Thread: Archive News - Iraqi Dinar Think Tank - 28/03/10 - 21/06/10

FastIraq, Northern Gulf Partners and Dar Es Salaam Investment Bank (an HSBC Subsidiary) Complete Landmark Iraqi Debt Transaction

FastIraq, one of Iraq's leading providers of Internet and fiber optic connectivity, has received a senior debt facility from Dar Es Salaam Investment Bank ("DES"), a subsidiary of HSBC. Northern Gulf Partners ("NGP"), Iraq's leading investment advisory firm, served as exclusive financial advisor to FastIraq. This landmark transaction will allow FastIraq to supply Internet connectivity and dedicated data capacity to Iraqi retail and wholesale consumers, connecting more than 100,000 homes and offices in Iraq.

"The Internet is extremely popular among Iraqi individuals and businesses. Widespread access to fast, high-quality connectivity is key to Iraq's future as a modern economy and the Government of Iraq is committed to the growth of the sector," said Mr. Kassim Mohammed AL-Hassani, ITPC Director General, Ministry of Communications. "This p.ioneering transaction between FastIraq and Dar Es Salaam Bank will help to catalyze additional investment in Iraq's broadband infrastructure," Mr. AL-Hassani continued.

Iraq's high-speed Internet penetration, at 5%, is low but growing quickly at a rate of 20% annually. Demand for broadband is currently about 10x available supply and increasing rapidly. Iraq's 7-8% annual GDP growth is among the world's highest.

The loan is historically significant, representing a shift in Iraqi credit culture away from asset-based lending towards a more innovative, cash-flow-based approach. James Hogan, CEO of HSBC in Iraq said, "Through Dar Es Salaam Investment Bank, HSBC is committed to supporting the long-term development of the Iraqi economy. We are keen to help the future growth of a strong telecommunications infrastructure in Iraq through supporting companies such as FastIraq." The terms of the debt facility were not disclosed.

Mr. Tim Moore, CEO of FastIraq, explained the facility's importance. "This allows a growing business to expand alongside the rapidly improving Iraqi economy and provide services and connectivity to a market with high demand. Without this progressive approach to lending by DES, this may not have been possible."

The transaction has widespread implications for other business borrowers in Iraq who seek access to credit, but lack traditional assets, such as real-estate, to provide as collateral for the loan. As other banks begin to follow the cash-flow-based lending approach p.ioneered in Iraq by DES, this development will open access to financing for healthy, growing businesses across the country.

Chris Ruth, Managing Partner of NGP stated, "We are excited to play a role in driving the Iraqi financial services market forward. For international and local investors alike, this innovative transaction represents a highly positive development in Iraq's banking sector, with increased opportunities for Iraqi businesses seeking expansion capital. "We are also very proud of the role played by FastIraq, DES and NGP in facilitating additional broadband availability in Iraq. Raising the Internet penetration rate by 10% in Iraq would increase GDP by about 1.5%," Ruth added.

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

Iraq to cut signature bonuses on oilfields

Iraq's oil ministry has agreed to reduce signature bonuses on two oilfield development deals secured by oil companies, but is turning them into unrecoverable payments rather than soft loans, Reuters has reported. The signature bonus for the 8.7-billion-barrel West Qurna Phase One oilfield to be paid by Exxon Mobil and Royal Dutch Shell will be cut to $100m from $400m, while the bonus for the 4-billion-barrel Zubair oilfield won by Italy's Eni and its partners Occidental Petroleum Corp and South Korea's KOGAS will be $100m also, compared to $300m previously.

http://www.ameinfo.com/229695.html

US-Iraqi talks on economic relations and ways of enhancing

Met with Finance Minister Baqir Jabr Al-Zubaidi, Wednesday, Petricha Haslak Ambassador economic at the U.S. embassy in Baghdad and her entourage, which included officials of the U.S. House of Representatives and a number of economic experts, and were reviewed during the meeting of economic relations and ways of strengthening them to serve the common interests between the two countries, according to a ministry statement.

The statement said Zubaidi praised during the meeting the continuing cooperation between the United States and Iraq, especially in support of the institutions and the Ministry of Finance through training and rehabilitation of staff of the Ministry, presenting the ministry's efforts in preparing the budget in 2010 and releasing 50% of the amounts retained within the investment budget for the provinces and ministries for the years 2006 2009 In addition to the launch of 40% of the investment budget for 2010 for governor."

The statement quoted al-Zubaidi he stressed the effort by the ministry for the advancement of the Iraqi economy and enhance the resources, especially oil in order to access to energy exports that Iraq was able to advancement of the services and rehabilitate the infrastructure in it.

The minister said, according to the statement, the Ministry of Finance has achieved great successes have contributed to the departure of Iraq vulnerable to the global financial crisis in addition to promotion by departments of the Ministry, especially in State-owned banks that have achieved important achievements will support the economic process in Iraq through the adoption of new technologies to the work of government banks.

For its part, praised the Ambassador Petricha has been a considerable development of the Iraqi economy and the significant growth of the development process in Iraq and the great efforts made by 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. According to the statement.

http://radionawa.com/Ar/NewsDetailN....126&LinkID=155

Invitation to review the investment grants given to foreign companies in Iraq

Called an adviser to Prime Minister for Economic Affairs peace Quraishi provincial councils to review the minutes of grants given by the investment of foreign companies.

Qureshi said in a press statement Tuesday that there are real problems in how to grant investment licenses to international companies, especially since some provincial councils to trace the biography of those companies.

Qureshi stressed that efforts were being made to make the investment grants under the supervision of a specialized committee to consider the grant investment licenses task, adding that it was essential that Iraq's central technical and technology among all provinces to consider the subject of investment grants.

http://radionawa.com/Ar/NewsDetailN....042&LinkID=155

With all the talks about the re-building of Iraq, getting the oil pumping process started and investments in Iraq by foreign countries be preceded by the RV/RI of the IQD? Has the RV/RI occurred? Is any credible information available saying when it will happen and at what rate?

nothing concrete yet..just a few rumors that we think or assuming that it will be done before the oil starts flowing...as we have seen with these Iraqi's soon to them means an eternity to us...they still have some oil and gas laws in front of the parliament for voting on since February 2007...thats 3 years...and they said the same thing about voting on these laws....SOON...now they have new officials due to the recent elections of March 7th...and yet they still haven't formed a new government as of yet....SOON thou....lol

Commerce plans to shrink the card items Altamoinp

Ministry of Commerce plans to reduce the vocabulary card Altamoinp to five important food items and head in order to reduce the physical strain experienced by the ministry, according to an economic advisor in the ministry Hassanein Fadel.

Fadel said that "there are real problems facing the work of the ministry, especially with regard to vocabulary ration card, which required development of new regulations to facilitate the delivery card items Altamoinp to the citizens."

Fadel said that the reasons for "finding the work of the Ministry of Commerce because of its recent legal and administrative problems encountered as well as charges of corruption to many officials".

He explained that the "reduction card items Altamoinp will contribute to the process of opening the door wide-open global trading companies in the supply of food has a high standard."

For his part, said the legal expert in the Ministry of Commerce Saadi Khalidi that the ministry is seriously considering ending decades of Egyptian companies that did not meet their obligations in providing the ration card items.

Khalidi said in a statement that the ministry is seriously considering the termination of contracts concluded by the ministry with the Egyptian commercial companies to provide a ration card items within a maximum period of 90 days, explaining that many of those companies did not work in earnest to complete the items of trade for decades.

Pointing out that "companies contracting with the Ministry of Commerce has failed through its commitment to providing the ration card items fully and through goods produced by the poor to the ministry."

http://www.radiodijla.com/cgi-bin/ne...?id=2010-04-14

Oil: the opening of new refineries has contributed to reduce the import of petroleum products

Ministry of Oil announced that the number of units to add refining capacity in some refineries contributed to the Chairperson to provide more than five billion dollars were paid to import oil derivatives for the needs of the local market.

According to ministry spokesman Assem Jihad said, "What is currently being imported oil products is a small proportion of what was being imported previously and is currently importing small quantities of liquid gas and gasoline as the market need."

The Oil Ministry is seeking to erect a number of additional refineries to produce petroleum products in the provinces of Kirkuk, Karbala, Maysan, a production capacity of 150 thousand barrels per day, and the deployment of another refinery in the province of Dhi Qar, a production capacity of 300 thousand barrels per day.

http://www.radiodijla.com/cgi-bin/ne...?id=2010-04-14

Signed a Memorandum of Understanding between Indian investors and the province of Karbala

Chairman of Investment Authority said that the province of Karbala yesterday hosted the first conference of investors from a range of Indian Bohras, adding that investors have offered a Tourist hotels and huge towers similar to what exists in the Gulf states.

Dr. Jalal al-Hashemi told (ur) news that "the investment conference, first saw the participation of about a hundred foreign investor of Indians from the range of Bohras have giant companies in India, Britain, France and Arab countries like Saudi Arabia and United Arab Emirates submitted bids for the construction of tourist hotels and towers along the lines of what exists in the Gulf States, noting that the Investment Commission of Karbala today signed a memorandum of understanding with investors to establish These projects are awaiting the allocation of plots of land from the local government to direct companies Work.

He added that the Iraqi investment law amended in the House of Representatives earlier facilitated the enthusiasm of investors to Iraq, but the unstable security situation is still concern for many companies The Alsttmaren Arabs and foreigners. Hashemi stressed that many Arab and foreign companies still want to establish investment projects in Karbala and direct projects that will be there by perhaps the most notable project to be implemented by the banks of Karbala, a group of companies Album Properties of UAE on the estimated area (40 kilometers) west of Kerbala, a way of investment.

In the meantime, said Hindi charge d'affaires in Baghdad, his country's determination to open consulates in most provinces of Iraq.

Abd al-Majeed initiated during his visit to the holy threshold Husseiniya in a statement to reporters, including agency (ur) news that "the provinces of Karbala and Najaf are of great importance to the Government Hindi so we seek to establish consulates in the purpose of caring for the interests of the Indians in Hatin provinces and we have no intention to open consulates in most of southern and northern governorates of Iraq."

http://www.uragency.net/index.php?aa=news&id22=6356

Baghdad and Arbil are closer to reaching a solution on the oil companies benefit

Kurdish official said that officials from the Kurdistan Regional Government and Federal Government of Iraq agreed on the potential mechanisms for the payment of oil companies operating in Kurdistan, but must be approved by the Iraqi cabinet on the proposals.

And a delegation headed by Abdel-Karim and coffee Deputy Oil Minister of Iraq to the Kurdish capital Arbil on Sunday and held talks with Minister of Natural Resources Ashti Hawrami on how to resume the export of crude from the region.

He said to Reuters, "the Ministry of Finance will be the final word on the payment of the companies operating in the area and after obtaining the approval of export we will resume in two or three."

He did not give any details on the proposed mechanisms reached by officials from the federal and provincial governments Kurdish. Iraqi officials have said that to be approved by the Council of Ministers on the proposals and their application due to the Ministry of Finance.

And pay dues to international oil companies such as De. That. Genl or Norwegian, Turkish Energy a major obstacle to the resumption of exports from the fields Kurdish. The Iraqi government outgoing agreements signed by the Kurdistan Regional Government independently with about 12 illegal companies.

And increased signs of a breakthrough in light of negotiations to form a new Iraqi government after the elections that took place on the seventh of March, which had not achieved any party an absolute majority. It is likely that the Kurdish bloc partner for those who have the prime minister.

And transfer site for the Kurdistan Regional Government Laibi deputy oil minister said after talks in Arbil, he will present the outcome of his meetings and meetings with officials of the Regional Government Council of Ministers of the Federal Government to issue a final decision in this regard.

Fadel said the Prophet, deputy finance minister, told Reuters that any proposals to reimburse oil companies must be approved by the Council of Ministers. "I do not think that the issue depends on the Ministry of Finance. Must agree to the Council of Ministers first, and then referred to the Finance Ministry to implement them."

Belaibi could not be reached for additional comment A spokesman for the Oil Ministry to give further details

http://www.uragency.net/index.php?aa=news&id22=6398