Millionday News 12/17/13
[millionday] i am bringing info about some questions and then we will look at the great news -- this first report i want you all to read for a catch up and for new people to understand
[millionday] so here we go and please read this seriously >>> A new chapter has begun for the once again completely sovereign nation of Iraq, as it was reclassified from Chapter 7 to Chapter 6 of the United Nation’s charter.
In effect, it is like someone being released from prison. All of his confiscated possessions will be returned to him, and he will once again have full control of his finances. july 2011 new iraqi dinarThis could deliver a huge boost to the value of Iraq’s currency, the dinar, with the return of billions of dollars worth of assets frozen shortly after its 1990 invasion of neighbour Kuwait.
Read More Link On Right
But Iraq’s release from political prison also opens it up to suits and claims of reparation against it. Out from under Chapter 7 restrictions, how will Iraq manage its affairs now? And what will this mean for its dinar?
[millionday] While Chapter 7 authorizes the UN to impose sanctions or use military force against a country that steps out of line, Chapter 6 allows a nation to handle disputes with other countries on its own through peaceful negotiation.
“Iraq can now have normal relations and sign all sorts of treaties with other countries of the world,” Labeed Abbawy, Iraq’s former deputy foreign minister, expressed his relief to the Kurdistan paper Rudaw.
“We were not getting invitations from the international conferences and some countries would even deny visas to our Iraqi diplomats.”
Only two issues still remain under Chapter 7: a ban on certain arms and the completion of reparation payments to Kuwait, with $11 billion outstanding of the original $52 billion owed.
[millionday] note -- this has been handled with kuwait
[millionday] All other sanctions and restrictions have been lifted. Iraq can rebuild its military. It can be party to political and trade treaties. It will control its oil revenues as its own government determines.
It will even see the return of some $82 billion worth of frozen assets held in foreign banks since its invasion of Kuwait in 1990. “The lifting of Chapter 7 against Iraq will enable it to regain independence in its oil policy, and Iraq again can become an important regional and international energy player,” Dr. Rebawar Khinsi boasted his optimism to Rudaw.
Good times are indeed in Iraq’s future, which should bode well for the dinar. But there are still a number of obstacles to clear out of the way.
[millionday] note -- this is some stability issues that we have watched the resolve of
[millionday] For the time being, the country is still being closely watched, like a released ex-convict under probation. “Iraq will remain under observation and it has to respect the role of the United Nations Assistance Mission for Iraq (UNAMI),” Dindar Zebari, special representative of the Kurdistan Regional Government (KRG) in the UN clarified to Rudaw.
“Iraq is still not a stable country so the UN delegation will keep its presence there.” Threatening Iraq’s stability are a number of unresolved issues from its past.
Rudaw reports that “minorities have been especially concerned, apprehensive that the Iraqi government - without a leash - could turn into yet another threat.” Haydar Mulla, an al-Iraqiya MP, although supportive of the chapter change, acknowledges “there are fears that lifting the restrictions will free the hands of the Iraqi government against the minorities.”
[millionday] Besides continued tensions among Iraq’s disunited population, there are also a number of reparation claims to be settled after Saddam Hussein’s dictatorial rampage.
As Amir Hassan Fayaz, head of the political science department at Nahrein College, expressed to Rudaw, “Iraq will become a normal country again and will be dealt with as a sovereign state.
Now all the countries that Iraq is indebted to can ask for payment.” The ex-convict is now going to be confronted by all the people he robbed and cheated, and there is no longer any Chapter 7 to protect him. The dinar can’t pull its flying carpet trick just yet.
[millionday] note -- this is when they were changed to chapter 6 -- the next part will tell us what will happen with the dinar
[millionday] What the changing of the chapters does for Iraq is lift a multitude of restrictions. But the nation still needs to grow into those expanded boundaries. Just because you move a plant from a small pot to a large pot does not mean it will grow instantly.
There are three main economic benefits delivered by Chapter 6: a) the return of frozen assets; b) debt forgiveness; and c) full control of revenues. While the first two will have an immediate affect on the nation’s financial circumstances, the third will take years to bear results.
[millionday] note -- information and please think of what we have witnessed after this
[millionday] First, there is the return of $82 billion in frozen assets. Indeed, this will have an immediate effect on Iraq’s balance sheet as soon as the funds are returned. Unfortunately, it will have a very small impact on the nation’s financial position or its currency’s value.
$82 billion is barely six months’ worth of Iraq’s annual GDP of $155 billion (CIA World Factbook). This is a “one-shot-deal”, not a recurring revenue. It should boost the value of the dinar to a certain extent. But once it is factored in, it will have no further boosting effect.
[millionday] Next is the forgiveness of Iraq’s debt by as much as 80%. With most of that forgiveness already applied between 2004 and 2010, the current remaining debt, as reported by the CIA World Factbook, is $50 billion.
Iraqi Foreign Minister Hoshyar Zebari expects this to be completely paid off by 2015, making the nation debt free. Though this is quite the achievement, it is another “one-shot-deal”, not a recurring revenue.
Its value is only 4 months’ worth of GDP, spread out over the next 2 years, the effect of which should strengthen the IQD a little over time until 2015 and then stop.
[millionday] Finally, as the greatest benefit of the UN’s decision, Iraq will be in full control of its oil revenues to spend as its elected governing bodies determine. Yet this does not result in an immediate increase in the nation’s wealth. Rather, the immediate effect of taking control of its finances will likely result in a worse balance sheet over the shorter term.
While under Chapter 7, Iraq could do just two things with its oil revenues: pay reparations to Kuwait and invest in its reconstruction fund, which included upgrading infrastructure and expanding its oil production. Under Chapter 6, however, Iraq will have to manage additional expenses.
It must rebuild its military, not an inexpensive task in these modern times. It also needs to start dealing with the multitude of claims against it by nations and groups not yet compensated for Saddam’s abuses against them.
[millionday] so as we see -- the release of chapter 7 and the move to chapter 6 was like the release of a convict which is funny to compare in itself
[millionday] however -- obviously this was printed when the release happened and to tell you the truth -- the plain speaking is what i was looking for so all can understand
[nona] millionday thanks MD for the informative, easy to comprehend report helping to put everything into context
[millionday] now of course by what we have been reading -- shows us how far they have come - as i will also show you in a few -- a lot has happened -- yw all the time hun
[DBJJ] MD - Do you know who authored this article?
[millionday] now that was the UN confirmation that i wanted to show you - i will brb with more info as we were looking for last night
[millionday] here is a conference that will be happening very soon after the first of the year -- read what will be happening and also think about where we are now
[millionday] Iraqi Central Bank announced on Tuesday, for the organization (the Second Annual Conference of the financial sector in Iraq), the end of January 2014 the next in the Emirate of Dubai, in line with the growing strength of the growth of economic development in the country,
noting that the conference aims to display his strategy for financial and economic development, and attracting investments and foreign banks for the country, while a bank official confirmed the British,
on the importance of the creation of “comprehensive development” of infrastructure finance and banking to prop up the Iraqi economy, “a large and ambitious development process.”
The governor of the Central Bank and the Agency, Abdul-Basit Turki, according to the Web site reported medal East Bzenz News ME Business News for economic news, and I have read it (the long-Presse),
“The Bank will organize the second annual conference of the financial sector in Iraq, in the Emirate of Dubai for a period of from 27 to January 28, 2014 the next, “noting that” the conference will be held with the participation of Iraqi officials and personalities from leading international experts in the field of banking, and financial executives to discuss financial investment opportunities available in Iraq. “
[millionday] note -- the move for expansion to bring iraq to the position they should be at after such a huge change we will look at as well
[millionday] Turki has addressed this and here is his words >>>>>>>>>>>>>>> He said Turki, “The conference will serve as a commercial site for the reception of foreign delegations and a rallying point for international investors seeking to implement commercial projects in Iraq,”
noting that it “will provide a springboard to discuss the four-pronged task derived from the fact that rising energy to power the growth of economic development in Iraq, which includes resources and infrastructure Finance for major local projects, and the current status of the Iraqi banking sector, as well as the participation of foreign lenders and their role in supplying the projects. “
The Governor of the Central Bank and the Agency, that “the central bank began its activity to launch a massive program to attract foreign investments to Iraq with paving the way for the entry of banks and foreign financial institutions,”
pointing out that “the Central Bank will present at the conference strategy for the development of the financial and economic situation in Iraq, to highlight the importance of the role foreign companies in the domestic banking sector growth and development. “
[millionday] note -- as we see the entry and the expansion
[millionday] According to the site, that in “Iraq is now more than 16 international banks and seven state banks and 23 civil lending, with nine Islamic banks”, stressing that “the year 2012 the past, saw the rising number of banks, foreign investment in Iraq dramatically, as will Standard Chartered Bank British , distinguished presence at the conference after the opening of its first location in the capital, Baghdad. “
The transfer site medal East Bzenz News, the Executive Director of Standard Chartered Bank in Iraq, Geffen and chart, saying that “the pace of growth of the Iraqi economy going around fast, and that the increasing oil revenues,
which will be realized in the coming years will bring huge benefits to the country,” returned to “important sector which must evolve in the country is the overall development of the infrastructure of financial and banking that can assign a large economy and ambitious development process. “
[millionday] smile >>>>>>>>>>>>>large economy and ambitious development process. “
[LBnFL] millionday So does it seem to you that this conference is geared to a situation AFTER the revaluation, or JUST BEFORE?
[millionday] It is noteworthy that Prime Minister Nuri al-Maliki, opened in (the 27 of November 2013), the first section of the Standard Chartered Bank Standard Chartered British, in the capital Baghdad, emphasizing that it represents a “turning point” in the economic sphere, calling for banking institutions National to take advantage From cutting-edge expertise that can be provided by the bank.
The Standard Chartered Bank announced in (the fifth of September 2013), for approval of the Central Bank of Iraq on his opening of three branches in the country, noting that it would be in both Baghdad and Erbil in the last quarter of 2013, the current, and then in Basra during the 2014 next .
The bank Citigroup Citigroup U.S. banking services, announced in (the 24 of June 2013), the opening of an office in Baghdad to become the first U.S. bank expands its services to include Iraq, betting in his step these economic opportunities, “long-term” in the oil-rich country, according to quoted by the Financial Times newspaper.
[millionday] note after
[lorijeanmarshall] LBnFL That's what I was just thinking too
[millionday] so as we see in this very important newstime -- they are planning on expansion and CBI is hosting the banking revolution of Iraq and of course the globe is in great hopes of changing the economic condition -- brb with more reports --
[millionday] this is extremely important and huge for their regain to trade here we go >> MP on the mass of the citizen Aziz Ugaili, that Iraq's borders with neighboring countries is fully insured what lead to the infiltration of terrorists into the country.
said Ugaili (of the Agency news): The border with Syria, Turkey and Jordan open to hackers and terrorists and killers, which led to a rise in business criminal in Iraq in recent weeks.
explained: that points border guards spaced together and ineffective or unable to control the border security, pointing out that some of the terrorists became their kegs in areas near the Syrian border, particularly in the areas of Anbar.
added: that the terrorists who carrying out security operations, they are of different nationalities, some of whom were fighting in Syria.
[millionday] noteworthy that Iraq has 14 centers customs distributed between border crossing points, there are several outlets ground for a single country on the border with Jordan is Trebil and three ports on the Syrian border is the newborn and the existing and Rabia,
along with port Abraham on the Turkish border, and Mundhiriyah on the Iranian border, and Arar on the Saudi border, and Safwan on the Kuwaiti border, and Aglba What are you talking news for breaches of the border because of the weakness of the processing of the army and the corruption that is spreading in the ranks of some Alillak.