IRAQ | Economy

[haiderpass]

Iraq seeks bank head's arrest, denies witchhunt
Published: Sunday, 5 Jun 2011 | 10:18 AM ET Text Size


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BAGHDAD - Iraqi authorities have issued an arrest warrant for the head of one of the nation's biggest banks, which is under investigation for alleged irregularities, a government source and the bank's lawyer said on Sunday.

An Iraqi government source said Hussein al-Uzri, president and chairman of the state-owned Trade Bank of Iraq (TBI), had fled to Lebanon. He did not answer calls to his mobile phone.

Prime Minister Nuri al-Maliki ordered a judicial inquiry into TBI on Thursday, after a committee including officials from Iraq's anti-corruption commission and audit authority reported "violations" at the institution.

The move comes as Maliki faces growing discontent over rampant corruption and poor public services in oil-exporting Iraq. Protests erupted against his fragile coalition government earlier this year.

A British adviser to TBI's board told Reuters on Sunday the investigation was politically motivated and came after the bank had resisted government pressure to engage in "highly dubious and irregular" operations.

Sir Claude Hankes said the investigation could damage Iraq's ties with the international banking community. He said Uzri was "safe" outside Iraq but was "not in Lebanon."

"POLITICAL GAME"

"The political game is to discredit the bank," he said.

Hankes, a former Chairman of the Management Committee of Price Waterhouse and Partners, said he believed the government probe was part of a campaign to deflect public anger over corruption away from Maliki and his associates onto scapegoats.

"Why else would they be trying to destroy a bank that is one of the success stories of Iraq and is key to the wellbeing of the Iraqi people?" he said.

"This is putting the clock back for Iraq."

A spokesman for Maliki rejected such suggestions. "We want to confine our action to the wrongdoers only and we want to save the bank so it can play its role in the reconstruction," said Ali al-Moussawi, media adviser to the prime minister.

Tareq al-Maamouri, TBI's legal adviser, confirmed the arrest warrant against Uzri and said the bank chairman had been suspended from his duties.

Set up in 2003, after the U.S.-led invasion that toppled Saddam Hussein, TBI has developed a reputation as one of Iraq's most successful financial institutions. It is involved in financing food supplies and securing private sector financing for power and other reconstruction projects.

A senior Iraqi government source said authorities had information that Uzri had gone to Beirut.

"The judiciary issued an arrest warrant against those people who could be detained on the basis of the evidence against them and one of them is the chairman of the bank," he told Reuters.

TBI, with 14 branches across Iraq, reported total assets of $15 billion for 2010, a 16 percent increase over 2009. It reported an 18 percent increase in 2010 profits to $361 million.

On Thursday, an Iraqi banking source said the violations related to billions of Iraqi dinars in "irrecoverable bad debts" owed by Iraqi companies. Charges included poor administration and non-compliance with banking regulations, the source said.

[MKTJ]

"Iraq projected to grow FASTER then CHINA in next 2 years" says secretary CLINTON

[BigDreamer]

the link is broken

[iraqishi3i]

Japan is to launch an investment offensive in Iraq, starting with the southern city of Basra, the Japanese ambassador to Iraq said on Tuesday, according to a report from AKnews.
Speaking at the conclusion of the Japanese investment conference at the Basra International Hotel (“Sheraton“), Mitsuo Sakaba said numerous Japanese companies are looking to get a share of the massive profits that it is possible to make from Iraqi investments, with a particular focus on energy.
“Japan is aware of Basra’s economic and regional status and this makes us determined to make it the center to begin our investments in Iraq,” he said.
Twenty-seven Japanese companies, mostly from the energy and industrial sectors, took part in the conference.
“The conference is the first serious step to return the economic relations between Iraq and Japan after being frozen for many years,” he said.
The chairman of Basra Investment Commission, Haider Ali Fadel said: “We have presented the Japanese delegation with everything they need to start investing in the region. We have also provided detailed explanations for the Iraqi investment law and instructions.”
Before the 1990 Iraqi invasion of Kuwait, Japan was one of the biggest investors in the country, but supported the resulting UN sanctions that banned any trade with Iraq.
In 2003 Japan loaned $3.5 billion to develop oil and gas sector and another in 2007 worth $860 million, which opened up channels to allow Japanese companies to invest.
Sabaka said many of his compatriots have failed to take advantage of the opportunities Iraq offers for investment due to fears about the security situation.

[BigDreamer]

Basra will be Iraq's boom capital.. a smart person would invest in basra right now ahead of the boom

[MARTYR]

Iraqi banking delegation meets Lebanese bankers

09 July 2011

BEIRUT: An Iraqi banking delegation comprised of representatives of Iraq's central bank and banking institutions, visited on Friday the headquarters of Lebanese Banks Association, upon the invitation of Lebanese Central Bank.

The delegation was briefed over the latest economic developments in Lebanon and the indicators of economic growth, public finance, foreign accounts, and financial mediation.
Representatives of Iraq’s central bank discussed with Lebanon’s representatives ways of strengthening the financial and banking relations between the two countries.

[Persi]

Thanks MARTYR

[elusive]

Originally Posted by BigDreamer

Basra will be Iraq's boom capital.. a smart person would invest in basra right now ahead of the boom

i totally agree...i reckon it'll supersede erbil

[Yousifovic]

Originally Posted by elusive

i totally agree...i reckon it'll supersede erbil

+1
Basra = $$$$$$$$$$$$$$$

[Persi]

Iraqi Central Bank Grants Licenses to 4 New Banks

Banking sources in Iraq say the Central Bank of Iraq
granted preliminary approval to give licenses to four new banks with capital of 250 billion Iraqi dinars ($212 million dollars) per bank.

The four new licenses bring the total number of private banks in Iraq to 35, excluding the following seven Arabic and foreign bank branches working in Iraq: the Bahraini "Arab Banking Corporation", the "Central Bank of Turkey", the Lebanese "ByBlos Bank", the Lebanese "Intercontinental Bank", "Bank of Beirut and the Arab Countries", "Iran Melli Bank" and "Abu Dhabi Islamic Bank".

The Chairman of the Department of Banking and Credit Control in the Central Bank of Iraq, Idi Walid Abdel Naby, said there are opportunities for joint cooperation to establish new banks, new branches of foreign banks, or new posts in the capital, to increase the banking sector's contribution to development by lending to productive products. He added that there is an urgent need to expand the number of licenses granted to new banks and to support initiatives for the development of the banking sector in Iraq, indicating there is the possibility of establishing completely foreign owned banks.

[Persi]

Iraq tops the list of Arab financial markets trading

Baghdad, July 16

The Securities Commission said Saturday that Iraq’s progress on the countries of the region the size of financial trading by 70%.

The Iraqi government recently agreed with the Bank (HHPT), which is spread throughout the countries of the world to develop the Iraqi market for financial Orac.

The head of the Abd al-Razzaq al-Saadi told the Kurdish news agency (Rn) that “Iraq traded funds issued by 70% compared with the countries of the region,” indicating that “trading volume during the last three months amounted to some 274 billion Iraqi dinars.”

He added that “the Iraqi market for financial funds managed to acquire the trust of others because of their reliance on the legal disclosure controls assets of the companies.”

Saadi continued that “the movement of the Iraqi market for securities rise the higher the volume of investment projects in the country and expanded financial transactions between the Iraqi market and world markets through banks.”

“The market for securities Iraq works to expand foreign capital, which amounted to 15% of the total trading year to expand the financial activities in the foreign country, which will support the market in the securities and correlates with the global markets.”

And started the Iraq Stock Exchange initial preparations for membership of the global market for securities, also announced the start electronic filing of the investment companies of foreign and domestic, instead of filing paperwork.

The Iraq Stock Exchange has started operation in 2004, shifted from manual trading to the use of e-dealing screens in 2009 and opened for trading two hours a day five days a week.

The banking sector is the largest in the exchange, which also includes the shares of industrial companies, insurance companies, hotels and agricultural companies.

The total value of shares listed on the Stock Exchange about three billion dollars.

Source : http://currencynewshound.wordpress.c...rkets-trading/

[sally2]

July 16, 2011

Iraq May Increase Proven Crude Reserves by 21% With Kurdish Oil

Iraq may raise its proven oil reserves by 21 percent after adding those from the semi- autonomous Kurdish region, Hussain al-Shahristani, deputy prime minister for energy affairs, said today.

Iraq’s oil reserves may increase to 173 barrels by adding 30 billion barrels of Kurdish oil, al-Shahristani said in a speech to ambassadors at the Foreign Ministry in Baghdad. The country’s crude production capacity will rise to 12 million barrels a day by 2017, he said.

Iraq, home to the world’s fifth-biggest oil reserves, is struggling to boost energy exports, the main source of revenue, to help rebuild an economy shattered by years of conflict, economic sanctions and sabotage. The country has signed 15 gas and oil licenses since the 2003 U.S.-led invasion of Iraq that ousted the regime of President Saddam Hussein.

Iraq will sign contracts before the end of the year to add 7,500 megawatts of electricity production capacity, he said.

http://www.iraqdirectory.com/DisplayNews.aspx?id=16293

[sally2]

July 16, 2011

Central Bank decides to develop coins in his plan to restructure the currency


Sout Al Basra revealed adviser to the CBI, Saturday, part of a plan to restructure the banks, currency and coins for the development of financial trading bank to support the Iraqi economy.

The appearance of Mohammed Saleh said that "the central bank decided to introduce coins as part of his plan to restructure the currency, which require the approval of the government and the House of Representatives because it will contribute to a strategic plan in support of the Iraqi dinar's value in financial trading."

He added that "the draft coins in 2004 was not successful because he has not been as comprehensive reforms to support the financial value of the Iraqi dinar in the global market."

He pointed out that "the coin is not a low currency, but will be important medium of exchange which are used for simple banking transactions in the internal business transactions."

The Iraqi Central Bank announced in June 22 last he decided to restructure the local currency in order to develop the payment system in the country.

He expressed the IMF in August / August, his support of the Iraqi economy in the event of having a number of economic measures including the privatization of banks and raise three zeroes from the local currency and to meet debt and compensation is the responsibility of Iraq.

The Iraqi government has denied any change in the local currency this year to reduce inflation.

The local Iraqi currency has gone through several changes in its history, most recently in 2004 when the former Governing Council replaced the previous currency, which was the symbol of the former regime.

The main tasks of the Iraqi Central Bank to maintain price stability and the implementation of monetary policy, including exchange rate policies, and management of reserves of foreign currency, and the issuance of currency management, as well as to regulate the banking sector.

http://translate.googleusercontent.com/translate_c?hl=en&rurl=translate.google.com&sl=ar&tl=en&twu=1&u=http://basvoice.com/ar/news.php%3Faction%3Dview%26id%3D581&usg=ALkJrhj2rtvtLyYcfpg00mNmo_VIL_GfXA

[sheytanElKebir]

Welcome to the forum Sally2. are you one of the "investors" in Iraqi dinar who still hopes for a "revaluation" (whereby your old dinars are not revalued as well!)?

[sally2]

Originally Posted by sheytanElKebir

Welcome to the forum Sally2. are you one of the "investors" in Iraqi dinar who still hopes for a "revaluation" (whereby your old dinars are not revalued as well!)?

No, I'm not. I have read about the currency and I think it will eventually, over a long period of time, gain strength. I'm not invested in Iraq's currency, but I am interested to see if Iraq's new democracy takes hold.

I do watch and I am amazed at how far Iraq has come. Most people view Iraq as a war torn country. I view iraq as an up-and-coming dubai. You may think that's a crazy, way out dream, but, I have Iraqi friends that believe their country will be great once again, given time.

By the way, I like this forum. It's really informative and very cool.

[sheytanElKebir]

Oh great. Sorry for the misunderstanding. As you know there's a long running scam going around where people are conned into thinking they can become millionaires buying Iraqi dinars and somehow magically having it "revalued" whilst retaining its old nominal zeros!

Your friends' optimism about iraq is nice, but reality is a little further away from that at the moment.

[Persi]

Investment in Iraq Set to Double This Year

Posted on 21 July 2011

Iraq attracted $45 billion in new investment so far this year, more than the total for the whole of last year, according to a report by Dunia Frontier Consultants reported by USA Today.

The spike in investment is down to improved confidence in Iraq’s stability, analysts say. Last year Iraq secured $42bn in investment.

Much of the investment is from companies within the Middle-East, but substantial investment from other parts of the world has been flowing in too. French companies account for 9.9 per cent of all investment in Iraq. The U.S. – despite leading the 2003 invasion – only accounts for 4.7 per cent.

U.S. business interest is growing though. Iraq’s commercial attaché office in Washington received 2,251 applications to do business in Iraq in the first half of this year, compared with 1,369 in the same period last year.

South Korea was the largest foreign investor this year, representing 24% of the foreign money flowing into Iraq, according to the report. China also plays a significant role, with a Chinese oil company this month opening the first major oil field in Iraq in 20 years.

Decades of war and sanctions have left Iraq’s economy and infrastructure in tatters. But, it is increasingly seen as an untapped market for foreign investors keen to get in on the action early and secure heavy profits despite the obvious risks.

The need for development in Iraq is great. It’s electrical grid in desperate need of modernization, there are major housing shortages and infrastructure such as transport needs major improvement. Foreign investment is seen as key by some in the alleviation of these problems, while others warn of companies coming into Iraq, making massive profits and doing little to improve the lot of ordinary Iraqis

http://www.aknews.com/en/aknews/2/252746

[IraqiPlan_et]

Market Report, "Iraq Infrastructure Report Q3 2011", published
2011-07-24

Reconstruction in Iraq is providing considerable contract opportunities and creating substantial added value for the construction sector. Infrastructure continues to be a priority investment area for the government, especially as protests against the poor provision of services have become more widespread over recent months, stimulated in part by the wave of protests across the Middle East and North Africa. Addressing core concerns including electricity shortages, scarcity of housing and insufficient transport links is a priority. Indeed, in order for the economy to return to some semblance of normality, core infrastructure needs to be in place. As a result, a number of contracts have been awarded in these sectors over the past 12 months. Key sectors to watch:

Transport:

Transport is slowly emerging as the sector which is receiving the greatest attention, even though electricity has taken priority in recent years. In January 2011, Alstom signed an outline agreement for the construction of a 25km elevated metro line in Baghdad. In February 2011, it was announced that the contract for construction of the Al Faw port would be released by the end of 2011. It is hoped the US$6.3bn project will be completed by 2013. At the same time, a tender for a new international airport to serve the provinces of Kerbala, Najaf and Hilla is due to be released in October 2011.

Electricity:

A shortage of electricity continues to be a major cause of unrest and a substantial barrier to growth. The ambitious new target of generating 27,000MW of electricity by 2013 appears unlikely to be met; however, investment is filtering through to the sector, with projects tendered and contracts awarded for the installation of turbines.

Housing:

Huge housing projects have been announced over recent months. A scarcity of housing is another major issue which has provoked popular unrest. In response around 2mn housing units are to be built in the country over the next four years, with the government committing large funds to achieving this. The sector has seen a number of regional construction companies - especially those from the GCC - enter the country. Multi-billion dollar projects have been announced in both Kurdistan and the rest of Iraq. Most recently, Turkey's Ayyıldızlar Construction announced it would build 62,000 houses in Arbil, the capital of Kurdistan. The growing focus on infrastructure in Iraq will continue to present substantial opportunities for those construction companies willing to price in the sizeable risks and enter the market. A lack of capacity and expertise among local construction companies has the led the government to call for international participation in rebuilding Iraq's infrastructure. With social and economic infrastructure forming a significant portion of the government's investments, we expect strong growth to continue over the medium term. In 2011, growth of 15% is expected, as a result of contracts awarded. Owing to the substantial project pipeline, real growth is forecast to average 9% between 2012 and 2015.

[IraqiPlan_et]

New Schlumberger CEO has Big Plans for Iraq
25 July 2011

Schlumberger‘s incoming CEO, Paal Kibsgaard, has big plans for the company’s business in Iraq.

The 43-year-old Norwegian, who will take over as chief executive on 1st August, is currently Chief Operating Officer of the company, having begun his career with ExxonMobil in 1992.

He will succeed Andrew Gould, who again reiterated that Iraq is a key factor in the improving international outlook.

Just weeks ago, Gould announced that “next year Iraq will be really big”.

Asked about Iraq, where many oil firms have found it hard to establish a foothold, Kibsgaard said it is likely to be Schlumberger’s seventh biggest out of 14 markets in the Middle East and Asia, before improving to No. 3 next year.

Schlumberger was recently chosen to develop Gazprom Neft‘s Badra oilfield.

[IraqiPlan_et]

Maliki, in a conference with Talabani: The whole world looks to Iraq
25/07/2011

Baghdad (news) .. reviewed the Prime Minister Nuri al-Maliki, President Jalal Talabani, the results of his recent visit to China.
A statement from the presidency, "said Talabani met with Maliki on Monday evening, and had been meeting, they discussed the evolution of Iraq's relations with the countries of the world, particularly China, which has had the Prime Minister last week, as well as discuss ways to solve problems and develop the political process and strengthen national harmony between the various political components in the country. "
The statement noted: President Talabani said in a joint press conference after the meeting, "Maliki told us about his trip to China trip, which he considered very successful and very fruitful, and used much of Iraq, as we discussed the general issues and opinions were consistent and our estimates are identical.
For his part, Prime Minister Nuri al-Maliki: "We found in China a great opportunity because the advantage of the capabilities and experience in construction and development, and carried a message from the President to the Chinese government to encourage Chinese companies to invest in Iraq, and this rule has been discussed all the issues that pave the way for stability and security solutions to political problems that need to speed up solutions we create the ground for the construction and reconstruction. "
He added: "The whole world looks to Iraq and this is what we found. China is a superpower and a super looking forward to a close relationship with Iraq, and so accepted by the Korean Wa European countries looking to do with Iraq, and to us to prepare the ground because the world coming to us and we need to create the climate in which we receive by the turnout of the world. "
He said he "has been trading in some of the issues related to the political process and agreed to find a consensus, understanding and positive relations between the components of the political process of creating a renaissance of Iraq, which possesses all the capabilities of the Renaissance and the biggest renaissance in the region."
Prime Minister Nuri al-Maliki visited China last week at the head of a ministerial delegation, at the invitation of Chinese Premier Wen Jiabao /