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

Blue NOUAN: Parliament can make the oil and gas law in the event of a sincere intention to avoid problems

President of the Committee for the oil and gas in the House's Blue parliament can make laws that are specific to the oil sector during the current session if there is a sincere intention to avoid problems relating to the law.

The Blue in a statement to Radio NOUAN that centralized and decentralized management of oil is one of the major problems that hinder the passage of the bill.

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Al-Rafidain Bank occupies 70% of the Iraqi banking map

The Iraqi state-run al-Rafidain bank dominates 70 percent of the banking sector in Iraq, the bank’s director said on Tuesday, explaining that the bank has given loans of around 1.5 trillion Iraqi dinners (ID) since 2003.

“The bank practices the three forms of credit, to support firms, people, and Ministries,” Abdilhussein Abdiladheem al-Yasseri told Aswat al-Iraq news agency.

“We have 30 branches inside Iraq that provide credit services, and we are intending to rehabilitate an additional 123 branches,” he said.

“The al-Rafidain bank also has seven branches outside Iraq,” he added.

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Dollar sales soar in daily auction

Demand for the dollar jumped in the Central Bank of Iraq (CBI) auction on Tuesday, reaching $191.255 million compared to $148.750 million.

“The demand hit $7.250 million in cash, covered by the bank at an exchange rate of 1,183 Iraqi dinars, and $184.005 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 14 banks that participated in today’s session offered to sell dollars.

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The structure of total funding and the reform of the Iraqi banking sector
D. Mazhar Mohammed Saleh - the Central Bank of Iraq adviser
Indicators of the banking sector, the current

1 - the banking system consists of 6 in Iraq, State banks and 32 banks, with civil strife 4 branches of foreign banks in addition to a number of representative offices of foreign banks and thus the number of bank branches is more than 600 branches and offices. Note that there were 7 participants from the range of foreign banks participation between 4975% of the capital, but the density limits of the bank is still 40 thousand people per bank branch, while such a figure of $ 6 each 10 banks, thousands of people in a country such as Germany and other developed countries, the Bank may be 10 per thousand people in the a country such as Lebanon.

2 - The total capital of banks, Iraqi dinars, about 1.2 trillion early in the year 2008, although most of the 80% rate of return of private sector banks.

There was a resolution to the Iraqi Central Bank, after consultation with the Government, which has been raising the capital to banks, amounting to 500 billion dinars for the Rafidain Bank and 400 billion dinars to the Rasheed Bank. And there is another decision of the Central Bank to lift the capital of existing banks to a minimum of at least 50 billion dinars, and that new banks should be the capital of not less than 100 billion dinars.

3 - The 90% of the assets of the banking system, commercial banks are in the government and 80% of the credit that the banks would be monopolized, which means that the private banks, in spite of the high proportion of their capital to the State banks, they are still conservative in nature in the granting of credit.

4 - at least the proportion of capital adequacy regulations adopted in the bank in Iraq and 12% However, the banks, suffered a decline in this ratio to below the rate required in the above, the banks make it more dangerous because of their monopoly of credit by the high rate of 80 % of total credit granted, making their capital assets are not commensurate with the risk of the investments (that is the low capital adequacy ratio, in terms of the apportionment of capital and the foundation supporting the risk-weighted investments, primarily in terms of rising numbers while the numerator makes the capital adequacy Finance or by the so-called solvency in the least out of proportion and approved in accordance with the Basel standard of not less than 8%).

5 - The balance of deposits with commercial banks 31.8 trillion dinars in September 2008 distributed as follows: 22.4 trillion, deposits of the central government and public institutions and deposits of 9.2 trillion and the private sector, or 41%, however this is not the ratio of private deposits only 8% of GDP , which means a strong reduction in the country's financial depth and the rule of public finance of the State financial life. The credit balance in cash was $ 4.8 trillion dinars, of which 3.6 trillion dinars advance credit to the private sector in the same period, although the proportion of credit to GDP is also low but does not exceed 4.4% of that credit to the low percentage does not reflect only the small credit market in the country's financial activity, as indicated in advance, making the structure of funding based on the public investment budget is based, as the state is the center of wealth and to dominate the more than 80% of the gross domestic product. In spite of this, still the bad debts amounting to almost 200 billion dinars, representing a burden on financial stability, as was the proportion of the bottlenecks to the banks, 48%, while the percentage of 52% of the civil banks.

6 - is dominated by banks, the ratio of 97% of the total assets of Iraqi banks, and deposits of the public continues to deposit with the banks, by 63% versus 37% for private banks, underlining the dominance of public sector banking on the movement of the banking market in a clear and strong until now.

II: proposals and recommendations for the advancement of the banking sector and financial

At the level of the government's contributionAs the capital of a bank of low because of the nature of the banking system and the installation of the Iraqi government or public ownership of absolute private property and the family often, the system of government to contribute to the strengthening of capital in the banking system and in particular her special is required Maioti proposals in this regard:

By the Government to bring the outcome of tax on the profits of the banks shares, preferential long-term with a reasonable annual return, as these contribute to the loan from the government referred to the capital funds of banks through the purchase of shares of the so-called flying Leveraged Buyout is the support of capital from private banks and by the regular stock the scope of what is known as Debt / Equity Ratio. Provided a sense of balance between the preference shares and ordinary shares to guarantee the stability of banks and the hybrid nature adopted in international banking, and the contribution of preferential shares, the State does not mean that these banks to the mixed sector, as Snguetrha later on the banks as long as the government preferred shares do not allow the participation of their holders (the government) to vote in the meetings of public bodies or the participation of the Board of Directors.

At the level of banks,

1 - What is noticeable is that of State banks is still subject to the Companies Act No. 22 of 1997 as amended. In order to activate the financial restructuring and to make it operate on the basis of funding commensurate with its importance to life and the current Iraqi bank, we suggest that the banks would convert to public companies, the contribution to be closer to the idea of the idea of mixed banks, the availability of appropriate legal coverage and a new legislation under the title of the Banking Act, including the hybrid line The Central Bank of Iraq Law No. 56 is effective for the year 2004 and the current Banking Act No. 94 of 2004.

2 - applies in this opinion to the importance of activating the government's development banks (specialist) in Iraq and the transfer of functions of the banks, specialized banks, including the right and in accordance with the fundamental goals established by these banks in the first instance, and we recommend the following:

A - The restructuring program, banks, the task of adapting the conditions of specialized banks (industrial, agricultural, real estate) to take upon themselves the functions of the granting of soft loans to the private sector are the loans that are higher in terms
Permissions extended payment, interest and other.
B - the support structure in the state budget and the adoption of the peace do not lose sight of the priorities of the productive activity of the private sector through the award of capital banks, the three specialist, provided that does not have the balance sheets of the banks mentioned by any expenditure to support, but only to exercise the functions of financial intermediation and development serve the development goals and to ensure the country's financial depth.

Banks at the level of civil

1 - legislation for Islamic banking in order to free the current Banking Act No. 94 of 2004 makes no reference to Islamic banking, which recorded the regulatory controls imposed on the traditional banking activities, which is disrupted to some extent due to the different nature of the activity in both types of banks.

2 - The Central Bank will issue a regulation will help to open Islamic banking windows in conventional banking in the current.

3 - To promote cooperative and savings banks expand their reach in rural areas and towns and district centers by the provinces, which also requires activation of the financial institutions investment pattern of the cooperative, which is a function of the cooperative sector and activate its activity in the areas of banking, this is proposed in the framework of strengthening the country's financial depth and activating financial intermediation.

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Bank attributed the reasons for the imposition of interest on loans to major security risks

Justified the Director of the High-Warka Investment Bank, private banks, the imposition of substantial benefits to grant loans that return of the security risks associated with the legislative and the lending process, calling for amendments to the Banking Act to allow them to work in investing, just like the other nations of the world.

Mohammed al-Samarrai said: The law of banks, "allowing them the freedom to determine the interest rate on the credit granted, and who arrived at the 25% in the Warka Bank," a reference to exaggerate in the interest rate to the "economic and security situation, which led to a considerable difficulty in obtaining debt since 2003 So far, But because of the low value of the collateral which is usually a drug, "or because of" difficult to sell because people did not accept the purchase of real estate encumbered as collateral for the banks, for fear of problems that may ensue, particularly if the property was occupied by the citizens."

The E.xecutive Director of the Association of private banks, Abdul Aziz al-Hassoun said earlier: that the economic indicators indicated that a significant decline in the demand for bank credit in the private market by Iraq did not exceed 22% compared to the tune of money in excess of $ 1.2 billion, due to interest rates high rates of banks, which are no longer funded by a strong economic actors, which will not create a proper atmosphere for economic action in Iraq.

The Samurai, the high rate of interest as a kind of "trust and broadcast coverage for assigned risks, and a call to move away from seeking loans from private banks that do not wish to grant credit, mostly because of the security situation" as well as "the legislative amendments needed to be large, since the Banking Act, which Crath authority Coalition Provisional contains material restricted to the work of "hitting the ideals of" Article 28, which prevent the entry of private banks to mining projects and the investment industry, At the same time find that the names of the banks did not reflect the reality of activity, such as the Warka Bank for Investment and other "while the" Non-investment and its role limited to the granting of loans and issuing guarantees, "which is delegated to the first" allows them to invest in the projects, the fact that the entry of any bank in any component of the success of the draft, not failure."

Samarrai said that "the law does not allow banks to provide loans only at certain restricted by credit, compared to the capital and reserves, which reached most of the banks to the ceiling or exceeded," At the present time "are afraid of a lot of them (private banks) give more of your loan instructions not to exceed the central bank, "At the same time, there was a" reluctance of the government departments dealing with private banks, because it deals with a view no doubt, because most grew up in the last ten years, the Bank prefers to deal with the government as a source of safety, "he said, while the "According to the economic base of private banks that are strong economic backbone of any state as a factor for the economy and Iraq, in dire need for it."

And on the obstruction of the Banking Act to deal with government departments, al-Samarrai said that there is "the power to govern the work of other government departments, namely the Ministry of Finance, which had instructions to prevent private banks to deal with," he said, adding that despite the "instructions issued later by the Ministry and the Economic Commission of Parliament, which called upon to deal with private banks and opening credits to four million, many of the staff of government departments, fear of being held accountable under the law or fairness and possible others, in the end, not the officer's decision. "

The ****utive Director of the Warka Bank said "In the case of accounts opened by the Chambers of the State in private banks, this would constitute a significant element of support and provides the movement of cash, allowing it to expand its activity", either in the case of "survival of the current situation as it is and the continued imposition of restrictions on the banks, this means that the evolution of banking work, as far as the security situation in the country and the legislative. "

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Central Bureau of Statistics: a slight rise in the inflation indices for the month of June

Completed by the Central Statistics and Information Technology inflation report for the month of June, 2009 prepared on the basis of field data collection "on the prices of goods and services components of the consumer basket Retail prices in selected markets in Baghdad and the provinces.

According to a statement received by the device a copy of "The results showed the following:

1. The index of inflation for the month of June 2009 from the level recorded in the month of May, 2009 as reflected in the record of the year by the consumer price (1.3%), which was the outcome of the high indices of most commodity groups, the following (food, tobacco and beverages, textiles and clothing and footwear, furniture , fuel and lighting, transport and communications, miscellaneous goods and services and rental) rates of (0.3%, 0.6%, 0.6%, 1.7%, 0,002%, 1.1%, 1.0%, 2.4%), respectively, note that the expenditure on these totals is a (98.5%) of the total domestic consumption expenditure, and the group (medical services and medicines ), which are (1.5%) of the total expenditure, domestic prices have recorded a decline during the month of June 2009 compared to the previous month rate of (0.5%). (0.3%, 0.6%, 0.6%, 1.7%, 0,002%, 1.1%, 1.0%, 2.4%), respectively, note that the expenditure on these totals is a (98.5%) of the total domestic consumption expenditure, and the group (medical services and medicines ), which are (1.5%) of the total expenditure, domestic prices have recorded a decline during the month of June 2009 compared to the previous month rate of (0.5%).

2. The annual inflation index rose during the period from June 2008 until June 2009, or (0.7%) as a result of the high indices of the following commodity groups (food, tobacco and beverages, furniture, transport and communications, medical services, medicines, miscellaneous goods and services, rent) and higher rates of (11.4%, 10.1%, 1.4%, 5.9%, 0.3%, 7.4%, 8 .. 8%) while the two commodity groups (textiles and clothing, footwear and fuel and lighting), the prices registered a drop of amount (3.7%, 33.4%) During the period from June 2008 until June 2009.

3. Inflation stood at the base * (19858.9) registered an increase (1.5%) over the previous month and an increase (8.7%) for the month of June last year.

* Basically means inflation is the ratio of the change in the consumer price index calculated after excluding petroleum products (oil, gas, petrol).

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Zubaidi welcome Ambassador economic Petricha the United States Embassy in Iraq

His Excellency the Minister of Finance Baqir Jabr Al-Zubaidi, Ms. economic Petricha Ambassador of the United States Embassy in Iraq and her entourage, which included a number of economic experts at the U.S. embassy in Baghdad. During the meeting, and reviewed bilateral relations and ways of strengthening them to serve the common interests between the two countries.

The Minister said the Ministry of Finance is currently discussing "with a group of ministers and specialists in the Iraqi government, federal budget strategy for the years 2010 2011 2012 to get recommendations and enhance the strategic decisions for the purpose of adoption for the advancement of the economic reality of Iraq, which is a" significant "in all areas. The Minister's optimism in the development of increased quantities of Iraqi oil exports, which would reach more than two million barrels per day, "in addition to the improvement in oil prices, which will enhance the resources of the federal budget.

Noting "that the Ministry of Finance has achieved significant successes have contributed to the departure from Iraq vulnerable to the global financial crisis in addition to the promotion of services by the ministry, especially the" government in the banks that have achieved significant accomplishments will support the economic process in Iraq through the adoption of modern techniques to the work of government banks and the implementation of the Rafidain Bank the last stage of the overall banking system, which will be the work of the Bank to the technical world. Petricha The Ambassador praised the great development that has been made of the Iraqi economy and the significant growth of the development process in Iraq and the considerable efforts made by His Excellency the Minister of Finance in the promotion of these efforts, saying "the U.S. government's keenness to support the government and the Iraqi people in all areas.

The meeting was attended by Dr.. Shabibi Governor of the Central Bank of Iraq and d. Jaafar Aziz, Advisor of the Minister of Finance.

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Turkish FM due in Iraq to boost ties: Report

Turkish Foreign Minister Ahmet Davutoglu said Tuesday that he would fly to Iraq early next month in a bid to boost bilateral ties and discuss possible projects, the Anatolia news agency reported.

The visit will form part of preparations for a high-level ministerial meeting chaired by the two countries' prime ministers, planned for October in Baghdad, to discuss ways of increasing bilateral cooperation, Davutoglu was quoted by the agency as saying.

"It will be possible during my Baghdad visit to discuss with Iraqi officials the roadmap and the projects that the Turkish side has worked on," the minister said.

Ankara wants close ties and economic cooperation with Baghdad but the presence in northern Iraq of separatist Kurdish militants fighting the Ankara government has threatened for a long time to throw bilateral ties off track.

Hopes for better cooperation emerged after Iraq, Turkey and the United States agreed in November last year to form a joint committee to rein in rebels from the outlawed Kurdistan Workers' Party (PKK).

Ankara says some 2,000 PKK rebels are holed up in northern Iraq from where they launch attacks on Turkish territory as part of their 25-year armed campaign for self-rule in Turkey's southeast.

Aided by US intelligence, Turkish warplanes have frequently bombed PKK hideouts in northern Iraq since December 2007 but Ankara said last year that it wants to resolve the issue through diplomacy.

http://www.zawya.com/Story.cfm/sidAN...es%3A%20report

Christopher Hill: Iraq do more to develop oil fields

U.S. Ambassador to Iraq Kristofrhil that his country welcomes the step taken by Iraq in recent months to allow foreign companies to develop the country's oil fields.

Hill said in a press statement on Wednesday that the Iraqi government should make more effort to the development and exploitation of huge oil reserves in the country, expressing the hope that the selection of U.S. companies to promote the production of Iraq oil.

Hill stressed the need to invite foreign oil companies, including U.S. companies to invest in Iraq.

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Warka Bank calls for the government to put fiscal policy and a clear trend of private banks

Commissioner, the Director of the Warka Bank for Investment Mohammed al-Samarrai government fiscal policy and the development of a clear trend of private banks and to deal with them on a level playing field with banks and governmental organizations.

Samarrai said in a press statement on Wednesday that Iraq's economic needs to be unified to fight the battle of economic damage and substantial material damage to private banks following the decision of the Ministry of Finance of the government departments not to deal with it.

He explained that the decision of the Ministry of Finance issued in January of this year, government departments, not to open accounts in banks, private and closed to the open and the transfer of all payments to banks, causing substantial damage to the impact of the withdrawal of those services to the funds deposited.

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