Enoch8 on the Paris Club Agreement

[MrRich]

Paris Club cancels US $8 Billion Iraqi Debt

United Nations (UN) Secretary-General Ban Ki-moon announced on 24 December that the 19-member Paris Club of nations has reached a decision to cancel the remaining 20 per cent of Iraq’s debt from the Saddam Hussein era – amounting to $7.8 billion. The Secretary General also called on other creditors to take similar action to help the country rebuild its economy.

“This is a major achievement and acknowledgement of the Iraqi Government’s determination to implement necessary reforms despite overwhelming challenges,” Mr. Ban’s spokesperson said in a statement.

“The Secretary-General (pictured) takes this opportunity to call on creditors, other than those of the Paris Club, to advance Iraqi debt relief to facilitate the country’s path to prosperity and reintegration into the regional and international economy,” the statement added.

According to the statement, the 22 December decision by the Paris Club, an informal grouping of creditor nations, was taken in the context of the International Compact with Iraq, which is co-chaired by the United Nations and the Iraqi Government.

Under the Compact, launched in May 2007, the Government of Iraq will work to meet basic needs, protect the rights of all citizens and ensure the optimal use of the country’s resources for the common good. For more information, visit http://www.un.org/news.

Having read the Paris Club pdf, forwards and backwards….. I can shed a bit of light on this.

It is important to understand 1st, why this is important.

Iraq has been under a Grade C Credit Rating, which is why the money has not been recognized, as of yet. In order to be recognized, that rating must be increased. That is what I believe is happening now, and why it is critical, that Chap 7 Economic Sanctions per UNSC Resolutions, 687, 661 and 707 were lifted, as of Dec. 15, 2010.

OK, so why didn’t it RV, yet?

The Credit Rating with World Bank, IMF, BIS and the US. It is as simple as that.

Understand, that the Paris Club is a 19 member group of Official Creditors, who are also members of WB and the IMF.

Look at the Paris Club agreements like this…… It works similar to a Chapter 11 Bankruptcy .

Enoch8

The Paris Club Debt Total was about $42 Billion US.

Total outstanding debts (including Paris Club) was about $132 Billion.

There were 3 stages of debt reduction, from 2003 – 2005, 2006 and 2008.

During that time, additional reductions have been ongoing, for Non-Members and corporations, that amounted to about $90 Billion (est.)

Much of that has been forgiven.

The $7.8 Billion just forgiven, was most of the remaining of the 19 Official Creditors, of Paris Club, but does not include the Non Paris Club debt.

It has been 7 years, and this is a form of Jubilee, with the Official 19, meaning the 7 year Statute of Limitations, recognized in many nations, including US and many world courts.

What that means, in legal terms, is the Statute has run, as of the end of the year, 2010.

{Now….. this is some theory on my part, but based on looking at the documents, I think it is at least partly correct, in principal. The point being, this has more to do with credit rating, than anything else.}

There is a payment and debt servicing plan, that is set up, with a 1 year, grace period, that begins, July 2011, with annual installments, at adjustable interest rates, factored with the prices of oil, against the US Dollar, and final payment, in the year 2037, ending 3038.

The remaining balance, as of the year 2011, was estimated at $92 Billion, but it is already known, that negotiations, with Non Members, such as Saudi Arabia, Kuwait and others, has also been reduced, by negotiations. The actual amounts remaining, are in question, because Russia, Romania and others, are not factored into the model….. only estimates…. and much of that money is still in negotiation.

Now…. I come back to 2 main questions.

1. How does this affect the International Credit Rating of Iraq?

2. How would it affect the RV?

Answers:

1. The Credit Rating of Iraq, should be upgraded, as of this year, just as yours or mine would after 7 years, in Chap 13 or 7 Bankruptcy.

2. The affect on the RV would be in 2 parts, to this question:

Part 1: The outstanding Balances of the plan, is less than the last year’s GDP, and the projections of the GDP are expected to increase, dramatically, so the debt to ratio, for Iraq, should have a very positive effect, on the actual World Credit Rating.

Part 2: The ability of Iraq to repay the remaining negotiated balances, should be a no brainer…. because the vast oil reserves, projected Foreign Reserves and account balances, huge sums of wealth, withheld in trust accounts, projected non liquid assets, non convertible currencies, non mint precious metals, previously blocked accounts and frozen assets, etc. etc., ( These amounts are vast, in comparison to the remaining outstanding debts.)

So….. my final estimation is simple. Iraq is simply waiting for a 2011 Budget and the final reports from 2010, before the Official Creditors and World Banks, upgrade the credit rating and IMF upgrades the Article XIV status, to Article VIII compliance.

The RV is 100% dependent on the World Recognition and Credit Rating.

That is what we are waiting for.

So…. there ya have it.

Now I ask….. is it done?

Not until the Budget is final and the 2010 reports are submitted to the IMF, per the SBA and Article XIV provisions.

How long does that take?

I think, with this new government, it will happen really, really, fast….. by comparison to the last, do nothing Parliament …… especially, I am hopeful with the replacement of certain Ministry positions.

This is why I personally choose not to get wrapped up in all the hoopla, with rumors and so called intel.

I seek truth.

If I were to give an ETA……. I would say….. give it a week or 2 and let’s see how the Parliament does, getting the Budget together.

It is not that the RV is in the Budget…… but that the Credit Rating depends on the passage of it and those end of year accounting audits and 2010 Statements.

Want RV????????? Think Credit Rating. The RV is 100% dependent on that rating.

Credit does not change, just because a country decides to set a new value on currency…. it does not work that way.

In order to increase the value….. it must first HAVE VALUE.

Without the Credit Rating to be recognized….. it basically has NO VALUE, as far as being convertible, by world banking standards.

That rating cannot be changed , just by revaluing. The reverse is true. The Revaluation comes from the Rating First….. then the Value will be adjusted.

I know…. that is not what many wanted to hear, but I am interested in the truth…. not hoopla….. as much as I would love to see an RV at $3.42, today……. It will happen, in divine order. I would not be invested, if I did not believe that is true. It WILL HAPPEN…. and in my estimation, very soon.

———–

PARIS CLUB DEBT IRAQ

January 3rd, 2011 in USA News

BAGHDAD / Aswat al-Iraq: The Paris Club of creditor nations said Monday it has canceled a final $7.8 billion of Iraqi debt dating from the Saddam Hussein era.

Iraq’s public debt was estimated to be US$120.2 billion in nominal value as of The debt owed to Paris Club creditors as of December 31, 2004, was

The club grew out of crisis talks held in Paris in 1956 between the In 2004, the Club decided to write-off the debts of Iraq, as the rebuilding of Iraq is incomparable.

IRAQ Debt Treatment – November 21, 2004. Supporting aggreements with the international the Paris Club, who will inform other Creditors, of the debt swap

The Paris Club agrees on a cancellation of the debt of the Togolese The Paris Club agrees on a reduction of the debt of the Democratic Republic of the Congo

The Paris Club has called for forgiving at least 80% of Iraq’s outstanding debt, which is Debt relief for Iraq is central to a blueprint launched at the Sharm

PARIS, December 22 (RIA Novosti) – The Paris Club of creditor nations The Paris Club and Iraq agreed in November 2004 “on a comprehensive debt treatment of

Jubilee Iraq members rallied outside the Paris Club’s meeting in November 2004 and met with the Paris Club president to present Iraqi perspectives on the odious debt.

http://www.americannewsnow.com/2010/10/info-paris-club-debt-iraq.html

Edited January 20, 2011 by MrRich

[xxxgator]

I agree 100% Nice post. The Paris club forgiving debt is a good thing.You can guarantee there are reasons for doing so.

[Hashim1968]

Good Post.

[Wallys8468]

Great post, Scooby Doo,

[ac63corvette]

I would like to thank you for sharing what I perceive as an excellent analogy of the situation. The

amount of time you have taken to analyze this is greatly appreciated .

[splicer09]

Thanks Scooby Doo. Great run down, agree 100%

[Butifldrm]

Great Post, Scooby Doo.

[venetia]

That was a very enriching read, Mr Rich.......Thanks!

[lechesuerte]

Nicely done Mr Rich. Thanks for sharing!

[Pockets]

Does Enoch8 have a follow up to his post from Jan 3rd? As this looks like old news??

[Darin]

Now, just looking for some clarification....

Forgiving a debt, is just postponing repayment, correct? As canceling a debt is removing it entirely?

I think we may be overlooking at the words used here.

We all maybe mistaking forgiven as canceling. I think Iraq would still owe the debt, but the time table to pay them back has been lengthened.

Right?

[USMC_2674]

Now, just looking for some clarification....

Forgiving a debt, is just postponing repayment, correct? As canceling a debt is removing it entirely?

I think we may be overlooking at the words used here.

We all maybe mistaking forgiven as canceling. I think Iraq would still owe the debt, but the time table to pay them back has been lengthened.

Right?

Wrong.

Forgiveness would mean that the debt would be as if it was never there. To Forgive, is to Forget. It is as if it never happened. White as Snow.

[YorkiePower]

good post

[Scooter]

ENOCH8 ROCKS!!!!!!!!!!!!!!!!!!!!!!! I should call him and tell him myself.

Thanks for the post Scooby Doo ---- I mean "SHARK"! Just an FYI, the Ernst and Young audits came out in February last year ---- I'll be on the lookout for them...

Have a great day,

Scooter

[quadraph0nic]

Mr Rich, thanks for bringing that info to DV. That's definitely something I can munch on for awhile. Very interesting!

Ernst & Young in February? Mmmmm

Scooter, I always look forward to your analysis! You ROCK!

[LEXICON]

Thanks for the post! How do you think Adam Montana's theory of the black out dates and teaching tellers and merchants of the impending RV falls into place with your theory?

Input much appreciated!

[BadCobra]

Nice analysis. Thanks.

[MrRich]

Thanks for the feedback guys. I just wanted to point out a couple of things. First, the UN link doesn't work. Sorry about that. I don't know how old it was and when I tried to find the article Enoch8 posted it was gone, but I trust that the excerpt he provided was legit. Second, I like what he said here:

I think, with this new government, it will happen really, really, fast….. by comparison to the last, do nothing Parliament …… especially, I am hopeful with the replacement of certain Ministry positions. This is why I personally choose not to get wrapped up in all the hoopla, with rumors and so called intel.

I seek truth.

The past few weeks have given us tons of rumors and speculation but no RV. The further we go with the dinar the more important it is IMO to look at what is really happening with the government and the CBI instead of what amateur intelligence gatherers are saying. We need to look for quality analysis and not get wrapped up in all the "hoopla, rumors, and so called intel".

Edited January 20, 2011 by MrRich

[wingsofhope]

Mr Rich,

I have resigned from making any comments on this site due to the IQ of most of its readers and their relentless bashing on the comments and articles published by others wiling to share their information.

I applaud your article and appreciate your time spent investigating fact.

I shared this information in a blanket form back in December in an attempt to show others what will be required prior to world acceptance of the IQD. Comments were, "when will it RV", "what has that got to do with the RV", etc..If everyone took time like you have done, to investigate all the material disclosed on this site there would be no reason for people to throw away their money on reserve bets. Instead of sitting around being spoon fed and bashing others when you loose the reserve payment, investigate and educate yourself in an effort to make a calculated investment.

Thanks again Mr Rich.....

[bobby_cahill]

Great post and subsequent threads

It's nice to get back to the basics

Thanks for the post!

Semper Fi

[Tubbs]

Mr Rich.

Thank you for the time and effort you put in on this report

I too need a better credit rating, so let it RV already

[Manhattan]

I appreciate all the thought that went into the ideas behind Enoch8's post. It seem like a plausible argument.

I too am weary of all the hype and rumor as of late, and seek out more posts like this one.

Thanks Mr. Rich.

[MrRich]

Mr Rich,

I have resigned from making any comments on this site due to the IQ of most of its readers and their relentless bashing on the comments and articles published by others wiling to share their information.

I applaud your article and appreciate your time spent investigating fact.

I shared this information in a blanket form back in December in an attempt to show others what will be required prior to world acceptance of the IQD. Comments were, "when will it RV", "what has that got to do with the RV", etc..If everyone took time like you have done, to investigate all the material disclosed on this site there would be no reason for people to throw away their money on reserve bets. Instead of sitting around being spoon fed and bashing others when you loose the reserve payment, investigate and educate yourself in an effort to make a calculated investment.

Thanks again Mr Rich.....

Are you the notorious Enoch8? If so, I wish you would post here more often. We need your input.