Kaperoni & Member Discussion - Post From D. Alert - 03/25/2013

[ronscarpa]

Kaperoni & Member Discussion - Post From D. Alert

03/25/2013

 

 

ABSOLUTE:  So, Iraq was waiting for the World Bank, which is the US version of the IMF (european) to step in and help reform their two Iraqi government banks with the purpose of readying them with the ability to compete internationally... And a Major part of this is RAISING THE VALUE OF THE DINAR!!!... This is Awsome!!!...

TLAR:  This was supposed to be done in June of 2011 as one off the mandates by the IMF and WB..  The CBI missed the June date and it took until October 2011 for the CBI to announce it was finally done. 

 Both Rafidain and Rasheed were supposed to have been restructured and recapitalized. In addition they were supposed to have written off all Saddam  the war debts that the bank had accumulated that were still on their books.   

The WB was involved with this process in 2011 and actually committed millions in grants and expertise to assist in the restructure of these CBI banks.  It is now 2013, and the CBI is again saying  that the WB is restructuring the same two banks that they did two years ago.  Hmmm.  I wonder why they are re-doing a re-do?  Bad management since 2011?

  KAPERONI:   tlar, your very accurate.  But if you go and look at the World Bank Report on Iraq, go to the Rafidain Bank and Rasheed Bank action plan #75, #83.   And memorandum of understanding restructoring of Rafidain and Rasheed #91.

 They are basically the same with 5 steps to restructuring them.  This IMO is Key as the 4th step is recapitalization.  I dont know if that is complete, but we have seen the CBI hold a bond auction earlier this year at $200 billion dollars.   

Which according to the WB report is the method of funding this recapitalization... "b) the use of Treasury bonds in lieu of cash to recapitalize the Bank; and,"   Is that enough?  I don't know, but in any case, it appears they are at that stage (#4).  With #5 only left which is titled..."Implementation and Follow-up."      Seems like we are very close.

http://siteresources.worldbank.org/INTMENA/Resources/Financial_Sector_Review_English.pdf

What I need to find now is exactly how much these banks have in capital at this time.  That will tell us.  Anyone who likes researching feel free to post

TLAR:  Enorrste, although you are probably correct in your statement indicating "It is back to Maliki" based on this sentance from the article it could be understood differently "

"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.",

This could be understood as a two part sentance.   "the Iraqi dinar should be a priority " and  "he needs to political stability in the country" .  

The way the sentence ends could also imply that these two things must come before everything else in Iraq.  I see this as a reference to both of these things must occur before significant economic advances that are needed in the country.   

If I'm right, and I probably am not, the way this sentance reads is that they must "raise the value of the dinar and they must get their government in order and this must come before everything else." 

 If this is accurate that would mean they are saying independant of the government, raise the value of the dinar. This is one of two components they need to do but in no special order to get the economy moving..  

BelievingInTheBest:  Yes tlar, the words "as well as" seem to bring that thought of two separate functions to my mind too.

GAINSMORE:  The possibility of the WB being behind the re-capitalization of both these banks also send a totally different message than what Steve last statments on this event. That being the WB( and others) are pushing forward with the plan and states that an RV will bring positive political change- not the other way around and the way we have been told to believe. Money has a way of changing things very quickly- in this case ,hopfully for the better.

PUNISHER:  gainsmore,  I wish, I really do. But Maliki and the way he thinks, breaths, acts, dictates, makes up the rules as he goes along, bullies, kills, threatens etc...I fear we must rid ourselves of the man before we can 100% move forward.

BLUEYESINLEVIS:  They are talking now about Interrogating Maliki in Parliment on Tuesday.  Methinks the opposition is very much emboldened by recent events.

DR.NAN:  I think it would depend on who "takes him out". If someone over there, one of their own, or he got in the way of one of his bombers, and he was sent  to "take a dirt nap", that's one thing, they might be celebrating in the streets, but, if we do it, he might become a martyr and the country could dissolve into worse chaos. Things are looking worse in the ME by the day. It's extremely unstable. 

Articles in this morning's Chicago Tribune saying that Lebanon's government collapsed over the weekend, and the leader of the rebels in Syria quit. It's a powder keg over there. As bad as Maliki is, we don't need the whole area collapsing. 

ARTICLE: & LINK

World Bank restructure the Rafidain and Rasheed in order to raise the value of the Iraqi dinar

By Salah Mohammed - Published in the 24/03/2013

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 The "declaration 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 Bakdarathma human and accumulated experience 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. " LINK

Edited March 26, 2013 by ronscarpa
Removed Link: See Forum Rules

[sandfly]

GOOD NEWS

[pricestar8]

Make it so !

[KiaKaha]

Thanks for bringing this over, Ron!

 

KK

[powerpager]

Jump on out there !!

[blueskyline]

re-capitalization, where is this money coming from to recapitalize ? I have my own guess 

[katie45]

They sell bonds through the CBI.

[Kaduku]

Let it be right... I am tired of going around picking aluminum cans in my neighborhood!