"Big Wowzers" - Sun. PM KTFA Thoughts/News

Jay » October 9th, 2016


ALL IMO...ANOTHER BIG WOWZERS ...AS I SEE IT, IN PLAIN ENGLISH,...

WE (IMF) CAN'T HELP FINANCIALLY UNTIL THE IRAQI RV HAPPENS...

AT LEAST THAT'S WHAT I READ.

Don961 » October 9th, 2016


Monday, October 10, 2016

IMF Will Stay Out of Greek Bailout

The International Monetary Fund will not join the Greek bailout program but will likely accept a special advisory status with limited powers that keeps it at the table, two senior sources with direct knowledge of the proposals said.

The IMF has been holding out for more than a year over the terms under which it would participate in any new program, arguing that the financial targets set in the European bailout are unrealistic without major debt relief, Reuters reported.

But the fund is increasingly resigned to European resistance to debt relief for Greece and it is now in talks to accept a newly created role that would let it play a part with limited formality, the sources said.

“It will be more than an advisor but the role will not have the strict conditionality, like the compliance and economic health checks every three months,” one of the sources said.

Talks between Greece, its European creditors and the IMF have been at an impasse since German Finance Minister Wolfgang Schaeuble insisted on the IMF taking part but rejected calls from IMF Managing Director Christine Lagarde for a big debt restructuring.

“This way Lagarde can go to the board and say, hey, ‘I’m not violating our rules’ and Schaeuble, whose government is facing an election next fall, can say, ‘see, I have the IMF on board’,” the source said.

The exact nature of the IMF’s role has not been decided but it would have more powers than a simple advisor and would for example be responsible for drawing up certain proposed agreements and negotiating documents, coordinating with the Greek and European Union sides.

“They won’t put money into the program but it won’t be just technical assistance; they will probably take a special advisory role to be created especially for the Greek bailout,” the second source said.

“Talks this week made it clear that the IMF just can’t come on board formally. They will remain part of the troika and be at all the talks,” the source added.

Greek and IMF officials held talks at the Funds’ fall meetings in Washington this week, discussing this special status, which was supported by the Greek side. Despite the change in the IMF’s role, Greek officials believe it will aid them having a body that supports debt restructuring at the table.

Short URL : https://goo.gl/p3eUp4

Walkingstick » October 9th, 2016


RE..............

Iraqi banking sector needs re-evaluation and classification

http://www.alqurtasnews.com/ne.....9%8A%D9%85

2Berds » October 9th, 2016


If they are recognizing the need for revaluation for their banks then it would seem to me that we should be very happy very soon.

Don961 » October 9th, 2016


Good evening WS ...

They know what to do !! .... This is going to be awesome !!! ... IMO

Walkingstick » October 9th, 2016


Why you must stop the currency auction?
Mohammad Tamim *

The currency auction carried out by the central banks in the countries where theeconomy is suffering from fluctuation and instability, usually occurs in countries with mono - economy side , such as reliance on a single item as if the agricultural, commercial or industrial, where this side is exposed to shake lead to loosening in the economic situation in the country and are affected through fiscal policy in the country ,which requires cash - the authorities of a central bank - to intervene and restore fiscal and monetary policy orientation which is known as the intervention of the central bank tobuy the local currency to keep the exchange rate.

usually have it once a year or twice at the top of conditions, one of the traditional and very old ways to keep the local currency exchange rate due to the fluctuation in the exchange rate as mentioned, and we have a lot of examples of this , such as the intervention of the Central Bank ofRussia to save the ruble in January 2015 as well as the Chinese central bank intervention in June last year, for the intervention of several aspects of this, including intervention to buy the currency or raise interest rates or reduced according to the needs of the country and the vagaries of the market speculation.

What regard to the Iraqi situation years ago is that the central bank sells foreign currency on a daily basis to keep the exchange rate which is a traditional way drained the reserves of the Central Bank's foreign currency, a method is successful does not benefit them , and the sole beneficiary of which is a group of banks and partners remittance and the private sector , which views still affect some of the decisions of the central bank to continue this policy, which has long warned us in the past.

Last week , the Iraqi Central Bank announced that the reserves of foreign currency is about $ 50 billion with the SDR ( the basket), and when we come back to the state of a simple calculation is that the Iraqi currency bloc is 40 trillion Iraqi dinars , as the Central Bank of Van says this meant to be the exchange rate is Iraqi dinars 900 is equal to one dollar,

but the truth is known that the 1300 Iraqi dinars today is equal to one dollar and the process is ongoing, and when checking in previous periods between domestic money supply and foreign currency ( the central bank balance) , the difference was not significant and the reason that the instruments Flyer you banks and companies are allowed to jointly auction currency which does not balance it drained a lot of foreign currency as well as traders of counterfeit bills in which we find collusion in all levels and the question is: Why over the years did things not apparent in this image , which drained a lot of reserves of foreign currency in record time?

the answer is that the monthly oil revenues were big as it enters into Iraq is much greater than that sold a monthly amount, but now if we calculated the salaries of staff allocated to the operating budget and the amounts with what is draining days in the central bank auction , we found a much larger amounts that the intervention of foreign currency to Iraq, during the past two years exclusively Iraqi Central Bank reserves fell to more than 35 percent , and this is a serious indicator to be stopped.

so what is the solution?

solution: 1 - simply solution is to stop the currency auction and open letters of credit for merchants and companies, in the case the import of any company or dealer to any material from outside Iraq , the central bank in cooperation with other banks operating in or outside Iraq to open letters of credit launches money when entering the materials and goods into Iraq and delivered to traders or companies, but rather delivered to the point of contracting, this process makes it easier for the State control the entry of goods, quality and collection of fees and taxes them directly.

2 - the opening of dollar selling outlets for travelers at airports and border crossings after stamping passports and identifies each citizen an amount not to exceed $ 2,000 and will be under intense supervision.

3 - forcing foreign oil companies operating in Iraq and the mobile phone companies and other companies to pay the Iraqi government entitlements by the Iraqi dinar in contrast ,the Central Bank of the Iraqi government and other banks to open outlets for the sale of Iraqi currency in order to compel the traders and companies operating in Iraq to buy Iraqi dinar to pay off their obligations in Iraqi currency to restore confidence in Iraqi dinars and thus stabilize the exchange rate and stop wastage happening in the currency reserves It depends spending in local currency and down to the exchange rate of the equivalent of $ 1 = 1000 Iraqi dinars while retaining an amount last reserves of foreign currency to keep the value of the Iraqi Dinar.

4 - if the central bank could not application of the above he can resort to float the Iraqi currency according to the exchange rate Set a fixed stop growling as it is in theexperience of Lebanon. * deputy in the Iraqi parliament

http://www.alsabaah.iq/Article.....124589

http://www.alsabaah.iq/missing.aspx

The first article is talking specifically about the potential Greek bailout, so what does that have to do with anything. The next one is clearly an op ed and should be treated a such. It has nothing to do with and sort of RV. I have brought in a translation for your convenience:

Iraqi banking sector needs to recalibrate and classification

Sunday 09 October 2016 |14:34

I suggest the Iraqi banking expert Samir Al Nassiri, the CBI is a study on the realities of Government and private banks down to re straightened and rated, and assigning specialized staff in the financial analysis to determine criteria for the efficiency of the administrative and credit, with the participation of Iraqi banks Association and expert advisers and bankers. Iraqi banking sector comprises seven Government banks is «good» and «rivers» and «» and «trade Iraqi industrial, agricultural and real estate, and «Islamic rivers», and 35 private banks, including Islamic banks and branches of foreign banks.

Al Nassiri noted in an interview to «life», «the importance of implementing the resolution of the Board of Directors of the Central Bank controls the nomination of Board members and staff leaders in banks, confirming the separation between owners and executive departments, and not allow them to intervene in Executive job».

He explained that the economic crisis «Pant features since mid-2014 and continued its repercussions so far, behind them known causes of economists and the public». And b «financial mismanagement at State institutions, egotistic behaviour of oil resources achieved in previous years, as well as declining oil prices by 65 percent from what it was, added to all costs of the war on terror and its requirements.

And Al Nassiri said there are steps to remedy the wrong policies in the economy, the importance of «a methodology or a clear strategy for the economy, and not rely entirely on oil resources, plans and programmes aimed at diversifying resources and encourage other sectors such as agriculture, industry and tourism». He stressed the need to "apply the strategies prepared by committees of Cabinet advisers, in cooperation with the United Nations international organizations, 16 have not been implemented yet, it didn't support the financial exuberance, days of oil revenues. He focused on «thrust towards building infrastructure and the sponsoring institutions and supporting the economy, adopting the correct mechanisms in implementing monetary policy and find an alternative currency for the auction he faced criticism».

And the monetary circulation market, pointed out that «the problems experienced by the instability of the exchange rate of the dinar, the flight of the ratio of foreign currency abroad for purposes other than kill and download Central Bank responsibility that must be shared by government institutions, as well as speculators and currency traders, the factors leading to the low savings rate «money in banks to 23 percent, compared with 77 percent of compactness ratio outside the banking sector.

I consider it «indicates mistrust between customers and a number of banks due to low liquidity in each to a minimum, what brought the banks unable to discharge their obligations to customers upon their request to refund deposits».

Business and money was consoled by mismanagement of the banking sector to control of financiers and bankers to exploit funds». And carried a central government responsibility «the deteriorating economic situation of lack of planning and organization. He said Iraqi businessmen Union President willing blibel, «mismanagement in the banking sector due to the control of financiers, which contributed to the use of funds by some bank managers for their investment in illegally.
And saw Iraqi businessmen Union Member Abdul Hassan frozen yogurt, that «this problem to be borne by the Central Government for the delay in payment to people, in addition to non-regulated economic operation has led to the collapse of the process.

Representative of international projects Center in Iraq Mona zalzal told, that «real-banking banks were one of the causes of the problem, as are given to friends and acquaintances managers without studying».

The Central Bank gave banks until September last, to adapt systems and electronic trading».
He stated that «proportion of beneficiaries and users of such transactions does not exceed 10 percent. Maybe the possibility to expand its contribution to the "use and benefit from 77 percent of the money supply to citizens outside the banks, get rid of cash circulation problems».

Likewise, the third article is another opinion piece and means nothing.