kaperoni chat 09/26/2011

[wealthbytrade]

kaperoni: Sit on your hands and no typing during chat. If you do, the mods will remove/kick you from the room.

kaperoni: Let’s get started.

kaperoni: Today’s chat is about this past weekends Imf and World Bank meetings which included Iraq.

kaperoni: Both of these organizations are no-nonsense. After watching several of the videos released, they expect these countries to implement the action plans they sign off on without delay. That being said, lets take a look at the recent Republic of Iraq Financial Sector Review.

kaperoni: I am going to quote from the Quick Notes…

kaperoni: The first paragraph says it all…

kaperoni: “The link between sound and well-developed financial systems and economic growth is fundamental. Efficient and prudent allocation of resources by the financial system is critical for increasing productivity, boosting economic development, enhancing equality of opportunity, and reducing poverty.”

kaperoni: Here is the second quote...

kaperoni: “The financial sector in Iraq remains underdeveloped and underperforming.”

kaperoni: And this one…

kaperoni: “The difficult security situation imposes costs and constraints, the complex political situation impedes decisive policy action, governance issues linger, and the impact of state intervention continues despite reforms.”

kaperoni: I think that pretty much sums up what the conditions are like in Iraq. We all have read numerous articles for over a year now, telling us the same thing.

kaperoni: Now in regard to the states two largest banks here are three quotes…

kaperoni: “rafidain and Rasheed Banks, the two largest state banks, are inefficient and both suffer from the legacy of past losses, as well as from performing quasi fiscal operations. “

kaperoni: “reforms have been significantly delayed, especially compared to the time-line in the 2006 memorandum of Understanding (mou) between the Cbi and the Ministry of Finance. “

kaperoni: And a last quote...

kaperoni: And this is a good one...

kaperoni: “The reform process needs to be accelerated, including removing disputed items from their balance sheets and transferring these to a new asset/liability management company.”

kaperoni: So we can see at this point these banks are still need additional reforms. But they reconized they need to get this done Asap

kaperoni: The document then talks about the smaller private banks describing them…

kaperoni: “staff skills are often weak, the range of services provided by many banks is still limited, and loans are mainly short term loans related to wholesale and retail trade.”

kaperoni: And in some cases…

kaperoni: “CBI officials question the professionalism of private banks”

kaperoni: One article said some of these banks also sell cars…lol

kaperoni: Another comment…

kaperoni: “there are concerns that banks may be weaker than they appear.”

kaperoni: Which Imo is good for us…as an Rv should and will help them.

kaperoni: Another comment…

kaperoni: “most banks appear to be well capitalized,”

kaperoni: That seems to imply that the banks have lots of dinar on hand

kaperoni: . I can only assume the new smaller bills once the Rv takes place.

kaperoni: Now the next quote is directly stated towards the financial system..

kaperoni: “weak financial infrastructure is a clear impediment to access to finance in Iraq.”

kaperoni: This confirms that is very difficult to get your profits our of iraq if you’re an investor. Which of course does include the dinar exchange rate.

kaperoni: Another quote…

kaperoni: “improving accounting and auditing skills and eventually moving to international standards are particularly important.”

kaperoni: And another…

kaperoni: This is a good one...

kaperoni: “The authorities must also undertake a concerted effort to improve the business environment and to strengthen the real economy.”

kaperoni: One can wonder how is that possible without the revaluation?

kaperoni: Now the next part if key, and I think goes to the reforms and pending revaluation…

kaperoni: The supervision of the banks…

kaperoni: “A full expert-assisted self-assessment of the supervisory system, based on the Basel Core Principles and the 2006 assessment methodology, is required to further align the system to international standards.”

kaperoni: And this next one is good…

kaperoni: “there are three prerequisites for the cbi to be able to fully deploy effective supervision: (i) ensuring the political will to let the Cbi perform its tasks without interference,”

kaperoni: That is a direct shot at Maliki to butt out!

kaperoni: And lastly from this summation, they state…

kaperoni: “politically supported, robust, concerted efforts must be made to prevent abuse and undermining of the financial system through corruption, money laundering and the potential financing of terrorism.”

kaperoni: Now from the Wb press release they state it pretty clear…kaperoni: “The report stresses the critical importance of the financial sector in modernizing the Iraqi economy and allowing it to reach its full potential.”

kaperoni: And this one…

kaperoni: “this is a fairly large agenda but ongoing reforms will facilitate the move forward with the Banking Sector Reform Strategy initiated by the Iraqi government in 2009,”

kaperoni: To summarize these two documents….

kaperoni: The Cbi has been told to implement international regulations, international standards, international practices, etc. They have been told to implement there public information campaign..which clearly we are reading about almost daily at this point in regard to the banks, the value and the new notes. They have stated clearly…goi stay out of the Cbi business.

kaperoni: They conclude their recommendations by stating…

kaperoni: “create a clear mechanism and obvious instructions for the transition of the Iraqi economy from the centralized economy to a market-oriented economy.”

kaperoni: Do you all see that?

kaperoni: Wow that is good stuff!

kaperoni: Now, to go back to my first comments…the Imf, the World Banks are results oriented. With the current reforms/action plan in place, you can see there is a strong drive to finish this plan.

kaperoni: Done.

[pokerplayer]

Still not sure what to think of him. Thxs for the post.

pp

[Captjohn]

Interesting summary, but not sure what this brings us beyond "interesting". Does this imply we are getting closer to an RV? That's the relevence we are looking for at this late-date point.

[ems]

I'm glad people like Kaperoni read all those long boring articles and pull out the nuggets of information that are relevant to us as investors. It's like the Cliff's Notes version of RV news.

[wealthbytrade]

i wasn't quite sure what to make of it either. It's great information, but does it mean that these things need to be implemented before they RV? I don't know.

[TonyDownTheShore]

I think he's trying to be like BondLady, breaking down articles, not quite there yet.

Thanks for the post

[Shelley]

I think he's trying to be like BondLady, breaking down articles, not quite there yet.

Thanks for the post

Tony, I'm going to have to beg to differ with you on this one.... Now this is just my opinion, but I have read chats with Kaperoni and BondLady together and they were great informative chats, I'm pretty sure, again JMHO BondLady has some respect for Kaperoni.

I liked the above chat.... I truely just want this done

[abutchbaker]

No RV insight...............

[zigmeister]

Oh well another day in, "As the Dinar Turns."

But there is always tomorrow...in "As the Dinar Turns."

And Marsha just can't remember where she left her underwear.

[BondLady]

gm early mornin all, i do like kap, and he does break down articles, he also has a arabic translator to aid him in his opinons, kaps been on target per the articles a lot imo, and when he breaks stuff down from his translator he confirms things ive said, and i dont have a translator i have to rely on my wits lol and sometimes im able to reach a couple that i know one is an iraqi and 1 is a jordainian, they are married, but 9 times out of 10 i rely on my reading of the articles to base my opinons on, and most times i dont need a translator unless theres some kind of press release like shabbibi had a cple of weeks ago that couldnt be translated had to be read, and i did call them at that time, but the majority of the time i dont use 1, but when kap does it, its good and confirming of things and kaps a smart guy, and sees things sometimes the normal eye doesnt when reading thru a article, and its always good to have 2 or more differnt people confirm these things, it lets us know were on the right track, kap's a respectable guy imo, and hes my friend and comes into my site and chats with us, and we do the same with him, anyways u all have a great day...BL

[Biker girl]

gm early mornin all, i do like kap, and he does break down articles, he also has a arabic translator to aid him in his opinons, kaps been on target per the articles a lot imo, and when he breaks stuff down from his translator he confirms things ive said, and i dont have a translator i have to rely on my wits lol and sometimes im able to reach a couple that i know one is an iraqi and 1 is a jordainian, they are married, but 9 times out of 10 i rely on my reading of the articles to base my opinons on, and most times i dont need a translator unless theres some kind of press release like shabbibi had a cple of weeks ago that couldnt be translated had to be read, and i did call them at that time, but the majority of the time i dont use 1, but when kap does it, its good and confirming of things and kaps a smart guy, and sees things sometimes the normal eye doesnt when reading thru a article, and its always good to have 2 or more differnt people confirm these things, it lets us know were on the right track, kap's a respectable guy imo, and hes my friend and comes into my site and chats with us, and we do the same with him, anyways u all have a great day...BL

So with you bondlady !!!!!!!!!!!!!!!!!!!!!!!!

[upnorth]

Thanks wealthybytrade for bringing this over. I think kaperoni did a good job of translating this but I don't see this as a positive toward RVing. It just looks like the banking sector has much to do to get up to speed internationally. IMHO.