Millionday roundtable 10/17/14 Part 1
Welcome to dinarupdates.com for Roundtable with Millionday!
Millionday: I POSTED THAT REPORT WE HAD LAST NIGHT ABOUT THE INTERNATIONAL ACCOUNTING COMPLIANCE THAT THEY HAD TO HAVE FOR THE ENTRY TO THE MARKET ECONOMY
AND FOR THE RAISE OF THE VALUE OF THE DINAR -- LOCALLY AND GLOBALLY
Millionday: I HAVE BEEN ADDING TO IT FOR ADDED INFORMATION SO WE KNOW EXACTLY WHAT ITS SIGNIFICANCE IS
Millionday: SO PLEASE KEEP YOU EYES OPEN FOR REPORTS AND ADDED INFORMATION WE ARE ALL WORKING ON AND THE REPORT I JUST MENTIONED
Millionday: SMILE -- BRB WITH SOME NEWS FOR US -- WHOOOPOW
Millionday: coalition of state law, that there is the will of the international and regional pay the federal government and the Kurdistan region to resolve their differences and convergence between them, to confront the organization "Daash." said the leader of the coalition of state law, Abbas al-Bayat
Millionday: told the "Khandan" that "new atmosphere between Baghdad and Erbil and challenges Daash, led to a rapprochement between the two parties, "adding that" there is the will of the international and regional pay both sides of convergence, to face Daash and terrorism and not concern issues of side effects. "
said al-Bayati, that "the performance of the Minister of the Kurds sworn in next week, it will be an incentive and motivation for openness between Baghdad and Erbil to solve problems and outstanding issues between the two sides, according to the Iraqi constitution. "
Millionday: SO AS WE KNOW THE MINISTERS ARE TO BE SWORN ON SATURDAY AND THIS UNIFICATION WITH THE KURDS AND IRAQ IS GOING TO CREATE A FORCE -- A UNIFIED FORCE – SMILE -- BRB WITH MORE
Millionday: NOW THIS IS ANOTHER PROOF OF UNIFIED GOVERNMENT IN IRAQ
Millionday: The head of the Kurdistan Regional Government Barzani that the security of the Iraqi capital Baghdad, is the security of the city of Arbil, the Kurdish capital.
This comes at a time when the modern fear of attack by the organization Daash to Baghdad.
Barzani said at a news conference in Arbil attended by "Twilight News", that "those who think that is not what is happening in Baghdad influence on what is happening in Arbil wrong,
pointing to the recent events have proven to everyone that what is happening in any part affects the other part because" Daash "I do not differentiate between all parties.
Millionday: NOTE -- THE KURDS AND BAGHDAD ARE WORKING TOGETHER TO FIGHT A COMMON ENEMY -- DASSH –
THERE ARE BLESSINGS IN EVERYTING AS WE KNOW BUT THIS IS NOT ONLY A BLESSING BUT IT IS ALSO HISTORICAL FOR THE COUNTRY AND ADDS CONFIDENCE FOR INVESTORS AND THE CITIZENS
Millionday: Barzani said that "Baghdad security means the security of Erbil and Erbil security means the security of Baghdad"
He said that everyone work together to address "Daash," and expressed regret for the policies pursued by the previous government, which led to the aggravation of the problems and did not hear what was calling him and Kurds warn him because she wants to impose its policy unilaterally.
Millionday: THIS IS FANTASTIC -- UNITY IN THE COUNTRY AND CONSTITUTIONAL COMPLIANCE –
WE HOPE OF COURSE THAT IT DOESNT STOP THERE BECAUSE ECONOMICALLY THE CONSTITUTION ENSURES THE GREATEST ABILITY TO BE USED FOR THE WEALTH OF IRAQI CITIZENS –
AND THAT IS WHAT WE WANT FOR THEM -- SMILE
awesomedtl: Million do you think there is a greater chance of them actually doing the ministers morrow, it does seem a lot is now predicated on this event happening, than watch the next step unless they surprise us also do you think with the kurds being sworn in , that the ministers being voted on has any bearing???
Millionday: THIS IS A HUGE OPPORTUNITY FOR IRAQ AND I COMPLETELY EXPECT THE SWEARING OF MINISTERS –
WE SHALL SEE WHAT THE RESULTS ARE AS SOON AS TOMORROW – SMILE WHOOPOW BRB WITH MORE
Millionday: THIS IS VERY INTERESTING AND IS A FORMAL DOCUMENT THAT IS TO EDUCATE ON WHAT IRAQ NEEDS TO BECOME INTERNATIONALLY RECOGNIZED
Millionday: I AM GOING TO BRING SOME PARTS OF IT AND AM ALSO GOING TO POST THE ENTIRE REPORT TODAY FOR EVERYONE TO LOOK AT AND FIND INFO THEY MAY BE LOOKING FOR
Millionday: HOWEVER IT IS VERY LONG -- WE ARE GOING TO LOOK AT PARTS OF IT
Millionday: TRY TO FOLLOW ALONG AND READ ALL I BRING -- THIS IS AMAZING
Millionday: NOTE -- WE KNOW THAT BASEL COMPLIANCE IS UNIVERSAL AND IRAQ HAS COMPLIED
Millionday: Banking Supervision
The Iraqi system of banking laws and regulations provides a workable framework for the exercise of banking supervision, provided the rules are implemented and enforced vigorously.
A full expert-assisted self-assessment of the supervisory system, based on the Basel Core Principles and the 2006 assessment methodology, is required to help further align the system to international standards.
Millionday: However, for the CBI to be able to fully deploy effective supervision, three main conditions need to be met:
(i) the political will to let the CBI perform its tasks without interference also with regard to state owned banks, using the laws, regulations and its professional judgment,
(ii) assurance that the state owned banks which hold by far the majority of banking system assets, are effectively supervised by the CBI in full accordance with the 2006 Memoranda of Understanding (MOU) between the CBI and the Minister of Finance,
(iii) the CBI has the necessary resources—in terms of quantity and quality -to take on the supervision of these large institutions with their many branches.
Millionday: NOTE -- AS WE KNOW CBI HAS ALREADY HAD THE MEETING WITH THE PRIVATE BANKS AND ALSO HAS COMPLETED THE AUDITING AND THE IMPLEMENTATION FOR ALL BANKING REFORMS RULES FOR INTERNATIONAL COMPLIANCE
Millionday: For optimal effectiveness of the current set of rules and regulations, enforcement needs to be strengthened, and banks rated three under the CAMELS system need to be carefully monitored to prevent further slippage in safety and soundness in the current environment in Iraq.
Banks’ financial and prudential information needs to become more reliable and more rapidly accessible, through introduction of fully International Financial Reporting Standards (IFRS)-compliant accounting standards,
internationally acceptable auditing standards, and a chart of accounts to assure consistency across the system in compiling figures needed for IFRS compliant accounts.
Obligations to publish timely audited financial statements must be enforced more forcefully.
Millionday: NOTE -- YOU MAY FIND THIS MEMORABLE DUE TO THE FACT WE READ ABOUT CBI AND THEIR COMPLETION OF THESE PARTICULAR NEEDS LAST NIGHT
Millionday: NOTE -- AND ONCE AGAIN -- YESTERDAY SHOWED US THESE THINGS AS WELL -- SMILE
Millionday: Islamic banks must be brought under the purview of regular CBI regulations and supervision through rapid adoption of the draft Islamic banking law, and the associated regulations.
Politically supported, strong concerted efforts must be made to prevent abuse and undermining of the financial system through corruption, money laundering and the potential financing of terrorism.
Millionday: NOTE -- AS WE ALL KNOW THESE THINGS HAVE ALSO BEEN ADDRESSED AS WELL -- BRB WITH MORE
Millionday: NOTE -- AS WE KNOW THE ISX IS GOING TO BE CLOSED FOR ABOUT TEN DAYS -- WE AKS WHAT IS GOING ON WITH THAT? I THINK WE SHALL SEE WHAT THAT IS ABOUT -- WHOOPOW
Millionday: Capital Markets
The capital market in Iraq is concentrated on the Iraq Stock Exchange (ISX).
The stock exchange is small and under-developed but has potential to provide issuers with access to sources of permanent and long term capital via the issuance of equity and corporate bonds to institutional and retail investors, domestic and foreign.
It is currently at a crucial stage of its development. Activating the privatization program in a way which would place at least a proportion of the shares of currently state owned companies into the hands of Iraqi citizens and institutional and foreign portfolio investors could, over several years, see ISX rival its regional peers in size and depth.
Millionday: NOTE -- AS WE KNOW -- YES THE ISX IS AT A HUGE CROSS ROADS
Millionday: NOTE -- LET ME SAY THIS -- THIS IS WHAT IRAQ WOULD NEED TO DO TO BECOME INTERNATIONALLY COMPLIANT AND A COMPLETE TIME THAT NO ONE WOULD WANT TO MISS NEWS AT ALL -- SMILE
Millionday: It is probable that there is (unsatisfied) demand from life insurance companies and pension funds for medium/long term debt securities in order to match long term liabilities with long term assets.
There appears to be no issuance of such securities currently by either the government or the private sector.
The absence of government debt beyond one year inhibits the latter as there is no “risk free” yield curve off which to price corporate bond issues
Millionday: NOTE -- THE INSURANCE THAT WE HAVE READ ABOUT OF COURSE CHANGE THE NEEDS AS WELL -- THE REASON BEING -- THEY HAVE BEEN ADDRESSED -- SMILE
Millionday: Capital market development requires improvements in all of the necessary underpinnings of a market in which issuers and investors can have confidence.
These include the laws on contract enforcement, shareholder and creditors rights, efficient and fair judicial processes, corporate governance and accounting and auditing standards which (at least) match regional benchmarks.
It also requires an effective, fair and efficient regulatory framework within which to operate.
This should have as its objectives the protection of investors, ensuring that the market is fair, efficient and transparent and the reduction of systemic risk.
Millionday: NOTE -- THE MARKET BEING FAIR REQUIRES A REALITY AND FAIR RATE (PRICE) FOR THEIR CURRENCY (CAPITAL)
Millionday: Legislative change to achieve these ends had been discussed since 2008 and steps should now be taken to implement it. This report sets out some amendments which would provide enhancements to the current draft permanent Securities Law.
They would also provide a stronger foundation on which the permanent Iraq Securities Commission (ISC) could draft and enforce its regulations. Currently little is known about the interim ISC’s capacity, competences or goals as it did not take part in the review process.
It appears however that the current legislative and regulatory framework under which the ISC operates is weak and underdeveloped.
The current Company Law, although amended in 2004, was written in 1997 and also needs further updating to better achieve good corporate governance in joint stock companies and to secure improved shareholders rights.
This report sets out and prioritizes thirteen recommendations for change. They include legislative and regulatory improvements, changes
Millionday: NOTE -- THE SECURITIES COMMISSION FOR IRAQ HAS ALREADY BEEN PUT IN PLACE –
THIS IS THE STOCK MARKET REGULATIONS WHICH WERE DONE WHEN THEY WERE ABLE TO MOVE TO OMX NASDAQ PLATFORM AND NOW THE MOVE TO E-STREAM --- WHOOOPOW
Millionday: NOTE -- AND ONCE AGAIN THE SUMMARY WE ARE ABOUT TO READ IS FOR IRAQ TO BE INTERNATIONALLY RECOGNISED FOR GLOBAL ENTRY (CAPITAL MARKET)
Millionday: Summary of Key Recommendations
While work should commence on a broad range of issues, some key decisions need to be taken immediately, while others may be implemented over the medium term.
Key issues to be addressed up front are the role of state banks and the creation of a level playing field for all banks. This will need to be followed by the early adoption of the proposed permanent Securities Law and steps to turn the insurance Diwan into an effective supervisor.
Supporting ongoing efforts will be needed to address financial sector infrastructure, including supervision, credit registry, collateral framework, judicial systems, and accounting and auditing frameworks.
Millionday: NOTE -- THE BANKING INSURANCE AND SECURITIES LAW HAS BEEN COMPLETED -- CREDIT REGISTRY --COLLATERAL FRAMEWORK (LOANS) , REAL ESTATE ECT ,
THE ENTIRE AUDITING AND INTERNATIONAL ACCOUNTING COMPLIANCE WE READ ABOUT LAST NIGHT AND ITS COMPLETION-- AND OF COURSE THE FINANICAL SECTOR INFRASTRUCTURE - WHOOOPOW
Millionday: NOTE -- ONCE AGAIN THIS HAS BEEN COMPLETED DURING THE LAST TWO YEARS
Millionday: Once the reform of Rafidain Bank and Rasheed Bank is well under way, the authorities should consider more generally the role of state banks in the economy, including that of ITB and the four smaller sectoral banks, with a view to eventual liberalization.
As noted above, private banks operate on an uneven playing field. An immediate priority should be to announce the removal of all impediments for private banks
Millionday: THE TRADE BANK OF IRAQ HAS BEEN GIVEN ITS ROLL AND ALSO THE SWIFT CODES HAVE BEEN GIVEN FOR ALL MONEY MARKETS INCLUDING THE BANKS DUE TO INTERNATIONAL COMPLIANCE -- SMILE
Millionday: LET ME CHECK TO MAKE SURE I HAVENT MISSED ANYTHING VERY IMPORTANT -- BRB
Millionday: THANK YOU ALL FOR YOUR RESPECT FOR EVERYONE -- BRB HOLD THAT THOUGHT
Millionday: Carrying out the review has posed a number of unique challenges. Access to key officials and market participants within Iraq was severely limited because of the security conditions and the team therefore had limited possibilities to assess first hand actual implementation and enforcement of rules and regulations.
Moreover, due to the recent introduction of many of the prudential regulations, there is little track record of compliance and enforcement.
Nevertheless, in spite of these caveats, this assessment point clearly to a number of key issues that need to be addressed to underpin the development of Iraq’s financial system.
The report comes up with key recommendations some of which are short term, in the sense that they should be initiated immediately. Others will be ongoing and may only be fully realized in the medium term.
All these aim at enhancing the performance and soundness of the financial sector in Iraq, and ensuring that it plays a key role in financial intermed
Millionday: NOTE -- SO THESE ARE THE THINGS THAT ARE NEEDED TO MOVE IRAQ TO INTERNATIONAL ENTRY/COMPLIANCE
Comments may be made at the end of Part 2 Thank you