the demands of the market for constant modernization and the fragmentation of demand. This also includes obsolete and marginal factories and declining investment rates from year to year, while the country gradually lost its ability to attract investments, and many bureaucratic complexities, and many of them administrative constraints, which prevent opportunities for progress, repressing the speed of response and wasting time and effort.

To what extent will the new law in this new phase achieve its objectives in attracting investments?

This depends primarily on the availability of advanced infrastructure, which, in turn, includes all the social, political and material factors, and not only the roads and bridges, and electricity and water; but also, the conditions of the parts and components manufacturers and the conditions of secondary, spin-off industries, and the availability of government management skills. Not to mention the tax system and the availability of transparency and the system of macroeconomic management, and the rates of education, training and the country's reserve of the educated, engineers and technicians, and population characteristics.

The availability of an infrastructure of this kind, along with the new investment law, will be a crucial factor in attracting investment.

The extent to which financial and administrative corruption is shrinking or expanding is another factor that attracts or repel investments.

In a Transparency Global (headquartered in Berlin) report, the State of Haiti ranked first among the most corrupt, and Iraq came in third. In his statement before the US Congress on February 8, 2006, former US Secretary of Defense Donald Rumsfeld said: "administrative and financial corruption in Iraq is omnipresent in all aspects of government administration and finance ". Even if this corruption recedes, there will remain a more deeply rooted problem, in the form of concepts, perceptions and attitudes inherited by the bureaucracy and in the government administrative cadres at all levels.

The new law has recommended adopting the so-called 'single window' to receive investment applications to decide on them. These recommendations follow the pattern of development and investment legislation in the developing countries for the purpose of simplifying procedures to save time, effort and money. Will the situation in Iraq become congenial to the establishment of this window? It is noteworthy that the General Directorate for Industrial Development in Baghdad applied this 'window' for more than a year. But what is being done by the aforementioned Directorate is just unifying the entity that receives applications (the formal side). As for the bureaucratic content, it remains the same as it was about 30 years ago or more, without change.

Certainly, Iraq will attract many investments after the issuance of the new law, but will the volume of these investments reach the desired ambition? As is the case in the South-East Asian countries, such as Singapore or Malaysia, for example, this also demands a revolutionization of the same concepts and ways of thinking and dealing with such topics. What is necessary is reliable economic administration that lays the foundations before the structure, and not vice versa, when it comes to handling development and dealing with investments. Only then can the new law achieve its goals and the aspirations of the country.

CROSS REF THESE ARTICULES # TO THE PDF COPY OF THE FIL - IT'S THE SAME LAW AND IT DONE!
Middle East Legal Services - Worldwide - Iraq Arbitration Law (24/01/2007) from Mondaq

* The new Investment Law no. 13 of 2006 is another major legislation, which aims to encourage foreign investment in Iraq. Under Article 10 of the said law, foreign entities and persons investing in Iraq enjoy the same right and privileges as those granted to Iraqi entities. They have the right to invest, own shares, and trade in the Iraqi market. The law also provides guarantees against confiscation, and it guarantees free movement of foreign capitals.

In accordance with the provisions of Articles 12-17 of the said Investment law, foreign and Iraqi entities and persons investing in projects in Iraq, enjoy a number of privileges and exemptions including 10 year tax exemption. Machinery and Material imported for the purpose of a project under the law are exempted from custom duties and fees.

Furthermore, foreign investors may enjoy additional rights and privileges subject to any international and bilateral agreement as stated in Article 22 of the law.

Disputes between persons under the Investment law are subject to Iraqi law and jurisdiction according to Article 27. But, foreign parties are free to choose any other law and jurisdiction including international arbitration.

President of the Republic will meet in London, the British Prime Minister and his invaluable support to the Iraqis May 11, 2007 Research President Jalal Talabani, who is currently visiting London, with British Prime Minister Tony Blair, the security situation and political developments in Iraq, in addition to the results from both Sharm el-Sheikh. Price and President Talabani, during the meeting which took place on Friday 5-11-2007, by the British prime minister supporting the Iraqis, particularly during the war of liberation of Iraq from the dictatorial regime, describing Blair Unfriend close to the Iraqi people, which can not be overlooked supporting role to achieve democracy and federalism in the country.

The Presidency ratified the Accession Act Iraq to the United Nations Convention against Transnational Organized Crime and its Protocols May 10, Sadiq 2007 Presidential Council in its meeting on 5-2-2007 on the accession of the Republic of Iraq to the United Nations Convention against Transnational Organized Crime and its Protocols (No. 20),

issued Resolution No. (19) reads as follows law :

"On behalf of the people of the Presidency building on what was approved by the House in accordance with the provisions of Article (61 / IV) of the Constitution, based on the provisions of Articles 73 / II, 138 / VI of the Constitution, the Presidency decided Assembly at its meeting on May 2, 2007 passage of the law follows :

(No. 20) Act 2007 accession of the Republic of Iraq to the United Nations Convention against Transnational Organized Crime and its Protocols Article (1) : Tin m Republic of Iraq to the United Nations Convention against Transnational Organized Crime and its Protocols adopted by the General Assembly of the United Nations in its numbered b (55 / 25) in 15 / November / 2000, (55 / 255) on July 31 May 2001 and entered into force on September 29 September 2003 and Protocol I to March 25 December / 2003 and Protocol II on September 28 k Unwin September 2004. article

(2) : Yen this law implemented from the date of publication in the Official Gazette. Tariq Al-Hashmi Adel Abdul Mahdi, Jalal Talabani, the vice president, the vice president, president of the republic, "the reasons for the importance of accession to the United Nations Convention against Transnational Organized Crime and its Protocols to the Convention and the fact that this is an essential tool in combating activities of Grameh of an international

After contacts with the coalition, consensus and Kurdish leaders and Sadri trend .. D. Allawi : move to find a way out of Iraq from his current dilemma, Dr. Iyad Allawi, head of Iraqi National List Secretary General of the Iraqi National Accord Movement : We are in a nationwide one Iraqi, and not Kjbahat, to help Iraq, as happened in Sharm el-Sheikh, It got several meetings on the subject of transition to the formation of a Gebhui believes the draft Iraqi national .. Although the work is not easy and communications is not easy but we are moving in order to find a way out of Iraq from the present crisis. He pointed to a lengthy interview with the Qatari satellite channel "anb" Space : The security plan will not succeed and will go on the tracks, We are in touch with various political forces in parliament are brothers in the coalition, including the Muslim Brotherhood in harmony and are also leaders Kurds, the Virtue Party and the Muslim Brotherhood in the Sadri trend, and some Brotherhood independents, and talking with the coalition and advocacy Our hope these showed strong political and sectarian turn into the Iraqi national project. He said that the positive relationship with America is required, in the interest of Iraq and America to be a positive cooperative relations with Iraq. But in the case of (Blur) in the relationship we have to look for alternatives so as not to fall in Iraq and the region pothole. He pointed out that he had already prepared a working paper to the American Administration and briefed by the Arab leaders and the leaders of the region and between the contents of this paper's proposal to convene a regional conference to convene an international prefer in Egypt, like the Sharm El-Sheikh and discussed the first three key things : First : discuss Iraqi situation and ensure the Iraqi national reconciliation and finding solutions to the problems of regional states including neighboring states, in the presence of the United States of America. Thirdly : entry in the perceptions of other solutions to the tensions in the region, in Lebanon, Palestine and Sudan have been sending the first letter in December last year to both President George Bush and Secretary of State Gundaliserays, and another copy to Arab leaders and the leaders of the region. I explained these points. He explained that what happened in Sharm El-Sheikh conference coincides with the view that we have already, and there was initially refused by some countries including Iran to attend the conference but the result attended Iran. He was supposed to get what mechanisms must be done in terms of relations with Iran and Syria by the mechanisms would meet must be achieved in Lebanon and Palestine and Sudan, the most important point for Iraq is a real and realistic vision of national reconciliation in Iraq. because without national reconciliation will not be a solution even if there were increased numbers of American forces in Iraq as long as the region is dependent on sectarian, There was a response from the American administration and sought personally with Arab leaders and leaders of Muslim countries to continue pressuring for holding this conference took place, and thankfully the efforts of Egypt and President Mubarak for hosting the conference, But I think the conference did not achieve the desired results and had to be on Iraq that comes clearly and put the record straight and put perceptions of the schedule in order to establish national reconciliation and solving problems and tensions that exist in Iraq and that did not happen unfortunately,

Iraqi party for Shiite 'revolution' changes name


SCIRI drops ‘revolution’ from name to distance party from sponsors in Tehran ahead of elections.


BAGHDAD - One of Iraq's most powerful Shiite political parties dropped the word "revolution" from its name on Saturday in an apparent attempt to distance itself from its ties to the Iranian government.


The Supreme Council for the Islamic Revolution in Iraq (SCIRI) will henceforth be known as the Supreme Islamic Council of Iraq.


Party leader Abdel Aziz al-Hakim, a top Shiite cleric, announced the name change at a news conference called to confirm his re-election at the head of the party, which is part of Iraq's ruling coalition.


"Revolution means change. This is what we sought from the creation of the Council," Hakim told reporters, explaining that the fall of former president Saddam Hussein had made the revolutionary tag obsolete.


"The council participated in realising political changes in Iraq, the most important of which was regime change. So this word became unnecessary," he said, flanked by Vice President Adel Abdel Mahdi, a SCIRI member.


Hakim and his brother, the late Ayatollah Mohammed Baqr al-Hakim, founded SCIRI as an opposition movement in exile in Iraq's Shiite neighbour Iran in 1982, under the protection of Tehran's revolutionary Islamic regime.


Tehran sheltered SCIRI -- whose name was a direct reference to Iran's 1979 Islamic revolution -- during the Iran-Iraq war of the 1980s and used it to recruit Iraqi rebels to fight against their own country.


The party returned to base itself in Iraq after the US-led invasion of March 2003 and moved quickly to insert its cadres in the new Shiite-led government and security forces established after Saddam's fall.


But the party continued to maintain close ties with Tehran.


Last December, US forces raided a party compound in Baghdad to arrest an alleged Iranian secret agent. The troops found an inventory of weapons to be supplied by Iran to the party.


Some observers see the dropping of the "revolutionary" label as an attempt to distance the party from Iran at a time when many Iraqis and US military commanders accuse Tehran of fomenting violent unrest in Iraq.


"It's normal. It was the revolutionary council and now there is no more revolution," Kurdish legislator Mahmud Othman said.


"Maybe it's part of distancing themselves from the past. They were founded in Iran after the revolution there and the situation has changed a lot since then," he explained.


Joost Hiltermann, Iraq analyst at the International Crisis Group, said: "Despite being the largest Shiite party, SCIRI has always been unpopular. It has never had much popular support because of its past.


"It was created by the Iranian secret services in the 1980s and so it has a lot of political baggage. It wants to disassociate itself from Khomeini's revolution and from Iran in general," he explained.


Party leaders called for the creation of a coordination centre bringing together Sunnis and Shiites, but some experts doubted whether the party could effectively participate in political reconciliation.


"I don't think SCIRI can effectively push for reconciliation when they have an explicitly sectarian outlook," Hiltermann said. "They may have changed their name, but they have not changed their political philosophy, their ideology."


Saturday's party statement also praised the role of Iraq's top Shiite cleric Grand Ayatollah Ali al-Sistani and his religious school in Najaf for their attempts to bring peace to an Iraq driven by violence.


Sistani's school supports a strand of "quietist" Shiite thought that would keep the clergy separate from everyday politics.


Many Iraqis associate SCIRI's brand of political Islam with the "velayat e faqih" or "rule of the jurist" tradition of Iran's late leader, Ayatollah Ruhollah Khomenei, who put the clergy at the head of his theocratic state.


The Supreme Council has 30 members in the Iraqi parliament and is one of the most powerful blocs in Prime Minister Nuri al-Maliki's ruling coalition, with particular influence in the Shiite cities of south and central Iraq.


The party's feared armed wing, Badr Organisation, has semi-official sanction and wields great influence within the Iraqi security services, to the dismay of Sunni leaders and the party's rivals within the country's Shiites.