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By John Lee.

The Central Bank of Iraq (CBI) has reported that 31 banks and 17 remittance companies took part in its currency auction on Tuesday.

A total of $137,785,347 sold at a price of 1182 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

By John Lee.

The Central Bank of Iraq (CBI) has reported that 32 banks and 18 remittance companies took part in its currency auction on Sunday.

A total of $144,146,155 sold at a price of 1182 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

By John Lee.

The Central Bank of Iraq (CBI) has reported that 29 banks and 19 remittance companies took part in its currency auction on Wednesday.

A total of $142,317,265 sold at a price of 1182 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

Advertising Feature

Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 2nd June 2016).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQ714 (+3.0%) / $713 (+3.0%) (weekly change) (-34.5% and -37.8% YTD change, respectively). The number of week traded shares was 27.1 bn and the weekly trading volume was IQD8.5bn ($6.5mn).

ISX Company Announcements

• Asiacell (TASC) disclosed that, on May 15 2016, the CMC affirmed its decision (#1095), which was taken on February 4, 2016, to freeze the liquid and fixed assets of TASC due to the unpaid amount of (IQD197.8bn) as regulatory fees. The unpaid amount of regulatory fees declared by the CMC represents the difference between 15% and 18% of gross revenue of TASC. The CMC claims that the regulatory fees should be 18% of the gross revenues of TASC, while TASC argues that it has to be 15% based on its shareholders’ structure. On October 27, 2015, TASC had received a final court decision that says the CMC has no legal right to claim the additional regulatory fees. Therefore, if CMC applies its decision for the freezing of the assets of TASC, the company plans to issue a lawsuit against the CMC for lifting the freeze on the liquid and fixed assets of TASC and keep calculating regulatory fees based on 15%. Please note, ISC approved this disclosure on May 25, 2016.
• Baghdad Soft Drinks (IBSD) will hold its AGM* on Jun. 16, 2016 to discuss and approve 2015 annual financial results, distributing cash dividends, merging with Ynabee’ Al Zawraa Company and capital increase depending on the approval of the merger. The proposed new capital is the total paid-in capital of IBSD and Ynabee’ Al Zawraa Company.
• New shares of Modern Animal and Agricultural Products (AMAP) will resume trading on Jun. 5, 2016 from the capital increase to IQD4.1bn through 5% bonus issue.
• National Bank of Iraq (BNOI) will resume trading on Jun. 5, 2016 after discussing and approving 2015 annual financial results
• According to ISC decisions taken on May 19, 2016 referenced to ISX Board of Governor’s letter on Jan. 18, 2016, following developments happened: 1) North Soft Drinks (INSD) and Baghdad Motor Car Servicing (SBMC) have been delisted on Jun. 1, 2016 for not paying the annual listing fees. 2) The following companies which are in hot zones; Mosul Dam Tourist Village (HTVM), Ashour Hotel (HASH), National Household Furniture Industry (IHFI) and Modern Construction Materials Industry (IMCM) have started trading in non-regular market on Jun. 1, 2016, which were trading in regular market, due to not paying the annual listing fees. 3) The Light Industries (ITLI) was suspended from trading pn Jun. 1, 2016, because they did not pay the annual listing fees.
• A cross transaction occurred on 20.0bn shares of United Bank (BUND) on May 31, 2016. This represents 6.7% of BUND capital.
• According to the court decision, the listed shares of Iraqi Middle East Investment Bank (BIME) that are owned by North Bank (BNOR) were auctioned off for sale on May 30, 2016. Furthermore, ISX announced on May 30, 2016 that Asiacell’s (TASC) shares owned by BNOR will be blocked by court order until the court verdict is finalized for this case.
• Mamoura Realestate Investment (SMRI) resumed trading on May 29, 2016 after discussing and approving 2015 annual financial results.

By John Lee.

The Central Bank of Iraq (CBI) has reported that 30 banks and 17 remittance companies took part in its currency auction on Sunday.

A total of $124,539,297 sold at a price of 1182 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

By John Lee.

The Central Bank of Iraq (CBI) has reported that 31 banks and 18 remittance companies took part in its currency auction on Tuesday.

A total of $133,466,204 sold at a price of 1182 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

By John Lee.

The Central Bank of Iraq (CBI) has reported that 32 banks and 18 remittance companies took part in its currency auction on Tuesday.

A total of $130,019,655 sold at a price of 1182 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

By John Lee.

The Central Bank of Iraq (CBI) has reported that 29 banks and 18 remittance companies took part in its currency auction on Tuesday.

A total of $134,305,728 sold at a price of 1182 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

By John Lee.

The Central Bank of Iraq (CBI) has reported that 29 banks and 18 remittance companies took part in its currency auction on Thursday.

A total of $121,342,437 sold at a price of 1182 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

By Omar Sattar, for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

On May 19, Iraq signed an agreement with the International Monetary Fund (IMF) for a loan for as much as $15 billion over the next three years. Observers are wondering how Iraq will be able to repay the loan and meet the conditions imposed by creditors, which include various countries and the World Bank. One such condition is that Iraq must lift its oil and food subsidies.

The Iraqi Ministry of Finance said the IMF Stand-By Arrangement (SBA) will help Iraq in its battle against the Islamic State (IS) to liberate Iraqi territory, while also helping cut the budget deficit, which is projected at $25 billion, a figure that could worsen because of lower oil prices. The ministry said the loan will not affect government spending on social and health services, but rather it will bring about real financial and economic reform.

Iraq's previous experience with the IMF doesn't encourage optimism. In 2004, the IMF imposed an economic reform package that required Iraq to privatize some sectors and raise fuel prices in exchange for reducing and rescheduling the country's Paris Club debt, estimated at $50 billion. Iraq failed to meet those conditions.

Sirhan Ahmed, a member of the parliamentary finance committee, told Al-Monitor the new IMF loan will only make things worse in the long run.

"Iraq does not need a loan from the IMF, as this loan will eventually turn into a set of conditions and dictations on the Iraqi economy. Instead of borrowing, the government should have resorted to retrenchment and issuing bonds while earnestly fighting corruption to address the budget deficit."

Majda al-Tamimi, another finance committee member, told Mawazin News on May 17 that the loan "will lead to corruption."

"The Central Bank's governor held meetings and negotiations concerning the IMF loan, knowing that he sells $126-$140 million from the state's treasury funds through currency auctions on a daily basis," she said, referring to the fact that funds are available, yet the bank's governor is using Iraqi money in buying and selling operations, not to support the budget deficit."