[sudo-discuss] info about iraq banking

[. rippers]

hi sudo'rs

i came across some information about iraq banking and thought to share it. it's a long read, tho i found it interesting.


Re: Dinar Info...
« Reply #683 on Jun 9, 2013, 10:12am »	
Just some info from a guru who researches. Sorry this is long but this is what she does as well as explains the going ons of Iraq and its gov. Never, ever listen to okie he's just an Accra.

[tlm724] good afternoon everyone, BondLady has brought to our attention a PDF document from the World Bank and we want to share some of the information from that document. Here is the link to the documenthttp://siteresources.worldbank.org/IRFFI/Resources/BankingSep2010.pdf

[tlm724] It deals with Banking Sector Reform Project Central Bank of Iraq (CBI) and is dated September 2010. We will bring in sections of particular interest for you all to see starting with the main objective of the project:

“The project aims to support the Iraqi authorities in the implementation of Phase I of the “Iraq Banking Reform Strategy” (2008-2012) and its Action Plan, focusing on four main components: (i) institutional and operational restructuring of the two state-owned
commercial banks; (ii) financial restructuring of the two state-owned commercial banks; (iii) strengthening the regulatory and supervisory functions of the Central Bank of Iraq; and (iv) project management, monitoring and evaluation.”

[tlm724] the next section is about Beneficiaries

The project supports the Iraqi government to build a sound banking system, able to
provide efficient financial services competitively. The immediate direct beneficiaries
would be the two largest state-owned commercial banks—Rafidain Bank and Rasheed Bank—which account for more than 70 percent of the banking system. Ultimately, all
Iraqi businesses and citizens will benefit from an improved banking system that can provide the resources needed for Iraq’s growth and offer good deposit and payment systems for businesses and households.

[tlm724] Lets just take a quick look at the objective the World Bank has laid out in 2010 and then see where we are. The first two things are (i) institutional and operational restructuring of the two state-owned commercial banks; and (ii) financial restructuring of the two state-owned commercial banks; we know that this is or has been achieved as evidenced by this article dated March 24th 2013

World Bank restructure the Rafidain and Rasheed in order to raise the value of the Iraqi dinar
24/3/2013

BAGHDAD / obelisk: counting and Planning Minister Ali Shukri, Sunday, announced the World Bank to start implementing his plans to restructure the government banks Rafidain and Rasheed “It’s an important step was waiting for Iraq to raise the value of the dinar.”
Said Shukri for “obelisk”, “The announcement of the World Bank to begin implementation of its plans to restructure the Rafidain Bank and Rasheed Bank government is an important step had been waiting Iraq,” noting that “financial welcomed move the World Bank in this direction because this restructuring will ensure the country make the most of these institutions big human Bakdarathma and expertise accumulated by the cadres and joint coordination to guide these estimators. ”
He added that “the Ministry of Finance confirmed that the plans will be the guarantor of restoring Iraqi dinar of his value economic between foreign currencies and this will be part of this plan,” explaining that “the banking sector is suffering in general laziness around to institutions consumer is active in the financial sector the most traffic The boom in the economy in general. ”
He pointed out that “the World Bank said the Iraqi side that lifted the value of the Iraqi dinar should be a priority as well as he needs to political stability in the country before everything.”http://www.almasalah.com/index.php/2012-....02;ي.html

[tlm724] I love this line “It’s an important step was waiting for Iraq to raise the value of the dinar.”

[tlm724] the next two objectives are (iii) strengthening the regulatory and supervisory functions of the Central Bank of Iraq; and (iv) project management, monitoring and evaluation.” I’ll let shredders take those two

[Shredd] What’s neat is we can see that the CBI has been working on getting their banking to a place where it can support a future Iraq. I’ve found job postings like this one from January of 2012 https://www.devex.com/en/jobs/ibtci-recruiting-for-world-bank-iraq-central-bank-restructuring-project-911 . Another article shows us that enhanced banking systems are a continued need. “our plans include the adoption of technologies advanced banking as the best and be all systems”.

[Shredd] Regarding Regulatory and supervisory functions, we have the SEC here and similar controls needed to be in Iraq. In Feb of 2012, we saw where the CBI were restricting where USD was being sold….”the bank applied the internationally known procedures are summarized in the rule of “know your customer” (KYC).http://translate.google.com/translate?hl....ar&tl=en&u=http://www.peyamner.com/Arabic/PNAnews.aspx%3FID%3D267003

[Shredd] We continually are seeing regulatory and supervisory involvement of the CBI, in coordination with the government and local banks, in addressing the pricing versus the exchange rate of the dinar and dollar. “The Central Bank of Iraq announced that he would take new measures to stabilize the exchange rate of the Iraqi dinar during the month.” http://translate.google.com/translate?de....ar&tl=en&u=http://www.sotaliraq.com/mobile-news.php%3Fid%3D103335#axzz2UurO2CZW

[Shredd] The same goes for the monitoring and evaluation. We’ve seen the CBI do this via the auctions and of course their project to delete the zeros. Above this, we’ve seen evidence that the CBI continues to focus on improving banking for the people. “Initiated by the centralbank to meet a number of departments of Iraqi private banks to listen to the suffering experienced by these banks…..This initiative is to reassure citizens and restore confidence in banks.” http://www.alsabaah.iq/ArticleShow.aspx?ID=47719 It continutes…. “(the central bank and the role required) may let such meetings to discuss the problems encountered in the process banking, considering that the centralbank is the sector, which oversees the affairs of the banking sector…”

[Shredd] the banking and investment laws from last fall were a huge step in completing these objectives now, as project plans go, some deliverables are ongoing but we have a substantial amount of support around strengthening the regulatory and supervisory functions of the Central Bank of Iraq

[Shredd] back to you timmy

[tlm724] Shredd tyvm

[tlm724] I’d like to point out something from this PDF that proves something I said on May 22, 2013 about Iraq to “Trade: Launch Iraq International Trade Point is near ” http://www.dananernews.com/News_Details.php?ID=3363here is my quote

“I am going to step out on a limb here and say this. I believe that in the very near future we will see Ernst and Young with their hands in this scenerio. Through some research I have seen their name in many publications within the UNCTAD (United Nations Conference on Trade and Development). I will give you some background about Ernst and Young . Lets all keep our eye’s on the prize because it’s on it’s way !!” and heres what the PDF says :

The financial restructuring of Rasheed Bank and Rafidain Bank would be accelerated through the establishment of a Financial Restructuring Reconciliation Committee, which would be chaired by a representative from the Ministry of Finance (as the owner of state-owned banks), and comprising management of the two stateowned banks. CBI and BSA agreed to be observers, while Ernst and Young (E&Y) would be active
members to guide on audit issues. This Committee would work under Restructuring Oversight Committee (ROC), and would focus on addressing the problem of external debt rather than NPLs of SOEs, which is quite negligible as opposed to the former.

[tlm724] I was happy to see more dots being connected about Ernst & Young and in case you are not aware the Iraq International Trade Point is a central hub for investors, importers, exporters, business’, access to legislation and insurance and Banking !! It also fullfills many requirements of the international organizations.

[tlm724] okay so whats the big deal about this World bank whole thing ? well we are going to tell you. Are you ready ? This World Bank Document states the following :

Duration 50 months

Effective date April 2009

Closing date June 30, 2013. Closing date June 30, 2013. Closing date June 30, 2013 !!

[Shredd] yes!!

[oogie] *hallelujah*

[tlm724] Now there were several Major Implementation Obstacles including the unsettled political environment, Disbursement has been very slow due to implementation capacity bottlenecks in Iraq, which impose long procedures in preparing and analyzing contracts, the assignment of needed consultants and training institutes, negotiation periods, and receipt of approvals from the stakeholders. Well we all know thats typical of Iraq! So the best part of this is the last paragraph :

Furthermore, capacity-building activities such as technical training are behind schedule and the lack of interest by international consulting firms and individuals to work in Iraq remains a challenge. However, we are anticipating the signing of a number of contracts during the coming period but most of these contracts have six month duration which will not be fulfilled by the original closing date of October 31, 2010. Hence, the World Bank cannot provide its no objection to these contracts as they go beyond the closing date. Moreover, the unstable security conditions have also impacted the project, including the attacks on the CBI on June 13, 2010 which led to damage of the PMU office (furniture, documents and equipments),hence the need for a project extension to June 30, 2013 to ensure full implementation of the project’s key components.

[tlm724] hence the need for a project extension to June 30, 2013 to ensure full implementation of the project’s key components.

[tlm724] Put that sentence with the sentence from the article we showed you about the restructuring of the banks, let me do it for you

announced the World Bank to start implementing his plans to restructure the government banks Rafidain and Rasheed “It’s an important step was waiting for Iraq to raise the value of the dinar.” and “hence the need for a project extension to June 30, 2013 to ensure full implementation of the project’s key components.”

[tlm724] This project ends June 30th, the CBI has announced a “New Plan” for June also, just makes me warm and fuzzy…. and BondLady showed me this old article yesterday from Jul 21, 2012 stating

Iraq discloses designs for redenominated banknotes slated for July 2013

Jul 21, 2012 08:17 AM Category: Middle East

According to Iraq’s semi-official Alsabaah newspaper, the finance committee received specimens of the new Iraq banknotes from the Central Bank of Iraq. The specimens were of the 25, 50, 100, and 200 dinars. The committee urged the central bank to delay the introduction of the new currency from January 2013 to July 2013 to study all the aspects of the process.

http://www.banknotenews.com/files/e6aeb4a9a73b43af93fb33b73f0c705d-2193.php

[tlm724] All roads seem to be leading to one thing, IMO the monetary reform will indeed include an increase in the value of the IQD and the new notes. Barring any further delays June and July sure do feel right, thanks

[Shredd] So many times we get the question, “when is the banking sector in Iraq going to get everything in order”. Well, we can see as presented in this chat that this project has been ongoing for 50 months and is about to close. Now, we need to remember that this is a project by the World Bank…..this isn’t an internal project of the CBI’s but rather one initiated and supervised by their governing body, the World Bank.

[Shredd] thank you timmy for bringing this all in

[tlm724] Shredd it was my pleasure and thank you so much for all your help !

[shunshine] Does it get any better than this. jmo. Thank you Shredd and tlm724 wonderful breakdown. Thank you too, BondLady

[raindrop1] great chat guys

[oogie] wonderful! Ty timmy, shredd and bondlady

[beekeeper] Thank you Shredd Timmy and Bondlady you guys are awesome

[gemini5] Amazing….Thank You All The Smartest People In DinarLand…BondLadys Corner Rocks It Again

[ebu712] that was GREAT info…i like, i love it, i want some more of it

[Mikey] great breakdown and chat… thank you all very much

[raindrop1] looks like it building up to be a great ramadam!!!

[BondLady] and don’t forget this either, how scooter talked about the restructuring of the Rafidian and Rasheed banks for years and said nothing could happen until those 2 banks were brought to par

[oogie] yes he did

[BondLady] and June is the month those 2 banks like to do stuff. So we saw the audit was completed and it had to be they were still doing buisness under old saddam rates and accounts. Cant do that and now their ready to move forward with the banks and economy imo and the dinar definitely needs a face lift

[Shredd] BondLady yes it does!

[tlm724] BondLady yes !

[BondLady] and mama needs a new pair of shoes too, lol

[BondLady] doesn’t get any plainer and better than that excellent team work and tyvm

[tlm724] BondLady thank you for all your help and always pointing us in the right direction !

[BondLady] yqw. Rates of exchanges etc… stuff we did chats on years ago, I’ve always looked to the past as a road map for our futures and we see where the past just popped into the present

[shunshine] And you have always been correct too.

[BondLady] tyvm for the confidence vote shunshine

[BondLady] tyvm timmy and shredder that was awesome