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

Lawmaker rules out supplementary budget for 2009

A parliamentary financial committee member on Thursday said that it is “impossible” to have a supplementary budget for 2009, arguing that the government has not even raised the issue for discussion.

“The supplementary budget is always submitted in June. The government has not considered the preparations for a supplementary budget thus far…,” MP Sami al-Atroushi told Aswat al-Iraq news agency.

“It takes at least one or two months to draw up a supplementary budget,” Atroushi noted.

“I do not think there will be any opportunity to introduce a supplementary budget,” Atroushi, who is a member of the Kurdistan Islamic Union, added.

http://en.aswataliraq.info/?p=115824

Transportation Ministry signs historical contract

The Iraqi Ministry of Transportation has signed a contract with Ross Aviation to bring at least 20 planes for joint operation.

“The contract was signed in the presence of Minister Aamer Abduljabbar and the under-secretary of state in the ministry, Bankin Rikani,” according to a Ministry statement received by Aswat al-Iraq news agency.

The statement described the contract as an “advanced step in the history of Iraqi Airways.”

Under the deal, Iraqi Airways will own two freight planes after the end of the four-year contract.

Iraqi Airways, the national carrier of Iraq, will obtain 12 percent of the total revenues throughout the first two years of the contract, and 15 percent during the third and fourth years.

http://en.aswataliraq.info/?p=115830

Indonesian Pertamina oil firm to revive Iraq oil projects

Indonesian Governmental Pertamina oil firm said that it is willing to revive previous oil projects in Iraq which had been frozen due to the security situation in the country. Iraq and Pertamina oil firm had concluded oil exploration agreement in 3 sites in Iraq’s Western desert in 2002.

http://www.alsumaria.tv/en/Economics...-projects.html

The Iraqi banking system, between reality and ambition

Inherited problems in the banking system before the 2003 Iraqi Worth Central Bank of Iraq in 2003 by a bank to complain about the following negative phenomena

Density is 1 bank in Iraq (the number of banks on the number of the population) a bank, "one" for each (46632 people) compared to "the amount of the standard density of bank banks" one "for every ten thousand people, indicating awareness of the vulnerability of the banking and non-arrival of the Iraqi economy and Iraqi society to the level in this field and demonstrates the great need to raise awareness of the bank within the Iraqi society and the banks themselves through the development of banking services and dissemination.

2 of the prevalence of domestic banks on a number of civil (private) means union with the property management in these banks in order to achieve the narrow interests of a family in addition to the weakness of the banking culture of some of the owners of capital leads to the loss of these banks between the wishes of the owners of capital and the requirements of the banking and compliance with the laws and regulations relevant and laid the basis for the benefit of the banking system.

3 the absence of effective strategies, general banking and detailed annual plans and contingency plans and the lack of all the policies stipulated by the Banking Act and the Law of the Central Bank of Iraq and regulations issued by the Central Bank of Iraq and on the boards of the banks to be authenticated by the implementation.

4, retaining the absence of institutions of the banking system and its work, such as deposit insurance and other insurance on the loans or the offices of the study and analysis of banking and other dangers.

5 does not suit the services provided by Iraqi banks in terms of number, type and style of action and speed of delivery and with the requirements of the development of the Iraqi economy and the requirements of market economy and weak compared with the number and type of services provided by banks and the Arab World.

6 weak technology used by banks and the lack of rapid means of communication and modern working conditions required by the new addition to the absence of appropriate software for the development of banks, expand and improve its services and to enable them to control and to control the development of policies necessary to avoid risks and improve performance and expand services.

7 flabbiness administrative structure in the large number of banks, especially the "government and the weakness of banking experience because of the circumstances of modern political, social, economic and over in Iraq, which led to the accumulation of daily problems and the inability to apply effective control and corrective action.

8 rise in the volume of outstanding loans and poor financial allocations to address them and not being able to take radical action for the liquidation of the conditions of the guarantees provided for the meeting because of the security situation and economic development.

9 the problem of counterfeit currency replaced the fourteenth edition of the Central Bank of Iraq, where the many irregularities we have recorded "on the banks of the Directorate-General for the issuance and safe at the central bank did not settle the theme so far.

10 subject of the burnt and damaged documents for borrowers and civilians in general and the rights of private property guarantees provided by the customers for the credit obtained from banks.

11 difficult to transfer money from the public administrations of the branches of banks and their vulnerability to theft because of the lack of stability and security in particular "in some areas, the so-called Balsachenp.

12 banks to provide ancillary services at the expense of its main tasks, including the distribution of the salaries of retirees.

13. The banks, they noted the addition to the above suffer from the following basic problems:

A - The composition of boards of government departments in the banks based on the provisions of Article (20) of the Companies Act No. 22 of 1997, which consists of Chairman of the Board and the Director-General, appointed by the minister and four other people, although the appointment is by the minister, but the bank staff and members others are elected by the employees of the company and two members with experience and competence from outside the company that affect all decisions, however, and by the Director General and Chairman of the Board or the Minister a result of the administrative hierarchy For this reason, most of the decisions made are of an administrative nature, and dominated by the political and the individual may be far nature of the banking significantly affect "the results of the bank.

B - the manner of distributing the profits of banks, based on "the article (11) the fourth paragraph, where the profit was only viable for distribution for 30% of the cost of current activity and prevents the rest to the account of the Ministry of Finance. Of this quarter, 45% of the public treasury, 33% incentives of boards of directors and staff of the company for research and development 5%, 5% for social services for workers and the remaining 12% of it goes a reserve of capital which has weakened the capital base and prevented the arrival of a number of banks, the minimum capital.

C - this method of distribution that are thinly into consideration the actual requirements for the development of the banking operations of banks and the government response to the requirements of development in different aspects of banking business or the needs of the Iraqi economy and the banking market.

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Continued..........

Statistical indicators on the evolution of the banking system, the end of 2008.

1 The number of banks (23) banks, "years" and special "in 2003 to (42) banks," including (7) government banks.

2 and opened seven branches and offices of the Arab and foreign banks in Iraq (Arab Banking Corporation, Byblos Lebanese Melli Iran, the Turkish Agricultural Bank, Bank of Beirut and the Arab countries, the Bank of Lebanon Antrcntnal, and representative office of the Housing Bank of Jordan.

3 The number of bank branches and offices of the (450) section "office" in 2003 to (640) section "office" in 2009.

4 The number of Islamic banks from the Bank in 2003 and is one of the Iraqi Islamic Bank to eight banks in 2008 were (country, Ilaf, Kurdistan, QNB Al Islami, the Tigris and the Euphrates, regional cooperation, Melli Iran).

5 The number of foreign participants in the capital of Iraqi banks and the participation of one in 2004 (credit with the Kuwaiti national) to seven participants in 2008 and the turnout was between 49% to 75% of the capital.

6 Total deposits rose from about (399) billion dinars in 2003 to (28) trillion dinars, the end of 2007.

7 The balance of the investment banks (1800) billion in 2003 to (4 .3426) billion dinars, the end of 2007.

8 banks, the government has made a profit "of $ (980) billion dinars in 2007, and a total profit of private banks (152) billion dinars, the end of 2007.

9 the average liquidity of banks from 155% in 2003 to 60% in 2007 compared with a high "for the standard set by the central bank, amounting to 30%.

10 - the establishment of institutions to prevail for the banking system has been the establishment of a company ((trade) for the loan guarantee, and a company for electronic banking and deposit insurance company, and a proposal to set up a fund for investment banks and private companies to provide loans to small and medium-sized.

11. The modern instruments such as certificates of deposit, credit cards, a card (torrential, Babil, Al-Fayhaa, and smart card) and the deployment of ATMs (ATM).

Proposals for reform of the banking public and private

Despite the fact that all banks participate in the Iraqi public, but the phenomena of both banks, private banks and the privacy of each bank has its own characteristics, however, could be to propose the following to improve the functioning of banks in general:

1 to activate the role of banks, the three Iraqi specialist (industrial, agricultural cooperative, real estate), and the transfer of functions of the banks, specialized banks, a comprehensive, in accordance with the fundamental goals set up by these banks in the first instance.

Through the Ministry of Finance and the strengthening of their capital, the allocation of funds within the state general budget expenditures (investment) and the above-mentioned banks mandated to provide soft loans at low interest rate and reasonable time for the development of sectors (industrial, agricultural, real estate) in accordance with the plan prepared for this purpose. That these banks do not bear the cost of political decision, but can charge an administrative commission for carrying out this task.

2 legislation to Islamic banking that is free of the current Banking Act No. 94 of 2004 of any reference to Islamic banking, which is its failure to some extent, due to the different nature of the activity in both types of banks. Which is presently "in the light of social and economic need as well as attention to the Iraqi Central Bank to issue a regulation will help to open the windows for Islamic banking in the traditional commercial banking.

3 beef up the Iraqi Central Bank to establish a strong banking system and the security of financial institutions and developed a strong and effective. Through:

A - the development of an effective system for the collection of information and financial data and analysis in accordance with an electronic program is for this purpose.

B - the application of the standard of disclosure and transparency of the banking and financial institutions under the supervision of the Central Bank of Iraq.

C - full compliance with the laws, regulations and rules and regulations by banks and financial institutions approved by the Central Bank of Iraq, and the application of deterrent penalties against the banking and financial institutions violation.

D - To improve the performance of banking institutions by the government to accelerate the operationalization of the Memorandum of Understanding and its Action Plan, according to the dates specified, in addition to the attitude of the strategic plan which was prepared in cooperation with the World Bank.

Continued......

E - the development of a cadre and the Central Bank of Iraq, especially the Directorate General of the banking and credit control through the establishment of training courses inside and outside Iraq in the supervisory and regulatory issues the following:

First ": the control of Islamic banks and branches of foreign banks.

Second: check documentary credits and bank letters of guarantee.

III ": an analysis of budgets and financial statements of the branches of foreign banks.

4 to develop the use of automation and software to the Iraqi banking system, according to a plan prepared for this purpose and expand the use of progressive and modern services to provide precision and speed.

5. Reorganization and rehabilitation of the banking staff within the organizational structure and develop a clear job description for the incumbents and the identification of responsibilities, duties and rights, especially the "people and the managers of the various sections and departments and branches.

6 the development of policies on credit and investment and other requirements and applied as the law and regulations issued by the Central Bank of Iraq and the application of internal control procedures and monitoring compliance with banking laws and regulations.

7 approached the World Bank and the U.S. Treasury Department for the allocation of grant to be used to set up training courses to employees of private banks in the subjects of modern banking.

8. to help the Iraqi banks for the protection of deposits and money from outside Iraq, confiscation and seizure.

9 adoption of the Union of Arab Banks of the draft urged Arab banks and the U.S. and Europe to adopt a program of twinning with the Iraqi banks for the exchange of experiences, expertise and training for the development of private banks.

10 by private banks to provide loans in excess of the combined financial capacity and credit of the bank to reduce the risk of a single lending and not to exceed the legal rates.

11 to address concentrations of credit and to focus efforts on the collection of overdue loans and debt repayment.

12 study of the client borrower individual "or company before making a decision through analysis of lending cash to the list of Altdqq project.

13 insurance for large loans to the Iraqi insurance companies wishing to do so.

14 departments and strengthen internal control systems in banks in proportion to the volume of work and the risks of banking.

Conclusion

And conclude from the foregoing that the Iraqi banking system, banking system is promising, is governed by international banking standards, including the standard of disclosure and transparency, and is subject to the supervision and management of the Central Bank of Iraq, will be during the next few years, significant developments at the organizational level and processes, and there are opportunities for cooperation and participation of the founding of new banks and branches of foreign banks and banks outside Iraq. Iraq, in addition to the participants in the capital of existing banks to service the requirements of the Iraqi economy and with the support and backing of the Central Bank of Iraq.

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parliamentary cooperation agreements with Washington, London and the European Union

House of Representatives will soon sign agreements with three U.S. and British counterparts and the European Union aimed at strengthening cooperation and exchange of experiences, particularly in the area of legislation and laws passed.

A source familiar with the Office of the President of the House of Representatives in a special permit for "morning" that "Parliament is to conclude two agreements with the European Union and the United States with a quest to sign a protocol with the British House of Commons within the political project of the Speaker of the House of Representatives and in particular to the general opening up of the Arab Parliaments and global. "It was the President of the Chamber of Deputies took place with Dr. Ahmed Fathi Sorour, the Speaker of the Egyptian parliamentary joint cooperation protocol during his visit to Cairo last month, as agreed during his visit to Kuwait last week, the establishment of joint committees of friendship between the parliaments of the two countries to discuss all aspects of relationships and how development.

The source added that the Samurai, seeks to strengthen relations between Iraq and the countries of the world by signing a joint parliamentary cooperation agreements, declaring the intention of the President of the Chamber of Deputies to visit the United States and Britain to hold talks with his counterparts there.

It should be noted that Prime Minister Nuri al-Maliki will start in 21 of this month to visit to the United States, where he will meet during the visit, UN Secretary-General Ban Ki-moon in New York and then will discuss with U.S. President Barack Obama in Washington, during the visit of the delegation, accompanied by a high official, the relations between the two countries in light of the strategic framework, which includes the development of economic relations and trade and cultural, scientific, and subsequent steps for the security and up to the year 2011 date of full withdrawal of foreign Iraqi territory.

The source pointed out that no date has been set for the visit Samarraie Washington and London, noting that the speaker has received invitations from the President of the Parliament before the U.S. House Speaker Nancy Pelosi and the President of the British House of Commons, indicating the cooperation agreements to be signed during the visits were aimed at bringing the legal framework for long-term bilateral cooperation with these countries, the scope of training and development and exchange of experiences in the work of the commissions and legislation of laws.

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Members of the Radio Dijla: a divergence of views on the importance and the results of Maliki's visit to Washington

Is scheduled to visit Prime Minister Nouri al-Maliki, the United States of America in the next few days, and the varied views of some lawmakers about the importance and the results of the visit.

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Director of the FAO Radio Dijla: we have the capacity to rebuild Iraq

The Director of FAO's General Contracting Al Mukhtar Ismail said the company is able to contribute to the reconstruction of infrastructure projects of the country after the implementation of many projects to the ministries of electricity and oil.

He referred in a statement to Radio Dijla to administrative corruption and non-governmental organizations to convince companies behind some of the ministries, many reconstruction projects, according to him.

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Shahristani: Decision in less than a month on the oil field Nassiriya

The Oil Minister Hussain al-Shahristani, in the hope of reaching a decision in less than a month on the large oil field Nasiriyah.

He said al-Shahristani told a news briefing on Friday during his visit to Japan to meet with government officials and representatives of a number of companies, including Nippon Oil, "We are in the final stage of the selection of successful bidder" will be announced immediately after the financial arrangements.

Shahristani said no decision has been made on when Iraq intends to hold a meeting in Turkey with respect to the second round for the licensing of oil and gas fields, or when they will hold the second round.

Meanwhile, Japanese Trade Minister Toshihiro Nikai, who met with al-Shahristani said on Thursday the Japanese government fully supports the participation of Japanese companies in the investment process in Iraq.

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