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

Iraq is asking banks to 7 years to double their capital, and the majority do not exceed the capital is 50 million dollars

Iraqi private banks met the Iraqi Central Bank to extend the time period granted to it to raise its capital to 250 billion Iraqi dinars (225 million dollars) to be from 5 to 7 years so that.

To arrange their financial positions and the possibility of the availability of new opportunities for the labor market helps to recruit savings banks and their capital there.

A member of the governing body of the Association of Iraqi private banks, Chairman of Ashur International Bank Wadi Handal's «Life»: The delegation of the Association will meet later with officials of the Central Bank of Iraq to discuss the obligation of banks to increase their capital to 250 billion Iraqi dinars within three years gradually.

He described the decision Basulaim since it seeks to achieve the institutional structure consistent with the present stage, however, economists agree that it can not achieve this transformation in the capital of banks during the period set by the «Central» exceptional circumstances affecting the implementation of resolution due to the fact most banks existing with a capital of about 50 billion dinars, and wait for doubling five times during the 3 years.

He Handal that economic indicators in the first quarter for the current year were not encouraging to the repercussions of the situation in Iraq on their performance requires giving the banks more time to raise the ceiling on capital to the limit, according to a decision «central».

Officials in the Iraqi Central pointed out that the decision to raise capital funds, private banks came to strengthen them, because the weakness of capital reduces funding opportunities and mobilizing financial resources for development purposes and does not provide the required level of economic activity.

The Director-General of the Department of banking and credit in the «Central» Idi Walid Abdel Nabi's «life» that most banks do not have capital that exceeds 50 million dollars, such amounts do not equal value to the project requirements and the need for funding and lending. He noted that the «Central» keen on protecting private banks and support even though their numbers are increasing in great shape, however, does not constitute one percent of GDP.

The dealers in the Iraqi bourse They told «life» that the share prices of the banking sector has been rocked led to reduced rates of sector companies are all following the inflow of news for the decision to «Central» raise capital banks to 250 billion dinars to 2014 appealing to await the implementation of the resolution so that the stability the situation in Iraq

http://www.baghdadtimes.net/Arabic/index.php?sid=60873

Capital of the banks .. Importance and performance

Go out the concept of Capital to the total value of the assets that are held by a natural person or legal liabilities of less. Sometimes known amounts of cash contributed by the owners of the Organization of business or banking company in order to enable them to do their job

Either through the purchase of shares and counted as part of the capital (style contribute) or loans and counted as part of the capital also (style lending).

Although the concept of capitalization Capitalization go out the role or functions of capital in the business or bank, the capitalization vulnerable (and otherwise capitalization, strong) usually include the contributions of a few in the capital or reliable as the way of contributions is less than what can in the capital to meet the expansion of bank in obtaining loans, funding and wide (way of lending) has promised that part of the capital. And such an approach resorts to affiliates throughout the history of the international financial order to the collection of loans from the parent company to avoid the tax burden or to avoid interest payments effective given that the interest on the loans in this case are treated as if it were divided by profits allowed the parent company to enjoy Balsmahat tax and to avoid withholding tax.

Also, the issuance of certificates of new shares or distribution of bonus shares to shareholders Scrip Issue of the shareholders it comes the other of the accumulation of profits through a paragraph reserves in the balance sheet of the company. And Aistrt to shareholders to pay any amounts for new shares. Since it can get pregnant, the arrow on the one bonus share for every three shares owned by an old contributor himself. This approach leads usually to a decline in stock prices automatically by 25%. In spite of what the method of preference shares to the owners to get cheap stock rather than stock-Ghali, they shall, in accordance with the concept or the philosophy of welfare in economics, they are not in good shape, as they say better off by such an advantage. But they should at the same time consider the courage to hope the high prices of those stocks gradually and bring it to the original value and by 25% which makes them well placed second preference better off in accordance with what is involved in the concept of economic well-being mentioned with him. The movement of price is not strange in the dealings of the financial markets, known as termed secession share stock split.

Of the foregoing, it is necessary to refer to the role Different role of banks capital and its importance in maintaining the integrity and durability of the development banks themselves and the safety of the banking system in the country in general. Banks generally work in an environment surrounded by a high degree of state Allatokd or uncertainty, which resulted in risk at different rates on its operations. So is the bank's capital-based or wall that prevents the unexpected losses that can be exposed to banks and depositors money was at risk.

As the financial resources of the Bank, as noted above divided in substantive terms into two groups, first is subjective and the most important capital and reserves and called the money-owned and the second of Foreign Affairs and the most important deposits and borrowings, and bank the other, including the issuance of bonds and others, usually called the money borrowed, the bank's own resources or capital, is in all cases the main source and the best sources and most suited to the needs of investment financing and loans for the purpose of economic activity and enable banks to absorb losses, any absorption of operating losses and operational. And the fact that banks do not work with their own funds only, but funds applicants, their role in the protection of funds by creditors (the owners of deposits) to make the capital a line of defense the President exercised by the bank in providing protection for depositors from any loss or accidental external result of the decline in stock prices or failure in collection of some of the loans or withdrawals surprise by depositors in times of exceptional quick-impact which is exposed to the banking market in particular. and although the configuration of the financial resources of the bank, whether self or foreign, as we noted earlier, the role of capital in the business banking remains different completely on the role of capital in the business of economic non-bank, as focused main task of the recent financing and the purchase of buildings, machinery and equipment necessary for the production process as a primary objective and then came to protect the rights of creditors in their different terms as a target secondary, while we believe this picture is different to the established economic, banking, where The role of capital in the financing and purchase of fixed assets is very minor and that the rights of creditors short and long-term is the main objective, which requires the availability of the assets of a strong and liquid capital.

The above, and as it came to the Iraqi National banking activity which is a number of private sector banks, with over 35 banks today on civil strife, the capitalization is still not exceeding one trillion Iraqi dinars, but a little.

If we take into account the needs of the country's financing, we find that the capital of private banks relative to gross domestic product (non-oil) does not exceed 1.5% which is very low and reflects the weakness of financial depth of the country or Huan pillar of capitalism in private banks and low, as well as lower contribution the economic development of our country which requires the strengthening of their capital is a significant turn from banks, each family closed weak in their capital and operation, to companies big banking can expand their capital through merging with each other or to increase the number of shareholders and restructuring financially and operationally to be a force for bank financing active in the leadership of the financial activity in our country's future

Therefore we decided to Board of Directors of the Iraqi Central Bank by the private banks increased their capital from a minimum of 50 billion dinars, up to 250 billion dinars in the next three years, beginning in 2010 and phased manner, which encourages these banks to integrate and really activate their operations and enable them to mobilize resources savings to the private sector to better serve the requirements of economic development. Provided that the capital resources directed towards the recruitment of new direct lending and credit that a deepening of the banking and brokerage operations Tnoaia broader financial instruments required by modern banking in our country. Also, the required increase in capital will take the broad concept of his or flexible, which means to check the banks increase their capital, taking into account not paid-up capital only, but plus what is available from capital reserves and retained earnings and other, within the so-called property rights.

http://www.alsabaah.com/paper.php?so...age&sid=102011

Maliki's adviser: Do not arrange to meet Allawi no intention to visit Saudi Arabia

Said media adviser to Prime Minister Nuri al-Maliki that the communication between a coalition of law and the Iraqi List does not live up to the establishment of a political alliance between the two lists, while denying reports that invitations to the owners to visit Saudi Arabia and several Arab countries.

The Yassin Majid told a news briefing MEMRI site «Alsumaria News» news that «Communication is among a coalition of law and the Iraqi List is a communication on a personal level by leaders in the Iraqi National List, such as Osama Nujaifi and Rafie al-Issawi and good top», pointing out that «the coalition of the rule of law has an alliance with the National Coalition can not be a two coalitions, one with the coalition and the other with the Iraqi ». And that «there is no arrangements for a meeting between Maliki and Allawi during these days», pointing at the same time that the «coalition of law committed to the alliance with the Iraqi National Coalition, and the two sides had formed a committee of seven people from each coalition will be to choose the candidate for prime minister».

The center's director of the National Information Ali al-Moussawi had expected yesterday held a meeting soon between Maliki, Allawi may result in convergence of strong between my coalition of the state of law and Iraq, and pointed out that such convergence will be determined by the nature of negotiations between the parties and the political situation in the country. Denied the glorious news that pointed to the existence of a formal invitation by the Saudi owners of the visit, stressing at the same time, «the absence of intention by the al-Maliki to do this now». The local media has picked up a story sooner earlier on Sunday that Prime Minister received invitations to visit a number of Arab countries, including Saudi Arabia.

http://www.alsabaah.com/paper.php?so...age&sid=102148

CBI dollar sales up to $176m

The Central Bank of Iraq’s (CBI) dollar sales went up to reach $176.080 million in its daily auction on Monday, compared to $137.475 in the previous session.

“The demand hit $8.660 million in cash, covered at an exchange rate of 1,183 Iraqi dinars per dollar, and $167.420 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 15 banks that participated in today’s session offered to sell dollars.

http://en.aswataliraq.info/?p=131468

Kurds unite to negotiate posts in Iraqi government

Kurdish parties have decided to jointly negotiate for posts in the Iraqi government which has yet to be formed after the March 7 election, the Kurdish regional president announced on Sunday.

"We have agreed on a full programme for a Kurdish delegation to go and negotiate in Baghdad on our participation in the formation of the new government," said Massud Barzani, president of Kurdish-ruled northern Iraq.

"We are ready to take part in all negotiations with all Iraqi parties in order to put an end to the Iraqi crisis and speed up the formation of a new government based on the principle of a partnership," he said on t.elevision.

The Kurdish parties, mainly Barzani's Kurdish Democratic Party and the Patriotic Union of Kurdistan of Jalal Talabani, who is president of Iraq, won 59 seats in the 321-member Iraqi parliament.

The Kurdish alliance said last Thursday that it would accept the candidate for premier chosen by the new Shiite coalition of incumbent Prime Minister Nuri al-Maliki.

Maliki's State of Law Alliance and the Iraqi National Alliance (INA) led by Shiite religious groups announced earlier in the week that they were forming a new coalition.

The outcome of the poll contested two months ago, meanwhile, neared finalisation on Sunday as the results from all but one province were sent for ratification and a recount in the lone exception, Baghdad, was half-way done.

Preliminary nationwide results have shown that the Iraqiya bloc of secular ex-premier Iyad Allawi won the most seats with 91, followed closely by the Maliki's State of Law Alliance with 89. But neither bloc commands the majority needed to form a government on its own and must form a coalition.

http://www.zawya.com/Story.cfm/sidAN...i%20government

Emirates announces services to Iraq

Emirates will launch flights to Baghdad from 1st July 2010.

Baghdad will be Emirates' 103rd international destination and one of six new destinations to be launched by the airline this year including; Tokyo - which began on 28th March, Amsterdam, Prague, Madrid and Dakar.

Iraq is the last remaining Middle Eastern destination to be frequented by Emirates. The carrier's current number of weekly Middle Eastern flights totals 197, across 10 countries.

His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Chairman and Chief E.xecutive, Emirates airline & Group, said: "The launch of services to Baghdad highlights our steadfast commitment to connecting the Arab world with the rest of the globe. As the last remaining Middle Eastern country to receive our services I am delighted that we have now come full circle."

Sheikh Ahmed added: "Iraq is well on the road to recovery and we are confident that the time is right to commence our operations there. There is a high proportion of traffic heading both in and out of Iraq and we are in the right position to capitalise on this demand. 2010 is set to be a strong year for Emirates and with a steady stream of new aircraft and six new destinations on the map we continue to defy industry expectations."

Initially Emirates will operate a thrice weekly service on a Tuesday, Thursday and Saturday. The route will be serviced by an Airbus A330-200 aircraft, offering a three-class configuration of 12 First Class, 42 Business Class and 183 Economy Class seats.

Emirates expects the passenger mix travelling in and out of Iraq to come from a variety of sources, with a significant skew towards industry and Government personnel. The construction, telecommunications and oil sectors are expected to make up three of the largest industry segments.

Iraqi nationals, both in Baghdad and residing outside of Iraq are also expected to be strong users of this new service. The new service out of Baghdad will provide travellers in the capital with good onward connections to many of Emirates' global destinations including the GCC, Levant and the UK via Dubai.

Emirates expects to uplift around 10-12 tonnes of cargo per flight, using the belly hold capacity on the wide-bodied passenger aircraft.

Ram Menen, Emirates' Divisional Senior Vice President, Cargo, said: "We will be importing various commodities into Iraq as the country continues its reconstruction - ranging from perishable foodstuffs and garments to electronics and oil well equipment - from all corners of the world. Our vast network and short connection times mean we are able to serve Iraq with the efficiency our customers in other markets have come to expect from Emirates."

With a flight time of less than three hours, EK 941 will depart Dubai on Thursday's and Saturday's at 07:00 hours and arrive in Baghdad at 08:30 hours. From Baghdad EK 942 departs at 10:30 hours arriving in Dubai at 13:55 hours. On Tuesday's EK 941 will depart Dubai at 08:05 hours and arrive in Baghdad at 09:35 hours. From Baghdad EK 942 will depart at 11:35 hours touching down in Dubai at 15:00 hours.

http://www.zawya.com/Story.cfm/sidZA...es%20To%20Iraq

Baghdad
Housing and a link-up of ministries typify the current ambitions in Iraq's capital.

There is a lot going on in Iraq at the moment - too much, quite frankly for most who simply want to make a living with mechanics or in construction to be concerned with. With Iraq's government in even greater upheaval than normal amid the legal wrangles of the election, it would have taken a lot for construction and development in the capital to retain the headlines.

However, three major announcements which many PMV professionals might have missed may well bring the area back into a country in which business can be done. Firstly, the General Secretariat approved the referral of the Al Raheed residential complex last week to an unnamed UAE company at a cost of more than US $20 billion (AED 73.4 billion) - heralding one of the largest investment projects in its history.

The decision was reached following protracted meetings of the Council of Ministers, according to Ali Al Alaak, UN Secretary-General of the Cabinet, with the Emirates company the pick of three shortlisted. The infrastructure project is to be presented to the next cabinet, he added, with the final signings expected within the next few weeks after modifications and resubmission by the Investment Authority.

This came soon after an announcement by the Investment Commission that it had awarded eight investment permits to projects in the capital. In a statement to Aswat Al-Iraq news agency, the Commission said it had prioritised housing, of which it aims to build over 1 million in the next three years in the country as a whole, a total investment of $50 billion (AED183.4 billion).

Meanwhile, investment is slowly tricling back into Iraq. As reported elsewhere in this issue, trucks are being assbled from kit form at a factory, which has re-opened after a very long hiatus. Elsewhere, engine suppliers are doing a good trade as gensets have become the country's de-facto power grid.

Among the eight permits is a $238 million (AED 874 million) housing project that includes 1824 units at the Muthanna Airport. It continues the momentum spurred by the laying of a cornerstone in the ThiQar capital Nassiriya, 380km south of Baghdad in mid-March.

The announcements tempered concerns following the views of Baghdad governor Salah Abdul two weeks ago that construction funding might be stunted if the country did not gra.pple efficiently with its financial budget.

In between these two events the electricity and transport ministries announced in the last month a joint railway project to deliver fuel to the Dora Power Station in southern Baghdad, though full details are pending.

The last few weeks also saw upheavals for US contractors.

Following the establishment of the general Status of Forces Agreement in January between the US and Iraq - which attempted to implement a legal backbone to the accountability of the US military's occupation - the Ministry of Interior has aimed to simplify the process of US contractors to enter and exit the country and make their presence a statutory requirement.

The new scheme involves an approval memo, an entry-exit spreadsheet of travellers to airports in Baghdad, Erbil and Basrah as well as, for the US Embassy, a copy of the government contract and that contractors gain a Certificate of Registration from the Ministry of Trade.

http://www.arabianbusiness.com/587365-baghdad?start=1

Iraq plans power boost after gas fields auction
Iraq plans to boost power capacity to 27,000 megawatts in four years after opening its gas sector to foreign investment and sealing a gas capture deal with Royal Dutch Shell, a minister said on Sunday.

The OPEC member would need to invest at least $3 billion to $4 billion per year to reach that target, Iraq's Electricity Minister Karim Waheed told Reuters on Sunday. He did not say how Iraq plans to raise such funds. It has struggled to finance its previous power generation plans.

Reaching the ambitious power capacity target would depend mainly on finalising a venture with Shell to capture and use gas now being burned in the southern oilfields around Basra, and on output from three gas fields, which Iraq is auctioning off in September, Waheed said.

In an interview on the sidelines of an energy conference in Qatar, Waheed said: "This depends on both the gas fields - the announcement for the third round - and on capturing the burned gas deal with Shell."

Waheed said if Iraq does not come to an agreement with Shell, the ministry will have to rethink its power plans.

Iraq is close to signing a final deal between its South Gas Company, Shell and Japan's Mitsubishi, after it sent the final draft of the agreement to the cabinet for approval, Iraqi Oil Minister Hussain al Shahristani said on Thursday. Shahristani also said that Iraq will invite 45 international companies, which were prequalified for two oil auctions last year, to bid to develop Akkas gas field in Iraq's western desert, Mansuriyah gas field in eastern Iraq and Siba in the southern oil hub of Basra.

Waheed said he expects the gas fields now being tendered to start producing in two to three years. Iraq plans to issue new tenders next week for installing turbines as part of the ministry's plans to boost electricity capacity, Waheed said.

In 2008, it said it had agreed a $2.03 billion deal with Siemens for 16 gas turbines and a deal with General Electric worth $3 billion for 56 turbines. The turbines are expected to add nearly 9,000 megawatts of capacity over the next few years. Iraq scrambled for ways to finance the purchase after a plunge in oil prices in 2008 deprived it of revenues and forced it to slash its 2009 budget three times. It had offered investors stakes in the electricity turbines it has ordered, and said it would repay investors from future electricity sales. In March, the finance minister said Iraq raised $2.1 billion from local banks via a one year treasury bond issue to fund electricity projects.

Waheed said: "Next week, we will tender for bids for installing turbines at two more sites, at Baiji for six turbines of 160 MW and Kirkuk for one turbine of 260 MW."

He added: "Some 38 companies will participate and compete for the deals. Just to install the turbines, we've already bought the turbines."

Waheed put Iraq's available power capacity at 9,000 MW, and installed capacity at 11,000 to 12,000 MW. Demand is estimated to be at least 12,000 MW.

Frequent fuel shortages and constant maintenance are a main reason behind the shortfall in available power capacity in Iraq, where dilapidated infrastructure has been hit hard by years of war, insurgency attacks and underinvestment. Seven years after the US led invasion, Iraq's national grid still only supplies a few hours of power each day. Intermittent electricity is one of the public's top complaints.

Baghdad, the capital, is expected to enjoy about eight hours of electricity a day when temperatures hit 50 degrees Celsius in the summer, Waheed said. With the new power plans, Baghdad, with current 3,000 MW of power available, could finally have 24 hours a day of electricity in two years.

He said: "In 2012, God willing, if we have enough gas and fuel available." (Reuters)

http://www.arabianbusiness.com/58781...fields-auction

Iraq held a meeting today to discuss options to alliances

Complexity of the existing Iraqi leaders on Monday a meeting on the position of the list of political developments with parliamentary blocs in addition to the development of dialogues zoom views with a list of Prime Minister Nuri al-Maliki.

A source in the list that "the meeting attended by the President of the menu Iyad Allawi and two leading figures of the Deputy President Tariq al-Hashemi and Deputy Prime Minister Rafie al-Issawi and other leaders of explaining who the latest list dialogues with the political blocs."

http://www.radiodijla.com/cgi-bin/ne...?id=2010-05-10

Talabani: Can not exclude any component of the Iraqi people in the next government

Said President Jalal Talabani said that "to help the Arab League to Iraq is not considered an interference in internal affairs, they are bearing their name and content, and Iraq is a founding member of the university."

Talabani said at a news conference in Cairo after meeting Secretary-General of the Arab League, Amr Moussa, said Iraq was "keen on the Arab arena as a founding member of the Arab League," noting that "the recent help of Iraq is not considered an interference."

Talabani said that "the next government must be a government of national partnership actual real," says Gershon Baskin, saying he "can not exclude any component of the Iraqi people in the next government."

For his part, said Amr Moussa, the Arab League was "committed to political quotes based on Iraqi national reconciliation, and stop the sectarian and ethnic groups and others that can claim a major problem in Iraq."

http://www.radiodijla.com/cgi-bin/ne...?id=2010-05-10