Sabtu, Desember 23, 2006

Iraq oil could provide $3,500 per citizen

Veteran analyst Dale Steffes said his estimate was based on an oil price of $60 a barrel, $10 a barrel production costs, and the assumption that 10 million Iraqis would be old enough to qualify for a share of their country's oil wealth.

Iraq produces 2.2 million barrels of oil a day and exports 1.5 million barrels, according to the Iraq Study Group Report issued earlier this month.

Estimates for current average annual income in Iraq vary widely, but top out at around $1,500 a year.

Steffes, who has been urging the distribution of Iraqi oil money in his reports since 2004, said in an interview the best way to administer the program may be to give the money to those who register to vote and maintain a bank account, thus promoting social involvement and stability.

"Once people understand that the money is coming to them, they will want to protect that income stream and have some kind of government that can settle disputes," he said.

Opponents say distributing the money would be difficult due to logistical and corruption problems, but the idea has picked up advocates as the United States looks for ways to stop the chaos that has followed the 2003 invasion that toppled Iraqi leader Saddam Hussein.

In an op-ed piece in Monday's Wall Street Journal, two U.S. senators, Democrat Hillary Rodham Clinton and Republican John Ensign, urged President George W. Bush to form an "Iraq Oil Trust" modeled on the Alaskan Permanent Fund which gives Alaskan citizens a share of revenue produced from that state's oil fields.

"A distribution of revenues to all Iraqis would mean they have a greater incentive to keep the oil flowing, help the economy grow, reject the insurgency, and commit to the future of their nation," Clinton and Ensign wrote.(Source)AlSabah

Central Bank denies determining the price of the US dollar against the Iraqi dinar

A source in the Bank indicated that the number of banks participating in this auction amounted to 10 banks between governmental and private.

Stressing that the auction came to 1422 iraqi dinars to the dollar, and the quantity sold by the bank was fourteen million and '830' thousand dollars, while the quantity purchased by the bank was one million dollar.

The source added that the quantity sold in cash to banks and customers amounted to eight million and '820' thousand dollars, while the quantity sold for remittances outside Iraq reached six million and ten thousand dollars.

On the other hand, an official source in the Iraqi Central Bank denied rumors on the bank seeking to determine the rate of the dollar against the dinar at one thousand iraqi dinar.

Stressing that the issue of determining the exchange rate of the dollar against the Iraqi dinar is not possible, now, for two reasons: first, the reserve capacity of the bank is not absolute, and second is the factor of the price increase.

He added: observing the general trends point to higher prices in return for a lack of improvement, which makes the dollar reduction to this value impossible at the present time, in addition to the limited financial capabilities of the Bank.

He explained: that the significant decline in the dollar, directly after the fall of the previous regime, was caused by the flow of billions of dollars to Iraq and distributing them among employees as well as opening exchange and restrictions. He pointed out: that at the present time and because of the deterioration of security and the high rate of inflation, the devaluation of the dollar is not expected at all.

It is noteworthy that some economists pointed out the Bank have sought to reduce the price of the dollar against the Iraqi dinar through the monetary policy which it follows in the opening of the daily auction for treasury remittances.(Source)AlSabah

Raising interest rates is to strengthen the Iraqi dinar

But he indicated "transfers and distributions will be made so that the new budget will cover all sectors of the Iraqi people to avoid the mistakes that happened in last year's budget, and the confusion that happened in the implementation of investment projects".

After the economic committee meeting under the chairmanship of Vice-President Adel Abdel Mahdi, the Iraqi minister revealed that "new conditions are put to punish the parties who fall behind in the implementation, then withdraw the funds that have not been spent and convert them to the implementation of large projects in the country".

Regarding the amendments to the salaries of governmental employees at the beginning of next year, Azzubaidi announced: "400 million dollars have been allocated to make the necessary adjustments to the salaries of the employees. The increases would range between 50 and 70%, and each employee will get the increase he deserves, starting from the beginning of next January".

Azzubaidi pointed out that 2007budget "will be set at the rate of 1260 dinar to the dollar and 50 dollars per barrel of oil with the production of 1.7 million barrels a day". He explained that the Iraqi Central Bank "started raising interest rates from 12 to 16% now", pointing out that there are no immediate plans to continue raising interest rates.

He explained that the aim of raising interest rates is "to strengthen the Iraqi dinar, and curb the inflation of 56% now, as well as strengthening the confidence of Iraqis in the local currency iraqi dinar".(Source)AlSabah

Iraqi officials reached a tentative agreement on the oil law

Iraq is in great need for foreign investment to revive its shattered economy, which relies heavily on revenues from oil exports, especially that the country has the third largest oil reserves in the world.

Sources close to the negotiations said that Prime Minister Nuri al-Maliki, "agreed on" the draft law which is awaiting the political approval and the adoption of the Cabinet.

The source added that the law calls for the formation of a national council of oil headed either by the Prime Minister or the Deputy Prime Minister and has the right to reject deals of oilfields.

A source said that "regions will negotiate within the framework of specific standards and models of investment determined by the Federal Council of oil and gas ... In the presence of a representative of the Council".

He added, "If a contract is rejected but the region insisted on it, a body of independents experts will be appointed for arbitration".

The sources added that the Minister of Oil, the Central Bank Governor, representatives from each region and experts in the fields of oil, finance and the economy will be members in the Council.

The source said "the government of Kurdistan, accepted the review of its existing contracts to be consistent with the law".

The issue of contracts is important for the future of Iraq since reaching a solution for the benefit of the regions would transfer authority over these valuable resources to the Shiites, who represent the majority, and the Kurds whose lands include the largest oilfields in the country.

The Sunni minority, which dominated the country in the era of Saddam Hussein till the invasion led by the United States in 2003, fears that this solution will leave them nothing.

The sources said, "Contracts would not apply unless they are approved at by the council within a period of 60 days".

The sources said that the law calls for the conversion of the two Iraqi oil companies, turning into a holding company that has its own production units for managing the different areas of the sector.

According to the law, the oil policy will be determined at the central level and the Oil Ministry will be restructured and transformed into a control body; and all oil revenues will be deposited in one national account.

The sources quoted Iraqi officials saying that the law will be referred to Parliament for ratification by the end of December; however, the legislation is likely to be issued early next year because of the holydays.(Source)AlSabah

Tabatabai said that they amounted to 8,422 billion iraqi dinar; that is 1,052 billion iraqi dinar in a session

However, he pointed out that the current situation is temporary and exceptional; therefore, the performance must be maintained consistently, as illustrated by general indicators, which confirms that the development in performance continues to be a salient feature in the march of the market.

Tabatabai added in a press statement: that the investment law being not activated, its members are not appointment and working by it has not started, created a great disappointment among investors in the Iraqi bourse, particularly that efforts have been made by workers in the bourse to update its performance; electronic equipment and supplies are being installed and Stock Exchange rooms are being organized for this purpose. He added that such electronic boards are used for the first time in Iraq...

Tabatabai expressed his hope that many factors will help the investments by shareholders better than it is now. In the forefront of these factors is the security situation.

Tabatabai pointed out that the number of shares that have been circulated in the month of September amounted to 4,212 billion shares, at an average of 527 million shares in a session, registering an increase of 54, 9% on last August. As for the volume of transactions in the month of September, Tabatabai said that they amounted to 8,422 billion dinar; that is 1,052 billion dinar in a session; and the number of contracts executed in the same month, increased to reach 2928 contracts for the month of August.

Tabatabai also stated that the banking sector is the main engine of the market, as this sector has achieved greater relative importance.(Source)AlSabah

Sabtu, Desember 16, 2006

Austrian Airlines launches regular flights to Iraq

The company said in a statement that "the plane landed as scheduled on December 11 in Arbil International Airport", adding that flights take off on Monday and Friday.

Austrian Airlines, which is partially owned by the State, announced in January that it will launch regular flights to the capital of Kurdistan Region, but backtracked on the plan after a month after reviewing the situation.

Austrian Airlines was the first European airlines that began services to Sarajevo and Pristina after the end of the war in former Yugoslavia.(Source)AlSabah

Rabu, Desember 13, 2006

A plan to raise oil industry in Iraq

He added that among suggested recommendations to increase exports is reacting of Iraqi National Oil Company's law to achieve best administration of oil activities and acceleration issuing needed laws at field of oil wealth and investments to ensure participation of world companies to develop productivity abilities and increase exporting within a system balance between state's goals and achieve best conditions for investment and competition.(Source)Al-Sabah

Japan to provide USD 710 million loan to Iraq

The loans carry an interest rate of 0.75 percent and must be repaid over 40 years, including a 10-year grace period, and will be offered through the government-affiliated Japan Bank for International Cooperation, the ministry said in a statement.

Of the amount, JPY 50.05 billion (USD 430.4 million) will be used for the construction of a pipeline to export oil from the southern Iraqi city of Basra. The remaining JPY 32.59 billion (USD 280.2 million) will be used to stabilize power transmission across the nation.

The loan is the latest batch of the up to USD 3.5 billion worth of low-interest loans which Tokyo pledged for Iraq at the international donors' meeting in October 2003 in Madrid. Japan, a key donor to Iraq, has pledged to provide Iraq a total of USD 5 billion in aid for its reconstruction for a four-year period from 2004 to 2007, including USD 1.5 billion in grants.(Source)Kuna

Senin, Desember 11, 2006

Dollar demand reacts downward in Iraqi central bank auction of iraqi dinar

The central bank covered all bids from banks at $8.820 million in cash and $6.010 million in transfers abroad, all at 1,422 iraqi dinars to the dollar, two iraqi dinars less than the previous session.

Ten banks participating in Sunday’s auction offered to sell one million dollars at 1420 iraqi dinar to a dollar.(Source)Aswat Al Iraq

Kamis, Desember 07, 2006

268 companies registered last month in Iraq

A source in the ministry said in a press statement: "The companies were distributed as follows: 257 limited liability companies, seven companies for individual project and four joint companies".

He added: «that the limited companies registered were: business companies, travel and tourism, construction, buying and selling of foreign currencies, different services, escorts and protections, industry, transport, aviation, agencies of agricultural production, consulting and investments, pilgrimage and minor hajj, in addition to other activities in multiple aspects of trade, transport, communications, Internet, transportation, protection and other contracting works".

The source explained: "The companies registered with the individual activity, were distributed among, trade, construction, transport and services". He continued: "The activities of the joint companies registered concern, industry, construction and trade". (Source)AlSabah

Dollar dropping agianst iraqi dinar caused by low interest rates

Dr. Taha Fakhri, member of the Iraqi Institute for developing the economy, said: "The decline in interest rates is the reason behind the slight decline in the dollar in governmental auctions and commercial transactions". He added: "This decline is also caused by the weak consumers demand on imported goods due to the deteriorating security situation, which compelled the State to finance some important deals".

He pointed out that: "The slight rise or decline of the dollar does not obstruct the growth or value of the iraqi dinar which is expected to become stronger than before with the introduction of the balance of 2007 and the strategic application of the new monetary policy announced by the government last year". He explained: "The decline will be reflected on the value of the precious metals whose prices will rise as a result of the fall in the dollar, which gives an opportunity for those who hold commercial transactions, such as automobiles and heavy equipment, to invest them". Fakhri said: in some cases the decline in the dollar rate is linked to America itself through the entry of imported goods and the exit of funds from it.(Source)AlSabah

Selasa, Desember 05, 2006

The establishment of three power stations in Kirkuk costing three million dollars

Yaljehin Ali Mahdi said: "These projects are necessary to solve the crisis in the city".

Yaljehin explained that "there are three electric power stations being worked on; they are: Imam Qasim, Al-Wasti and Mansuriyah, costing $ 1 million each, with a production capacity of 31, 5 megawatts". He pointed out that these stations are in their final stages and will be operated soon.

Yaljehin added that these stations will not reduce the hours of power cutoffs or increase it but will improve the quality of electric power.

He continued: "We have plans for 2007 to implement a number of electricity projects in the districts of Kirkuk governorate, includes the construction of stations in the areas of: Karahnger, Darman, Abbasiyah and Huwayjah to cover all the areas with electric power".

Yaljehin said that these projects are financed by many budgets like: the annual plans of the Ministry of Electricity, the budget of developing regions and accelerating the reconstruction of provinces associated to the Ministry of Finance and the budget of strategic projects within the province. He said that the share of Kirkuk from the general funding, this year, for electric power is about 11% from the northern region, and that this ratio will increase if the generated amount of power increases.

Kirkuk produces electricity through three main stations: southern Taza, Mullah Abdullah gas station and the western station of Al-Dibs. Two new stations within Taza electric station were opened, this year, at a production capacity of 235 megawatts.

In spite of the existence of these giant stations in the city, the hours of power cutoffs increased, since the past three weeks, and the prices of AMP, which the people buy from private generators, went high from four thousand iraq dinar to seven thousand iraqi dinars.

Faris Ahmed, one of the private electricity generators owners, attributes the high prices of AMP to the increase of the price of (kerosene), which reached 250 thousand iraqi dinars per barrel after being 200 thousand iraqi dinars. This makes it difficult for the owners of generators to buy large amounts of it, forcing them to raise prices of AMP to cover the high expenses of fuel.(Source)AlSabah

Senin, Desember 04, 2006

Cara Mengetahui Keaslian Dinar Iraq

Untuk membedakan uang asli dan uang yang palsu tentu kita harus mengetahui terlebih dahulu ciri-ciri atau karakteristik dari uang Asli itu sendiri sehingga kita dapat membedakannya dengan uang Palsu.

Uang Rupiah sendiri dikenal dengan istilah 3D (Dilihat, Diraba, Diterawang) dan di Bank-bank maupun Money Changer dan toko-toko banyak yang sudah dilengkapi dengan Money Detector berupa alat elektronik menyerupai lampu neon yang akan memancarkan Sinar Ultraviolet.
Uang kertas Dinar ini juga dapat diperiksa keasliannya dengan menggunakan Sinar Ultraviolet tersebut mulai pecahan kertas 50 Dinar hingga yang terbesar 25.000 Dinar, dengan Sinar Ultraviolet tulisan/gambar tersembunyi tersebut akan terlihat dengan jelas.

Untuk lebih lengkapnya berikut tanda-tanda uang Dinar Irak yang asli.

Dinar Irak Pecahan 25.000

CARA MENGETAHUI KEASLIAN DINAR IRAK

  1. Horse head watermark, Langkah mudah untuk mengetahui keaslian Dinar Irak adalah, pegang lalu arahkan Dinar pada tempat yang terang. Periksa bahwa gambar kepala kuda atau Horse Head Watermark harus jelas nampak, karena pattern itu ditanam dan bukan dicetak di atas kertas. (semua note kertas 50 s/d 25.000 Dinar)
  2. Ultraviolet Writing, Untuk mengetahui tulisan ultraviolet Dinar Irak ini, haruslah menggunakan sinar Ultraviolet (dijual di toko-toko sparepart elektronik, di Bandung ada di Jaya Plaza atau Cikapundung). Arahkan sinar UV ke huruf-huruf yang samar pada Dinar Irak tersebut, lalu periksa apakah tulisan/gambar terlihat dengan jelas pada bagian belakang/tulisan arab. Tulisan yang terlihat harus sesuai dengan nominal uang kertas tersebut. (semua note)
  3. Color Changing Symbol, disebelah bawah pojok kiri, 8 bagian simbolnya haruslah mempunyai warna yang bisa berubah-ubah dari ungu ke hijau jika dilihat dari sisi yang lain. (note 10.000 dan 25.000)
  4. Bau Uang, Langkah mudah untuk mengetahui keaslian Dinar adalah dengan mencium uangnya. Anda akan mendapatkan bau uang baru yang sangat khas. (semua note)
  5. Metallic Ink, Gambar merpati pada dinar tersebut dicetak dengan warna tinta metalic, yaitu tepatnya di atas kiri pojok bagian belakang/tulisan arab. (khusus note 25.000)
  6. Security Thread, Benang Pengaman berwarna metalic yang tertanam di dalam bahan kertasnya.Pada note 25.000 Benang Pengamannya sebagian ditanam dan sebagian timbul, selang-seling. Sedangkan pada note 50 sampai 10.000 Dinar, Benang Pengamannya ditanam ditengah-tengah kertas. untuk melihatnya arahkan uang Dinar tersebut pada sumber cahaya / Tempat yang terang.
  7. Unique Serial Number, setiap mata uang Dinar ditandai dengan serial number yang unik dalam tulisan angka-angka Arab Timur. Perhatikan pengangkaanya sama dengan pengangkaan Arab umumnya. (semua note)
  8. Permukaan yang Kasar/ Raised Letter, Ciri terakhir ialah dengan meraba permukaan uang kertas Dinar maka akan terasa kasar seperti huruf timbul, pada tulisan tertentu. (semua note)

Rabu, November 29, 2006

Dollar demand hits new low against iraqi dinar in 2006

The Cenbank said in its daily statement the dollar demand reached $0.850 million compared to $20.580 million on Monday.

The central bank covered all bids received from local banks which were $0.850 million in cash.

The exchange rate was at 1,437 iraqi dinar per dollar, two iraqi dinars down from the previous session.

Only six banks participated in Tuesday’s session, the lowest number in 2006, and none of them offered to sell dollars.

The Iraqi central bank runs a daily auction on Sunday through Thursday.(Source)Aswat Al Iraq

Iraqi Central Bank raises interest rates to 16%

A statement issued by the Central Bank said: "the index of consumer prices in Iraq in October 2006, express increase in the inflation rate by nearly 2.7% compared with September of the same year".

The statement added that the increase showed "diverse rises in the prices of all goods and services, reflected in one form or another at the level of annual inflation which witnessed a remarkable increase of about 9.52% according to the indicators of October compared to last September, about 6.51%".

The Central Bank noted that «in spite of the slight decline in the annual rate of inflation last October 2006, which was the index of consumer prices, and from which the items of fuel, lighting, transport and communications were excluded, it recorded nearly 32% after it witnessed a rise of 33.1% in September of this year".(Source)AlSabah

Iraqi Central Bank raises interest rates to 16%

A statement issued by the Central Bank said: "the index of consumer prices in Iraq in October 2006, express increase in the inflation rate by nearly 2.7% compared with September of the same year".

The statement added that the increase showed "diverse rises in the prices of all goods and services, reflected in one form or another at the level of annual inflation which witnessed a remarkable increase of about 9.52% according to the indicators of October compared to last September, about 6.51%".

The Central Bank noted that «in spite of the slight decline in the annual rate of inflation last October 2006, which was the index of consumer prices, and from which the items of fuel, lighting, transport and communications were excluded, it recorded nearly 32% after it witnessed a rise of 33.1% in September of this year".(Source)AlSabah

Selasa, November 21, 2006

Babil Province Council Prepares Investment Plan Projects within 75 billion iraqi dinar

A source at the finance committee Raja'a Naji said that the council organized with the cooperation local sides towards preparing a mechanism technical and scientific balance plan for the coming year, showing the real need in the municipality, pointing that the suggested balance need 75 billion iraqi dinars including paving, cities numbering, establishing gardens and parks besides other cleaning works for the various districts and streets.(Source)AlSabah

Senin, November 20, 2006

Al-Maliki: Iraq oil resources belong to all Iraqis

Al-Maliki said during a press conference with his Turkish counterpart Rajab Tayyib Erdogan "that these resources should be distributed equally to citizens", and added: "We must not deprive any community, and increase the wealth of another."

The Prime Minister of Kurdistan, the autonomous Region (in theNorth), Nishiroan Barzani said at the end of September that the Kurds want to control their oil wealth and warned that any foreign intervention would only lead to revive the invitations to the independence of Kurdistan.(Source)AlSabah

Minggu, November 19, 2006

Iraq signed irrigation systems contract with Austria

The contract worth $7.7 million will enable the ministry to produce sprinkler and drip systems inside the country.

“The company has begun implementing the first stage of the contract which includes the manufacture of metal pipes for the system,” the ministry said in a statement.

The production is supervised by the State Company for Mechanical Industries which will shoulder the mass manufacturing of the systems and their shipment to dealers across the country.

The contract will help the company focus on other urgent metal products already in high demand locally.

These include electrical posts which the company says it can now manufacture in huge quantities. (Source)Azaman

Iraq debts vanish

Members of Paris Club

On the 11-21-2004 Iraq negotiated a preliminary agreement with the Eighteen countries that make up (the Paris Club) for an immediate write-off rates at 30% of Iraq's debts which amount to about 50 billion dollars credited to the Member States (the United States of America wrote off all its debt upon Iraq which is nearly four billion dollars in January 2004).

As for writing off the second installment of Iraq's debts to Paris Club countries, which are equivalent to 30% of the original debt, Iraq has signed the Convention of the (Support Arrangements) with the International Monetary Fund in the 11-23-2005 to implement it.

Entering these arrangements with the IMF, the debt will be reduced by additional 12 billion dollars to the Paris Club, followed by the elimination of the remaining debt of 8 billion dollars automatically, in case Iraq succeeds in implementing the (Support Arrangements) convention with the IMF in 2008.

The Gulf Cooperation Council

A number of the (Gulf Cooperation Council) States called upon Iraq to payback amounts that exceed (50) billion dollars offered by those States as financial assistance to the former regime during the Iraqi-Iranian war from 1980 to 1988. Iraq has received assurances from those States to settle the debts under conditions similar to those, at the very least, agreed by Iraq with the Paris Club countries.

In spite of the tireless efforts made by the Minister of Finance, Professor Baqir Jabr Azzubaidi, to exempt Iraq from all its debt to Saudi Arabia, on bases Arab brotherhood and common destiny, the results were not satisfying... We hope that the Saudi side understands of the current circumstances in Iraq and that the government of national unity is not responsible for this debt in the first place. However, 40 billion dollars, or more, will be written off in case of signing bilateral agreements with the States of the Gulf Cooperation Council during the coming year 2007.

States, outside the framework of (the Paris Club)

Iraq is in debt of 20 billion dollars for countries outside the scope of (the Paris Club). In this regard, Iraq had signed an agreement with (Hungary, Romania, South Africa, Czech Republic, Slovakia, Malta), which agreed to cancel all debts by100%, according to personal efforts by Mr. Baker Jabr Al-Zubaydi, Minister of Finance, and talks are still continuing with other countries with great success. An agreement will soon be signed with (Bulgaria), from which Professor Aziz Jaafar Hassan, Personal Adviser to the Minister of Finance, had returned a few days ago to prepare the conditions for the signing of the bilateral agreement for the settlement of Iraq's debts with Bulgaria.

Commercial debts

More than 600 business entity claims for the payment of debts owed to Iraq during the period of the previous regime totaling more than 22 billion dollars. Iraq has paid these debts on basis similar to the Paris Club agreement and has completed more than four commercial offers cash rate (25 / 10) cents for every dollar, reducing the total debt by more than 4 billion dollars; in addition to offering the senior creditors, whose debts are more than 35 million dollars, the purchase of bonds at a total amount of 14 billion dollars. These bonds were issued roughly equivalent to ( 3, 225 )billion dollars and is expected to reduce Iraq's debt, which amounts to 130 billion $,to about (50) billion dollars which will be reduced to less than 30 billion dollars in case Iraq succeeds in implementing the (Support Arrangements) signed with the International Monetary Fund by 2008.

The Minister of Finance, Baqer Jabr Al-Zubaydi, said that the Iraqi government has inherited major challenges, three years ago, including the debt burdens which amount to 130 billion dollars; however, many of those challenges will be passed. The Minister of Finance and his team were able to reschedule Iraq's debts, which most of them will be resolved by 2007. (Source)AlSabah

Iraq ministry of Oil: Establishing Maysan oil company

Jihad added that the formation of the company came within the Ministry's desire for development and oil investment. The company would be rallying to the sectors of the Ministry of Oil under its full supervision. Jihad stressed that the ministry is considering the foundation of other companies in provinces, which possesses oil fields.

The media spokesman expected that the Ministry will establish a similar company in the province of Kirkuk, for possessing oil fields, as well as in Wasit governorate, noting that there is a great tendency to invest natural gas in the province of Western province which possesses huge quantities of non-invested gas in the Western Desert, according to studies in the ministry. In Amman, the Jordanian Minister of Transport, Eng. Saud Al-Nusseirat, denied news yesterday about starting to provide his country with Iraqi oil at preferential prices up to 18 dollars per barrel.

Al-Nusseirat commented on the news that the fleet tank for the transport of Iraqi oil is ready for action "for about two months, but the technical aspects of the Iraqi side are still hindering the process of the actual transportation".

He expressed his hope that the amounts of oil transported to Jordan will be up to 30 thousand barrels per day. One of the news agencies reported yesterday that the Iraqi oil minister, Hussein Shahrastani, said: "Iraq started supplying Jordan with ten thousand barrels of crude oil at preferential prices up to 18 dollars.

" At the same time, secretary general of the Ministry of Energy and Mineral Resources, Eng. Khaldoun Kutaishat, expected "that the Jordanian side completed all the procedures for transfer through the Jordanian-Iraqi Company for Land Transport, which provides security for the transport of oil through its relations in Iraq," stressing that some of the technical obstacles from the Iraqi side "are still preventing the start of the transfer". (Source)AlSabah

Jumat, November 17, 2006

Raising price of gas to US and reducing it to Europe and Asia

The Iraqi Oil Marketing Organization (SOMO) determined the sales price of December to American buyers at a deduction of 8.20 $ of the price in West Texas Intermediate crude oil contracts, compared to the American discount of 8.90 $ in November contracts.

The price of oil shipments in December contracts for Asia was determined at the prices of Oman and Dubai crude oil minus 2.90 $, which is ten cents less on the price in November.(Source)AlSabah

Rabu, November 15, 2006

Iraqis are the main foreign investors in Jordan invested over 118 million Iraqi dinar

According to a publication of "the Ministry of Industry and Trade", these investments represent about 12% of the total investments in companies registered in Jordan during the first ten months of this year, which amounted to 982.4 million iraqi dinars; also representing about 32.5% of the investments by non-Jordanians, which the bulletin estimated them by 336 million iraqi dinar.

The bulletin pointed out that the number of Iraqi investors registered with the Corporations Control Office until September hit about 3927 investor; estimated volume of their investments over the past six years at about 345.7 million iraq dinars distributed to various productive sectors.

The Iraqi investments in the services sector amounted to 140.3 million iraqi dinars, while hit 127.9 million iraqi dinar in the trade sector, about 58.7 million iraqi dinar in the agriculture sector, about 15 million iraqi dinars in the industry, and about 3.5 million iraqi dinar in contracting.

According to figures issued by the Department of Lands, the Iraqis bought, during the first ten months of this year, real estates and lands valued by 76 million iraqi dinar; that is 1.9% of the total sales in this sector, and about 50% of the total sales of non-Jordanians in the same period. This replaces Iraqis on top of the list of investors in lands and real estates of non-Jordanians, followed by Kuwaitis who used to occupy the first place, Saudis ranked third, followed by holders of American citizenship then the Syrians.

Hundreds of thousands of Iraqis arrived in the Kingdom after lifting the travel ban in 1991 following the end of the first Gulf War, since that Jordan was the only legitimate outlet to get out of Iraq. While some Iraqis used Jordan conduit to travel to various countries around the world, others settled in, illegally for a large number of them, which makes it difficult to obtain accurate statistics of the number of Iraqis living in Jordan; however, they are estimated by a quarter of a million.

After the American occupation of Iraq in 2003 and the subsequent disorder, many Iraqis migrated to Jordan. While the Iraqis of the first phase, which lasted until 2003, were mainly intellectuals, academics and fugitives from the system on political grounds, and many of them were poor, the second phase included large numbers of businessmen, investors and wealthy Iraqis who fled the security situation, the poor investment opportunities and the increasing incidents of kidnappings and seizure of hostages. They found in Jordan a stable country and attractive for investment because of the facilities offered by the Jordanian Investment Law.

Added to them, the Iraqi investors living abroad and wanted to be close to Iraq. The ranks of Iraqi community in Jordan, according to informal estimates, are 600 thousand and 750 thousand Iraqis.(Source)AlSabah

The Iraqi-American Chamber of Commerce and Industry hold a conference on investment in Kurdistan

The official media in the Chamber, Dr. Fouad Hani, said in a press statement that this conference will focus on the economic reality in Kurdistan and the size of the projects that have been implemented by the public and private sectors before and after the issuance of the Investment Law in the Iraqi Kurdistan region in addition to presenting the future plans of the ministries of the regional government.

Fuad added that a working paper will be presented, during the conference, by the Investment Body in Kurdistan to clarify the implementation of the investment law articles in the region; its submission of legal guarantees for investors and titling lands used for investment project with multiple areas of investment in various sectors in addition to tax and customs exemptions.

He pointed out that the ministries of Kurdistan government will present working papers containing plans and future projects which seek to attract investors to implement them in various sectors such as building and construction projects, public services, the work of the municipal, water, sewage, roads and bridges, extension of electricity networks, developing transport and communications, in addition to strategic planning for /'Kurdistan region.

The Iraqi-American Chamber of Commerce and Industry had held several conferences, such as the first conference on the sidelines of the first international exhibition of Kurdistan, which was held in September of last year in Erbil as well as the second one on encouraging investment in Erbil too.(Source)AlSabah

Japan likely offer a loan to Iraq

The Foreign Ministry issued a statement yesterday that the Japanese Foreign Minister stressed that despite the withdrawal of his country's troops from Iraq, Japan will continue to support efforts to rebuild Iraq. In the same context, the Japanese Minister of Economy, Trade and Industry, Mr. Akira Amari, said after his meeting with the Minister of Oil, Dr. Hussein Shahrastani, that "Iraq is an indispensable partner for Japan being one of the sources of energy". The two ministers confirmed in a joint statement that deepening bilateral cooperation in these projects would help to strengthen relations between the two countries and to provide for the needs of Japan's energy.

Also, Toyota officials expressed their desire to cooperate with Iraq because of the importance of the Iraqi market; this came during a visit made by the Iraqi Ambassador in Tokyo, Dr. Ghanim Alwan Al Jumaili, to the headquarters of the company and to one of the largest company's factories in the cities of Nagoya and Toyota, according to a statement by the Ministry of Foreign Affairs.

The two sides discussed the cooperation between Iraq and Toyota where the ambassador urged the company's officials to seriously consider returning to the Iraqi market because of the size and potential it represents. He also proposed the idea of establishing a factory for Toyota products in Iraq to serve the general area of the Middle East.(Source)AlSabah

150 USD million for rehabilitating the Iron and Steel Company in Basra, Iraq

The source, who preferred to remain anonymous, said "the Ministry of Finance has allocated 150 million dollars last October for the rehabilitation of the affected sections and suspended from work entirely in the factories of rolling and steel in the company".

He explained that the "reconstruction and rehabilitation will be undertaken by the engineering and technical cadres of the company, depending on the reserve materials available in the local markets and some of the global ones".

He pointed out that "the company had stopped working since the first Gulf War, when it was subjected to aerial bombing that destroyed its important parts and then to looting and vandalism during the collapse of the former regime".

The Iron and Steel Company is one of the large companies in Iraq, consisting of two major factories for smelting and rolling and employs more than 6300 workers who are paid nominal salaries, by the State, currently range between 100 thousand dinars and 300 thousand iraqi dinar.The company used to produce construction iron according to international standards by 500 tons per day.

(Source)AlSabah

150 USD million for rehabilitating the Iron and Steel Company in Basra, Iraq

The source, who preferred to remain anonymous, said "the Ministry of Finance has allocated 150 million dollars last October for the rehabilitation of the affected sections and suspended from work entirely in the factories of rolling and steel in the company".

He explained that the "reconstruction and rehabilitation will be undertaken by the engineering and technical cadres of the company, depending on the reserve materials available in the local markets and some of the global ones".

He pointed out that "the company had stopped working since the first Gulf War, when it was subjected to aerial bombing that destroyed its important parts and then to looting and vandalism during the collapse of the former regime".

The Iron and Steel Company is one of the large companies in Iraq, consisting of two major factories for smelting and rolling and employs more than 6300 workers who are paid nominal salaries, by the State, currently range between 100 thousand dinars and 300 thousand iraqi dinar.The company used to produce construction iron according to international standards by 500 tons per day.

(Source)AlSabah

Selasa, November 14, 2006

DNO sees bigger oil discovery in Iraq

Shares in DNO jumped by as much as 5.6 per cent in early trade as investors cheered plans to launch production in the first quarter of 2007 despite Iraq's sectarian violence and uncertainties over rights to tap its oil riches.

DNO said the Tawke 2 well in Kurdish-controlled northern Iraq has tested 3,840 barrels of oil per day, confirming a western extension of its Tawke oil discovery.

'Preliminary results from the well indicate increased reserves,' DNO said in a statement.

DNO chief executive Helge Eide said the company would start production at two of its three wells in the Tawke discovery.

'We are now (planning to) start two of the three wells, so it (daily production) would not be far from 10,000 barrels, but we will not say anything exact now,' Eide said.

DNO also said it was in a process of finalising an agreement with the Kurdistan Regional Government to increase its working interest in the production sharing agreement by 15 percentage points to 55 per cent.

In return for the bigger stake, DNO would provide all of the funding of the project costs, the company said.

DNO, whose main production operations are in Yemen, has a market capitalisation of around $1.8 billion.

'The results from Tawke 2 are very encouraging and confirm the robustness of the Tawke development,' Eide said in a statement.

'We are on schedule to achieve our important near term target to produce the first oil from Tawke during the first quarter of next year,' he said.(Source)AlSabah

Iraq central bank to adopt new policy to end inflations' rates

The inflation in Iraqi economy which negatively effected with the security circumstances is resulting due to the show congestion in the real sector which concentrating in supplying fuel and its negative reflections on transport and communications' charges, while the other reason is belonging to the large effect for the total demand on commodities and services in economy.(Source)AlSabah

Selasa, November 07, 2006

25 million USD to reconstruct Najaf, Iraq

Sultan said the money is part of allocations the government has set aside “to reconstruct the war-torn cities and town in four Iraqi provinces.”

Najaf, the capital of a province of the same name, was scene of pitched battles in 2004 between fighters of Mahdi Army led by the Shiite cleric Moqtada al-Sadr and U.S. occupation troops. The city was heavily damaged and residents say traces of destruction still linger on. Four other major cities have sustained massive damage in operations by U.S. troops.

Falluja has borne the brunt of these operations. It was al most turned into ghost town when U.S. troops attacked to flush out insurgents.

Samarra and Tal Affar have also sustained large-scale destruction.

Sultan, Najaf’s governor, said the government will deposit the money in the city where the provincial council has drawn a long list of projects to be implemented.

“The Ministry of Finance is determined to open an account in the holy city of Najaf to deposit $25 million which the province’s share of the money allocated for the reconstruction of areas destroyed by wars,” the governor said.

Meantime, Sultan said he visited South Korean embassy in Baghdad where he thank the ambassador for his country’s efforts in rehabilitating Najaf. South Korea is actively taking part in reconstructing the province’s health system has granted Najaf’s health department $1 million.(Source)Azzaman

Minggu, November 05, 2006

500 companies from 25 countries participate in international exhibition on the methods of developing agriculture and animal wealth in Iraq

The exhibition will be Organized by, "Bawabat Asharq Al-Awsat Group" and "Assabah Ajjadeed" in collaboration with the Jordanian and Iraqi Ministries of Agriculture under the slogan " green Iraq ", while the country faces challenges, especially in its agricultural sector, which is hoped to be an open market for initiatives and investments.

The agency quoted Jordanian Agriculture Minister Akif Zoubi that "Jordan is trying to re-trade exchange with Iraq, which is the first trade partner to it as it was earlier in the importation of sheep and Iraqi dates and the receive of the Iraqi market for Jordanian agricultural production requirements, vegetables and eggs."

According to official figures, Jordan exported about eighty thousand tons of agricultural products to Iraq in 2005.

The Jordanian minister said : "The government is greatly interested in the policy of developing the agricultural sector due to its essential role in increasing self-reliance, providing food and the preserving the environment; thereby enabling the provision of basic food commodities of animal and vegetable then export them to neighboring and international markets."

On his part, Qais Al-Hamadani, representative of the Iraqi Ministry of Agriculture, said that "Iraq is trying to attract foreign investment especially in the area of agriculture." He said that "the competent authorities in Iraq had provided facilities that may attract investors to establish productive projects."

He added that "Iraq prepared a plan to rebuild the agricultural infrastructure by introducing modern methods in the areas of agricultural research and directing (...) to bolster the economies of peasants and farmers who make up 33% of Iraqi society."

The Iraqi official pointed out to "The risk of water shortages in the rivers of Tigris and Euphrates by building dams and reservoirs on their basins."

He stressed the need to "the collaboration of international efforts to deal with Iraq's share of the water resources in the two Basins, which poses another challenge to the agricultural sector."(Source)AlWatan

China and Australia are willing to support and develop the Iraqi oil sector

The Oil Minister, Dr. Hussein Shahrastani, said during a press conference held in Baghdad last Wednesday: that his recent visit to each of China, Australia and Japan resulting in the approval of the Japanese government to grant facilitated loans amounting to 3.5 billion dollars to develop the Iraqi oil industry.

He added that the ministry allocated one billion dollars of the loan to be used for developing Basrah refinery and establishing an oil floating port in Basra as well, adding new units for the conversion of black oil to oil derivatives, adding that he met with officials of major Japanese companies specialized in the oil sector to activate all joint activities to serve the interests of the two friendly nations. He pointed out that Japan expressed its willingness to build a large refinery in the city of Nasiriyah, and that China is also ready to support the Iraqi oil sector and implement the contract concluded with it about developing Al-Ahdab oil field as well as modifying it to suit the quality of Iraqi oil, which China wishes to increase its imported quantities, pointing out that Iraq welcomed the increase in the volume of Iraqi oil exported to China because it is considered one of the major international markets in the world oil consumption.

The minister confirmed reaching a preliminary agreement with China to set up a small refinery in Iraq to provide oil derivatives, adding that the ministry will adopt the principle of transparency in future contracts with fine international companies and be base its prospective contracts on the economic benefit of Iraq and not on the basis of political relations exercised the previous regime. During the conference, Ashahrastani tackled the plan prepared by the ministry to raise the level of Iraqi crude oil production to reach (3) million barrels a day at end of this year: (2.250000) barrels from he southern fields, (750) thousand barrels from the northern fields and reach to four and a half million by 2010. The rates of Iraqi oil exports now reach one million and seven hundred thousand barrels per day. He reported that the Oil Ministry also prepared a plan for the provision of sufficient quantities of kerosene for the citizens, that (200) liters will be distributed during for the next few days for each family in preparation for the winter season, assuring the citizens that large quantities of kerosene are available, especially in Baghdad and the ministry is distributing two million liters per day among the population. The minister announced a plan to provide large quantities of liquid gas for the city of Baghdad; since the terrorist are continuously targeting the pipeline of transferring gas to it, the ministry started transferring this material by tanks. The Oil Ministry is working to increase the production capacity of liquid gas in the whole country and invest it properly to meet the needs of the country.

The oil minister confirmed that the oil wealth belongs to all the people of Iraq and that it should contribute to unify the country and not divide or disperse it and no party is entitled to contract with any company or invest the fields located within its region away from the rest of Iraq. He proposed to establish a federal body that includes all segments of Iraqi people specialized in legislating investment laws concerning oil fields and studying contracts for the implementation of these projects. Ashahrastani denied any intention to increase the prices of oil derivatives in the current stage.(Source)AlSabah

Saudi Arabia grants 1.5 billion dollars to Iraq

He stressed the necessity of eliminating the effects of past and enhance the cooperation between the two brotherly nations. They also thanked the Kuwaiti people and government for their support to Iraq in difficult circumstances. Dr. Muwaffaq Rubaie also met with the Prince of Kuwait, Sheikh Sabah Ahmed Sabah, and discussed the issue of Kuwaiti debt on Iraq, reconstruction and cooperation between the two countries in all fields.

Dr. Barham Salih said that the security situation in Iraq will witness some improvement if Syria cooperate with the Iraqi government to work on controlling the border and prevent the infiltration of terrorists.

Saleh said in a joint press conference with the Special Representative of the Secretary-General of the United Nations, Ashraf Qazi, after the preparatory meeting of the International Covenant with Iraq, which was concluded in Kuwait yesterday: that Syria need to work harder, with greater credibility and must be aware of the gravity of the situation in Iraq, and make serious changes to deal with the political and security conditions in Iraq. The National Security Advisor Dr. Muwaffaq Rubaie revealed in another a press conference held on the sidelines of the same preparatory meeting that a senior official from one of the neighboring countries, will visit Iraq during the next few days to find a political solution for the benefit of Iraq on the security level, without mentioning the name of the official or the state. But unofficial sources in Kuwait reported that the official, who intended to visit Baghdad in this regard, is the Syrian Foreign Minister Waleed Al-Mu'allim.

About the question of, "Assabah" on the timetable of the political and economic reforms that have been agreed to take place in the meeting, and whether Iraq possesses the suitable environment for conducting such reforms, the Deputy Prime Minister said that the commitments made by Iraq to the international community of political and economic reforms over the next four years, stem from knowing the requirements of achieving stability in the country, and based on the initiative of the Prime Minister in the national reconciliation and the government's program of action in the coming stage, as well as other economic agreements signed as part of the debt write-off of the Paris Club. He pointed out that Iraq will implement these reforms, which are in the interest of the Iraqi people, according to the vision of the elected government that represents it, with or without the international support. At the same time, he hoped for the international community's serious stand with Iraq to cross it to shore safely.

He pointed out that there are many of the accounts are cleared at the expense of the Iraqi people and the Iraqi leadership is well aware of the gravity of the situation, which can not continue. Everybody must understand that the instability in Iraq will reflect negatively on the whole region, and those who want to manipulate the security of Iraq should reap the consequences. He called on the neighboring countries to assume their responsibilities in this regard and cooperate against terrorism, which threatens the region.

He pointed out that the problem of financial and administrative corruption, is the most important obstacle to the work of the Iraqi government and instigates the security situation in Iraq. He confirmed that among the articles of the Covenant submitted by Iraq to the international community, is to deal with this problem that can not be ignored, uprooting corruption and collaborating with partners in order to achieve all of the aforementioned reforms.

New offers were received during the preparatory meeting of the Covenant and new financial commitments in support of Iraq by the United States, the European Union and Saudi Arabia, which pledged $ 1 billion provided to Iraq in the form of grants, aid and loans, as well as (500) million dollars provided for the private sector in Iraq. He stressed that Iraq would be able to obtain clear commitments from the international community after launching the International Covenant in providing economic support, grants, facilitated loans, debt write-off and canceling penalties from the previous decades, in addition to providing technical assistance and encourage the Iraqi private sector. On his part, Special Representative of the Secretary-General of the United Nations, Ashraf Qazi, expected a broader regional and international participation in the International Covenant with Iraq to be held late this year. He pointed out that the entire world is interested in the stability of the situation in Iraq. Al-Rubaie said, in a speech delivered at the preparatory meeting of the Conference that the conditions are very difficult and, the Iraqi government is still seeking to achieve this goal in addition to national reconciliation. Economic reform as well as international and regional support for Iraq's efforts represents an important element in enhancing the security situation and restore stability in the country.

He pointed out that the Iraqi government has launched the plan of national reconciliation in order to expand the participation of the parties involved in the initiative, regardless of their ideology and policy.(Source)AlSabah

Jumat, November 03, 2006

China and Japan keen to develop Iraq oilfields

Hussain al-Shahristani was briefing reporters after a tour of Asia that took in the world's second biggest oil consumer China and its third biggest Japan -- both heavily dependent on imports and keen to secure future energy supplies.

Iraq, which has the world's third largest oil reserves, is in urgent need of billions of dollars in foreign investment after years of sanctions and war crushed the industry.

The Baghdad government is working towards its first foreign oilfield development contract and is readying a legal framework.

All the big oil companies are eyeing deals.

Energy-hungry Asian firms, whose home governments are less concerned about transparency and good governance than the West, are already snapping up oil blocks in Nigeria and Angola and prospecting in Mauritania and Chad.

"The Japanese said they were willing to provide soft loans with maturity of up to 40 years for any amount of money we need to develop the oil industry -- to develop the refineries, exports and production," Shahristani said.

"Right now there is a Japanese loan of $3.5 billion. More than one billion will be spent to develop the Basra refinery. Also on building a floating port and an export pipeline."

Japan recently lost out in developing neighbouring Iran's giant Azadegan oilfield after Tehran grew weary with the project's slow progress. The United States had opposed the deal.

Shahristani said Japanese firms were interested in oilfields in southern Nassiriya.

CHINA TALKS SUCCESSFUL

The minister described talks with Chinese officials as successful.

He said Iraq and China had formed a committee to look again at China's contract, signed with Saddam Hussein, to develop the 90,000 barrels per day Ahdab oilfield in south central Iraq.

The committee, made up of three or four people from each side, will review the articles of the contract to "serve Iraq's interests", Shahristani said. It will meet in November.

"We have agreed to form a joint committee... to review the contract. We will begin discussions."

"The Chinese said they are ready to discuss it. They asked us to tell them which articles are not in Iraq's interest so that we review it," he added.

Ahdab, with an estimated development cost of $700 million, was awarded to China National Petroleum Corp and Chinese state arms manufacturer Norinco by Saddam. The deal was frozen by international sanctions and then Saddam's overthrow.

Shahristani said all oil contracts signed under Saddam would be reviewed by a national committee because the ministry wanted to make sure contracts were to Iraq's benefit.

"If it is not then we will amend it so that Iraq's interest will be served," he added.

Iraq's crude oil exports in October were between 1.6 and 1.7 million barrels per day, Shahristani said. Iraq exported 1.64 million bpd in September, according to shipping sources. The same sources put October exports a shade above 1.5 million bpd.

Shahristani said October production was 2.3 million bpd and his ministry aimed to boost output to 2.9 million bpd by the end of 2006.

"We are aiming to reach 2.9 million bpd by the end of this year by producing 2.25 million bpd from the south and around 700,000 from the north," he said.(Source)AlSabah

The benefits of Iraq joining the IMF and the World Bank

However, only (11.6) billion dollars of the foreign debts have been quenched as a first stage, and this only makes (7.8%) of the foreign debt. It is a small percentage in return for submitting to the conditions of the economic reform policy, which include:

1- raising support for the prices of fuels and other services.

2- Canceling the ration card.

3- Privatization of the public sector and transfer most of its business to the private sector.

However, the application of these procedures in light of the current circumstances of the country and this speed has serious negative repercussions on the Iraqi society who is suffering already. It is unreasonable to convert a centrally planned economy based on the absolute leadership of the public sector for four decades into a liberal economy based on free market economy, overnight. After the events of 9\4\2003, Iraq suffered from political and economic shocks that are intolerable for a developing country like Iraq.

According to the latest statistics of the Ministry of Planning and Development Cooperation in Iraq, (60%) of the citizens are below the poverty line. So, if the ration card is abolished and subsidies on fuel prices and services are removed, how many will their percentage be? Moreover, the unemployment rate was between (40% - 50%), when taking these measures, the increase would amount to more than that; this means that poverty line will increase and thus increasing rates of crime and corruption since Iraq is considered one of the young population nations whose population pyramid has a broad base and unemployment are concentrated in the younger ages, that (3) out of (4) Iraqis under the age of 25 are unemployed. The concentration of unemployment in this group of age had very dangerous political and social consequences since unemployment is considered a fertile environment for the growth of crime, extremism and violence which emerged strongly to the surface in Iraq, particularly after the events of 9\4\2003 and left serious negative effects on Iraq. There are many examples for such dangerous consequences, like: (the revolution of bread in each of Egypt and Tunisia, and the revolution against raising fuel prices in Yemen, etc.).

Despite all this, we believe that Iraq can achieve benefits when joining the IMF and the World Bank. There will be a genuine development, as the case now in some Gulf countries, Emirates for example, through encouraging investments in vital and important sectors, such as the agricultural, through many inducements like the granting of loans and tax exemption etc... The remaining investments are left free to supply and demand. Since Iraq has natural resources of cheap prices, surely the costs of production will be much less than other countries; therefore, it is possible to manufacture materials then export them. Thus, why do we, now, import cement of bad types when we already have the fine raw materials for manufacturing this material? ö Another benefit of the accession, is that we will get cheap raw materials to help our industry, and we will also import expertise and technology to create developed industry and agriculture.

But what is happening in Iraq now is that some places are built and others are demolished. Therefore, Iraq is at an important crossroads that requires from everyone, especially economic policy-makers in the country, to review the ideological basis and economic theories which they use to form the policies and the applications should be compatible with the concepts of modernization and reform promoted for, and this is one of the biggest economical challenges that we face today.

Thus, the deteriorating reality between the suffering of the society and with the requirements of the economical policy of the State, raise a question: what do we do to walk out of this crisis without a flaw negatively affecting the economic process of the citizen and the state as well?(Source)AlSabah

Rabu, November 01, 2006

Many foreign states ready for extending more financial support to Iraq

At a news conference after wrap up of the International Compact with Iraq (ICI) meeting hosted by the State of Kuwait, Saleh said Saudi Arabia expressed readiness for forwarding USD one billion as grants and loans in addition to USD 500 million as facilities to the Iraqi businessmen and private sector.

The US poised ready to extend fresh assistance for the process of reconstruction and bolstering the security potentials and the EU promised extending fresh bundle of donations.

Iraq's infrastructure was ravaged by decades of sanctions and war during the rule of deposed President Saddam Hussein, and by the US-led invasion in 2003 and the violence that followed.

Reconstruction has been hampered by insurgent attacks which forced many projects to be halted and diverted funds away from rebuilding and into increased security, said Saleh.

The oil industry has been hit by frequent sabotage.

This is besides many other pledges still under discussion, he said hoping that the vision will be clearer in the coming few weeks, regarding economic aid as well as making available donations and soft loans, beside the writing off Iraq's debts and the early penalties imposed on Iraq and encouraging the private sector to invest in the war-torn Arab country.

He said the ICI in itself includes reciprocal commitments by the Iraqi government and its international partners.

Saleh underlined that the Iraqi government led by Nouri Al-Maliki is serious on implementing a reform program and the Political National Security Council has set a timetable for national reconciliation besides other legislations to address the political, security and economic complications.

He admitted that the current stage in Iraq is harsh and difficult but cooperation of the international community is needed to combat terrorism and extremism.

Iraq, he went on, shoulders the problems of the whole region and scores are being settled by many parties within the Iraqi arena, and hopefully Iraq will be moving soon to the security and stability stage.

To a question he said the importance of the security factor should not be marginalized and the efforts should be doubled because security of Iraq is in the end result the security of the whole region.

To a question posed by Kuna he admitted the spread of corruption in his country that hinders the reform process and stirs the security conditions.

Saleh said, his government has a tough timetable to push reforms that included a recently-passed investment law. The government set a target to cut unemployment by at least 15 percent, he said.

"The International Compact represents a carefully-drafted roadmap to clarify how can Iraq with the help of its international partners, achieve economic self-sufficiency in the medium term," he stressed.

To succeed, Iraq needs progress in three areas, "political reconciliation ... achieving security and stability in all regions ... and achieving economic growth and prosperity." But Iraq won't be able to achieve any of the goals under the compact without generous international support.

ICI's preparatory group included the UN, US, UK, United Arab Emirates (UAE), Kuwait, World Bank, International Monetary Fund (IMF), European Union (EU), Arab development funds, Islamic Development Bank (IDB), France, Germany, Italy, Japan, Saudi Arabia, South Korea and Spain. (Source)Kuna

Eleven Iraqi banks agree to launch a specialized company to finance special projects

About this project, applied for the first time in Iraq, the banking expert, Izz al-Din Muhammad Abid, said: this Company is complementary to the Iraqi Company for Banking Guarantees which was established a short while ago with a total capital of three and a half million dollars. It aims at enhancing the obtainment of small, medium-sized and minor enterprises in Iraq on loans from private banks, in addition to supporting the use of modern practices of credit and international banking standards in granting loans to small and medium-sized enterprises. All of this is to support the continuing economic growth in Iraq, and especially the support and development of the private sector. Giving small and medium-sized enterprises this importance stems from the fact that they share the spirit of individual initiative; that is, starting a project by an individual to improve his standard of living. It should also be noted that these projects constitute a significant proportion of economic activity for many countries in the world, whether they were developing or developed; they also constitute a high proportion of enterprises that widely contribute in developing the economies of these countries, especially the developed ones. Such projects, generate self-employment and jobs and participate in helping the important groups in the labor market, as well as having several important advantages like: working with simple, low-cost and local materials within a limited area, as well as working with primary skills and techniques; in addition to the possibility of easily adapting to the new circumstances in the market and the rapid response to its needs. Finally, they contribute in the rehabilitation or changing infrastructures and equipment; such as inventing agriculture and construction tools or producing essential services commodities in times of crisis. In response to a question concerning the establishment of this Company to study the conditions of projects in Iraq, and the possibility of exposure to profit or loss, Izz al-Din, explained that in spite of facing small and medium-sized enterprises for numerous problems and challenges, especially in times of unstable security, but, and as much as it concerns the banking system, the main problem facing them is cash funding for the establishment and support of these projects. Thus, the foundation of the Iraqi Company for Banking Guarantees, in the time being, forms the mainstay of such projects, in order to assist them in obtaining loans from Iraqi private banks to participate in the capital of the Company, in addition to helping those banks through the utilizing the amount of the guarantee for the development of managing loans and their risks. The Company is owned by (11) Iraqi banks supported by the Iraq Central Bank due to its important part in deepening the role of the Iraqi market. The guarantee amounts differ according to the type of risks associated with them; they could reach 75% of the value of the original loan, which ranges from $ 5000 to $ 25000. The company's operations are based on developing institutions and building the financial capacity of banks and the Company itself when marketing and the applying the program of loans guarantee. The Company's activity will cover all of Iraq by the network branches of the banks involved in such comprehensive coverage. It will assist small and medium-sized enterprises to enter the world of credit in all Iraqi provinces. The Company will provide loans with a high level of quality for the productive, service, agricultural and commercial projects throughout guaranteeing the banking loans offered by the participating banks. Accordingly, we can say that the company achieved a step or steps forward on the way of developing and modernizing the Iraqi banking system.(Source)Al-Sharq Al-Awsat

Senin, Oktober 30, 2006

A sudden rise of the dollar exchange rate in Iraqi dinar because of Eid Holiday

The observers of the currency market confirmed that any occasion interposed by public holidays, specially those that continue for several days, is expected to raise the value of the American dollar against the Iraqi dinar but the difference is limited and does not exceed in the most serious cases 1500 dinars to the dollar, because such increases in the view of some speculators will be temporary, and they fear from the Iraqi Central Bank being a safety valve of the Iraqi dinar and market. If the Bank thought that the market rose, as the case happened a year and a half ago, it would suspend its vacation to begin offering large amounts of hard currency on the market directly and at prices lower than the circulation price; that is why most speculators are afraid to keep large quantities within their bags due to the risk of loss. But, dealing in the market is done on the basis of supply and demand; this means that small speculators, dealing directly with citizens, would achieve very high profits for this reason. And about their expectations of market prices, the observer demonstrated that the dollar exchange rate in the central auction, held in the Iraqi Central Bank, finally began to retreat before the Iraqi dinar, as the Bank started floating huge amounts of dollars because of the government's need for local cash, especially as the volume of government's consumption increased recently and this requires securing these expenses through the auction. The supply has increased lately from $ 35 million to $ 60 million per day.

Rabu, Oktober 25, 2006

Will Iraq private sector import cars and sell them by installments?

This falls in line with the changes that the Ministry desires through adopting the free market system in business dealings after it was gripping for all of import and export, with partial waiver, in recent years, for the merchants to import components of the ration card. öö öö Al-Mada tried through this poll to know the views of a number of economists and whom it concerns about the implications of these changes, especially with regard to trade in cars and their prices in the local market.

The start was with citizen, Mahmoud Jaafar, who said: vehicles are durable commodities just like many others, so the State has no right to deprive the private sector from engaging in this business, which is one of the important activities, and play the role of a trader; the State better carry out bigger and more important tasks. Adding that allowing the private sector to practice this trade, will be positively reflected on the sector and makes the sale of vehicles in installments possible without exhausting the citizens. He asserted that the dissolution of the General Company for Cars Trade would allow the private sector to import modern and sophisticated cars; the market may witness some slackness at the beginning but it would not last for long.

Dr. Saleem Almshahadani, a professor at the Administration and Economy college at Baghdad, says: The import of cars in the past was done according to certain specifications that suit the weather conditions of Iraq, the availability of expertise in the company and all were subjected to control; therefore, allowing the private sector companies to import variable and sophisticated cars may have a negative impact at the beginning. He pointed out that starting private companies for importing cars will lead to the import of fine quality cars and opens the way to competition among these companies to win customers and prove their success, which is a positive thing.. But importing too many cars will have a negative impact on providing spare parts, which will not last for long because traders and companies will provide those tools being a profitable business.

Mr. Ahmed Jasb, owner of an exhibit for buying and selling cars says: The dissolution of the General Company for Cars Trade will be of great benefit because the importer will not adhere to certain qualities and specific brands, like the company used to do, , which will diversify the types of cars. He pointed out that the private sector may sell cars to citizens by installments with certain guarantees to be presented by the buyer. Also, companies that provide after-sale services may appear, as well as companies that undertake importing spare parts and maintenance, as is the case in foreign companies. He explained that car companies and exhibits will be agencies of international companies and will sell cars at a low cost.

Mr. Tahseen Al-Dulaimi, a car exhibit owner, says: The dissolution of the Company would not affect the work of exhibits because traders will turn to them to display the cars they importÇ with the possibility of opening branches of companies, especially after an agreement is reached or the issuance of instructions to organize the work with each of the customs and traffic. The new procedures to be followed by the ministry would be in the interest of exhibits owners because it would encourage and activate the sale and purchase processes. He, also, warned of importing fine cars by the private sector because this will affect the Iraqi street which can not accommodate more than the current number and will suffer from jams if public demand for importation of luxurious cars increases. In stead, he suggested the replacement of old vehicles with more recent ones.

While Mr. Aos, an exhibit owner, expected: a state of confusion will happen in the process of buying and selling after the new procedures which the Ministry intends to do, especially after allowing the private sector to import modern cars of high prices that the Iraqi citizen can not afford. He, also, explained: The majority of citizens prefer the old cars being affordable and car owners will face difficulties in this aspect. (Source)Al-Mada Newspaper

Iraq department of Labor collects more than four million iraqi dinar rent for their projects

The inspection committees in the Department of Labor and Social Security in charge of monitoring the implementation of the retirement and social security law for workers visited 22 projects, insured and uninsured.

An official source said that the inspection committees in charge of the application of the law regulating industrial services had visited 3 search centers for industrial projects and made sure of practicing the profession.(Source) Al-Mada Newspaper

Iraq department of Labor collects more than four million iraqi dinar rent for their projects

The inspection committees in the Department of Labor and Social Security in charge of monitoring the implementation of the retirement and social security law for workers visited 22 projects, insured and uninsured.

An official source said that the inspection committees in charge of the application of the law regulating industrial services had visited 3 search centers for industrial projects and made sure of practicing the profession.(Source) Al-Mada Newspaper

Rabu, Oktober 18, 2006

Tax exemptions for investment projects in Iraq

The amended draft of the investment law, which was approved at, included 36 articles. They provided the formation of a body called "National Board for Investment" which has a moral character represented by its chairman or whoever he entitles. The Board will be responsible for forming the national policy for investment, designing plans and regulations as well as monitoring their application in the field of investment.

The Board will be specialized in investment projects that have a federal nature, administered by a board of directors composed of nine members, who are university professors, and the Cabinet will nominate its chairman and gives him the rank of minister and deputy chairman with the rank of Under-Secretary for five years, ratified by the Parliament. The Prime Minister will also appoint four general directors from among the nine members. The Law grants Parliament the right to discharge the chairman of the Board or his deputy at the request of the Prime Minister. The Center of the Board will be in Baghdad and appoint representatives in other regions and governorates.

The Law also grants the regions and provinces, joined in federation or not, the right to compose investment bodies within their territories that have the right to grant investment licenses, encourage investment and open branches in areas under their control" within the regulations of this law", in consultation with the National Board for Investment to ensure that all requirements are legal. The regional and provincial bodies will be made up of seven members, including the chairman and his deputy. Regional and provincial bodies will coordinate work with the National Board for Investment in consultation with local governments, regarding investment plans and facilities.

The Law states: "The Board will accept requests for clearance of investment projects whose capitals are not less than the minimum limit established by the Cabinet or the regional council of ministers; how ever, in case the value of the project exceeds 150 million dollars, the approval of the Cabinet is required". The Board will look into applications of projects licenses within a period of not more than 45 days from the date of submitting the application. The Board will have its own independent annual budget allocated to it from the State budget.

The law defined the Board's objectives by: "encouraging investment through the strengthening of confidence in the investment environment, defining investment opportunities, motivating investment, simplifying the procedures of registration and acquiring investment licenses as well as watching for existing projects and give them priority to be completed, in coordination with official bodies".

Other functions of the Board are "completing the procedures of answering requests for investors and obtain the necessary approvals for the investor and the project, establishing a single window at the National Board for Investment and other regions and provinces comprising delegates accredited by the ministries and members nominated by provincial and district councils according to the conditions and relevant authorities. Also, granting licenses and obtain approvals from other parties in accordance with the law, in addition to providing advice to investors and develop programs to promote investment in the different regions of Iraq to attract investors" , as well as facilitate the allocation of land and rent it for setting up projects in return for a sum determined by the Board in accordance with the relevant authorities, in addition to working on the establishment of safe and free investment areas with the consent of the Cabinet".

The Law further provides that the Board "facilities and grants loans to Iraqi investors on condition they operate manpower commensurate with the size of the loan value". "The investor enjoys all benefits and guarantees and submits to obligations contained in this Law regardless of his nationality. Iraqi and foreign investor has the right to possess land for the purposes of housing projects without speculating it, according to rules set by the Board and with the consent of the Cabinet. The ownership of the housing units may be given to Iraqis after the completion of the project. According to this law, the investor will enjoy the privileges of taking out the capital that he brought into Iraq along with its profits, according to the instructions of the Central Bank after paying all of his obligations".

The law also gives foreign investors the right to" trade in the markets of securities, stocks and bonds, in addition to the composition of investment portfolios in stocks and bonds, as well as leases land for projects as long as the investment project exists but for not more than 50 years, renewable according to the approval of the Board". Foreign investors will also be given the right to insure their projects in insurance companies, and open accounts in Iraqi or foreign currency in different branches of banks in or outside Iraq.

The law ensures that the priority of recruitment and use of employees is for Iraqis, in addition to granting foreign investors and employees, in investment projects, the right of abode in Iraq and facilitate their entry and exit to and from Iraq. Also, ensuring that the project will not be confiscated or nationalized except what comes in a judicial sentence. According to the law "The investor will have commitments; for he will have to notify in writing the board of the region or province immediately after the completion of the installation of the project and the date of starting the commercial work, in addition to briefing the Board with documents, records and a feasibility study if requested".

"The project licensed by the Board will get exemption from taxes and duties for 10 years from the date of operating it according to the developed areas identified by the Cabinet. The years of exemption will increase up to 15 years if an Iraqi investor contributes in the project by 50%".

"The imported materials for the licensed investment projects will be exempted from customs duties for 3 years from the date of granting the investment license. Also, exempt materials imported for the purpose of expanding projects of fees on condition of entering the country within a period of less than three years from the date of notifying the Board of the expansion of the project, and exempt spare parts imported for the project from charges on condition that their value does not exceed 20% of the value of the existing materials on condition that the investor will not use them for purposes other than that for which they were imported".

The law gave" projects of hotels, tourism establishments, hospitals and health institutions, rehabilitation centers and educational institutions the right to import furniture, furnishings and supplies for renewal once every four years to be used in the project. If it is proved that any of these imported materials, which are exempt from customs, were illegally sold, the investor will have to pay fees and taxes, consequently". The Law includes rules to settle the disputes on projects and their financing methods and Iraqi laws will be applied to them, in addition to explaining the legal procedures for the granting licenses to a project. (Source)AlBayan

Maliki: Armed forces formed randomly in Iraq

Today newspaper that doesn't happen before end of this year.On the other hand Maliki declared orming ministerial committee to make substantial reforms at Ministries of Defense and Interior because the Prime Minister sees the way of which ministries formed as the most important problem faces him as he plans to solve the issue of militias and build Iraqi security forces.(Source)AlSabah

Iraq Prime Minister Adviser refutes Qaeda claims

He showed that current Government represents people and there are democratic tools fixed the Government's form and strategy, he added that those calls don't have any fact and don't relate to Islam. (AlSabah)

Electric Ministry in Iraq, Calls Russian Companies Restart Working

On the other hand, the ministry attended to providing full security for the experts and technical staff.Electric minister Dr. Kareem Waheed discussed yesterday with the Russian ambassador in Baghdad Vladimir Jamoon, the stopped private projects carried out by the Russian companies and possibility of activating it as rehabilitation of Haritha station and Yousifiya station besides rehabilitation two stations in Baghdad.(Source)AlSabah

Hidden terror in Iraq

Some people say that growing number of killing was linked to gangs working within ministries of defense and interior, a matte that pushed prime minister to form a committee to clean the said ministries from he the said gangs. This procedure would give its results and effective consequences along with coming days.(Source)AlSabah

Rehabilitation Iraq Oil Pipeline via Syria

A source at oil ministry said that, the ministry approached the Syrian side granting of protecting the pipeline from the terror attacks which try to destroy the Iraqi economic, pointing that settling of producing oil from the northern fields which reached now up to 580 thousand barrels daily would participate in settling the production, since the terror attacks caused negative results in producing Iraqi pure oil.(Source)AlSabah

Senin, Oktober 16, 2006

Fighting Corruption in Iraq strengthens democracy

Enlightened nations take it upon themselves to fight against corruption and do not wait for initiatives from politicians or government officials.

Taiwan, for example, is witnessing since several weeks ago a popular campaign against widespread corruption. The campaign does not only aim at punishing corrupt officials, but at protecting democracy as well through calling politicians to account for their actions.

Wai Jink Shing, a Chinese activist, says in the field of human rights, democracy and fighting against corruption in an article recently published in the newspaper" International Herald Tribune" that the citizens of Taiwan now, realize that the principles of formal democracy represented in the periodic competitive elections and the rule of law must be safeguarded and promoted by what he calls "effective democratic education", making citizens aware that without it, democracy will be at risk of collapse and recession.

Taiwan Activists have managed to make the issue of reform and calling to account, in the framework of fighting against corruption, a popular demand which managed to unite the two main political parties in the country: Blue camp which calls for unity with China and Green camp which calls for independence.

The Chinese activist says that higher campaigns against corruption, which comes from the highest political hierarchy is not more than chopping the wings and branches of corruption, without accessing its roots, which means that these branches will resume growth again.

Therefore, fighting against corruption should be radical and not reformed, popular and not formal. It must head for the roots and not only the branches, through varied social and popular activities where the citizens participate effectively in it, and this can not be achieved without effective democratic education.(Source)AlSabah

Amending the salaries of teachers and 200 million iraqi dinar for the Expelled of Saba ' Al-Bour

The government's official spokesman, Dr. Ali Addabagh, said in a press conference held after the meeting of the Cabinet last Thursday: The government discussed topics relating to the feasibility of keeping the multi-national forces in Iraq to ensure the interest of the country.

Addabagh explained that the Cabinet decided to amend the salaries of teachers to be (200) thousand dinars at minimum, with the addition of allocations decided by the Ministry of Education, granted to the teachers according to school sites in which they work: (50) thousand dinars for school teachers at remote areas, (40) thousand for those working in rather far areas and (30) thousand dinars for areas outside the municipal borders.

He said that the Cabinet is observing terrorist escalation in Saba' Al-Bour, north of Baghdad, and has decided to allocate (200) million dinars to help the expelled families and work hard to return them to their homes.

He said: the government decided to adopt the report of the committee formed of the Ministries of Interior and Finance concerning the livelihood insurance to employees of the emergency police and determine the ones included in it, in order to allocate the sum of seven thousand dinars per month for each associate as food payment which is considered a temporary measure till the appropriate decisions is taken. As for extending the stay of multi-national forces, Addabagh confirmed that the government finds the national security forces still need to be supported and trained by the M.N.F., pointing out that the granting of fixed military bases for these forces is something for the Parliament to decide. He added that the Cabinet is having intensive discussions to determine the feasibility of keeping (friendly) forces within the cities.(Source)AlSabah

Minggu, Oktober 15, 2006

A high rise in Iraq trade exchange rates

The import ratios rates are expected to continue rising during the next two months. He also explained: imported materials that are exempt from customs duties include all building materials, electrical power generators, water purification plants, productive cars, tourist saloon cars imported specially for municipal services and the reform of the electric power networks.

He added: The rates of import rose to more than 300 trucks per day and that their entry through the outlet has been going on according to a plan prepared by a coordinating body in the Green Zone. As for the revenues of customs duties in the outlet, he stated that the fees collected from non-exempt materials of the customs duties rose about three million dinars per day compared to previous months and the total amount of fees is estimated by seven billion dinars per month, deposited in the accounts of the Ministry of Finance being the authority entitled to deal with it.(Source)IMNSR

Wrong Strategies leading Iraqi economy

It is a parasite feeding on Iraq's funds and bringing no money with it. Al-Saadi said in a recent study published by (the contemporary conflicts center), a U.S. research center which provide advice to the Supreme decisions makers in the United States of America: "the recovery of individual and public freedoms, the enjoyment of democracy and the eradication of terrorism in Iraq are associated with the success achieved in the economic reconstruction, reducing unemployment, ending poverty and achieving social justice in the standards of health, education and social security services. I also stressed that the success of the new Iraqi state needs leaders that have comprehensive national vision, particularly in strategic and economic policies".

Al-Saadi added that the abundant oil resources are the property of all and the right of future generations as well. The ruling authority and parties, whatever their identities are, have no right to compromise it at any expense or use it as a political, economic or financial power to serve their own interests. the publishing of the study is an attempt to offer an independent national economic point of view the against the government national development strategy for the period from 2005-2007, as well as to discuss the American economic strategy contained in the national strategy to achieve victory in Iraq, which the American President announced in early December 2005. Al-Saadi finds that the oil financial resources currently available are sufficient even with the continuation of the current oil production and export. The confirmation of officials, politicians and American administration that the main problem in the economic failure are the scarcity of material, financial resources and the continuation of terrorism in the country, is a blatant fallacy. In his opinion, the current economic problems are arising from the inability of the American economic, political, financial and monetary strategy adapted to the actual state in Iraq and from misusing public petroleum resources which was one of the main reasons for the political chaos, violence, the spread of crime and administrative corruption.(Source)IMNSR

Iraq prevents the import cars under 2005

He said that the Iraqi decision issued last month and pointed out that contacts are underway with the Iraqi side to allow the import of cars model 2004 till the end of this year, explaining that there are no outstanding cars on the Jordanian side or at any of the two borders because of this decision.

The Iraqi side of the border has returned, few days ago, some trucks carrying cars exported to the Iraqi market, of the models mentioned in the resolution.

The source from the border pointed out that as son as the clarification memorandum of the governmental resolution arrives, it will be sent immediately to the Jordanian side. He pointed out that their cadre began to prevent the admitting of cars included in the resolution after having been orally informed of extending the ban resolution again and including cars imported from abroad in it.

On the other hand, the Vice-President of the Jordanian Free Zones Investors Association Nabil Rumman stated that the Iraqi authorities turned back a fleet of tankers shipping cars model 2005 onwards, after completing their customs data and taking them out of the Free Zone, where the traders were surprised by the resolution of turning back the cars without prior notice of the resolution. (Source)AlSabah

Iraq prevents the import cars under 2005

He said that the Iraqi decision issued last month and pointed out that contacts are underway with the Iraqi side to allow the import of cars model 2004 till the end of this year, explaining that there are no outstanding cars on the Jordanian side or at any of the two borders because of this decision.

The Iraqi side of the border has returned, few days ago, some trucks carrying cars exported to the Iraqi market, of the models mentioned in the resolution.

The source from the border pointed out that as son as the clarification memorandum of the governmental resolution arrives, it will be sent immediately to the Jordanian side. He pointed out that their cadre began to prevent the admitting of cars included in the resolution after having been orally informed of extending the ban resolution again and including cars imported from abroad in it.

On the other hand, the Vice-President of the Jordanian Free Zones Investors Association Nabil Rumman stated that the Iraqi authorities turned back a fleet of tankers shipping cars model 2005 onwards, after completing their customs data and taking them out of the Free Zone, where the traders were surprised by the resolution of turning back the cars without prior notice of the resolution. (Source)AlSabah

MULAI HARI JUM'AT TANGGAL 14 NOV 2008, KAMI MEMBUKA LAYANAN PEMBELIAN DINAR IRAQ

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