Central Bank Adviser: Iraq Did Not Request the Extension of International Protection of Assets (duck2000 Info Incl.)

Leila Ahmed

Effects of speaker of the House of Osama alngivi money issue which would raise international protection by 30 June next.
In a statement issued by his Office called alngivi during a meeting with the Office of financial supervision need to provide the necessary protection of Iraqi funds in the Security Council decide to lift the protection.
Iraqi Central Bank Adviser Mohammed Saleh, the appearance of the Security Council passed a resolution to end the Iraqi funds protection end of June, and this requires Iraq to submit a report to the Security Council in early May which shows next which will protect the property mechanism.
Saleh said that Iraq’s concerns stemmed from commercial creditors who refused any financial settlement on Iraq’s debts in 2006 according to the Paris Club in 2004, where he settled debts with approximately 13,000 commercial creditor and its debt reduction of $22 billion to 2 billion and 700 million dollars.

Saleh expressed his optimism with a proposal or initiative launched by the US President is in the light of the remaining debt settlement with creditors sums, and therefore does not receive any international courts raises debt issue on Iraq future or his arrest.
He fit that Bill Iraq has an agreement with the United States on this matter pending legislation before the House.
According to Central Bank Adviser Mohamed Saleh said Iraq appearance dealing in good faith with all creditors despite the debt files dating to 1990, said the Iraqi Government had not made any extension of international protection.
Economic analyst said Hilal altaian Iraqi Government might seek to extend international protection to their six months of instability of the security and political situations. The altaian to major challenges and dangers facing the Iraqi funds after the lifting of international protection and of claims some States debt owed by Iraq.
LINK

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ONE DINAR DISCUSSION

(Between duck2000 & iamhere after the above article was posted)

iamhere:

Does anyone know how much Iraq owes to other creditors/nations that has not been forgiven?

If there is a significant amount owed, would it not pale in comparison to the amount Iraq will have after being granted access to the DFI funds (in addition to all the other hard assets Saddam stashed) once the value of their currency is raised? IF this is the case then why not just rv the currency prior to losing the DFI protection or better yet why don’t we see negotiations with other countries/creditors creating a payment deal so the entire DFI is not drained? I understand the basic concept of not spending your principal here and that the DFI would probably want to be protected to be used over the coming years. I also get that the market will most likely drive the value of the dinar up and pay for the RV rather than the county’s coffers. So I fail to understand why we have seen such a quandary over the RV of the dinar? I have my thoughts as to why but would appreciate hearing from the people here a 1 Dinar. Thanks!

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Duck2000:

http://www.fas.org/sgp/crs/mideast/RS21765.pdf
Total government debt is estimated to be $92.3 billion in 2010 and is comprised of the following components:

- External debt ($87.7 billion, of which $45 billion can be subject to debt reduction by non-Paris Club official creditors, comparable to the Paris Club agreement)
http://www.cbi.iq/index.php?pid=GovernmentSecurities

Iraq’s external debt is comprised of four components:

Paris Club bilateral debt ($42.5 billion)
Non-Paris Club bilateral debt ($67.4 billion)
Commercial debt ($20 billion)
Multilateral debt ($0.5 billion)
Debt relief negotiations first led to an 80% reduction of the Paris Club debt. The Paris Club agreement also set the terms for non-Paris Club and commercial debt cancelation levels. A provision of the Paris Club agreement is that Iraq cannot accept a debt cancellation agreement with other creditors on more favorable terms for Iraq than those reached with the Paris Club.
Thus, Iraq is expected to receive no more than an 80% cancelation from all of its creditors. Negotiations with non-Paris Club creditors are ongoing (mainly with Gulf countries except the UAE), and resolution of the commercial debt is largely complete.
This portion of the external debt has been reduced to $45 billion in 2010 (see government debt above).
Following the ouster of the regime in spring 2003, Iraq’s external debt was estimated to be between $130-$140 billion. Reducing this debt to a sustainable level has been a priority since 2003 and debt relief negotiations have taken place in a variety of forums. This has led to the cancelation of a significant amount of Iraq’s external debt.
http://www.cbi.iq/index.php?pid=GovernmentSecurities

one must also take in the amount that iraq makes off of oil every day ! 2.9 million barrels a day times rite now 107.58 $ !!!

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iamhere:

Therefore Iraq currently has an income in excess of $310 million USD from the sale of oil per day. Of course they only get to keep 15% and the remainder goes into the DFI. Correct? If yes then every month oil is at $100 per barrel, Iraq pulls in 9 billion in total revenue from oil sales of which Iraq may use 15% or about 1.4 billion USD per month. The DFI would receive $7.9 billion every month oil sells at $100 per barrel. I am sure this does not include the cost to contractors etc. so it is probably a bit less. Still, the DFI has been accumulating quite a bit of $$ over the last 10 years. Has the amount in the DFI ever been made public? Thanks Duck for your response