Iraq is now free from U.N. Security Council sanctions #0143

[vern]

-------- Original Message -------- Subject: Resend Test - - Iraq is now free from U.N. Security Council sanctions #0143

Date: Wed, 06 Jul 2011 02:26:57 +0000, Tue, 05 Jul 2011 19:26:54 -0700

:

Commenting thread here: http://www.xxxxxxxxx.com/showthread.php?43042-BAGHDAD-%E2%80%93-Iraq-is-now-free-from-U.N.-Security-Council-sanctions-for-the-first-time-i

BAGHDAD – Iraq is now free from U.N. Security Council sanctions for the first time in more than two decades – both a measure of the country’s progress and a harbinger of the challenges that accompany full sovereignty.“This arrangement has come to an end,” said Iraqi Foreign Minister Hoshyar Zebari, who has orchestrated Iraq’s gradual fiscal liberation “to give Iraq its full freedom to manage its resources.”

It’s a double-edged sword. Iraq is no longer bound by international restrictions and oversight and can mainstream its economy by joining the World Trade Organization and rating its sovereign debt. But these restrictions were accompanied by international legal immunities preventing claims on Iraqi funds – all of which ended on June 30.

Iraq retains some protections under an American executive order, which was signed by President George W. Bush in 2003 and extended under President Barack Obama, most recently through May 20, 2012. Unlike the former U.N. immunities, however, the American protection does not cover Iraqi funds held outside the U.S.

Beyond the boundaries of the remaining American immunity, Iraq’s assets are now exposed to countries, companies and individuals who claim they are owed billions of dollars.

Much of Iraq’s debt was either waived or discounted in post-2003 agreements orchestrated by the United States. But Iraq still has an estimated $30-plus billion in outstanding bills – mostly reparations due to Kuwait from the 1990 invasion and war, but also sovereign and business debt.

An unknown number of bill collectors have been waiting for the day, which has now arrived, when they can take their claims to courts around the world. That uncertainty is the biggest risk for Iraq going forward, experts said.

“They (Iraqis) are not sure what claims are out there,” said a U.S. official familiar with Iraq’s finances. “If they are not aware, they are not sure how much they owe.”

Under the U.N. sanctions regime, Iraqi oil revenue flowed directly into the Development Fund for Iraqi (DFI), which was overseen by a U.N.-mandated body called the International Advisory and Monitoring Board (IAMB). Among other responsibilities, the IAMB ensured that five percent of revenues went towards paying Kuwaiti war reparations.

Kuwait and Iraq have a contentious relationship. The two countries recognize mutual interests – such as the need to delineate land and water borders and negotiate the development of cross-border oil and gas fields – but haven’t been able to reach agreements.

As part of the deal removing the U.N. sanctions, Iraq has agreed to continue setting aside 5 percent of its oil revenues, most of which goes to Kuwaiti reparations. Although Iraqi officials have complained this percentage is too high, they can’t dismiss it altogether: if Iraq reneges on those installments, Kuwait could turn to the courts for an immediate payout.

“Through our successor agreement, we made sure the five percent will still be paid” as talks continue, Zebari said.

Kuwait has recently angered Iraq by moving forward on a massive commercial port which, though in its own territories, could have a negative impact on Iraq’s plans to build a port on the Fao peninsula.

And Kuwaiti Airlines, which claims a $1 billion-plus tab is due from Iraqi Airways for theft of planes and parts in 1990, has said it will enforce a British court order by seizing any assets outside of Iraqi territory, including oil.

Such a move is unlikely because Iraqi crude, once it leaves Iraqi territory, is typically in the custody of another country or an international company.

And it won’t happen in the United States. “Any sovereign account has immunities,” said the U.S. official. “And the executive order gives extra immunities on top of that.” If the money stays in the United States, it is protected from attachment because no lawsuits can be filed in the United States and decisions by other country’s courts won’t be honored.

Iraq is now in charge of its own finances. Its central bank has taken control of the DFI, which consists of an estimated $50 billion held at the Federal Reserve Bank of New York, and an Iraqi Committee of Financial Experts (COFE) will play the oversight and auditing role previously performed by IAMB.

Like IAMB, COFE is subcontracting much of its auditing work to PricewaterhouseCoopers.

Iraq remains unsteady with violence and political disputes hampering development, but the country’s new financial sovereignty will allow it to enter the international marketplace and receive a sovereign debt rating, potentially spurring further investment.

Iraq has the third-largest proven oil reserves in the world and has already opened up to foreign oil investment. Exports have earned more than $30 billion so far this year – an enormous sum which nonetheless pales in comparison to the country’s reconstruction needs.

“The way investors look at Iraq is purely, purely, purely an oil play,” said Farouk Soussa, chief Middle East economist at Citibank, in a recent interview. He said the protection of Iraq’s money was key, as investors “just look at whether the cash flow is going to be sufficient.”

Ben Van Heuvelen contributed from New York.

Iraq oil money retains US protection

BLESSINGS -to all Vern

Edited July 6, 2011 by sunshinelvr
do not promote other sites

[Don & Rocio]

NICE! One big CHECK in the box!

[DRV1804]

Great news!! And i swear Vern +1 for your Avatar, it always makes me chuckle GO RV!!!!!

[coldwarvet]

The discussion about sovereign debt rating is a HUGE piece of this puzzle, one that is rarely mentioned on DV. Their debt rating equates to the international financial community's assessment of Iraq's ability to pay their debts. The value of their currency will have a tremendous impact on that.

IMO, it is significant that Iraq's oil reserves are mentioned in this article in connection with this situation, since the reserves will have an impact on their currency valuation. Obviously, the higher the value of their currency, the better able they will be to satisfy the debts of their creditors. One more reason why an RV makes sense.

[blonde_minx]

Fantastic News..........

Does this mean we are out of chapter 7 or will this allow them to revalue, surely to become a member of the WTO they need there currency to be recognised as International currency...........Go RV yeahhhhhhhhhh

[Don & Rocio]

Fantastic News..........

Does this mean we are out of chapter 7 or will this allow them to revalue, surely to become a member of the WTO they need there currency to be recognised as International currency...........Go RV yeahhhhhhhhhh

IMO...they would be silly not to RV prior to joining the WTO. The IMF has and continues to advise them on what they need to do so hopefully something good happens soon!

[TexasGranny]

Did anyone click on the link - it goes to a PORN site!

Way to go Vern - take your perversions elsewhere

[cisole]

thanks for the post vern

[dinarcimi]

Dont get too excited folks. How about posting a link that takes us to the actual article? I need facts. Thank you! Great find if it is true. Go Iraq! Go RV!

Edited July 6, 2011 by dinarcimi

[Texas1]

Did anyone click on the link - it goes to a PORN site!

Way to go Vern - take your perversions elsewhere

I did.....Unbelievable that Vern.....I think I know the girl.

[SFlorida]

Vern... great way to get paid by Sedo per click...smart move hope Adam don't figure you out.

[cisole]

Did anyone click on the link - it goes to a PORN site!

Way to go Vern - take your perversions elsewhere

i like men now.....

[SFlorida]

Did anyone click on the link - it goes to a PORN site!

Way to go Vern - take your perversions elsewhere

This is what some of these people do here.. they get paid evrytime you click on their page. The page is sponsor by Sedo they pay you to park your domain names. Pretty smart until Adam figures it out someone using his site for their personal gain..

-------- Original Message -------- Subject: Resend Test - - Iraq is now free from U.N. Security Council sanctions #0143

Date: Wed, 06 Jul 2011 02:26:57 +0000, Tue, 05 Jul 2011 19:26:54 -0700

:

Commenting thread here: http://www.xxxxxxxxx...he-first-time-i

BAGHDAD – Iraq is now free from U.N. Security Council sanctions for the first time in more than two decades – both a measure of the country’s progress and a harbinger of the challenges that accompany full sovereignty.“This arrangement has come to an end,” said Iraqi Foreign Minister Hoshyar Zebari, who has orchestrated Iraq’s gradual fiscal liberation “to give Iraq its full freedom to manage its resources.”

It’s a double-edged sword. Iraq is no longer bound by international restrictions and oversight and can mainstream its economy by joining the World Trade Organization and rating its sovereign debt. But these restrictions were accompanied by international legal immunities preventing claims on Iraqi funds – all of which ended on June 30.

Iraq retains some protections under an American executive order, which was signed by President George W. Bush in 2003 and extended under President Barack Obama, most recently through May 20, 2012. Unlike the former U.N. immunities, however, the American protection does not cover Iraqi funds held outside the U.S.

Beyond the boundaries of the remaining American immunity, Iraq’s assets are now exposed to countries, companies and individuals who claim they are owed billions of dollars.

Much of Iraq’s debt was either waived or discounted in post-2003 agreements orchestrated by the United States. But Iraq still has an estimated $30-plus billion in outstanding bills – mostly reparations due to Kuwait from the 1990 invasion and war, but also sovereign and business debt.

An unknown number of bill collectors have been waiting for the day, which has now arrived, when they can take their claims to courts around the world. That uncertainty is the biggest risk for Iraq going forward, experts said.

“They (Iraqis) are not sure what claims are out there,” said a U.S. official familiar with Iraq’s finances. “If they are not aware, they are not sure how much they owe.”

Under the U.N. sanctions regime, Iraqi oil revenue flowed directly into the Development Fund for Iraqi (DFI), which was overseen by a U.N.-mandated body called the International Advisory and Monitoring Board (IAMB). Among other responsibilities, the IAMB ensured that five percent of revenues went towards paying Kuwaiti war reparations.

Kuwait and Iraq have a contentious relationship. The two countries recognize mutual interests – such as the need to delineate land and water borders and negotiate the development of cross-border oil and gas fields – but haven’t been able to reach agreements.

As part of the deal removing the U.N. sanctions, Iraq has agreed to continue setting aside 5 percent of its oil revenues, most of which goes to Kuwaiti reparations. Although Iraqi officials have complained this percentage is too high, they can’t dismiss it altogether: if Iraq reneges on those installments, Kuwait could turn to the courts for an immediate payout.

“Through our successor agreement, we made sure the five percent will still be paid” as talks continue, Zebari said.

Kuwait has recently angered Iraq by moving forward on a massive commercial port which, though in its own territories, could have a negative impact on Iraq’s plans to build a port on the Fao peninsula.

And Kuwaiti Airlines, which claims a $1 billion-plus tab is due from Iraqi Airways for theft of planes and parts in 1990, has said it will enforce a British court order by seizing any assets outside of Iraqi territory, including oil.

Such a move is unlikely because Iraqi crude, once it leaves Iraqi territory, is typically in the custody of another country or an international company.

And it won’t happen in the United States. “Any sovereign account has immunities,” said the U.S. official. “And the executive order gives extra immunities on top of that.” If the money stays in the United States, it is protected from attachment because no lawsuits can be filed in the United States and decisions by other country’s courts won’t be honored.

Iraq is now in charge of its own finances. Its central bank has taken control of the DFI, which consists of an estimated $50 billion held at the Federal Reserve Bank of New York, and an Iraqi Committee of Financial Experts (COFE) will play the oversight and auditing role previously performed by IAMB.

Like IAMB, COFE is subcontracting much of its auditing work to PricewaterhouseCoopers.

Iraq remains unsteady with violence and political disputes hampering development, but the country’s new financial sovereignty will allow it to enter the international marketplace and receive a sovereign debt rating, potentially spurring further investment.

Iraq has the third-largest proven oil reserves in the world and has already opened up to foreign oil investment. Exports have earned more than $30 billion so far this year – an enormous sum which nonetheless pales in comparison to the country’s reconstruction needs.

“The way investors look at Iraq is purely, purely, purely an oil play,” said Farouk Soussa, chief Middle East economist at Citibank, in a recent interview. He said the protection of Iraq’s money was key, as investors “just look at whether the cash flow is going to be sufficient.”

Ben Van Heuvelen contributed from New York.

Iraq oil money retains US protection

BLESSINGS -to all Vern

My friend that's a great way to generate traffic on your Sedo account, Hope Adams realizes how you are benefitting on his site driving people there. great job...honesty is a great policy...

[pokerplayer]

Did anyone click on the link - it goes to a PORN site!

Way to go Vern - take your perversions elsewhere

What happened is he x'ed out the site name as per DV rules. When you clicked on it, that took you to a porn site. He is innocent as he had no idea someone would click on an x'ed out site. Same thing I did a couple weeks back and I was innocent of it as well.

pp

Edited July 6, 2011 by pokerplayer

[Off-the-grid]

Folks, I am giving the benefit of the doubt for the link. I believe a mod "x"d out the link because it names another dinar site, and our browsers find the porn site from the result. Hope I'm right, Vern.

Peace and Prosperity

[THINK.....]

NOW we're getting closer. This is the kind of NEWS (not guru rumor) that I became a member of the DV family for. THIS is the kind of post newbies, and all of us, should be reading and not pumper/guru BS to base decisions on. NUFF SAID? +1

[SFlorida]

Vern... If the DV ERASE THE SITE YOU PUT UP AND XXXXX I DO APOLOGIZE FOR THINKING YOU ARE SENDING PEOPLE TO A SEDO ACCOUNT. APPERANTELY THE MODS MAY HAVE CREATED IT THIS PORN SITE BY ACCIDENT...PLEASE ACCEPT MY APOLOGY.

[Don & Rocio]

This is what some of these people do here.. they get paid evrytime you click on their page. The page is sponsor by Sedo they pay you to park your domain names. Pretty smart until Adam figures it out someone using his site for their personal gain..

My friend that's a great way to generate traffic on your Sedo account, Hope Adams realizes how you are benefitting on his site driving people there. great job...honesty is a great policy...

With all due respect, I think you should retract this statement with an apology. Vern is a respected member here and I cant see him doing such a thing. Not cool in my book.

[txwWrestling]

So....anyone find the correct link for it?

[Don & Rocio]

Vern... If the DV ERASE THE SITE YOU PUT UP AND XXXXX I DO APOLOGIZE FOR THINKING YOU ARE SENDING PEOPLE TO A SEDO ACCOUNT. APPERANTELY THE MODS MAY HAVE CREATED IT THIS PORN SITE BY ACCIDENT...PLEASE ACCEPT MY APOLOGY.

Belay my last SF...

[horns]

Did anyone click on the link - it goes to a PORN site!

Way to go Vern - take your perversions elsewhere

Relax, it's not a porn site. The link just got xxxx out and that domain is for sale thinking someone wants to start a porn site.

[DinarBam]

Wow, if this is true then a lot has been going on outside of the reported news. Hope we see some additional confirmations. Don't know what the immediate impact will be on the Dinar investment, but it's a huge step for Iraq. It also suggests that you really can't trust what is being reported as far as what they're working on over there. The fact that they were close to achieving this should have been all over the news. Instead, we got bits and pieces of this with no indication of a timeframe to complete.

Nice post.

[dinarcimi]

I'm not questioning the posters credibility. Just simply wanted proof. Splicer, I think I am doing my research and NOT relying on others hence my first post. I do not care if I get bashed for asking for proof or for posting my finds. Lets make sure it is a fact before we count on it, ok? This is an investment not a soap opera, lol. Go Iraq! Go RV!

[DinarBam]

Can't find this news anywhere. Can we know more about the source please. This is too big not to confirm or debunk quickly. Has anyone else been able to find this news posted anywhere else?

[leola]

I wonder if iraq has established their outstanding debt in U.S. dollars,,,it would cut their debt by more than two thirds,,, if they R.V. now...Just a thought...