Thread: Archive Latest News - Dinar Think Tank - 27/08/08 - 15/01/09

Baghdad urges Security Council to endorse legislation to protect Iraqi funds abroad from the country's creditors

Said Iraqi Foreign Minister Hoshyar Zebari said his country was working for urged the UN Security Council to renew the UN resolution to protect Iraqi funds and accounts of any legal proceedings involving compensation governments or persons to the country's debt incurred by the former Iraqi president Saddam Hussein. It is noteworthy that these funds are protected Under the umbrella of that resolution, which authorizes the deployment of multinational country, which expire on December 31 / this December.

He Zebari, who is visiting the United Nations to the importance of renewing the resolution and its role in the prevention funds and revenues from Iraq that it is to be seized by creditors. Zebari added that Iraq needs funds to implement projects of the security, political and economic at this critical stage of its stability.

Zebari said that Iraq will have after regaining control of its affairs and reconstruction after decades of conflict to find a solution to settle the debt owed by the country.

Zebari pointed out that Iraqi officials working with U.S. counterparts on the formulation of the draft resolution hoped U.S. officials made a presentation to members of the Security Council of 14, adding that the draft of the protection of Iraqi funds and accounts for one year. Among the accounts that Iraq hoped protection is 60 billion dollars deposited in the financing of the two Americans.

He pointed out that Zebari spoke with representatives of Member States in the Security Council and that he had not received any opposition to the draft resolution.

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Director General of Rafidain Bank in Iraq to meet with banking cadres in Maysan

Held Mr. Hussein Abdel-Azim Abdel-Yasiri, director general of Iraq's Rafidain Bank in a meeting with bank personnel and private sector representatives at the headquarters of the Rafidain Bank in Maysan province, calling for the lifting of banking and level of cooperation with the auditors and beneficiaries.

Yasiri said in a press release based on the directives of His Excellency the Minister of Finance, we visited bank branches in the governorates of the South to look directly through banks on the business and implementation of the directives set by the Minister of Finance and Board of Directors of the Bank and the Director-General Yasiri said that the purpose of our visit to the province of Maysan was to visit Inspection and review of our visit and explain the role of the new bank after bank that the pace of important steps, including the rehabilitation of its branches and reconnect them to a modern telecommunications system and the application of quantum leap from manual labor to technical work and a smart card technology and the Global System began work in Baghdad on 8-3 / 2008 and will begin work in the provinces next year to lift the suffering of auditors in Iraqi banks. He noted that visited the province of Dhi Qar, and we symposium with the staff and merchants in the Chamber of Commerce Nasiriyah, we dealt with the economic situation in the world economic crisis and monetary situation in Iraq and the role of the Rafidain Bank represents more than (80%) in banking in Iraq.

The Yasiri We are honored to visiting the province of Maysan honored as visiting the province of Basra, where we opened a new bank in the district of Abu al-Khasib.

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The Presidency of Iraq to postpone Oil & Gas Law does not affect the reading in Parliament

Revealed Vice-Chairman of the oil and gas in the Iraqi Parliament Abdul Hadi al-Hassani, that the process of collecting the signatures of House members read the law in preparation for oil and gas a first reading, saying that the request for the Presidency to postpone the discussion of the law would not hamper reading.

Hassani said in an interview with "Uzmatik" on Friday that "the process of collecting signatures from House members to read the draft oil and gas law first reading," saying the postponement to read the draft law is a constitutional violation."

The Presidency of the Iraqi president Jalal Talabani and his two deputies Adel Abdul Mahdi and Tariq al-Hashemi had requested from the House of Representatives earlier postponed the discussion of oil and gas law until the national consensus achieved.

He warned al-Hassani, a deputy from the United Iraqi Alliance that "any obstruction of the law would hamper Iraq's oil industry," and expressed the hope that "The Government of the Territory with the Federal Government on the draft law", noting that "no law can be arrested for political differences" As he put it.

The Deputy Chairman of the Commission on oil and gas in the Iraqi parliament, "there is a consensus within the commission on reading the draft in February 2007, which has not been any change signed by the Council of Ministers, without any changes."

The al-Hassani said in an interview with "Uzmatik" on Sunday, the draft law of oil and gas will be ready to read it first and second reading in the House of Representatives this month likely to be the passing of the bill in March next year.

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Zebari: Iraq needs funds to implement the security and political projects

The Iraqi Foreign Minister Hoshyar Zebari on the importance of renewing the UN resolution to protect Iraqi funds and accounts of any legal proceedings involving compensation governments or persons to the country's debt incurred by the former regime And its role in the prevention of money and revenues from Iraq that it is to be seized by creditors. Zebari added that "Iraq needs funds to implement projects of the security, political and economic at this critical stage of its stability.

Zebari said that Iraq will have after regaining control of its affairs and reconstruction after decades From conflict to find a solution to settle the debt owed by the country. "Zebari pointed out that Iraqi officials working with U.S. counterparts on the formulation of the draft resolution hoped U.S. officials made a presentation to members of the Security Council of 14, adding that" the protection of the draft Iraqi funds and accounts for one year. Among Accounts that Iraq hoped protection is 60 billion dollars deposited in the financing of the two Americans. "Zebari said speaking with representatives of Member States in the Security Council and that he had not received any opposition to the draft resolution.

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IMF urges Iraq to reduce public expenditure

The International Monetary Fund that economic activity picked up in Iraq with the decline of the violence but said that budget income will be affected by the sharp decline in world oil prices which will require some reductions in spending through 2009. The IMF said yesterday, following a review of the performance of Iraq under the program Fund worth 729.3 million dollars, "the recent sharp fall in world oil prices led to a retreat in expectations for Foreign Affairs and cash to Iraq over the coming period," adding that "the government has begun preparing additional measures to reduce spending on items not a priority in 2009 in order to maintain Viability of financial policies to continue. "

Since about 95 percent of Iraq's state revenues come from oil exports, the sharp drop in crude oil prices to almost one-third since coming to a record above $ 147 a barrel in July (July) raised concern from Iraqi officials that caused delay in economic recovery, but IMF said that the fall in oil prices would reduce government subsidies for fuel products.

In order to develop a transparent framework of the amendments to the future price of fuel, authorities are to develop a mechanism to amend the interim domestic fuel prices with assistance from the IMF.

IMF urged Iraqi authorities to quickly complete census of the public sector to control payroll and put it on a computer network, he said that it was necessary to restructure the bank "Iraq" and "good" based on audits of financial and operational them to the finalization of the regulations Organizational work of commercial banks.

Translated version of http://www.hewarat.dk/hewarat_data.php?sid=15438

An unlikely economic recession in Iraq after determining the price of a barrel of oil

Ruled out economic expert on anti Aoxad a recession in the country after the announcement of the identification of a barrel of oil selling price in fiscal 2009 on the basis of 50 dollars.

He said that the decision of the Organization of Petroleum Exporting Countries OPEC to reduce production to 2,2 million barrels per day in order to create stability in prices underlines the fact that oil prices will rise and unstable during the periods ahead.

He added that the second half of this year reached the price of a barrel to more than $140 was the biggest evidence that Iraq has not been affected by these changes.

He also stressed the importance of anti government review of the elements and components of fiscal and monetary policy and economic access to the target levels to prevent any future inflation, calling for assessing the impact of fiscal policy, current and projected for next year on various economic variables and weaknesses and imbalances that exist to be avoided during implementation.

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Economic expert calls upon the Government to oversee reconstruction funds

Petra economic expert called the House of Representatives unitary enactment of a law allowing the direct supervision of the Iraqi government funds to be allocated for the reconstruction of Iraq.

She said a lack of follow-up Maiwsv international reports that expose the different views responsible for the waste of money that has been collected for the reconstruction of Iraq by the government and the House of Representatives.

She added that the latest reports indicated the U.S. waste of 50 billion dollars in projects not completed lacking in comprehensive strategy and clear lines show the limits of the authorities and the cooperation between U.S. government departments, noting that allocations reconstruction lacks experience.

The unitary that there was no centralized management to control the money after the plans were made for huge infrastructure projects without adequate coordination and without taking the opinion of Iraqis and led to the suspension of work at some of them before completion because of poor planning and security concerns.

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IMF E.x.e.cutive Board Completes Second Review of Iraqi Stand-By Arrangement

The ****utive Board of the International Monetary Fund (IMF) today completed the second review of Iraq's economic performance under the Stand-By Arrangement (SBA), which is designed to support the country's economic program through March 2009. The Board also completed a financing assurances review under the SBA.

The SDR 475.36 million (about US$729.3 million) arrangement was approved in December 2007. It is being treated as precautionary by the authorities (see Press Release No. 07/301), and no disbursements are planned.

Following the E.x.e.cutive Board's discussion of Iraq's economic performance, Mr. Takatoshi Kato, Deputy Managing Director and Acting Chair, said:

"Economic developments in Iraq have been encouraging in 2008 and the authorities have kept their economic program on track. With the improvements in the security and political situation, economic activity has picked up as oil production and exports have increased and non-oil activity has started to recover, while inflation has remained subdued. The recent sharp drop in world oil prices, however, has worsened Iraq's external and fiscal outlook for the period ahead. Iraq's continued efforts to rebuild its infrastructure and institutions and to achieve higher economic growth depend critically on continued improvements in the security situation, prioritization in the use of lower oil revenues, and the implementation of key structural reforms.

"The draft 2009 budget is based on much lower oil revenue projections than realized in 2008 and contains current spending, including by streamlining the in-kind Public Distribution System, while allowing for increases in investment and security spending. In this connection, it is important to ensure the quality of public investment. In response to the further decline in world oil prices since the submission of the draft budget to parliament, the government has begun preparing additional measures to reduce non-priority spending in 2009, in order to preserve fiscal sustainability. The Central Bank of Iraq (CBI) will continue to keep its policy interest rate positive in real terms and to manage the exchange rate with a view to keeping inflation under control.

"With lower world oil prices, the indirect subsidies on fuel products are expected to decline in 2009. To establish a transparent framework for future fuel price adjustments, the authorities are developing a periodic adjustment mechanism for domestic fuel prices with assistance from the Fund.

"It is important to step up the pace of structural reforms. The recently adopted action plan to modernize public financial management provides a good basis to make significant progress in this area. The census of public service employees needs to be completed urgently, in order to clean-up and computerize the payroll. In the financial sector, it is crucial to adopt restructuring programs for Rafidain and Rasheed banks based on their financial and operational audits, and to complete the set of prudential regulations for commercial banks. It is also important for the CBI to continue implementing the recommendations of the IMF Safeguards Assessment Report to further improve its accounting and reporting framework.

"Further efforts are required to strengthen governance and fight corruption, in particular in the hydrocarbon sector. While progress has been made recently in oil metering, the metering systems should be extended to all oil sector activities, and the implementation procedures under the Extractive Industries Transparency Initiative should be stepped up. A new legislative framework for the hydrocarbon sector needs to be put in place to facilitate investments in the sector.

"The authorities' efforts to conclude debt agreements with Iraq's official and private creditors are commendable. However, further progress is needed to resolve the outstanding claims of official non-Paris Club creditors on terms comparable to those of the 2004 Paris Club Agreement," Mr. Kato stated.

IMF ****utive Board Completes Second Review of Iraqi Stand-By Arrangement

Iraq economy 'on track' says IMF
Economic development in Iraq in 2008 has been "encouraging" according to a review of the country's economy by the International Monetary Fund (IMF).

Improved security and a more stable political environment mean economic activity has "picked up" on the back of increased oil production and exports.

IMF deputy managing director Takatoshi Kato said the authorities had kept the economic programme "on track".

But the IMF warned that the sharp drop in the price of oil may stall progress.

Oil is now more than $100 a barrel cheaper than it was in July this year.

Continued efforts to stimulate economic growth depend "on continued improvements in the security situation and prioritisation in the use of lower oil revenues", Mr Kato said.

Oil revenue in 2009 would be much lower than in 2008, he added.
To compensate, the Iraqi government has already prepared measures to reduce spending next year.

Mr Kato also called on the government to "step up the pace of structural reforms," and to complete a regulatory framework for commercial banks.

"Further efforts are required to strengthen governance and fight corruption, in particular in the hydrocarbon sector," he added. On Wednesday, Prime Minister Gordon Brown announced that improvements in security meant that UK troops would be withdrawn from Iraq by July 2009.

BBC NEWS | Business | Iraq economy 'on track' says IMF

Cabinet approves austerity measures proposed by the ministerial committee

Cabinet approved the recommendations of the Ministerial Committee on Economic Affairs.

The statement by the Secretariat of the Council of Ministers, received the Independent Press Agency (EPA) a copy of which was Friday, the Cabinet approved all reached the Committee at its last meeting held in the fifteenth of the month to prevent the impact of the global financial crisis on the economic situation In Iraq.

The statement noted that the Commission had reached an adoption rate of 50 dollars per barrel of oil and the quantity of export two million barrels per day, as a basis for building the state general budget for 2009, reducing the budget operational and non-financial assets of the three presidencies by 80 percent except for salaries and wages, in addition to reducing the allocations for ministries Cars or furniture of all kinds, as well as the reduction of social benefits by 50 percent.

The statement added that the Committee also decided to prevent private aircraft leasing absolutely all of the points except the three presidencies, and the reappointment of the dismissed politicians only after the approval of the Commission of Inquiry into the General Secretariat of the Council of Ministers, salaries and inventory system of social welfare poor and the needy, and leave the trend towards a fourth ******.

He concluded the statement that the Commission decided by the Ministry of Finance issued regulations on Baliivadat and training courses outside Iraq.

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