Iraqi leaders reach agreement on new government – Los Angeles Times

November 11th, 2010

Incumbent Nouri Maliki appears headed to a second term as prime minister after his main rival, Iyad Allawi, accepts his terms for limited power-sharing. The deal will end an eight-month impasse.

By Ned Parker, Los Angeles Times

November 11, 2010


Reporting from Baghdad


Iraqi Prime Minister Nouri Maliki appeared to lock up a second term in office Wednesday after a lengthy closed-door meeting of Iraq’s political elite in which foes buckled to his demands for ending a dangerous eight-month impasse and forming a new government.

It was stunning victory for the Shiite Islamist, who was plucked from obscurity four years ago to become prime minister during the worst of Iraq’s sectarian violence, and a success for Iran. But it was a strategic defeat for Washington, which had pressed for a prominent role for Maliki’s rival, and appeared to be caught flatfooted by the rapid developments.

Maliki has mastered Iraq’s levers of power in Iraq to become a figure admired and feared by supporters and opponents alike. Wednesday’s marathon meeting, which started around 4 p.m. and lasted almost seven hours, fitted the Maliki mold.

Holding fast during months of uncertainty, he wore down the opposition, who initially had refused to agree to his terms for a parliament session Thursday that would pick a speaker and a three-man presidency board, who would then nominate Maliki for a new term and authorize him to assemble his Cabinet.

Iraq has been without a new government since March elections in which Maliki’s slate of candidates came in second to that of secular Shiite candidate Iyad Allawi. As politicians maneuvered for position and U.S. combat troops withdrew, the country saw violence increase and Iraqis become increasingly fearful of a return to widespread sectarian strife.

The United States had lobbied hard for Iraqiya to have a central role in the next government, and in recent days had pushed hard for Allawi to be given the post of president, according to Iraqiya and Kurdish officials.

Instead, the alliance of Maliki and the incumbent president, Jalal Talabani, a Kurd, triumphed. It creates a scenario where a Shiite religious party and a Kurdish leader hold the main posts in Baghdad, and Iraq’s Sunni Arab minority is once more relegated to a secondary role, not unlike that under the polarized government Maliki took control of four years ago.

“If things actually happen as just announced, it would indeed appear to be a victory for Maliki and for Iran, which pushed this scenario forward,” said Iraq expert Joost Hiltermann of the International Crisis Group think tank. “On the face of it, it looks like the new government could become a retread of the government of the past four years, with its uneven representation and multiple deficits.”

Until the last moment, Allawi had vowed that his Iraqiya list would never participate in a government that did not guarantee an equal distribution of power and limit the prime minister’s powers. But one member said the group became concerned about splits within its own ranks.

Allawi stunned even some of his own supporters shortly after he left Wednesday’s meeting in frustration by reversing himself and accept the incumbent’s terms.

Iraqiya agreed to accept the post of parliament speaker and the chair of a new government body, called the National Council for Strategic Policy, which has yet to be given any defined powers. Some observers wondered if Iraqiya might still change its mind. The alliance of Allawi, Sunnis and secular politicians is fractious, and many of its prominent figures have their own personal ambitions.

But officials from Iraqiya sounded shocked and defeated after waging an eight-month battle against Maliki over who had the right to form the next government.

“There was no choice,” one Iraqiya official said, at the end of the long night. Iraqiya was expected to name its candidate for parliament speaker before the Thursday legislative session.

Maliki’s supporters described deals brokered prior to Wednesday night, particularly the prime minister’s alliance with anti-U.S. Shiite Muslim cleric Muqtada Sadr, as a victory for Tehran, but emphasized that Maliki did not take orders from anyone.

“The Americans lost that battle to the Iranians,” said Izzat Shahbandar, a Maliki supporter and advisor. “But the Iranians didn’t win with Maliki.”

In Washington, a State Department official declined to comment on the developments, and noted that “there are some procedural steps that need to be completed before a new government is formed.”

“We’ve encouraged the Iraqis to have an inclusive government; we’ll wait and see if this will be one,” said the official, who declined to be identified because of the sensitivity of the subject.

Supporters hail Maliki for rescuing his country from a civil war, while critics call him the lucky beneficiary of two developments that reduced violence: an increase in U.S. troops and a revolt against Al Qaeda in Iraq by Sunni Arabs.

Regardless, Maliki has proven himself a tenacious survivor – one with admirers who say he is the only man who can save Iraq, and critics who view him as a divisive figure. They accuse him of being motivated by a wish for his Islamic Dawa Party to stay in power no matter what the cost, and warn another four years under him could see the creation of a one-party state.

Maliki’s former national security advisor, former Dawa member Mowaffak Rubaie, voiced apprehension about the country’s direction in the days before the announcement.

“I personally am worried that our whole political program is going down the drain,” he said. “What did we come for? I campaigned for three things throughout my life: democracy, federalism-community rights and human rights,” Rubaie said. “The Shia are enjoying our community rights but we are persecuting the other community. We are getting closer and closer to a one-party state.”

Maliki’s supporters had predicted his victory in the countdown to Wednesday’s meeting. Sami Askari, a lawmaker and advisor to Maliki, had predicted Iraqiya would come around. “It’s too late,” he said. “They will join the government.”

Last week, before three days of meetings hosted by another Kurdish leader, Massoud Barzani, one senior Western diplomat had said that Iraqi politicians appeared to be close to a deal after months of impasse.

Barzani has had a contentious relationship with Maliki and had wanted guarantees that there would be limits on the prime minister’s power. But the diplomat observed that principles appeared to have gone by the wayside as politicians focused on their personal ambitions.

“It’s become a souk now,” said the diplomat. “What are you selling? What is the price?”

ned.parker@latimes.com

Iraq To Match Iran’s Oil Output By Around 2015 – IEA

November 11th, 2010

By Benoit Faucon

Published November 09, 2010

Dow Jones Newswires

LONDON -(Dow Jones)- The International Energy Agency said Tuesday that Iraq’s oil output will catch up with that of regional rival Iran by around 2015 but won’t hit the country’s ambitious targets, sending a mixed message on Iraq’s ambitious plans despite a reassessment of reserves.


In its annual outlook report, the IEA–which represents some of the world’s largest energy consumers–said Iraq’s crude output will be “catching up with Iran by around 2015.”


But it also forecasts oil output in Iraq at 7 million barrels a day by 2035, compared with about 2 million barrels a day at present.  That assessment is considerably lower than the country’s plan to grow production to 10 million-12 million barrels a day by 2017.

The IEA’s forecast comes amid skepticism over the Middle East nation’s plans to boost its output.


The International Monetary Fund in October said it had lowered Iraq’s oil production forecast, after a disappointing 2010.  The IMF report lowered Iraq’s projected 2012 oil production to 2.6 million barrels a day, from 3.1 million barrels a day in February.

The IMF reassessment came despite Iraq raising its proven oil reserves by around a quarter to 143.1 billion barrels in early October.


Copyright © 2010 Dow Jones Newswires

Iraq: Nov. 11 Founding Of Iraqi State – PM

November 10th, 2010

November 10, 2010

Iraqi Prime Minister Nouri al-Maliki said that the Nov. 11 parliamentary session will be the beginning of the founding of the Iraqi state, not just the Iraqi government, Alsumaria News reported Nov. 10. Speaking in the National Alliance conference, al-Maliki said the new session undermines a months-long conspiracy against the new government, adding that some elected officials were hypocrites who wanted to be part of the government while still supporting terrorism. He said such officials are not partners in the newly founded state, but benefit from the state without adhering to any rules.

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Statement on Iraqi Dinar Zero Lopping

November 1st, 2010

There has been a lot of speculation recently causing plenty of confusion about the deletion of three zeros from the Iraqi currency , our belief is that it is purely speculation and until there is a definitive announcement from the Iraqi Central Bank we will continue to consider it pure speculation .

I discussed this with a leading banker in Iraq and I include a partial quote from him regards this matter which re-inforces my statement above :-

Dear Bruce,

The revalue as of today remains a market speculation which the entire Iraqi banking industry considers null and void as the CBI has not made a move, decision or issued an official notice to Iraqi Banks regarding this matter.

The CBI has not provided official written notification to the banking sector and banks regarding the revalue or printing of new currency thus it is considered null and void by the Iraqi banking sector and this is the general law noting that we contacted the CBI regarding this matter where they did not provide anything official to comment on simply stating that this matter is under study and has been so for the past few years nothing more nothing less.

From our prospective we can not comment and will not comment any further unless the CBI officially announces that the removing of the 3 zeros or revaluation will actually take place by providing the banking sector written documentation where this would be the standard general verification and confirmation currently practiced.

Best regards,

(omitted for security reasons)

Bruce Tupholme

Owner

www.iraqidinars.com

Iraq: Government Formation Entering Final Stages – VP

October 29th, 2010

October 28, 2010

The formation of the Iraqi government has entered its final stages, Iraqi Vice President Adel Abdel Mahdi said Oct. 28 in a meeting with U.S. Assistant Vice President for National Security Affairs Tony Blinken, KUNA reported. The winning parties will hold serious talks to form a government of national unity, Abdel Mahdi said. The formation of a democratic government in Iraq is an internal affair, Blinken said, adding that the United States would like to see the formation happen.

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Iraq Rises as Western Nations Fall

October 23rd, 2010

Posted on 20 October 2010

Iraq’s developing situation continues to astound me when I contrast it with much of the west.

Take the UK, where Prime Minister David Cameron has on 20 October announced £81bn ($127bn) of cuts from total government expenditure of £661bn ($1,040bn), the largest budget cuts in decades by a large margin. All this it needs to do to try and stop national debt rising at £5,900 ($9,300) a second.

Iraq, on the other hand, is going the other way. Not only does it expect to be in budget surplus by 2012, but it is pulling money in for investment at an ever-increasing rate.  Iraq had a five-year plan to attract $6bn-worth of investments. It then said it wants $200bn. And this week it has gone up to a new target of $600bn.

It would be happy if it gets to 50% of that target, but it has reasons to be optimistic.  In the first 20 days of this month alone we reported on private investments in Basra for 1,000 housing units, a shopping mall and a huge drinking water project. In and around Amara there will be another 1,150 housing units and an industrial park, and Erbil is building two big roads, Muthanna a large cement factory to help with yet other developments, and Baghdad is awarding another 11 investment permits for housing, commerce, tourism and industry. And I haven’t even mentioned the energy projects yet.

In the global economic seesaw, it seems like it is Iraq’s turn to rise up again.

Article Here

International Monetary Fund calls on Iraq to reform tax system

October 11th, 2010

International Monetary Fund calls on Iraq to reform tax system
Baghdad, Oct.2 (AKnews) – A source in the outgoing Iraqi government said on Saturday that the International Monetary Fund (IMF)stressed on the need that Iraq has to hold semi-radical changes in the tax system as a condition for granting loans and supporting its projects.
Islamic financial system, dollar, Money
A member of the Iraqi negotiating team, Fadel Muhammad Sarraj told AKnews that “the IMF demanded the Iraqi government formally to restructure the tax system in the country in a way that commensurate Iraq’s financial dealings with the International Monetary Fund.”

“The IMF has criticized the report handed to the Iraqi negotiating committee over distributing the budgets operation of the previous years which focused on financing the security services as unstudied mechanisms.”

“The Iraqi negotiating team was able to convince the states member in the IMF that Iraq will abide by the loans payment by selling crude oil during the coming years.”

“The IMF has agreed on Friday to grant an amount of $ 741 million as part of a loan of $ 3 billion and $ 700 million.”

“The IMF has a vision that Iraq is completely isolated from the global system and that made it demand the government to promote the value of the Iraqi Dinars compared with the foreign and Arabic currency.”

The value of what the Fund has paid to Iraq is $ 1.2 billion out of 3.7 billion.

It is hoped that the outgoing Iraqi government will discuss in the next few days, the budget in 2011 in which the Finance Ministry confirmed earlier that it will take care of implementing the service projects.

Reported by Jaafar alwanan

Iraq: Oil Reserve Estimate Increased

October 5th, 2010

Iraq’s oil minister increased the estimate on the country’s proven oil reserves to 143.1 billion barrels, an increase of nearly 25 percent, AP reported Oct. 4. The reserves can be extracted by available techniques, Hussain Shahristani stated, adding that the total is based on reserves in 66 oilfields. Other areas must be explored and could add to the reserve total, he said.

Source : Stratfor

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Iraq: Al-Iraqiya Says ‘Initial Agreement’ Reached

September 17th, 2010

September 17, 2010

A top official in Iraqi political party al-Iraqiya List said an “initial agreement” has been reached with the Iraqi National Alliance (INA) and the Kurdistan Alliance, Aswat al-Iraq reported Sept. 17. Aliya Nusseif said that under the agreement, Adel Abdul-Mahdi would assume the premiership and Iyad Allawi the presidency, while the Kurds would chair the parliament. Nusseif said the deal was in response to other groups attempting to marginalize al-Iraqiya, the INA and the Kurdistan Alliance.

Source: STRATFOR

Iraq Central Bank Gov. Hopeful on Economy

August 30th, 2010

http://video.foxbusiness.com/v/4321880/iraq-central-bank-gov-hopeful-on-economy/

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