Italy lend to Iraq half a billion dollars to support projects

[Carrello]

Italy lend to Iraq half a billion dollars to support projects

Planning: to spend 111 billion dinars from the investment budget last

7 February 2012

BAGHDAD - Al Sabah

http://www.alsabaah.com/ArticleShow.aspx?ID=20050

Italy has provided a loan to Iraq of $ 500 million, while the Ministry of Planning announced that the actual expenditures for investment projects over the past year exceeded (111) billion dinars.

And Research and Minister of Planning and Development Cooperation Ali Yousef Shukri yesterday with the Ambassador of Italy in Baghdad-based Gerardo Kranti ways to develop relations between the two countries.

As said the Italian Ambassador at a press conference after the talks that his government granted a loan to Iraq worth half a billion dollars for rehabilitation projects, infrastructure and support human development, pointing out that Italy has given priority to support the Christians of Iraq through the allocation of 10 percent of their loan. The new Ambassrdamh of the relationship between the two countries and expressed his country's readiness to provide assistance in technical areas, technological and support the political process and economic construction in the new Iraq, including extinguishing debt and work in archaeological sites and equip security forces.

For his part, said Shukri said the loan Italian will be repaid in eight years as it will contribute to the support of strategic projects including the construction of housing and low cost in the province of Nineveh to support the poor and the Christian community and the file of the effects and support the establishment of the port of Faw, as well as building a university in the area Ainkawa governorate of Erbil.

On the other hand, the Department announced the government investment programs in the Ministry of Planning that the total actual expenditures for the investment projects of the ministries and departments not related to the Ministry, over the past year amounted to some 111 billion and 736 million dinars.

A statement of the ministry, received the "morning," a copy of it calculated that the total amounts of actual expenditures for investment projects with the kinds of advances reportedly came from the Ministry of Finance and was by 42.1 percent. "

The statement added that the actual expenditure without advances amounted to about 46 billion dinars by 17.4 percent of the total allocations of ministries and departments not related to the Ministry without the advances amounted to 10 billion dinars exchange rate of 28.3 percent.

[zigmeister]

This is an interesting article, it came up in the news a couple of days ago. When I read it I thought WTF does Italy have any money to lend to Iraq? Or is this a Soprano deal? Anyway SpaceCowboy had an interesting take on this, and I must admit it made some sense. Because Italy loaning money to Iraq really doesn't it.

[Alex38]

yup.

[ididitfirst]

i don't understand this. why does iraq need to borrow money? can anyone explain?

[zigmeister]

i don't understand this. why does iraq need to borrow money? can anyone explain?

I don't know, maybe Italy had a deal Iraq couldn't refuse....if ya know what I mean. What that might be? Maybe a Lamborghini dealership?

[Elixirbaby]

This is the article Zig http://dinarvets.com/forums/index.php?/topic/104278-i-like-this-from-spacecowboy/

[redsand]

I don't know, maybe Italy had a deal Iraq couldn't refuse....if ya know what I mean. What that might be? Maybe a Lamborghini dealership?

Godfather reference haha

[Abarvets]

How large is the Christian population in the country of Iraq? I don't believe I have seen any numbers on that. Anyone have an idea off hand?

[redsand]

How large is the Christian population in the country of Iraq? I don't believe I have seen any numbers on that. Anyone have an idea off hand?

Guarentee its over 90%. Im 90% sure.

[Abarvets]

Guarentee its over 90%. Im 90% sure.

90% really, I had no idea.

[frankc]

i don't understand this. why does iraq need to borrow money? can anyone explain?

Iraq isn't able to fund their entire budget with their oil/gas revenue. They run a deficit.

[Abarvets]

Iraq isn't able to fund their entire budget with their oil/gas revenue. They run a deficit.

Yes, but why Italy and not the IMF? Is it because Italy is on the verge of collapse and they may not have to repay the loan? What happens if Italy calls the note early and not the 8 years as was stated?

[Mongo]

Oh lordy..................A.M. from Germany will be p-i-ss-e-d after all the money they gave to Italy

[Abarvets]

Oh lordy..................A.M. from Germany will be p-i-ss-e-d after all the money they gave to Italy

I hear you there, can't wait to hear from my relatives. Holy cow this is going to be ugly.

[redsand]

90% really, I had no idea.

I looked it up right after I posted it....91.9%. Good amount!

[JustNTime]

Sounds like insider trading. Somebody knows something is going to change soon. I will gladly exchange you some of my $$ for some of those worthless dinars. Sounds like what we have done on a smaller scale of course.

[Abarvets]

I looked it up right after I posted it....91.9%. Good amount!

Thanks redsand, I really had no idea it was that high. That is very interesting. Thanks again!

[zigmeister]

Thanks redsand, I really had no idea it was that high. That is very interesting. Thanks again!

I'm surprised.

[PD41]

That's crazy. Broke Italians, reminds me of somebody. PD41

[kennyc]

I'm surprised.

Just looked it up, its 3%. They are predominatly a

Muslim country. Christians are lumped in with Orthodox Cathlics

[redsand]

Thanks redsand, I really had no idea it was that high. That is very interesting. Thanks again!

Wow im sorry! I totally thought you said the percentage of catholics in Italy. yea the number is much lower than 90%.

[Carrello]

How large is the Christian population in the country of Iraq? I don't believe I have seen any numbers on that. Anyone have an idea off hand?

500,000 currently - fell by half after 2003

[TimS]

If Iraq was going to RV soon, they would not need any loans not a good indication to me

[Carrello]

Wow im sorry! I totally thought you said the percentage of catholics in Italy. yea the number is much lower than 90%.

I wish Iraq was 90% Catholic. Then our only problem would be birth control.

Italian support for Iraq during the Iran–Iraq war

From Wikipedia, the free encyclopedia

Italy provided substantial supplies to Iraq during the Iran–Iraq War. Its greatest impact, however, was financial, with the U.S. branch of the state-owned, largest bank, Banca Nazionale del Lavoro (BNL) in Italy providing several billion dollars in funding for Iraqi military procurement. Italy also was a primary supplier to the Iraqi nuclear program, although that was not of direct effect on the Iran–Iraq War.

With respect to conventional military supplies, Italy provided land and sea mines to both Iraq and Iran. Iraq had ordered naval vessels and helicopters from Italy, although the ships were seized under the embargo.

Financial

Iraq, operating with an Italian-owned bank in the United States, obtained billions in credit from the state-owned, Banca Nazionale del Lavoro (BNL), the largest in Italy, funneled US$ 5 billion to Iraq from 1985 to 1989. The U.S. branch of BNL made considerable use of U.S. loan guarantees.

On 4 August 1989, the FBI raided the Atlanta office of BNL, the Italian Government-owned bank agency in Atlanta, were transactions relating to Matrix Churchill and its takeover by Iraq, as well as several other firms, including TDG, TEG, and Euromac, that the CIA linked to Iraq's clandestine military procurement network.[1] The branch manager, Christopher Drogoul, was charged with making unauthorized, clandestine, and illegal loans to Iraq—some of which, according to his indictment, were used to purchase arms and weapons technology. He was subsequently sentenced to 37 months in prison.[2]

Iraq subsequently defaulted on foreign debt just before the 1991 war, and the United States Department of Justice announced, on 16 February 1995, the CCC would pay BNL $400 million, in settlement of the bank's claims filed against the U.S.[2] These guarantees were for reducing the risk of agricultural producers and other American exporters in doing business with developing countries. Ten banks including BNL filed claims under the program, and the CCC paid out $1.6 billion to banks other than BNL.

In 1992, it was determined that the 1989 investigation was flawed, principally in assuming that the Italian government was unaware that a state-owned bank, BNL, had secretly lent billions of dollars to the Iraqi regime. According to the New York Times, the investigation was marred by bitter feuding among Atlanta prosecutors, their superiors in the Justice Department and the Central Intelligence Agency.[3]

The 1989 decision, according to the Times, was that the case would have been much weaker if the Rome headquarters of the bank was aware of the loans, it could not have been a victim. Since the bank was state-owned, the scandal could have damaged the entire Italian banking system and caused the fall of the government of Prime Minister Giulio Andreotti. The United States Department of Justice prosecutors said that without the assumption the bank was a victim, the U.S. prosecution would change from a multibillion-dollar matter into a "minor prosecution of technicalities".

The CIA observed that the BNL and other scandals have caused difficulty for Prime Minister Giulio Andreotti's government, three months old when the BNL matter surfaced.[4] While other scandals are receiving publicity, the Italian political consensus seemed to be that BNL could not strengthen its position vis-a-vis Christian Democrat Andreotti.

This did call attention to the "spoils system" in state-owned enterprises such as BNL. BNL's president and several directors traditionally came from the Italian Socialist Party, with a Christian Democratic Party executive director. It was deemed unlikely that this system would change.

"We believe the revelations of BNL's dealings with Iraq--along with other recent scandals--stand in counterpoint to growing Italian self-confidence on the international stage in recent years. After more than three decades of international diffidence, we believe Italian leaders have been pursuing a diplomatic profile more commensurate with their country's international economic role. Italians have felt particular pride because:

Italian troops in the Beirut peacekeeping forces had fulfilled their mission as defined by Rome.

The Italian decision to accept U.S. cruise missiles played a decisive role in swinging West Germany behind deployment.

Their country's GDP had surpassed that of the United Kingdom and possibly France.

In the opinion of almost all Italian press commentators, the BNL affair had a negative impact on Italy's credibility throughout the West. We believe, however, that the setback to Rome's international standing has been substantially less than that portrayed in the Italian press, and we expect the scandal will gradually fade from public view within Italy and will have little lasting impact on the country's perception of its international role."