THIS NEW JUNE LETTER OF INTENT (LOI) STATES THAT "AS A FIRST STEP" THE INVESTMENT LAW WILL BE INTRODUCED BY THE COM
Re: Urgent adviser Ebadi: Washington conference will provide grants to Iraq - Iraqi Dinar News, Information and Facts
I expected to see another LOI after the six months December LOI has expired, and that the next LOI would go beyond 2016 into the next few years, because this was going to be the reconstruction phase. This is the Marshall Plan.
Finally, last December, the PTB stepped in with a comprehensive plan for Iraq that included restructuring the banks, preparing for the loans, bonds, improved credit rating, RVing, liberating Mosul, and starting the private sector reconstruction phase. Again, I didn't look for the RV until I saw the PTB make a move committed to Iraq.
This June LOI with the IMF, stating that the USD is planned for being restricted for only travel purposes by the end of this year, all is evidence of the comprehensive plan hatched by the U.S. and the IMF last December.
Clearly, the IMF planned for the RV this year, and had intended to get that done during the first half of 2016.
WHY DID WE NOT SEE THE RV "BY MID-YEAR"?
I don't know. However, at the time this comprehensive plan was made last December, Abadi also had a plan and support for political reforms scheduled to be done in Feb or March.
But, instead of getting reforms, chaos erupted in April. April 28, 2016 was my guess at an RV date months before, based on three factors:
1) PTB (IMF/UST/WB/US) HAD A PLAN FOR THE FIRST HALF OF 2016
2) The IMF HISTORICALLY RV's in APRIL.
Instead of getting political stability, thus having the required security and having a GOI which would make "conditions right" for an RV (Shabibi and Allak both have started that has a prerequisite), the GOI was shut down until last week, and
3) JACK LEW OFFERED TO HAVE THE UST CO-SIGN IRAQ'S LOAN.
I wondered if the U.S. would simply pay the IMF themselves, thereby giving Iraq the credit rating they need.
I also have to wonder, given this comprehensive plan for the first half 2016, if Abadi had, in fact, gotten his reforms, which then would have gotten the needed laws passed, and provided political stability, would we have seen the RV "by mid-year" - (April or June)?
We can't ignore the six month plan for the first half of the year that probably got derailed by the GOI shut down from April -July.
NONE OF THE REFORMS that had been planned got done in the first half of the year.
THIS NEW JUNE LOI STATES THAT "AS A FIRST STEP" THE INVESTMENT LAW WILL BE INTRODUCED BY THE COM.
I doubt that last December the IMF thought that nothing would get done in the GOI during their entire six month plan.
A US OFFICIAL EXPECTED TO RAISE MORE THAN $2 BILLION FROM DONORS FOR IRAQ
This article is referring to grant/charity money.
A lot of money is expected to pour into Iraq such as:
Other countries' aid
Private sector loans
Deferred Paris Debt
Each has strings attached, such as anti-corruption/stealing measures and targeted specific areas that the money will be used for.
PRESUMABLY, THE RV IS VERY MUCH A PART OF THE PLAN FOR THIS YEAR IN ORDER TO ADDED VALUE AND HELP WITH THE RECONSTRUCTION OF IRAQ IN ADDITION TO ALL THESE LOANS AND GRANTS.
The GOI addressed the auto-deduction tax-paying system for government workers that was ANOTHER ITEM THE IMF WANTED.
STILL WAITING FOR THE INVESTMENT LAW to be introduced to the GOI by the COM
(Council of Ministers) for a vote to be scheduled.
THE GOI STILL NEEDS TO PASS THE INVESTMENT LAW AMENDMENT
I'm still encouraged that the Monetary Reform is, in fact, being planned by the U.S./IMF with coordination with other countries, the World Bank, and the UN.
ALL OF THIS MONEY POURING INTO IRAQ IS UNPRECEDENTED.
It's exactly what I posted in the Spring....
.....that the 1st HALF of 2016 was getting Iraq (mostly the CBI) in position to receive these LOANS FOR THE RV,
.....while the 2nd HALF of 2016 (and into the next 3 years) is for the RECONSTRUCTION PHASE - the SBA/Marshall Plan, and for liberating Mosul.
IMO, the PLAN IS TO RV AFTER THE WAR PHASE to kick off the RECONSTRUCTION PHASE --- just like any other country we have gone to war with and won.
When this plan for the Monetary Reform, the commitment to liberate Mosul, and the multi-year reconstruction was outlined, the RV WAS INCLUDED. But, the GOI has been non-effective for the entire 1st half of the year.
THEY STILL NEED TO PASS THE INVESTMENT LAW AMENDMENT.
The Anti-Money Laundering Law needs some additions that the IMF wants to see as well.