The Dinar Daily, Monday July 13, 2015
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  1. #1

    The Dinar Daily, Monday July 13, 2015

    CENTRAL BANK OF IRAQ

    CURRENCY CODE SELL BUY
    US dollar USD 1166.000 1164.000


    CURRENCY CODE SELL BUY
    US dollar USD 1166.000 1164.000
    Euro EUR 1304.171 1303.519
    British pound GBP 1809.982 1809.077
    Canadian dollar CAD 917.027 916.569
    Swiss franc CHF 1245.726 1245.104
    Swedish krona SEK 137.951 137.882
    Norwegian krone NOK 146.528 146.455
    Danish krone DKK 174.758 174.670
    Japanese yen JPY 9.586 9.582
    Special
    Drawing Rights
    SDR 1637.845 1637.026

    Indicative rates - (as of) 13.07.2015


    http://www.cbi.iq/

    Currency Auctions

    Announcement No. (2993\4- most recent listing)

    The opening offers the sale and purchase of foreign currency in the window of the Central Bank of Iraq on 12/07/2015 results were as follows:

    DETAILS NOTES
    Number of banks 18
    Number of remittance companies 2
    Auction price selling dinar / US$ 1166
    Auction price buying dinar / US$ -----
    Amount sold at auction price (US$) 76,875,000
    Amount purchased at Auction price (US$) -----
    Total offers for buying (US$) 76,875,000
    Total offers for selling (US$) -----
    Last edited by pinkadonai1; 07-14-2015 at 11:12 AM.
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  2. #2

    Re: The Dinar Daily, Monday July 13, 2015





    The Exchange Rate of Foreign Currency in Economic Feasibility Studies

    Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

    Estimate the shadow price of foreign currency:

    1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

    The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

    * What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.In particular the following outputs and inputs of foreign currency were distinguished:


    • Export-outputs.
    • Outputs marketed locally that substitute imports.
    • Imported inputs.
    • Inputs produced locally that usually go to exports.
    • Foreign labor.


    According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

    In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency …. etc.).

    In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

    2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports… etc.

    The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:


    • The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.
    • The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.
    • The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.
    • The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.
    • This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.


    And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

    3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.



    The Republic of Iraq – Ministry of Planning

    and

    A "flashback recap" of a Live Q and A Call from about a year ago - on THE DAILY DINAR NEWS BLOG...

    In general terms – there were three main focal points of interest I wanted to cover and then allow listeners to ask whatever questions they liked.

    1) the SIGR report…


    2) the Gold Article…


    3) the IIER report…


    I started the conversation out last night by highlighting how crazy this campaign being fielded to contact our lawmakers and bank CEO’s and tell them how unfair it is they are getting to exchange (exchange is the right terminology BTW – NOT “CASH-IN”) at 32.00 per Dinar and we are not – is. It is nuts.


    Firstly, “they” are NOT being allowed to exchange “early” – or at 32.00 per Dinar. It makes you sound “stark raving MAD” to be caught saying such things. You would be better off barking at the moon. It is demeaning to the validity of a true currency play.


    Secondly, this is entirely the wrong way to approach them. I pointed out on the call that Poppy and I fielded a very successful such campaign a couple of years ago. However, we sat down and came up with a much different approach. It was designed to get answers and to approach our lawmakers with respect and as their constituents. Not like a bunch of lunatics. We had extraordinary participation (because it made sense) and we received a good response from lawmakers. It started the conversation in a reasonable manner.


    I asked one caller – “when was the last time you asked a banker for money and told him how unfair it was if he didn’t give it to you”??? Obviously – we chuckled…


    Another caller asked me if (as DC had relayed) – the “zero’s were raised” and the lower denominations were in circulation??


    I said plainly “no”…lower denominations being in circulation would (at the very least) imply there had been a value change. If there were no value change the lower denoms would not only be of little value, they would be such a hinderance – people might even throw them away just to get rid of them. So no – no lower denoms. I told the caller to check the
    CBI.iq website for “real” info on rate change.

    The “zero’s being raised” or “deleted” – as explained by any reasonable researcher, economist or authority – is simply the process removing the large (3 zero notes) from circulation.


    Referring to an Enorrste post from today on
    THE DINAR OBSERVER DAILY(you may want to put this on your favorites and check in several times a day – we to it often )

    “…I have never found a single article from the CBI or the IMF that equates “delete the zeros” to the idea of “move the decimal point.” Instead, the statements overwhelmingly come out to mean “remove the large notes from circulation.”


    Also – this recent internal memo put out by Wells Fargo is likely “push back” from this recent campaign. I pointed out that Pinnacle Bank published an article by an “affiliate” in their internal publication and then “highlighted it” in a similar internal memo a couple of years ago. It is just a defense mechanism. I’m sure Wells is tired of having their name dragged through the “internet rumor mill”. This is highly likely the reason for their vigorous denials about handling it in the future. They get so many useless calls – it isn’t worth the headache. Can you blame them??


    Further, for any bank, lawmaker, adviser or official to state the “Dinar is a scam” is nearly as foolish as some of the internet “Gurus”. It is the official currency of a COUNTRY. I pointed out (below) the post from yesterday’s
    DINAR OBSERVER DAILY
    – highlights page 94 of the quarterly SIGR report to THE US CONGRESS in April of 2012…
    __________________________________________________ _____________

    THIS REPORT WAS SENT TO CONGRESS LAST MAY. IT PLAINLY SHOWS IN THIS REPORT THEY EXPECTED THE DINAR TO REVALUE AT AROUND A DOLLAR IN 2013.

    We are seeing and hearing that the inflation rate is still climbing and they are pushing to get us our money?? This report is from page 84 of the massive SIGR report.





    BGG ~
    This is a screen shot from the “Special Inspector General for Iraq Reconstruction” – Apr 2012, quarterly report to Congress. For members of our Government to say they have no idea what is going on here – means they haven’t read some very basic documents presented them.
    __________________________________________________ ______________

    I pointed out (last night) this is a highly speculative investment. We are, in no way, guaranteed anything. However, this SIGR report gives us some valuable insights…

    1) This is information given to the US CONGRESS on a quarterly basis… I find it hard to believe such an information source would intentionally mislead Congress. They tend to frown on such behavior. Which goes directly to the validity of this adventure – against all advice from Wells Fargo or other such naysayers.

    2) It points out there having been a legitimate “plan” – or time frame in motion…having been projected to be done in 2013. We are obviously in “over time” now.

    3) It gives us an idea as to who is in charge…the CoM – or Council of Ministers. Who do they answer to?? Maliki. Period. When is he likely to push this forward?? Historically – he has been a “weak Dinar” policy advocate. However, rumor from his own inner circle admits he can’t win a third term in office without some currency reform.

    I fully expect him to use every tool in his “wheel house” to win – his recent moves in Anbar and the disputed territories prove as much. Currency reform has to be a “biggie”. Though this WAS their thinking a couple of months ago – there is no promise it is still part of their political calculus. We shall see.

    4) Though no guarantee of the actual future plan they wind up engaging – this report points out an increase in value that would have taken the Dinar from “one-tenth of a cent” to a value “of slightly less than $1″..

    __________________________________________________ ______________

    AND

    Coins put on the market !!



    Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

    She said in her statement Albjara "The project will take between four and five years, and which will be the launch of the categories of small coins gradually."

    He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

    The economic expert on behalf of Jamil Anton, noted that he may not find metal coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century

    waradana.com

    And

    CBI is preparing to issue a monetary metal parts

    Metal coins from the category of 25 fils were in circulation until the nineties of the last century

    Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

    She said in her statement Albjara Radio Free Iraq, "said the project will take between four and five years, and which will be the launch of the categories of small coins gradually."

    He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

    The economic expert on behalf of Jamil Anton, noted that he may not find coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century.

    http://www.iraqhurr.org/content/article/26666313.html

    and

    Another "FLASHBACK"...

    Economists Divided Over Deletion Of Zeros

    By Amina al-Dahabi for Al-Monitor.

    The Central Bank of Iraq (CBI) has been attempting to delete three zeros from the Iraqi currency since 2003. This project has raised many concerns among the Iraqi public and within the business community, and Iraqi economists are divided…

    …Haider al-Abadi, the head of the Iraqi parliamentary Finance Committee, told Al-Monitor that while deleting zeros from the current currency is possible, this has been postponed until after parliamentary elections. He noted that studies are being carried out to ensure that, following the currency change, counterfeiting is limited and that Iraqis don’t go back to trading in the old currency.

    The step to delete zeros from the currency has been postponed several times, leading the parliamentary Economic Committee to demand that the CBI accelerate this project, as Al-Sharqiya reported. In a news conference held July 6, the Economic Committee confirmed that the deletion of zeros will lead to an increase in the value of the Iraqi dinar and will have positive repercussions, including a reduction in unemployment and poverty rates in the country.

    ARTICLE LINK

    Crush Expected When Kuwaiti Banks Reopen Today

    March 24, 1991|From Reuters



    KUWAIT CITY, Kuwait — Thousands of Kuwaitis are expected to jam the country's banks today when they open for the first time since the end of the Iraqi occupation.

    Customers will be allowed to withdraw funds and to swap pre-invasion money for a new currency issued to make more than $1 billion in pre-invasion dinars stolen by the Iraqis worthless.

    "We expect a rush of people," said Issam Asousi, an executive with the Bank of Kuwait. He said it could be a chaotic first week because customers have a lot of questions about their accounts.

    Kuwaiti banks continued operating during the seven-month Iraqi occupation under managers brought in from Iraq, but they have been closed since the U.S.-led alliance ousted the Iraqi army from Kuwait a month ago.

    When the banks reopen today, customers will be able to withdraw up to 4,000 Kuwaiti dinars, equivalent to about $14,000 at pre-invasion exchange rates from their accounts, and to exchange a like amount for foreign currency.

    Balances of customers' accounts will go back to what they were on Aug. 1, a day before the invasion.

    Clients will not be able to exchange Iraqi currency issued during the occupation, when Baghdad pegged the rates of the strong Kuwaiti dinar to the far less valuable Iraqi dinar.

    The new Kuwaiti money will be exchanged for old at a one-to-one rate.

    http://articles.latimes.com/1991-03-..._kuwaiti-banks


    BGG ~ Thanks to wmawhite for some facts on the subject.

    Hi BGG,

    Just thought I would drop you an email. I listened to the call, and was interested in what was said about Kuwait, if I may - I will add my 2 cents worth.

    You were spot on with what you said, I have a close friend who's father made a killing on the KWD. He bought from people who had fled the country and he paid pennies on the dollar (we are in Australia). He took the chance that Iraq would be kicked back out and he was right.

    When the money was reinstated, he exchanged it for AUD at a rate in the mid 3s. The interesting thing about it is, Iraq invaded in November 1990 (I think), they were kicked back out at the end of Feb 1991, the banks reopened with a brand new KWD in late March, that's not a bad time frame to get a currency designed, printed and made ready to use, also the time that the old KWD was valid was initially only for 2 months, then extended to 6, so it was valid until Sept 1991, interesting I think.

    Also the other thing that seems to be a "fact" in Dinar land is Bill Clinton used the Kuwait RV to pay off the debt. However, Clinton was not President in 91, he did not take office until 93, even I know that and I am an Aussie.

    Anyway thanks for the site and enjoy listening to your calls.

    Kind Regards,
    Kevin

  3. #3

    Re: The Dinar Daily, Monday July 13, 2015

    Zebari: Iraq is trying to borrow from the World Bank and the International Monetary Fund to fill budget deficit



    Tomorrow Press / Baghdad: Finance Minister, Hoshyar Zebari, on Monday, that Iraq is trying to borrow from the World Bank and the International Monetary Fund to meet the financial budget deficit and address the humanitarian crisis.

    Zebari said for "tomorrow Press," that "Iraq is trying to borrow from, inter alia, the World Bank and the IMF because there is a large deficit in the fiscal budget," noting that "there is a difficult financial problem of Iraq is facing because of the war on Daash and the drop in oil prices and the humanitarian crisis that the country complain of them. "

    He stressed that "Iraq has the right to borrow from international institutions because it is an active member."

    And it signed the Ministry of Finance, Sunday, a contract with the Officer of the World Bank to lend Iraq $ 350 million for the rehabilitation of some sectors such as health and electricity.


    https://translate.google.com/transla...2584%25D8%25A8



  4. #4

    Re: The Dinar Daily, Monday July 13, 2015

    Kurdistan denies granting financial facilities to domestic banks and stresses: our doors are open to all banks



    Long-Presse / Arbil
    It denied the Ministry of Finance and Economy in the Kurdistan region, on Monday, to provide facilities for any Ahli Bank to monopolize the distribution of salaries of its employees, while confirming that its doors are open to all private banks.
    The Ministry of Finance and Economy said in a statement received (long-Presse) a copy of it, that it "does not provide facilities to the monopoly of Ahli Bank without the other for the distribution of salaries of government employees," saying it "works to prevent monopoly."
    The ministry added that "the first test of the Ministry of Finance to deal with private banks was in the history of 04.02.2015 with the Ministry of Commerce by dealing with banks Ceyhan and the province and the Bank of Arbil, Al-Ahli," pointing to it as "the second, which she did on the test project are higher education while dealing with the Kurdistan National Bank on 10.06.2015. "
    She stressed the Ministry of Finance and Economy that "graphics that are deducted while opening the account only once a global system and not related to the Ministry of Finance," indicating that "the doors are open to any bank from private banks to deal with them by the Ministry of the province, according to instructions and conditions."
    The Ministry of Finance and Economy announced on April 21, 2015, it had signed contracts with three community banks for the disbursement of the Kurdistan Regional staff salaries, and that the ministry Ststqta five thousand dinars from each employee for granted its own instruments book, then can the employee received his monthly salary of a bank using the instrument .

    http://translate.google.com/translat...2585%25D8%25B5
    Last edited by Cricket22; 07-13-2015 at 12:29 PM.

  5. #5

    Re: The Dinar Daily, Monday July 13, 2015

    Abadi confirms the World Bank move their proceedings the government reform the Iraqi economy



    Mon, July 13, 2015 08:29

    BAGHDAD / Baghdadi News / ... stressed the Prime Minister Haider al-Abadi, the importance of creating opportunities in various sectors to absorb the momentum of unemployment, adding that his government past their proceedings reform of the Iraqi economy.

    According to a statement by the Information Office of the Prime Minister received / Baghdadi News / copy of it, that "the Prime Minister Haider al-Abadi, received on Sunday evening, regional director of the World Bank Farid Belhaj."

    He added, that "During the meeting, they discussed the progress in government reforms in the economic, financial and fiscal area and meet the challenges faced by Iraq as a result of lower oil prices globally in addition to the World Bank projects in Iraq, especially in the province of Basra."
    The statement quoted al-Abadi, confirmed: the importance of "creating jobs in the sectors of housing, agriculture, livestock and tourism and other sectors to absorb unemployment momentum", adding that "the government past their proceedings reform of the Iraqi economy and support the private sector and non-focal only on petroleum products."

    For his part, the World Bank delegation "stressed its readiness to provide assistance to Iraq in a number of projects which require high coordination with the government to implement them." It ended 21 / b

    http://www.albaghdadianews.com/politics

  6. #6

    Re: The Dinar Daily, Monday July 13, 2015

    Deputy for the National Alliance: the constitutionality of Article 140 and valid





    Khandan -ali Naji
    MP for the National Alliance Salim Chawki, that article 140 of the constitution, constitutional and is still valid, as pointed out that Article 140 includes an incident areas in southern Iraq as well.

    Shawki said in a statement to "Khandan" The Article 140 is one of the Iraqi constitution, stressing that the article valid.

    He pointed out that Article 140 does not include the northern areas, but are include areas in the south and central Euphrates such as Samawa, Babil, Dhi Qar province.

    This has initiated Article 140 of the permanent Iraqi constitution to resolve the problems and injustices caused by the former regime's policies and of campaign demographic change carried out along three decades against some provinces, especially Kirkuk in order to bring about a change in the demographics in those provinces through the deduction of administrative units of some provinces and leveled the provinces the other, or through the Housing and arrivals areas of Iraq in the province of Kirkuk and the displacement of the indigenous population.

    http://translate.google.com/translat...3794%26Jor%3D1

  7. #7

    Re: The Dinar Daily, Monday July 13, 2015

    Abadi, the regional director of the World Bank: The government is moving their proceedings reform the Iraqi economy



    7/13/2015 twelve seven

    {Baghdad: Euphrates News} stressed the Prime Minister Haider al-Abadi move their proceedings the government reform the Iraqi economy.

    A statement by his office received by the agency {Euphrates News} a copy of it today that "al-Abadi met in his office on Sunday, regional director of the World Bank Farid Belhaj, During the meeting, they discussed the progress in government reforms in the economic, financial and fiscal area and meet the challenges faced by Iraq as a result of lower oil prices globally in addition to the World Bank projects in Iraq, especially in the province of Basra. " stressed the Prime Minister according to the statement "the importance of creating jobs in the sectors of housing, agriculture, livestock and tourism and other sectors to absorb unemployment momentum."

    He added that "the government past their proceedings reform of the Iraqi economy and support sector private and non-focal only on petroleum products. "

    Turn the World Bank delegation stressed "readiness to provide assistance to Iraq in a number of projects which require high coordination with the government to implement" .anthy

    http://wwww.alforatnews.com/modules/news/article.php?storyid=89860

  8. #8

    Re: The Dinar Daily, Monday July 13, 2015

    Abadi said that his government is proceeding with the support of the private sector and not to build on oil



    Monday 13-07-2015 | 8:05:58

    Shafaq News / The head of the Iraqi Council of Ministers Haider al-Abadi, move his government to support the private sector and not rely on oil to achieve fiscal revenue of the general budget in the country.

    A government statement said al-Abadi met in his office on Sunday the regional director of the World Bank Farid Belhaj.

    The statement added that during the meeting, they discussed the progress in government reforms in the economic, financial and fiscal area and meet the challenges faced by Iraq as a result of lower oil prices globally in addition to the World Bank projects in Iraq, especially in the province of Basra.

    The statement continued that Abadi stressed the importance of creating jobs in the sectors of housing, agriculture, livestock and tourism and other sectors to absorb unemployment momentum, adding that the government will back their proceedings reform of the Iraqi economy and support the private sector and non-focal only on petroleum products.

    In turn, the World Bank delegation affirmed its readiness to provide assistance to Iraq in a number of projects which require high coordination with the government to implement them.

    http://www.ara.shafaaq.com/18698

  9. #9

    Re: The Dinar Daily, Monday July 13, 2015

    A significant reduction in central bank sales



    07/12/2015 22:35

    Demand distributed by 42 million and 900 thousand dollars in the form of remittances for the remainder of $ 33 million and 975 thousand dollars in cash.

    BAGHDAD / Obelisk: Central bank sales recorded with the opening of its meetings for the current week, Sunday, a significant decrease in sales of up to $ 76 million, and 18 banks participated and two financial convertible at an auction today.

    Saw session, today, according to local media, followed up "obelisk", a significant decrease in bank sales to reach 76 million and 875 thousand dollars, covered by the bank at a price based on the exchange rate was 1166 dinars to the dollar, compared to the day on Saturday, which amounted to Sales in which $ 242 million.

    And the distribution of demand by 42 million and 900 thousand dollars in the form of remittances for the remainder of $ 33 million and 975 thousand dollars in cash, were all demand by the bank in full coverage, not banks advancing 18 to participate in the Iraqi Central Bank auction any offers to sell the dollar.

    And it established an independent Iraqi Central Bank as a bank under the law issued on the sixth of March 2004, as an independent body, is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies being sessions daily for buying and selling currencies.

    http://almasalah.com/ar

    BGG Notes:

    Not to worry - this appears (and that is all) to be an amalgam of two auction days - normally not lumped together. One "non-auction day" and a normal auction day. Not a major instance, just a growth anomoly...

  10. #10

    Re: The Dinar Daily, Monday July 13, 2015

    Iraq gets first funding to rebuild war-struck regions



    Finance Minister Hoshiyar Zebari said around a third of the money would go toward repairing roads and bridges, with a similar amount allocated to restoring electricity networks, water and sewage.
    Iraq faces a budget deficit of up to $20 billion this year as it grapples with low oil revenues and the heavy cost of war with Islamic State insurgents.


    The militants hold much of north and west Iraq, but have been driven out of parts of Diyala and Salahuddin provinces north of Baghdad by Shi'ite militia, Kurdish peshmerga and Iraqi security forces, backed by U.S.-led air strikes.
    The extensive damage from those battles has left the Iraqi government, whose revenues have been battered by the halving in world oil prices, appealing for international help.
    "This is the first direct tangible assistance for the reconstruction and stabilization efforts by the government to normalize life in the areas liberated from ISIS," Zebari said at a signing ceremony in Baghdad, referring to Islamic State.
    He said Sunday's deal granted Iraq a 15-year loan at around 1 percent interest, with a 5-year grace period.
    Iraq has also received pledges of financial support for a government reconstruction fund from the United States, the European Union, Japan and individual European countries, Zebari said, but Sunday's loan was the first to materialize.
    "IRAQ'S WORST CRISIS"
    Iraqi forces recaptured Tikrit, hometown of former leader Saddam Hussein, three months ago, in the biggest gain by government forces since Islamic State fighters swept through northern Iraq in June 2014.
    But extensive damage and leftover bombs, as well as Sunni residents' fear of retribution from mainly Shi'ite fighters who retook Tikrit, mean only 4,000 families have returned.
    A World Bank loan document said there was a need to restore basic services quickly and to show that the "state is re-establishing its presence and credibility".
    Iraq was "possibly going through the worst and most dangerous challenge to its territorial integrity, economic sustainability and human development capacity", it said.
    The World Bank is also preparing a separate $1 billion loan to help Baghdad deal with its budget deficit.
    Bank officials say the program, awaiting approval from the bank's board, aims to improve energy efficiency, reform state-owned enterprises and improve the efficiency of budget spending.
    "We would like to be as fast with this budget support as we have been with the investment operation," the bank's Middle East director Ferid Belhaj said. "We are looking forward to finalizing the process by ... September or October".

    A third tranche of assistance of $355 million, aimed at improving road networks including links to the southern port of Umm Qasr, was approved by the World Bank in December 2013 but was only ratified by Iraq's new parliament in March.

    http://www.reuters.com/article/2015/...0PM0Q820150712

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