BondLady Chat 7/14/11

dinarcimi · July 14, 2011

Sorry for the incomplete link towards the bottom. This site does not allow links from DD's.

* BondLady Chat 7/14/11

July 14th, 2011 12:05 pm · Posted in CHATS & POSTS (Iraqi Dinar Info)

id like to thank*** drv1804 from dinarvets site for this info he posted*** , id also like to thank…***rsskelton***from another site site who provided me this info***rsskelton*** BondLady , Ok, just got off thephone with Mr Van Ruden at IMF. He handles matters with Iraq . LOI from March, still current. Does not expire until modified or July 2012, whichever comes first.***

and also big thanks go to me team*** drc***,smitty***bigpuller*** and me peaky*** for helping me with all my research for this post, id also like to thank the academy,lol oops stay on track here lol ok here we go i hope u all enjoy this chat and please for your own knowledge and research in this investment i encourage you all to read this in its entirity as it was very informative to me and im sure will be to you as well……………………..

………………………… this is inserts from the IRAQ LETTER OF INTENT (LOI) TO THE IMF.. http://www.imf.org/external/np/loi/2011/irq/030311.pdf ……….and structural benchmarks, as set out in the attached Tables 1 and

2, and described in more detail in the attached Technical Memorandum of Understanding

(TMU). In this regard, we understand that the completion of the third review under the

SBA—expected to take place on or after May 31, 2011—will require observance of the

quantitative performance criteria for end-December 2010 specified in Table 1, that

completion of the fourth review—expected to take place on or after October 30, 2011—will

require observance of the quantitative performance criteria for end-June 2011, and that the

completion of the fifth review—expected to take place on or after May 31, 2012 ………………..(from dinar vet site) Iraq: Letter of Intent, Memorandum of Economic and Financial

Financial Sector

12. Financial intermediation is at a very low level in Iraq. A functioning banking sector is essential for the development of a strong private sector. We have begun to embark on our banking sector reform strategy:

A critical step will be to complete the financial restructuring of the two largest stateowned banks, Rafidain and Rasheed, based on their completed financial and

operational audits. In this regard, we formed a Bank Reconciliation Unit that

comprises technical level staff from the banks, the CBI and the Ministry of Finance,

and with the assistance of Ernst and Young (who were the agents of the Ministry of

Finance in the external debt restructuring process) to: (i) deal with all legacy external

liabilities taking into account the government’s actions in the context of Iraq’s external

debt restructuring (ii) indentify and propose to write-off non-performing loans to

defunct state-owned enterprises; (iii) propose a course of action for other remaining

unreconciled accounts; and (iv) after the balance sheets have been cleaned up, revalue the remaining foreign currency denominated balance sheet items. The BRU will work under the supervision of the Restructuring Oversight Committee (ROC), consisting of

the Minister of Finance, the Governor of the CBI, and the Chairman of the BSA. The

BRU will send its recommendations for final approval to the respective boards of the

two banks. Through this process, we aim to complete the restructuring of the balance

sheets of Rafidain and Rasheed by end-June 2011 (a structural benchmark).

 Meanwhile, the Ministry of Finance will continue to work closely with the World

Bank under its banking sector project to modernize these banks by moving ahead with

the plans for their operational restructuring. These banks will operate on a fully

commercial basis, on market terms, and the government will refrain from directing

any lending. Decisions on the recapitalization of Rafidain and Rasheed will not be

made until the restructuring of their balance sheets has been completed and adequate

progress has been made in their operational restructuring, especially by establishing an

appropriate governance structure and strengthening risk management and control

functions. More generally, given the vulnerabilities these (and other) banks face due to

operational risks, the CBI will continue to improve its oversight systems and monitor

closely the activities of the banks, particularly during the transition process.

 The new set of prudential regulations for commercial banks, including those related to minimum capital requirements, liquidity risk, and anti-money laundering, are being

implemented. Work on the relevant reporting tables for the banks will be completed

soon in consultation with the IMF and other technical assistance providers. Under the

auspices of the World Bank banking sector project, we have conducted a full

assessment of the banking supervision department, and this report will form the basis

of improving this department.

http://www.imf.org/external/np/loi/2011/irq/030311.pdf

ok now lets show some of the things this is talking about here that needed to be done…and has already been done…lets try to break this down…….******Financial Sector*****

12.***** Financial intermediation is at a very low level in Iraq. A functioning banking sector is essential for the development of a strong private sector. We have begun to embark on our banking sector reform strategy:*****

****A critical step will be to complete the financial restructuring of the two largest stateowned banks, Rafidain and Rasheed, based on their completed financial and operational audits.*****

MAY 31ST, 2011 The Central Bank of Iraq (CBI) and the Ministry of Finance indicated that the restructuring of the balance sheets of the two largest state-owned banks, Rafidain Bank and Rasheed Bank, will be completed at the end of June 2011.

The restructuring plan is being implemented by a Bank Reconciliation Unit (BRU), chaired by the CBI, with the participation at a technical level of staff from the CBI, the Ministry of Finance and other stakeholders. The BRU’s objectives are to deal with the legacy assets and liabilities of the previous regime to identify and propose to write-off non-performing loans to defunct state-owned enterprises to propose a course of action for other remaining un-reconciled accounts and to revalue the remaining foreign currency denominated balance sheet items.

In parallel, the Finance Ministry said it will continue to modernize the two banks by moving ahead with the plans for their operational restructuring, so they can operate on a fully commercial basis and on market terms, and the government will refrain from directing any lending.

It added that the decision to recapitalize Rafidain and Rasheed will not be made until the restructuring of their balance sheets has been completed and adequate progress has been made in their operational restructuring, especially by establishing an appropriate governance structure and strengthening risk management and control tasks.

http://projectsmiddl...8479&CategID=37

******In this regard, we formed a Bank Reconciliation Unit that

comprises technical level staff from the banks, the CBI and the Ministry of Finance,

and with the assistance of Ernst and Young (who were the agents of the Ministry of

Finance in the external debt restructuring process) to:*****Ernst and Young report .. http://www.cbi.iq/documents/fin_sta2009_en.pdf ***** (i) deal with all legacy external

liabilities taking into account the government’s actions in the context of Iraq’s external

debt restructuring ***Central Bank in connection with the establishment of the national payments

14/06/2011

Next July .. The introduction of electronic clearing system in banks

Baghdad and Wafaa Amer said that the Central Bank of Iraq next July, will see the start of the introduction of electronic clearing system in the dealings of the banks, while working on establishing a National Council of payments to regulate the introduction of information technology in all joints work.

The chancellor said the Central Bank of the appearance of Mohammed Saleh in a statement singled out the “morning”: that the plans and policies developed by the Central Bank of the next five years include the achievement is optimized for the national payments system, which includes the development of operations and uses of the smart card, which is still limited so far, and served only retirees class basis, as well as it includes the introduction of electronic clearing system, which means the electronic exchange of the instruments which will be implemented next July, the first phase.

He called on all private banks and government to introduce the system in its dealings banking Progressively, warned banks that do not comply so they will remain isolated from the information technology, since this system the ability of the settlement of electronic instruments and reduce cash handling, which is not consistent with the requirements stage, as will contribute to the to take its natural role of modern technologies in banking.

He Saleh said the central bank did not issue a decision requiring banks to introduce this system to according to a specific timeframe, adding that some banks have the desire but lack the material and human resources, especially in the processing software which makes use of improved focus the ability of banks and procedures, stressing that the the central bank system will go into service next July, according to estimates by the end of the year, it would be difficult for banks not to deal with the clearing system for electronic instruments.

Saleh revealed that the bank in connection with the establishment of the National Payments Council to regulate the application of the system and the introduction of electronic systems in banking from all sides, stressing that the bank and in coordination with the World Bank and the Ministry of Communications so far managed to create 50 percent of the payments system.

http://www.alsabaah.com/ArticleShow.aspx?ID=9253 ******Iraqi banks begin to adopt modern methods http://www.alsabaah.com/ArticleShow.aspx?ID=9297 ********Most of the Iraqi private banks have achieved the target level of capital http://www.babnews.com/inp/view.asp?ID=40621 *****Central Bank Governance and Financial Stability http://www.bis.org/publ/othp14.pdf *********

***** (ii) indentify and propose to write-off non-performing loans******Bankruptcy of banks, credit risk) in the author of the economic

http://www.alsabaah.com/ArticleShow.aspx?ID=9295 ********

to

defunct state-owned enterprises; (iii) propose a course of action for other remaining

unreconciled accounts; ****AND MY PERSONAL FAVORITE LINE OUTTA THIS WHOLE THING……………****** and (iv) after the balance sheets have been cleaned up, revalue the remaining foreign currency denominated balance sheet items. **********revalue the remaining foreign currency ******** now if this is correct if im on the right track here then imo the balanceing of the sheets its referring to here is the cbi audit it performed that was to be done by june 30,2011 but becasuse of the iraq holiday****Three-day break for UAE private sector from June 30 to July 2 http://www.emirates247.com/news/emirates/three-day-break-for-uae-private-sector-from-june-30-to-july-2-2011-06-14-1.402798 **********

it was delayed to july 1st ……..Iraqi banks closed their doors today to complete the semi-annual financial settlements

Iraqi banks are closed today to complete the semi-annual financial settlements

07/03/2011 8:13Economy , Uncategorizedno comments Baghdad, “Iraqi gate,” Mohammad Sharif

Shut down government and private banks closed “Sunday” to complete the semi-annual financial settlements.

And monitored the “gate of Iraq” stop work across branches of government and private banks in Baghdad.

Bankers said, “the gate of Iraq” All bank branches nationwide, closed its doors today, to complete the work of the semi-annual adjustments, which include all of the analysis, including financial accounts, savings accounts and current accounts.

They added that “this action semi-annual, usually at the end of the fiscal year and the first of July of each year, and because of the holiday coincided with the end of the week that date was postponed implementation of these measures to the third day of July.

And stop banking operations, including drag-and-arrest operations in this day with the public.

The number of banks in Iraq, about 42 banks, including six state banks and 35 private banks, has deployed dozens of branches across the country, next to Spahfrua of foreign banks.

The Central Bank of Iraq has committed private banks recently increased their capital to become a 250 billion Iraqi dinars, the equivalent of U.S. $ 214 million for three phases, for a period of three years

http://www.albawwaba.net/uncategorized/34588/

******* (loi)…The BRU will work under the supervision of the Restructuring Oversight Committee (ROC), consisting of