Bergslagstroll said:I'm just wondering that have happen to the Iraq goverment. Have there been formed a new goverment after the election? Also that have that goverment been up to? Just asking because as we all know election is not just the election it also that happens after the election. But I havn't heard much about the new goverment.
easyt65 said:The Goverment exists. they have a council, working on Agreeing who should be the Prime Minister right now, etc. They are asking us to step back while they take on this new increased insurgency effort. They are handling their business admirably under the circumstances!
GarzaUK said:I'm just waiting for the last nail in the coffin. Kurds declare Independence. If the talks keep stalling I see no reason if I was a Kurd to stay part of Iraq. The Kurds life is getting better, why would they want to be part of a failing state??
Iriemon said:As I understand it, the general Kurdish attitude is that they have never wanted to be part of Iraq. My guess is that it is American pressure and the promise of American weapons and aid that has kept them from bolting -- so far.
zymurgy said:A kurdish state is something Turkey will actively fight to prevent. The kurds know their independence would turn into a bloody war with the neighbors to the north.
GarzaUK said:Not if there are American soliders in Kurdistan.
Bergslagstroll said:Even without American soldiers Turkey would probably not atack a indipendent Kurdistan. Because of the large diplomatic problems they would get with both EU and the USA. But a indipendent Kurdistan could probably still lead to alot of problem. Like for example lead to that the military take back more power in turkey and a tougher situation for Kurds in Turkey and Iran.
This is one reason there need to be a central political process in Iraq. Else the Kurds will see little reason to not try to get indipendence. But the problem with getting a Iraqie goverment is also the focus on reaching deadlines. That Bush administration argue they making progress by meeting deadlines. But even if it's good that an election is held on time but it doesn't mean much if it doesn't lead to a new goverment and a political process.
GarzaUK said:The thing is its May and they haven't done the simple task of forming a government yet. It political terms this is quite easy. The Iraqi constitution still has to be re-negioated as promised by the shia and kurds.
The funniest thing is before the elections in December, the Kurds and the Shia we're allied together. Now its the Kurds and the Sunnis, secularism against shia law. Interesting.
But the more the government delays the more the population gets restless, more secretarian attacks happen. When Sunnis move out of Shia areas and vice versa (which is happening now btw), civil war is a big possibility.
Bergslagstroll said:Well know it's finaly a Iraqie goverment. So maybee this thread I started two months ago can get some real life.
http://www.nytimes.com/aponline/world/AP-Iraq.html?hp&ex=1148184000&en=8d7c3a80d941cad5&ei=5094&partner=homepage
Personally I think it's a big step forward that Iraqie finaly got a goverment through election.
But it's alot of question for the futher
Like for example that consecvences will it/and have it been that it took five months to get the new goverment?
That is the consecvences of that two of the most important ministry post is not filled?
That will the relation be toward the USA, Iran, China and the EU?
How much indipendence and power will they have?
Then can security be restored and then will USA leave?
That politics stands will the new goverment take?
Personally I think that the answer to those question have to be answered soon and with answers that I positive for the Iraqies or the situation can even become worse instead of better.
Trajan Octavian Titus said:Good points, I just want you to know that you're saying "that" when what you mean is "what."
For example: What will the relation be toward the USA, Iran, China, and the EU.
Just FYI (for your information)
Bergslagstroll said:Personally I think that issue is the least interesting with my post. But the answer is that if I'm tired enough tired I still confuse what and that. Just as you if you learn swedish would mess up with mat, matt and gratis, grattis.
Billo_Really said:What happened to the Iraqi government? Since they don't own any of their banking system, they couldn't make payroll. For those keeping score, the latter part of that was just a guess.
The Central Bank of Iraq Law was issued March 6, 2004. Among its objectives are achieving and sustaining domestic price stability, and promoting a competitive and stable financial system. In meeting these objectives, the Central Bank will support sustained growth and economic opportunity for the people of Iraq.
...
The Banking Law was issued September 19, 2003. The law brings Iraq’s legal framework for banking in line with international standards, and seeks to promote confidence in the banking system by establishing a safe, sound, competitive and accessible banking system.
Trade Bank start-up
The Governing Council in Iraq and the CPA seem to be committed to the restoration of the banking system in Iraq. The CPA recently awarded a consortium led by the US based J P Morgan Chase & Co the tender for operating the Trade Bank of Iraq. The Consortium consists of 13 banks representing 14 countries including Standard Chartered PLC of the United Kingdom, National Bank of Kuwait, The Bank of Tokyo-Mitsubishi, Ltd, and Royal Bank of Canada, among others.
The Trade Bank of Iraq’s start up capital is US$100 million, US $ 5 million from the CPA and US$ 95 million from the United Nations reconstruction fund made up of oil revenues. The Trade Bank of Iraq will provide letters of credit for the Iraq government to purchase heavy equipment and goods.
Initially, the purchases may average around US$ 100 million a month but the bank’s overall business may reach up to US$ 500 million a month after Iraq’s oil industry booms, according to US estimates. The Trade Bank of Iraq is expected to start issuing letters of credit soon. The bank is planned to operate for 12 months but may continue for another two years.
Restructuring ahead
On the same front, the CPA is also tendering the restructuring of Iraq’s two largest state owned banks, namely the Rafidain Bank and the Rashid Bank.
For the banking sector to be revitalised, it will have to be opened up for the private sector. Some state owned banks may have to be privatised and the existing private banks consolidated and restructured. It is also inevitable that the market will witness the entry of foreign banks and financial institutions. As per the new law, the Iraqi Governing Council will permit foreign banks to enter Iraq. The Council will allow the entry of six foreign banks to purchase up to 100% of local banks within the next five years. The Council also allows an unlimited number of foreign banks to purchase up to 50% of local banks. After five years, there will be no restrictions on foreign bank entry. A US $25 million capital requirement will be placed for a foreign majority-owned subsidiary.
Private banks
The Iraqi private sector is already active on the banking sector front with one party reportedly working on obtaining a license for establishing a private bank in the North of Iraq and a few others working on the acquisition of existing private banks. Foreign banks have already expressed their interest in Iraq by participating in the tender for the Trade Bank of Iraq and others have been closely monitoring the situation in Iraq and assessing the possibilities for investment in the war torn country.
The Iraq Holding Company (IHC) is one example of such private sector initiative. Established by Global Investment House, the leading investment bank in Kuwait, IHC has a capital of US$ 200 million which it plans to invest in the financial, services, industrial, health, education and other sectors in Iraq in partnership with Iraqi and foreign partners. IHC has already signed agreements with various partners to establish projects in Iraq and is closely monitoring the developments in the banking sector.
How long it would take to restore the shattered Iraqi banking system is unclear; yet it is certain that much of the private sector contribution to the restoration process would primarily depend on the security situation, the general investment climate as well as macroeconomic developments of pertinence to the banking sector.
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