8 replies to this topic

[yota691]

Qatar Arabic Global Reports and debates
Monetary Fund extended a loan agreement for Iraq 7 months





International Monetary Fund - archival
11:10
4
August
2012
BAGHDAD - Qena

The Central Bank of Iraq me to the International Monetary Fund has decided to extend the agreement loan to Iraq seven months, until February 23, 2013, to give the government time to implement measures to improve the functioning of the exchange rate regime in the country.

The bank said that the loan requested by Iraq was $ 3.7 billion to cover fluctuations in world oil prices, he said, adding that Iraq is the disposal of $ 1.7 billion of the loan ie the equivalent of less than 50% of the total loan provided by the Fund amounted to a soft interest of 1%.

He explained that the loan represents the willingness of credit in other words, the hedge to the vagaries of world oil prices, Iraq has the choice to not use the loan or used by the whole or part of it. http://www.al-sharq....ض للعراق 7 أشهر

[banned]

no rv then

[fnbplanet]

On the contrary....

"The Central Bank of Iraq me to the International Monetary Fund has decided to extend the agreement loan to Iraq seven months, until February 23, 2013, to give the government time to implement measures to improve the functioning of the exchange rate regime in the country."


Seven months seems like an ODD length of time for a loan extension, or anything, for that matter....There must be some sort of event slated to happen around the time that 7 months comes up. JMHO....

[strolld2]

Good Morning, I agree with fnbplanet analysis!

[Butifldrm]

fnb, I like your assessment also. It still bogles my mind wher Iraq is going to come up with both the scheduled payments for 2012 in which they were scheduled to pay a total of 6,093,153 SDR millions, which is minimal to their expected total payment of 123,289,854 in 2013. Wow, that is a huge increase in the amount of schedule SDR payment. Could this reflect an increase the projected rate of the IQD. Iraq's 2012 GDP is around 12%, and the IMF's projected GDP for 2013 is only 1.5% higher http://www.iraq-busi...s.com/tag/gdp/. In 2013 Iraq is going to have to come up with some serious cash. I know Iraq has a tremendous amount of money in reserves, including the DFI, but the DFI supposedly belongs to the people not the government. Shahiristani, just released that output exceeded 3.07 million bpd and a projected 3.9 million bpd in 2013. Can Iraq's projected increase in GDP, cover the increase of the amount due to the IMF? I am not an economist, but it does seem the payments to the IMF should be proportionate to the wealth of the country as should the exhange rate. How is Iraq going to come up with the money to pay a 1,923.00% increase in expected payment in 2013 plus the 6,093,153 SDR millions they were to pay this year?

[TAV]

On the contrary....

"The Central Bank of Iraq me to the International Monetary Fund has decided to extend the agreement loan to Iraq seven months, until February 23, 2013, to give the government time to implement measures to improve the functioning of the exchange rate regime in the country."


Seven months seems like an ODD length of time for a loan extension, or anything, for that matter....There must be some sort of event slated to happen around the time that 7 months comes up. JMHO....

You're absolutely right!!!

[Dalite]

On the contrary....

"The Central Bank of Iraq me to the International Monetary Fund has decided to extend the agreement loan to Iraq seven months, until February 23, 2013, to give the government time to implement measures to improve the functioning of the exchange rate regime in the country."


Seven months seems like an ODD length of time for a loan extension, or anything, for that matter....There must be some sort of event slated to happen around the time that 7 months comes up. JMHO....

I don't know if this has any bearing, but the last extension was only 5 months, and 7 more would do 2 things.

First, it would bring it back to the year to year schedule, and second, it would put the next review at the start of the fiscal year .

January 2013 is looking more and more like a point of convergence ..

Edited by Dalite, 04 August 2012 - 09:39 AM.

[TAV]

I don't believe the seven month extension was meant to give Iraq up onto Feb 23, 2013!! I believe the seven months was mean to given them extra time until completion by Feb 23, 2013!!!
Again, it's hard to tell with Iraq because they know just as we know, that Iraq is needed in the financial markets!!! They are leveraging their position just as they are suppose to.
We have to continue to remind ourselves that this isn't personal but business, and that the business world is ruthless with a take-no-prisoner approach.
Because Iraq didn't establish a full government.........BRILLIANT!!! Businesses are recognized as individuals outside of their ownerships but I'm not sure if governments are?!?!

I'm hoping the news coming out of the north of Exxonmobile and Total will force Baghdad. I agree with Dalite that this is what baghdad is thinking.

Edited by TAV, 04 August 2012 - 09:57 AM.

[unirod]

fnb, I like your assessment also. It still bogles my mind wher Iraq is going to come up with both the scheduled payments for 2012 in which they were scheduled to pay a total of 6,093,153 SDR millions, which is minimal to their expected total payment of 123,289,854 in 2013. Wow, that is a huge increase in the amount of schedule SDR payment. Could this reflect an increase the projected rate of the IQD. Iraq's 2012 GDP is around 12%, and the IMF's projected GDP for 2013 is only 1.5% higher http://www.iraq-busi...s.com/tag/gdp/. In 2013 Iraq is going to have to come up with some serious cash. I know Iraq has a tremendous amount of money in reserves, including the DFI, but the DFI supposedly belongs to the people not the government. Shahiristani, just released that output exceeded 3.07 million bpd and a projected 3.9 million bpd in 2013. Can Iraq's projected increase in GDP, cover the increase of the amount due to the IMF? I am not an economist, but it does seem the payments to the IMF should be proportionate to the wealth of the country as should the exhange rate. How is Iraq going to come up with the money to pay a 1,923.00% increase in expected payment in 2013 plus the 6,093,153 SDR millions they were to pay this year?

Butifldrm,
I'm not an economist either. But it seems to me that The loans are a contract locked in at the old rate. Iraq could pay off the loans in a heartbeat when they increase the value of the Dinar. Their loans are cheap money and the article states they may or may not use the loan in part or in whole. So they have contract options.
It's no wonder that the far East believes the World Bank and the IMF are mis-managed and failed institutions.