Thread: Archive News - Iraqi Dinar Think Tank - 06/05/09 - 04/09/09

Advisers stress the importance of creating an environment attractive to investment

Investment is the Government's interest in light of the economic mobility in the past few months, and the Council of Ministers made some important changes over the merits of the Investment Law No. 13 of 2006 in order to attract foreign investors.

Dr. Ali al-Dabbagh, the official government spokesman said: "The State has done much to amend the investment law, and we hope to find their way quickly to the amendment of the House of Representatives .. Today, investment environment, weneed to actively end the plague, which left most of the local and foreign investors, and this requires us to develop the work of the banking, insurance and commercial arbitration to be one of the factors stimulating the private sector, which is still hesitant .. referring to the development of the construction industry, an important step

He pointed to the need to allow the foreign investor have housing projects, stressing the importance of activating the sector which will provide many job opportunities. Especially the provinces of Iraq and all the housing complexes need to be paid by the Iraqi legislature and state institutions towards the revitalization of this sector in the State's ability to find the time to re - Institutional construction is limited.

In the area of employment Dabbagh said: employment in the State over. Both investments and the trend towards internal and external to create new jobs. Because the state today burdened b (2.5) million, as well as a large number of retirees.

In the same context, the assurances of Abdul Rasul said an economist in the Ministry of Planning and Development Cooperation: Investment is the ideal solution to the problems of infrastructure in Iraq, but we lack the appropriate investment climate. Today, because our climate is not suitable for investment, if we know that the order in Iraq, according to the report of the World Bank came to this area is (152) of the total (181), which require us to start working to create an optimal investment climate conducive to attracting international investment to Iraq, In particular, we know that the problems related to aspects of the investment the government can overstep.

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Dollar sales exceed 198m on Monday

Demand for the dollar increased in the Central Bank of Iraq’s (CBI) auction on Monday, reaching $198.900 million compared to $115.500 million in the previous session.

“The demand hit $9.800 million in cash, covered by the bank at an exchange rate of 1,183 Iraqi dinars, and 189.100 million in foreign transfers outside the country, covered at an exchange rate of 1,173 Iraqi dinars per dollar,” according to a CBI news bulletin received by Aswat al-Iraq news agency.

None of the 17 banks that participated in today’s session offered to sell dollars.

http://en.aswataliraq.info/?p=115681

Iraq, IMF Near Deal on $5.4b Loan

Iraq will meet with the International Monetary Fund, or IMF, in September to finalise a $5.4 billion standby loan to the war-battered country and may launch the sale of treasury bonds worth $3 billion within two months, a Central Bank official said. The IMF in June outlined its loan conditions to an Iraqi delegation in Amman, including a call for restructuring of state banks and banking sector reform, senior Central Bank advisor Mudher Kasim told Zawya Dow Jones late on Saturday.

"We think the conditions of the IMF are reasonable and the bank is implementing them prior to applying for the loan," Kasim said.

The loan is set to help with a budget shortfall resulting from a drop in crude oil prices from a record high of $147 a barrel in July last year to below $40 a barrel late last year, he said. Iraq's 2009 budget includes an $18 billion deficit. So far Baghdad has cut its 2009 budget three times because of falling oil prices.

Iraq relies on crude exports for more than 95 per cent of its state expenditure and is in desperate need of cash to rebuild its infrastructure hit by war, violence and insurgency.

The IMF usually sets conditions for any proposed loan given to countries.

Iraq will receive the loan, which represents 300 per cent of Iraq's IMF set quota, immediately after its signing, Kasim said. It will be paid back in two installments over five years at an interest rate of just above 1 per cent, he added. The fund also welcomed Iraq's initiative to reconsider its food rationing system, so only those in need receive subsidised food stuffs, Kasim said. The Iraqi parliament voted earlier this year to exclude from the programme those with a monthly income of at least 1.5 million Iraqi dinars ($1,300).

Inflation

In line with other IMF loan conditions, Iraq's Central Bank will need to pursue currency stability and curb inflation, Kasim said.

The country's inflation rate in April fell to 3.7 per cent, the lowest level in the past three decades on lower prices of food, energy and other commodities. The rate rose, however, to 4.7 per cent in May, driven by an increase in rents for houses and apartments in Baghdad, Kasim added.

Rents are rising amid a shortage of 3.5 million housing units in Baghdad, where half the population of 7 million doesn't own houses or flats, he said.

The Central Bank is also preparing to issue $3 billion worth of treasury bonds to finance much needed power projects, Kasim said. "The bank may issue these bonds in two months from now," he said.

The Iraqi government last month approved a request by the finance ministry to issue the bonds to help finance two large power deals signed last year with General Electric Company and Siemens AG. Kasim said the bonds will be sold to state and private Iraqi banks at an interest rate of 2 per cent and will be paid back by the Central Bank within a year.

http://www.zawya.com/Story.cfm/sidZA...Billion%20Loan

Samarraie calls to exempt Iraq from Chapter VII

Iraqi Parliament Speaker Iyad Al Samarraie pursues his visit to Kuwait where he met his counterpart Jassem Al Kharafi. Al Samarraie stressed on Iraq’s right to be exempted from Chapter VII and underlined the importance of building up relations with Kuwait.

Iraqi Speaker reiterated MPs willingness to build multiple and long tern brotherhood relations between Iraq and Kuwait.

For his part, Al Kharafi asserted that his country will help bring out Iraq of Chapter VII after resolving pending issues between both countries.

http://www.alsumaria.tv/en/Iraq-News...apter-VII.html

Inflation and Price

Measured levels of inflation based on prices of goods and services components of the consumer basket, while inflation measured variables ongoing basis, consumer prices excluding the prices of oil derivatives, according to the view of many Iraqis and international experts as well as the reports of international organizations are going to question the government figures for inflation, while the levels of those responsible on the completion and issuance of these official reports on the levels of inflation that it is accurate and take into account international standards adopted in the professional such reports, and we are not about to debate the accuracy of government reports in this regard as problematic Matnina the continuing rise in prices for most goods and commodities of the consumer basket and the stability of some of them Sarmain,

And the impact on the measurement of inflation, which is in the form of the Iraqi economy before the four years from now, where she worked for the tightening of monetary policy through the use of tools in the interest rates and the exchange rate of the dinar against foreign currencies to curb inflation in the prices of the chaotic scene is not only for consumer services, and even goods and other goods out of these trends, a bilateral non-compliant is a clear imbalance in the measurement of levels of inflation, regardless of the accuracy of the usual tools used in the method of measurement.

It is remarkable to consider that inflation is the main obstacle before the four years before the monetary and fiscal policies, but the decline in the current levels could affect the ability to price and value of the same caused by the continuing declines in the levels of inflation for the economy, but the survival of the scene in this way raises questions as to the reports of the institutions of the relationship, which indicates the continuous decline of the matter is that they require is a careful study of the movement of prices and factors affecting it, especially after the direction of the State to activate and stimulate the exchange of trade through the establishment of free zones in several areas and we have to look at the same time the other negative phenomena associated with the phenomenon of inflation, unemployment, a The decline of the role of the productive sectors and is effective in the phenomena of inflation and related Bmsarath.

It is here that can not be of any monetary policy or macro-economic phenomenon that the address be alone unless a comprehensive plan to address all the structural imbalances in the economy that the phenomenon of inflation is a result of imbalances in the events leading up to falling inflation and the impact must therefore be borne in mind that as a result of inflation, but the demise of inter Atzul phenomena which preceded that must be taken into consideration when policy-makers and planners macroeconomic in Iraq.

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95% of people prefer ration card - MP

Around 95 percent of the Iraqi people want the ration card to continue, a member of the Iraqi parliament economic committee said Monday.

"After the public opinion survey conducted by the committee, we decided to keep the ration card system for all the social categories," Mohammed Khalil, lawmaker of the Kurdistan Alliance parliamentary bloc, told Aswat al-Iraq news agency.

"Legislators consider any reduction on the governmental funding to the ration card as a red line, as this funding should not be minimized under any circumstances," he said.

http://www.zawya.com/Story.cfm/sidZA...rd%20-%20MP%20

World Bank allocates $100 million for Baghdad

BAGHDAD: The World Bank has allocated $100 million U.S. dollars to finance services projects in the Iraqi capital, the Baghdad Mayoralty said on Tuesday.

"Discussions took place with the World Bank in the Lebanese capital, Beirut," the Baghdad Mayoralty said in a release received by Aswat al-Iraq news agency.

"The meeting discussed methods to accelerate projects funded by the World Bank and e.xecuted by the Baghdad Mayoralty," he said.

http://www.zawya.com/Story.cfm/sidZA...0for%20Baghdad

Speaker proposes to set up Iraqi-Kuwaiti investment fund

The Iraqi parliament’s speaker, Iyad al-Samarraie, presented a suggestion to establish an Iraqi-Kuwaiti financial institution where compensations paid by Iraq to Kuwait can be deposited and then be used as Kuwaiti investments in the Iraqi provinces.

This came during a meeting in Kuwait between al-Samarraie and the Kuwaiti Premier Nasser al-Ahmed, according to a statement posted on the Iraqi parliament’s website.

“I call for benefiting from the European experience after the World War II with respect to the Iraqi-Kuwaiti relations,” said the statement.
The Kuwaiti side welcomed the suggestions, voicing the possibility of studying them in details by the joint committees.

http://en.aswataliraq.info/?p=115776

Dollar sales down to 167m on Wednesday

Demand for the dollar went down in the Central Bank of Iraq’s (CBI) auction on Wednesday, reaching $167.105 million compared to $195.835 million in the previous session.

“The demand hit $28.150 million in cash, covered by the bank at an exchange rate of 1,183 Iraqi dinars, and 138.955 million in foreign transfers outside the country, covered at an exchange rate of 1,173 Iraqi dinars per dollar,” according to a CBI news bulletin received by Aswat al-Iraq news agency.

None of the 20 banks that participated in today’s session offered to sell dollars.

http://en.aswataliraq.info/?p=115779

Oil Ministry urges Parliament to pass Hydrocarbon Law

The Iraqi Ministry of Oil on Wednesday called on the Council of Representatives to speed up the passage of the oil and gas law, which it said will help the oil sector grow.

“The ministry urges the Parliament to speed up its enactment of the oil and gas law, given its importance to the development of the oil industry,” a spokesperson for the Ministry of Oil, Aasem Jihad, told Aswat al-Iraq news agency.

Jihad said that the law will prevent an overlap of powers and duties and will help the oil sector develop.

The law on oil and gas is one of the most controversial laws on the Iraqi political scene. It was ratified by the Iraqi cabinet in early February 2007 after a number of Shura Council amendments were made to it, described by the government as “peripheral.” The law was referred to the Parliament for approval and is currently under discussion.

Several political blocs have objected to certain articles in the law, which allow the Kurdistan region and provinces not affiliated with a region to sign oil investment contracts without consulting the central government in Baghdad.

http://en.aswataliraq.info/?p=115787