Thread: Archive Latest News - Think Tank - 01/01/08 - 14/04/08

Russian firms in $4b Iraq Oil Deal

The Russian Finance Minister addressed a press conference saying that Russian oil firms will be permitted to invest $4 billion in Iraq under a new cooperation memorandum, Reuters reported.

The memorandum included Russia's leading oil company, Lukoil which has a deal worth $3.7 billion to develop Iraq's immense West Qurna field, he added.

It is worth mentioning that the agreement was made with the former Iraqi regime and will be given special attention to by the Iraqi government.

MENAFN - Middle East North Africa . Financial Network News: Russian firms in $4b Iraq oil deal

Basra Electricity Directorate technical and engineering teams call to put an end to corruption

Technical and engineering teams of Electricity Directorate in Basra province organized a protest and called the government to develop electricity stations and to enhance living standards and farewell. They also called to put an end to administrative corruption from which Missan electricity directorate suffers.

In another context, State Company for Cereal Trade announced that soon 6 ships loaded with thousands of Canadian and US wheat and American rice will arrive to Um Qasr port during the current month.

Basra Electricity Directorate technical and engineering teams call to put an end to corruption | Economics News | Alsumaria Iraqi Satellite TV Network

MP unleashes details of agreement to pass key laws

A leading member of the Shiite United Iraqi Coalition on Tuesday uncovered the details of the accord agreed upon by parliamentarian blocs to pass the three key laws that have been postponed several times before.

"The talks among blocs reached an agreement to pass three key laws of the fiscal budget for calendar year 2008, the council of provinces not classified with a region, and the amnesty law," Hassan al-Suneid, UIC member, told Aswat al-Iraq - Voices of Iraq - (VOI).

He added "Voting on these laws will be on Tuesday at 6 pm (3 GMT) after overcoming all obstacles that blocked voting over these laws."

Earlier, Sami al-Askari, a leading member from the Shiite United Iraqi Coalition (UIC)on Tuesday said the parliamentarian blocs agreed on the calendar year 2008 budget, the law of province’s not classified within a region, and the amnesty law that were postponed several times before.

He added "the parliament speaker delayed the session until 6 pm afternoon (3GMT) to ensure they have the final copies of the laws printed."

As for the fiscal 2008 budget, al-Suneid noted "It has been agreed to give Kurdistan 17% share of the budget provided that the government should have carried out the project pf 2008 population."

He pointed out "A settlement was reached on the problem of the Kurdistan region guards known as Peshmerga by authorizing the council of minister to negotiate with region’s presidency to set the fund of these forces."

The MP also stressed the addition of new items to the province council’s law that eased a number of blocs concerns.

"It has been agreed upon to add a new item that ensures appointing and sacking governors without giving full control to the federal authority so that the rule shared between the parliaments, council of ministers and the province’s local council," the lawmaker highlighted.

As for the amnesty law, al-Suneid said "A new article urging the Iraqi government to move detainees and inmates from the d****tion centers of Multi-National Forces to Iraqi prisons to include them in the amnesty law."

Kurds insisted on having 17% of the country's budget to the objection of legislators of the UIC, the Sunni Iraqi Accordance Front (IAF), which holds 35 seats, and former Prime Minister Iyad Allawi's National Iraqi Movement (22 seats).

The UIC called to approve the law of provinces not classified together with the 2008 budget, claiming they were several common items with the budget appropriations that necessitated having the two laws together.

While the Sunni IAF and Muqtada al-Sadr parliamentary bloc insisted on having the amnesty law finalised citing pressure from their people to set free scores of unconvicted detainees in MNF d****tion centers

MP unleashes details of agreement to pass key laws | Iraq Updates

Iraq's speaker threatens to scrap Parliament over budget brawl

The speaker of Iraq's fragmented Parliament threatened Tuesday to disband the legislature, saying it was so riddled with distrust it appeared unable to adopt the budget or agree on a law setting a date for provincial polls. The speaker's threat came as a large, joint US-Iraqi force began its high profile campaign against Sunni Islamists holed up in the northern city of Mosul.

Speaker Mahmoud al-Mashhadani, a member of the minority Sunni faction, said the Iraqi Treasury had already lost $3 billion by failing to pass the budget before the end of 2007.

He did not explain how the money would have been lost but blamed Kurdish politicians who have refused to back down from a demand that their regional and semiautonomous government be guaranteed 17 percent of national income.

Iraq's Constitution allows Mashhadani to dissolve Parliament if a third of its members request the move and a majority of lawmakers approve.

Mashhadani said he already had sufficient backing for the move from five political blocs, but he refused to identify them.

Disbanding Parliament would further undermine Premier Nuri al-Maliki's shaky government, which is currently limping along with nearly half of the 40 government departments without ministers.

Both situations fundamentally undermine the outcome of the US troop "surge" which was undertaken to bring down violence enough to allow the government and Parliament to focus on measures to reconcile differences among minority Sunnis and Kurds and the majority Shiites.

Violence has decreased but but political progress languishes.

Shiite lawmakers walked out of the rare night session Tuesday when the Kurds refused to drop their demand to lump the budget vote together with two other contested measures.

The Kurds said they feared being double-crossed on the budget, which now calls for restoration of the 17-percent Kurdish share, if parliamentarians voted on the laws separately.

"We believe the crisis of trust continues to grow and will affect the work of the government. We have to admit now that the political process has failed and call for the dissolution of Parliament and early elections," Sadrist lawmaker Bahaa al-Araji said after the fractious session.

The Tuesday night session was adjourned acrimoniously and lawmakers were to meet again on Wednesday.

Meanwhile, more than 1,000 US and Iraqi forces have begun operations against Al-Qaeda in Iraq's northern city of Mosul, the US military said Monday, paving the way for what Iraqi officials say will be a decisive strike.

Tens of thousands of US and Iraqi soldiers are taking part in several offensives in Iraq's northern provinces, where Al-Qaeda and other insurgents regrouped after being ousted from Western Anbar Province and around Baghdad last year.

Extra Iraqi troops, backed by helicopters and tanks, have been sent to Mosul. The US military said Monday an operation had begun to clear insurgents out of bases in the east of the city, where five US soldiers were killed last month.

"As of right now there are 1,000 plus ISF [Iraqi Security Forces] and CF [Coalition Forces] conducting [the] ... operation," said Major Gary Dangerfield, a spokesman for US forces in the area.

While Iraqi officials have spoken of "cleansing" Mosul of Al-Qaeda fighters, US commanders have been less emphatic, saying the forthcoming offensive was part of wider operations.

Iraq's speaker threatens to scrap Parliament over budget brawl | Iraq Updates

Central Bank of Iraq under ****es of experts

On 20/12/2007, Central Bank of Iraq decided to minimize the profit tariffs by one point, as an outcome, according to the bank, of the reduction in percentage of inflation on December 2007, from 65% to 12%.

Iraqi economists criticized that decision. Some of them perceive that this reduction is trivial, while others believe that there was no such improvement in the economy of Iraq in 2007 that absorbed a percentage of inflation of 53%.

Central Bank of Iraq, as some experts rendered this reduction in profit tariffs, has been symbolically subdued to repeated antecedent demands to reduce profit margins; however, those experts still believe that the mistaken policies of the Central bank of Iraq are pushing the economy of that country to the brink of an abyss.

The one point reduction in profit margin minimized the profit tariffs from 20% to 19%, starting from February 2008.

According to a source at the Central bank of Iraq that spoke to Aswat al-Iraq – Voices of Iraq – (VOI) on the condition of anonymity; "In 2007, Inflation was reduced to unprecedented levels since 17 years in Iraq."

"Inflation in December 2007 was 12% compared with 65% in December 2006," the source said to VOI, referring that these numbers reflect the serious attempts of the Central Bank of Iraq to minimize inflation and to achieve the desired economic stability.

This progress, according to that source, "underscores the near future policy of the Central Bank of Iraq that will encourage economic development and investments in Iraq, neck and neck with stability and growth of economy in this country."

The source asserted to VOI "Central Bank of Iraq will continue assessing its policies periodically."

Head of the Economic Studies Department at the Arab and International Researches Center, Dr. Najim Al-Mashahdani, disagrees with the approach and analysis of that source.

"Comparing the inflation of 2007 with that of 2006 is incorrect process, because the inflation of 2006 is already high," Dr. Al-Mashahdani told VOI, explaining "The year 1993 was used as a measuring criteria, despite that 1993 was one of the years of embargo that totally differs from 2007; even though, inflation in the best cases is not less than 77%."

The economist, Hussam Al-Samooq, agreed with Dr. Al-Mashahdani and clarified to VOI "In order to corroborate the Iraqi dinar, Central Bank of Iraq started raising profit tariffs from 5% to 10%, 16%, 20%, and when profit margins reached 25%, it became impossible for investors to work in Iraq."

"This reduction in profit tariffs is symbolic. Central Bank of Iraq is just sending a message to investors that we understand your point," al-Samooq added.

From his side, the executive manager of Iraqi Private Banks League, Abdul Aziz Hasoon, considers that step of the Central Bank of Iraq as "amendment rather than reduction>"

He told VOI "Central Bank of Iraq assesses its policies periodically, like any financial authority elsewhere," adding "This decision doesn't mean that profit tariffs were reduced, but it renders that Central Bank of Iraq has revised its policies according to the 12% inflation."

But the financial expert, Majid Al-Sowari, eulogized the policy of Central Bank of Iraq, saying "In spite of all the difficulties, this policy reduced the percentage of inflation."

Al-Sowari adds "Reducing profit margins is an outcome of the reduction in inflation," confirming "The financial policy is changing depending on the economic circumstances of the polity."

Central Bank of Iraq under ****es of experts | Iraq Updates

ATMs in Iraq, unlike elsewhere

Automated Teller Machines (ATM) are newly introduced in Iraq. Iraqi private banks are currently providing their customers with some banking services through those machines but they are unlike international credit cards, they work on domestic level only.

Using ATMs requires that a customer has a debit or credit card. Customers of those banks prefer to use ATMs in Iraq due to security situation there these days; however, that usage is still very limited in Iraq nationwide.

Media spokesperson of Warka Bank for Investment and Finance – an Iraq private bank based in Baghdad (capital city of Iraq), Ali Loay, told Aswat al-Iraq – Voices of Iraq – (VOI) "We started using ATMs in all our subsidiaries, and we issued a special debit card, we called it Al-Medrar," explaining "Now, our customers can withdraw money from their Warka Bank accounts, using the ATMs available at any of the subsidiaries of our bank, without any delay or fess."

Despite that Iraqi issued credit and debit cards are for domestic use only, and cannot be used anywhere else, introducing this kind of banking services is considered crucial for businessmen and average citizens there by all measures.

Iraqi Kurdish businessman Farhad Hussein said "One of the big challenges that we have is that we cannot carry big amounts of money due to security reasons, and we cannot trust checks in our daily commercial dealings."

Hussein added "I think ATM cards will contribute to a solution of that problem."

The expert in charge of the database department of Kurdistan Bank – based in Arbil, Afram Toma, said to VOI "Since longtime ago, we are trying to implement the international ATM service in Iraq, and to link our country with the ********* funding system, but international funding establishments consider Iraq unsafe and unsuitable for this kind of investments."

Toma added "We are still trying with VISA company in that regard," clarifying "The ATM cards that we provide our customers with are only for the limited domestic use inside Iraq."

Another Iraqi businessman, Sabah Hassan, agrees with Toma, "ATM cards are supposed to make life much easier, but those issued in Iraq are not working abroad, and those issued abroad do not work in Iraq."

ATM services of private banks in Iraq are still considered primitive compared to similar services provided by international banks out of Iraq. The Subtle problem of ATMs in Iraq is not related only to technical issues or security concerns; it goes far beyond that, reliability and credibility of dealings and dealers.

Old-style Baghdadi civil servant, Hassan Khalid, told VOI "I don't know how some people can trust a small piece of card; what if it would be stolen; what if a thief took it and forced me to expose its password to him under gun-threat?"

Funding banks lean on antecedent financial and social performances of a customer to conclude which kind of credit card he or she deserves. It isn't an arbitrary process, because credit and debit cards became part of the humankind culture. In Europe and America, people use their debit or credit cards everywhere.

Kurd economist, Dr. Hashim Zebari, has no doubts that using ATM cards is a cultural phenomenon, "Allover the world, investors and average individuals use ATM cards every day," Zebari told VOI.

The Iraqi economist said "Iraq currently experiences a tough era that makes it hard to introduce ATM cards nationwide," asserting "I am positive that using ATM cards will add a great momentum to the economy of Iraq."

Like any new innovation, it seems that the diffusion of ATMs and their cards in Iraq might require some time. Scientifically, this would depend on the obtrusiveness that issue would exert on the daily life of Iraqis.

ATMs in Iraq, unlike elsewhere | Iraq Updates

Update........

Misys/B-Plan in Iraq bank programme
Rafidain Bank chooses Misys consortium to implement one of world’s largest banking IT projects

Misys plc (FTSE: MSY.L), the global application software and services company, today announces that Rafidain Bank, the largest state bank in Iraq, has selected an integrated turnkey core banking solution from Misys and B-Plan Information Systems.

The agreement between Rafidain and the Misys/B-Plan consortium was endorsed by the Minister of Finance, as part of the modernisation programme of the state-owned banks. The Misys/B-Plan solution was chosen ahead of competing bids including those from Temenos and Systems Access.

It will underpin the restructuring programme aimed at improving performance and enabling Rafidain to compete more effectively in an increasingly open and competitive environment.

The solution includes the deployment of electronic clearing systems, the core banking solution from Misys and the supporting hardware and communications network across the bank’s 148 domestic and 7 international branches, in Beirut, Cairo, Jordan, Abu-Dhabi, Manama (Bahrain) and Sana’ (Yemen).

The project, which is one the largest of its kind in the world, will allow the bank to deliver competitive products and an excellent service to Rafidain’s domestic and international customers.

In December 2006, a formal memoranda of understanding (MOU) was signed between the Central Bank and the Ministry of Finance on the restructuring of the state-owned banks, including Rafidain Bank. This covers the steps and sequencing for operational and financial restructuring of these institutions over the next few years, including the deployment of electronic clearing banking system.

Mr. Bayan Jabr, Iraq’s Minister of Finance, states, “I am determined to modernise the banks. My wish is that every Iraqi citizen has a Visa card and for every Iraqi citizen to have a bank account which he is able to manage through the internet, regardless of whether he is a government employee or not. This is my dream which I am working to make it a reality. I have now signed a contract for such a system for the Rafidain Bank.”

Guy Warren, EVP and General Manager. Misys Banking, comments, “One of the key deciding factors for the Government of Iraq was Misys' leadership position in the industry and we are honoured to be an integral part of such a crucial restructuring programme for the bank. Our deep knowledge of the market alongside B-Plan’s expertise in implementing turnkey ICT solutions in Iraq, will enable Rafidain to maintain its leading position in the region and compete more successfully internationally. This is another example of our proven technology and top class services skills beating Temenos in competitive pitches.”

Shirko Abid, CEO of B-Plan, adds, “The advanced solution and the broad regional experience Misys has built up over the last two decades, coupled with our strong position as a provider of mission-critical turnkey solutions was crucial to the deal. We are already beginning the first phase of implementation and I look forward to working closely with the bank as we help it deliver enhanced services to its customers.”

Misys plc (FTSE: MSY.L), provides integrated, comprehensive solutions that deliver significant results to organisations in the financial services and healthcare industries.

B-Plan Information Systems Limited was established in 1993 in Manchester (UK) by two Iraqi Kurdish brothers and is now well recognised for the provision of financial and operational IT management solutions in the UK and Ireland.

As a result of an alliance with Misys and more than three years of successful market penetration of the Iraqi public sector, the Misys/B-Plan consortium has secured the contract for the deployment of Misys BankMaster as the first electronic clearing system at Rafidain Bank, the largest Iraqi state bank.

Misys/B-Plan in Iraq bank programme | Iraq Updates

Iraqi Kurds court investors, not just oil

"The future" isn't just oil, the head of the U.S. branch of Iraq's Kurdish government said while courting investors in Washington Monday.

The U.S. Chamber of Commerce is hosting a luncheon with the Kurdistan Regional Government, Iraq's semiautonomous three northern provinces, featuring top U.S. and business officials.

"While the development of our oil and gas sector will be critical for our sustained development, and we place great emphasis on it, the Kurdistan region's economy is not solely dependent on oil and gas," said Qubad Talabani, the KRG's representative to the United States and son of Iraqi President Jalal Talabani. "In fact, we are spoilt for choice. For example, we have enormous agricultural potential as well as a robust workforce that is entrepreneurial and industrious.

"As the publication shows, the economic opportunities are varied and enticing."

He spoke to United Press International prior to the release Monday of the new publication "The Kurdistan Region: Invest in the Future."

The KRG area has been semiautonomous since the early 1990s, under international protection from Saddam Hussein. Though Kurdish leaders fought sometimes bloody power struggles, the top political parties have aligned and dominate both the region and have key roles in the national Iraqi government.

This decade head start of the rest of Iraq, where violence and political inaction has stalled much economic development, has allowed Iraqi Kurdistan's economy to advance.

Talabani said the publication and event "is targeted at many in the international business community who may have never thought about investing in our region."

The KRG encourages businesses with an eye on Iraq as a whole to start with its relatively safer area. Among the speakers Monday are U.S. Assistant Secretary of Commerce David Bohigian and Jay Garner, the retired general and former director of reconstruction of Iraq prior to Paul Bremer.

"Our region should be thought of as the gateway for doing business in Iraq," he said. "We are the other Iraq and we are open for business.

"Attracting foreign private sector investment will help us develop our own private sector; this can be a stimulus to eliminate poverty and ensure sustainable economic growth."

But the KRG's prerogative hasn't always been aligned with Baghdad's -– and vice versa -- which is seen in current arguments over Iraq's oil sector. A draft oil law is stalled because the two sides don't agree on how much central control is called for in the new constitution and what roles the international oil companies should play.

The KRG has passed its own regional oil law and has signed dozens of production-sharing contracts with big players in the oil business, though not the world's largest oil firms. Baghdad has called the KRG deals illegal.

Iraqi Kurds court investors, not just oil | Iraq Updates

KRG Launches New Publication "The Kurdistan Region: Invest in the Future"

“The Kurdistan Region is open and ready for business” was the theme outlined by speakers before hundreds of potential investors at the launch of The Kurdistan Region: Invest in the Future publication at the headquarters of the U.S. Chamber of Commerce.

The 194-page publication provides a detailed, sweeping guide to the politics, culture and investment opportunities available in the Kurdistan Region of Iraq, and includes a directory that contains a useful series of economic data, travel tips as well as contact information for organizations interested in operating in the region.

“Today in Kurdistan, there are a multitude of paths to investment and prosperity. Opportunity lies in many different sectors of our new economy and I urge you all to take a good look at what our publication outlines,” Qubad Talabani, the Washington based representative of the Kurdistan Regional Government, told the attendees. “Kurdistan is the safest place in Iraq and is undergoing an economic boom because of its stability.”

Officials from the Chamber joined with those from the U.S. Department of Commerce and experts and scholars on Iraq and Kurdistan to hail the new publication and tout the investment opportunities now available in what they called the new economic engine of the region.

“This region of Iraq is a shining example of how commerce breeds peace, prosperity, and opportunity” said LTG (Ret) Daniel W. Christman, senior vice president for international affairs at the Chamber of Commerce. “This new publication shows everyone—from investors to tourists to friends around the world—how they can participate in strengthening the Kurdistan Region’s democracy.”

The U.S. Chamber of Commerce is a strong supporter of, and driving force behind, the U.S.-Iraq Business Dialogue sponsored by the Department of Commerce. It has worked on developing a roadmap on how to strengthen the economic and commercial relationship between the United States and Iraq. The Chamber has pledged to continue to champion efforts to improve the visa process so that Iraqi business people can come to the U.S. to meet with their counterparts, highlight credible business opportunities in Iraq, and continue to support the efforts of the U.S.-Iraq Business Dialogue.

Talabani was joined by Dr. Brendan O’Leary, International Constitutional expert and director of the Solomon Asch Center at the University of Pennsylvania; Gen. Jay Garner (Ret.), former director, Office for Reconstruction and Humanitarian Assistance for Iraq, and Gabriel Pellathy, Chief of Staff, U.S. & Foreign Commercial Service, Commerce Department.

KRG Launches New Publication "The Kurdistan Region: Invest in the Future" | Iraq Updates

Iraqi Council of Representatives Starts Voting on Budget Draft

A source in the Iraqi Council of the Representatives said that the council has started its special session concerning the vote on the drafts of 2008 Budget, Provincial Councils and General Amnesty of Iraqi detainees.

The source, on condition of anonymity said “It’s decided in this session to vote unanimously on 2008 budget draft.”

Sheikh Khalid Atia the deputy of the Speaker of the Council of the Representatives said that the Sadri Faction has withdrawn from the session without referring to the reasons.

The Iraqi council of the Representatives has held several sessions on the Budget draft, during the recent days without reaching any results.

PUKmedia :: English - Iraqi Council of Representatives Starts Voting on Budget Draft