The ISX operates Sunday to Thursday from 10:00 a.m. to 12:00 noon (Iraq time). Prices delayed by 15 minutes.

Tag Archive | "Ministry of Finance"

Banks, Investment Commission Decide Housing Finance


Iraqi government-owned banks and the National Investment Commission (NIC) have signed a memorandum of understanding (MoU) on mechanisms to collect the necessary funds to build residential compounds and offer enough guarantees for investors, according to the Finance Ministry.

“Minister of Finance, Baqer al-Zubaydi [Baqir Jabr Al-Zubeidi], chaired a four-hour meeting that dealt with the role played by government-owned banks in sustaining the Iraqi and foreign investment firms and offer enough guarantees for them to protect their money,” Aswat al-Iraq news agency reports.

It also specified the method to collect funds from citizens to build housing compounds, envisaging the payment of 25% of the price of housing unit that is $50,000 in cash and installments over 10-15 years.

The meeting comprised the Iraqi National Investment Commission (NIC) Director Sami al-Araji, the ministry’s advisor for banking affairs Dia’a al-Khayoon, al-Rasheed Bank director-general Kadhem Nashour, and Iraqi Commercial Bank assistant director-general for commcerce Abdulhadi Sadiq.

Araji had earlier announced a project to build one million housing units all over the provinces of Iraq, adding that 35 companies of different nationalities would be selected to implement it.

(Source: Aswat al-Iraq)

Posted in Banking & Finance, Construction & EngineeringComments (0)

Iraq’s 2011 Budget: $86.4bn at $70 per Barrel


Iraq’s preliminary budget proposal for the next year is $86.4 billion [101 trillion Iraqi dinars], based on a world oil price $70 a barrel, Deputy Finance Minister Fadhil Nabi has told Reuters.

Iraq’s Finance Minister, Baqir Jabur al-Zubaidi, will present the budget to the cabinet this week.

According to Iraqi law, the annual budget must be approved by the Iraqi cabinet, the parliament and the three-member presidency council.

(Sources: Reuters, Xinhua)

Posted in Industry & Trade, Oil & GasComments (0)

A government of everyone and no-one


If a week is a long time in politics, it is a very long time in Iraq. The first day of this week in Iraqi politics witnessed a Sunday 23 May meeting between Iraqiyya leader Iyad Allawi and Grand Ayatollah Ali al-Sistani. On the same day, the Washington Post released a new interview with Prime Minister Nouri al-Maliki that gave excellent insight into the premier’s current mindset. So what’s going on behind the scenes and how far away  is the ratification of a new prime minister and cabinet of ministers?

The overarching trend is that we are headed towards a sprawling “unity’ government that might be described as “a government of everyone and no-one.” This means a government in which almost everyone is a participant to some extent, but no-one has signed on to an agreed manifesto regarding how the government will act. Such a government would not be a meeting of equals; a sub-set of three political coalitions would form the core of the government and would hold the balance of votes in the cabinet – the forum at which many key decisions would be made.

What are the indicators that point to this conclusion? The first and most important is the difficulty of getting Maliki and Allawi in the same room, despite behind-the-scenes US and Gulf Arab pressure to make such a meeting occur. For many policy-makers in Washington and the Arab world, the ideal solution would be a Maliki-Allawi tie-up. In theory, this would assure a strong federal state, a more favourable investment climate, cross-sectarian balance and curtailed Iranian influence. Personality and alliance dynamics, plus insistent prodding from Tehran, make it unlikely that a nationalist super-coalition will emerge.

In the absence of such a nationalist alliance, it is equally unlikely that Allawi’s primarily Sunni Arab bloc will be excluded from government completely. The United States, Ayatollah Sistani and the Kurds have all been vocal on the need for an inclusive government. On 23 May, Maliki noted: “How could the government be formed without Iraqiyya whether as a bloc or as Sunnis?” Maliki added a further inducement to Allawi’s bloc members, noting: “the Iraqiyya list and the Sunni component must be in the sovereign posts, not in secondary posts.”

The comment shows that Maliki retains a clear-headed appreciation of Allawi’s weaknesses. Maliki correctly divines that Iraqiyya is struggling to hold together and may be easy to fragment. On 23 May, the premier noted: “I read the real situation and I see Allawi’s path as difficult; he has many problems ahead of him. I don’t say that I have no problems but mine are less. I have a coherent list unlike the others. So, imagine the problems for Allawi and the others.” Maliki has been consistent in rebuffing all possibility that Allawi will lead a new government and the Sunday meeting between Allawi and Sistani failed to produce any favourable outcome for the Iraqiyya leader.

A greater challenge for Maliki is to reassure Shia, Kurdish and Sunni partners that he can be trusted to take a less authoritarian stance during a second term. Some elements of the pan-Shiite Iraqi National Alliance (INA) such as the Sadrists will require very significant inducements to accept Maliki as prime minister, including so-called “service ministries” such as health, labour and transport. The Kurds and Sunni Arab factions also have a strong bias against the premier. Though Maliki can offer many tempting pay-offs to allies in the form of ministries, there is an under-current of antipathy that suggests Maliki will be shunted aside at a very late stage in government formation and a more acceptable (and weaker) prime ministerial candidate placed atop the sprawling “unity” government.

Whether Maliki remains or is removed, the resultant government may be unlikely to emerge before the start of Ramadan in mid-August. Whenever the government does emerge, we can expect significant churn in the ministries, with most or all of the ministerial portfolios redistributed during the summer negotiations. The aforementioned sovereign ministries – Finance, Interior, Oil, Defence, Foreign Affairs – may be split between political appointees of five main factions. This could result in some favourable results for investors, such as an Iraqiyya or Maliki pragmatist in the Ministry of Oil or a Kurd in an Arab-KRG confidence-building role at the Ministry of Finance. The shuffle could also see unsavoury characters implanted in key positions. In the lottery of government formation, only one statement can be made in confidence — that many existing relationships will be rendered null and void, requiring the work of commercial positioning to begin afresh.

Profile

Dr Michael Knights is Vice President and lead Iraq analyst at Olive Group, the  first security company to operate in Iraq.  He has  worked on Iraqi political and security risks since the mid-1990s, first as an oil and gas journalist and later as an academic, receiving his PhD on Iraq at the Department of War Studies, King’s College London.  Since 2003, Dr Knights has run the Washington Institute for Near East Policy’s Iraq programme, advising US government agencies on Iraq policy and publishing a series of books on local politics and security in Basrah, Maysan, Dhi Qar and the northern provinces including Kirkuk.  Since joining Olive Group in 2006, he has produced in-depth social and political analysis of 26 of Iraq’s major oil and gas fields and keeps a close eye on national security and politics.

He can be contacted at mknights@olivegroup.com

Posted in UncategorizedComments (2)

Finance Minister to Invest Japanese Loan


The Council of Ministers authorized Finance Minister Baqer al-Zubaidi to discuss investing the rest of a Japanese loan with the Japanese ambassador.

“The council during its 15th session decided to authorize the minister to discuss investing the remaining amount of the Japanese loan (around $220 million) with the ambassador to determine the projects that could benefit from this amount,” Ali al-Dabbagh, spokesman of the Iraqi government said in a statement received by Aswat al-Iraq news agency.

The Japanese government presented a 3.5 billion Iraqi dinars loan. The Iraqi government used the loan to rehabilitate a fertilizer factory in Khour al-Zubeir, in addition to other projects.

( Aswat Al Iraq )

Posted in Banking & FinanceComments (0)

Industry Ministry to Invest in Nassir Company


The Iraqi Industry Ministry will invest in the state-run Nassir Company over the coming five years.

“The necessary funds for this purpose have been allocated,” the Ministry said in a release on Wednesday received by Aswat al-Iraq news agency.

It noted that the funds will be used to rehabilitate the company’s water treatment units and dust filters.

( Aswat Al Iraq )

Posted in Industry & TradeComments (0)

Part of 77m Dinar theft recovered


The Integrity Commission has been able to reduce the 77m Iraqi dinars embezzled from the Ministry of the Environment by recovering funds in a raid on the defendant’s home.

After a court case lasting three days a statement said the main defendant in the case had misappropriated the funds by issuing fake cheques and through the corruption of one of the employees in the Ministry of Environment, as well as others working in a bank in Baghdad.

The operation seized the funds in a raid on the defendant’s home, where a team of the Integrity Commission managed to recover part of the money.

The defendant had spent the rest of the stolen money, whilst on the run,  on a car and other property in one of the provinces.

( Eye media company )

Posted in Banking & FinanceComments (0)

Re-basing the Iraqi Dinar


The Central Bank of Iraq is planning to rebase the Iraqi dinar but hasn’t decided yet on the timing of the move, the bank said in a statement last week.  Affirms its commitment to its strategic projects, particularly knocking three zeroes from the Iraqi dinar,” the statement said.

“Despite the technical and logistical preparations for the project we have yet to decide on suitable timing to implement the project,” it said. Choosing a suitable time wouldn’t be linked to economic aspects only, but rather to the security situation as well, it added.

“Most commercial Insurance Policies for Iraqi risks have monetary amounts in US dollars” comments Rob Edwards, Chief Operating Officer of AAIB Insurance Brokers.  “And this goes for sums insured, indemnity limits, deductibles and premiums, so there will be little effect for the majority of policies.”

If the rebase decision is taken it means a current 25,000 Iraqi dinar banknote will become IQD25, and a dollar will equal only 1.17 dinars.

Mr. Edwards continued, “Some policies written outside Iraq and the Kurdish Region of Iraq are for more modest sums insured, in particular auto exposures and these typically use Iraqi Dinar (ID) limits.  Underwriters and their reinsurers should keep a watching brief on this if they have policies with ID sums insured.”

Currency rebasing is usually monetarily neutral and is introduced to make commercial calculations easier and cheaper. Turkey, for example, knocked six zeroes off its lira currency in 2005. Russia did the same for its currency.

[Source: Zawya.  Full article here  http://www.zawya.com/Story.cfm/sidZW20100315000097/iq/?pass=1]

Posted in Banking & FinanceComments (11)

Al-Zubaidi: 2010 Budget for Culture Ministry


The Minister of Finance Baqir al-Zubaidi, said the budget in 2010 will focus on different sectors in the Ministries of Culture , environment, human rights, education, and sports and youth.

During a meeting of a Committee to plan strategy of the federal budget this year, Al Zubaidi stressed on taking into account the ministries important needs and unachieved projects in addition to obstacles that stand in the way of achievements.

The meeting was attended by representatives from the ministries of agriculture, oil, education, industry and minerals, Interior, Construction and Housing, defense, water resources, trade, and planning and finance, as well as representatives of the Economic Committee in Cabinet and Central Bank.

( Iraq Directory )

Posted in Banking & FinanceComments (0)

Advert

IBN Newsletter 'FREE Weekly Subscription'

AAIB Construction Insurance