Economic Review-Iraq 2014

وزير الاعمار : نحتاج الى مليونين و500 الف وحدة سكنية لانهاء ازمة السكن

Minister of Construction: We need to 2.5 million housing units to end the housing crisis

Follow-up / newspaper integrity _aaln Minister of Construction and Housing Tariq Kikhany, on Thursday, the need for Iraq to 2.5 million housing units to end the housing crisis, as pointed out that his ministry will try to find an alternative to the slums.

Kikhany said at a press conference today, in Karbala, said that "Iraq needs 2.5 million housing units to end the housing crisis in Iraq," he said, adding that "the ministry alone is not able to implement it in the current budget."

Kikhany stressed that "we will try to find an alternative to the slums", stressing at the same time seeking "to possessed long as it is on land earmarked for projects in accordance with the Urban Planning."

The Minister of Construction and Housing Tariq Kikhany announced (October 21, 2014) for the development of a plan to eliminate the housing crisis in the country, as he emphasized raising proposals to the Council of Ministers to increase the loan from the housing fund amount to 50 million dinars.

It is said that Iraq suffers from a severe housing crisis due to the growing number of Iraq's population, compared with the number of residential complexes, in addition to the inability of citizens with limited income from the construction of its own housing units because of the high cost of land and materials Alanchaih.anthy 11


J.P. Morgan Chase to Run Iraq's Trade Bank, U.S. Says

Aug. 29 (Bloomberg) -- J.P. Morgan Chase & Co. has been selected to operate a bank the U.S. is creating in Iraq to manage billions of dollars to finance imports and exports.

J.P. Morgan, the second-largest U.S. bank by assets, will lead a group that includes 13 banks representing 13 countries to run the bank for three years, said Peter McPherson, the top U.S. economic adviser in Iraq.

``Iraq will become important to these banks,'' McPherson told reporters in Washington in a conference call from Baghdad. ``These banks were making a view on the future of Iraq.''

Operating the Trade Bank of Iraq will give banks access to the financial system of Iraq, the world's second-largest holder of oil reserves, where foreign bank companies haven't operated since a policy of nationalization in the 1950s and 1960s. The announcement came on the same day as a car bomb killed a top Iraqi cleric and at least 82 others, underscoring the danger of having a presence in the country in the wake of the war.

The trade bank initially will serve as an intermediary between Iraqi government agencies making purchases of equipment and supplies from companies based outside the country, he said. As private enterprise becomes more important, Iraqi companies also will use the bank to support trade.

An Iraqi, most likely from a government ministry, will be selected to run the bank. ``We expect an Iraqi to be the chief executive officer and most of the employees will be Iraqi,'' McPherson said. J.P. Morgan will train bank employees.

58 Banks Bid

The bank will start off with $5 million in cash and a $95 million line of credit from a fund controlling Iraqi oil revenue operated under the auspices of the United Nations, McPherson said. Final details of the contract are being negotiated with a signing anticipated in September.

A total of 58 banks expressed interest for a contract that will yield ``a very few million dollars'' in fees to the winning consortium, McPherson said. The J.P. Morgan group was chosen because it was judged to be able to run a ``high quality, cost efficient'' operation, he said.

``We are pleased that the Coalition Provisional Authority has selected the J.P. Morgan consortium to help establish and operate the trade bank in Iraq,'' said Joseph Evangelisti, a J.P. Morgan spokesman. ``This is a critically important assignment.''

An analysis of Federal Election Commission data compiled by the Center for Responsive Politics shows that J.P. Morgan Chase gave $105,705 to President George W. Bush's campaign in 2000, making him the fourth-biggest recipient of Chase political contributions since 1990.

Bush Contributions

The contributions came either in the form of direct donations from individuals who work at Chase or through the bank's political action committee, the study shows. The Center for Responsive Politics is a nonpartisan group that studies the effects of campaign contributions on public policy decisions.

In May, U.S. Treasury Secretary John Snow said he called on J.P. Morgan Chairman William Harrison and other former business associates for support on the Bush administration's proposed $726 billion tax cut. Citigroup Inc. Chairman Sanford Weill, whose bank led a group that did not win the Iraq trade bank contract, also was contacted by Snow.

In 2001, Harrison and Weill were among Wall Street executives meeting with President in the aftermath of the Sept. 11 terrorist attacks.

Along with J.P. Morgan, other members of the winning bank group are Australia and New Zealand Banking Group, Standard Chartered PLC, National Bank of Kuwait SAK, Bank Millennium SA, Bank of Tokyo-Mitsubishi Ltd., San Paolo IMI SpA, Royal Bank of Canada, Credit Lyonnais, Caja de Ahorros y Pensiones de Barcelona, Standard Bank Group Ltd., Akbank TAS and Banco Comercial Portugues SA.

Other Bidders

Wachovia Corp., Bank One Corp., Bank of America Corp. and ABN Amro Bank NV also bidded for the contract.

At least one member of the group has recent experience with Iraqi banking. Credit Lyonnais, France's sixth-largest bank, maintained relations with Saddam Hussein's bankers after the Gulf war, partly in hopes of profiting if it became legal to do business in Iraq again, bank executives have said.

Iraq's biggest bank, state-owned Rafidain Bank, owns 3.23 percent of Union de Banques Arabes et Francaises, which is 44 percent owned by Credit Lyonnais and run by the Credit Lyonnais executives.

The U.S., which invaded Iraq with U.K. help in March, is trying to rehabilitate the country's economy and financial system which has been devastated by three wars in as many decades and almost 13 years of United Nations economic sanctions that ended in May.

Ayatollah Mohamad Baqir Al Hakim, one of the top Iraqi Shiite clerics, was killed today along with ``dozens'' of others in a bombing at a venerated mosque in the holy city of Najaf, an aide to Governing Council member Ahmed Chalabi said.


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Key economic events in Iraq through 2014

BAGHDAD / Obelisk: Come issue of oil drop at the forefront of economic events in Iraq in 2014 as the main artery that feeds the public budget for Iraq that have been affected significantly by the decline, in addition to stop Iraqi exports through the north, as well as the oil agreement between the governments in Baghdad and Erbil, as the current year has seen a number of important economic events that have had a significant impact on the situation in the country internally and externally.

Kurdistan region's oil export to Turkey and cut the provincial employees' salaries:

  (January 2014) and former Oil Minister Abdul Karim and coffee confirms that the government is preparing legal action against Turkey for violating a bilateral agreement regulating the export of oil through Turkish territory, after the establishment of the Kurdistan region to export oil produced from the region via Turkey.

  (February 2014) The Federal Government announces stop sending the salaries of the Kurdistan region as a result of non-delivery of the province of the oil produced from the region of the central government.

  (February 2014), an MP for the Kurdistan Alliance Najiba Najib confirms that the Kurdistan region of employees have not received their salaries for the month of February 2014 because of the delay in approving the state budget and send the region's share.

North halt oil exports:

  (March 2014), the northern oil fields exports, which were issued at a rate of 300-400 thousand barrels per day because of the bombings that took place in the carrier mostly pipeline in areas Peggy Shirqat in Salahuddin and regions Shura stopped named colt and Qayyarah in the province of Nineveh, and the entry Daash then to the connector to link loss Iraq from the stop to nearly one billion and $ 200 million.

  (July 2014) the control of military force coming from Arbil on oil production plants in the fields of Kirkuk and Bai Hassan, in the district of molasses northwest of Kirkuk.

The drop in oil prices:

  (September 2014), the decline in oil prices, as the price per barrel rate reached to $ 61, which have negatively impacted on the state budget.

The price of oil has fallen clearly in recent months amid concerns about excess supply in the global market for Brent prices up to $ 61, while the OPEC basket recorded a $ 60 per barrel.

He attributed the oil expert Hussein Allawi, "the decline in the price of OPEC to speculation in the market mainly, in addition to OPEC's decision to maintain production without reducing it."

  (September 2014) and the Ministry of Oil announces the amendment of the operating agreement Rumaila with the company (BP) for the first time, has been reduced peak production of 2.00085 million bpd to 2.0001 million barrels, as well as the extension of the contract term from 20 years to 25 years .

Oil agreement between Arbil and Baghdad:

  (November 2014) The agreement between the federal government and the Kurdistan Regional Government on oil exports and the budget and entitlements of the oil companies operating in the region.


The provincial government described the agreement as "a comprehensive and just solution" to the problems between the two sides, saying that the federal government would pay for the region of $ 500 million, while the government will transform the region of 150 thousand barrels of crude oil per day at the disposal of the federal government.

Start working the West Qurna field (2):

  (March 2014), the Iraqi Oil Ministry announced that the flow of crude oil for the first time at a rate of 120 thousand barrels per day from the West Qurna field (2), located in the province of Basra, which holds the company "Lukoil" Russian.

Failure to approve the 2014 budget predicted a large deficit in 2015 budget

  (January 2014), the Council of Ministers announce send the budget bill in 2015 to the House of Representatives, and has read the first reading in Parliament, and reached a draft budget in its final form, which reached to the Parliament amounted to 125.2 trillion dinars, the deficit stood at 25.4 trillion dinars.

But political disputes between internalized in the House of Representatives blocs led to a failure to approve the budget, one of the negative events that cast a shadow over the economic situation in Iraq.

The head of the Economic Media Center lion Muhammad Ali in an interview for "Alsumaria News" that "the failure to approve the budget may significantly impact on the Iraqi economy and private investment projects including, noting that most of these projects stalled by the lack of approval."

Electricity: We need 30 000 MW to meet the consumer need for Iraq

(September 16, 2014) after the ministry pledges to end the energy crisis in Iraq confirmed recently that they need to 30 000 MW, which makes the solution to the energy crisis, far-fetched.

He says electricity minister said Iraq needs to be 30 000 MW of power to cover consumer needs and not 16 000 MW as previously thought, adding that the ministry would seek to solve the need for Iraq half of this energy by investing.

Theft of billions of dinars and banks under the trusteeship

  In (January 23, 2014), the central bank decided to sic a variety of alloys of pure gold weights ranging between (50 g and 1000 g) to sell to dealers in gold, investors and segments of society wishing to do so in Iraqi dinars.

In (March 25, 2014), the Central Bank of Iraq announced the purchase of 36 tons of gold during the month.

  (March 2014), the Central Bank of Iraq announces the re-print of the Iraqi currency notes with pictures of new and more protection, while confirming that the new currency will help the blind to see the value of these categories.

  (June 2014), the central bank imposes a trusteeship on the economy, the Bank for Finance and Investment, and the formation of committees and the tutelage of three people for a period of 18 months, subject to extension of its mission to prepare a report on the future financial situation and future prospects for the bank.

  (December 2014), the central bank announces the formation of a committee to uncover the circumstances of the theft of 500 billion dinars by one of the employees working in the Rafidain Bank, as pointed out that most of the stolen money has been returned from the banks that have transformed the exception of certain amounts to the two banks are being dealt with now .

Iraq Receives US planes, trains and Chinese naval vessels

(March 2014) Iraq receives third Boeing 737. 800 aircraft from the US Boeing Company after receiving two during the last year of the 45 aircraft contracted by the Ministry of Transport with the company to buy them through 2008.


  (April 2014) Iraq receives a fourth plane, a Boeing 737-800.

  (April 2014) of the General Maritime Transport Company announces first docking small Iranian ship passenger side of the pavement in the Shatt al-Arab river coming from the port of Khorramshahr (fries) in Iran to mark the launch of a new shipping line Iraqis and Iranians between the two countries to transport passengers.

  (May 2014), the General Company for the railway in the south declares docking a ship in the port of Umm Qasr coming from China and on board trains novice Astaradhma been in favor of the company.

  (May 2014) of the General Maritime Transport Company announces that the new Iraqi ship (Basra), which was manufactured in Mesfin (Dyson) South Korean docked for the first time in the Iraqi port for the purpose of switching crew refueled, with a load capacity of a ship 17,500 tons, a length of 141 meters, and speed maximum of 15 knots per hour.

  (June 2014), the General Company for Ports of Iraq announces the joining of two vessels to combat oil pollution to its fleet of specialized vessels, in anticipation of incidents of leakage of marine pipelines and tankers that Iraqi oil export lines.

Operation of third generation services in Iraq

(November 2014) and the Ministry of Communications signed a contract with Zain mobile phone to provide the infrastructure to run her third-generation services.

The mobile phone companies operating in Iraq, currently the second-generation services (G2), which offers a limited speed and scalability in the online service, with the introduction of third-generation services, is expected to increase the use of Internet service via mobile phone companies to provide services at high speed.

Agriculture: lack of access to sufficient because of the dominance Daash

(January 2014) and the Ministry of Agriculture says it did not reach self-sufficiency in strategic crops because of the dominance "Daash" on Mosul.

To approve the establishment of a civilian airport in Nasiriyah

(April 2014) 0.35 Mtlkia projects in the province of Babylon, and form committees to speed up its work.

  (April 2014), opening the way to spend Holi Tuz east of Tikrit, at a cost of four billion and 500 million dinars.

  (April 2014), governor of Babylon honest meaning Royal announce the opening of the road Kic_ suit with 35 billion Iraqi dinars.

  (May 2014) of the Investment Authority in Basra, announces the issuance of an investment license to a Jordanian company intends to implement a project worth $ 242 million to establish the largest amusement park in the province on 388 dunums near the Sports City site.

  (July 2014) the province of Babylon Council decides not to deal with Saudi companies and boycott their products within the administrative borders of the province against the backdrop of UK support for armed terrorist groups in Iraq, and underscores not be allowed to be traded in the local markets.

In (September 2014) Dhi Qar announce the approval of the Minister of Transport to create Nasiriyah civil airport.

  (November 2014) declared victory cliff refinery investment opportunity.