Loans will open Iraq to business
Foreign firms are desperate to tap into Iraq's potential but they need to be sure that they will get paid. The loan scheme gives that assurance.
In a depressed market, the $66bn carrot being dangled by Baghdad in the shape of new projects must look very tempting to inter-national contractors. The only problem is no one knows who will pay for it.
In response to the collapse in the oil price, Baghdad is considering a supplementary budget, part of which will be funded by loans where the state's oil and gas revenues act as collateral, to underpin the projects market.
The move should be sufficient to bring banks to the market. Iraq's proven reserves are vast, but it could access them much more quickly if it got the cash today.
Baghdad is aware that it must maintain the economic momentum gained in 2008 if the country is not to slip backwards. Iraq's economic upswing has followed the steady decline in violence.
The move away from extremist religious parties at the provincial elections in January demonstrates a greater willingness among Iraqis to embrace moderation and place their trust, for now at least, in economic development.
However, the economy could swing the other way if the government cannot prove itself capable of rebuilding the country's shattered infrastructure, attracting new investment, improving services and creating jobs for the local population. While the 2011 withdrawal of US troops may be too distant for many Iraqis, it could come around uncomfortably quickly for the government if security is not underpinned by economic development.
With the global economy mired in the worst recession for a generation, and national elections beckoning in December, the government must take the initiative.
Foreign firms are desperate to get into Iraq. However, they need to be sure that their staff will be safe, and that they will get paid. The loan scheme gives them that assurance.
http://www.meed.com/commentary/2009/05/loans_will_open_iraq_to_business.html
and this ladies and gentleman is why it will rv! this is the marscall plan all over again!
Foreign firms are desperate to tap into Iraq's potential but they need to be sure that they will get paid. The loan scheme gives that assurance.
In a depressed market, the $66bn carrot being dangled by Baghdad in the shape of new projects must look very tempting to inter-national contractors. The only problem is no one knows who will pay for it.
In response to the collapse in the oil price, Baghdad is considering a supplementary budget, part of which will be funded by loans where the state's oil and gas revenues act as collateral, to underpin the projects market.
The move should be sufficient to bring banks to the market. Iraq's proven reserves are vast, but it could access them much more quickly if it got the cash today.
Baghdad is aware that it must maintain the economic momentum gained in 2008 if the country is not to slip backwards. Iraq's economic upswing has followed the steady decline in violence.
The move away from extremist religious parties at the provincial elections in January demonstrates a greater willingness among Iraqis to embrace moderation and place their trust, for now at least, in economic development.
However, the economy could swing the other way if the government cannot prove itself capable of rebuilding the country's shattered infrastructure, attracting new investment, improving services and creating jobs for the local population. While the 2011 withdrawal of US troops may be too distant for many Iraqis, it could come around uncomfortably quickly for the government if security is not underpinned by economic development.
With the global economy mired in the worst recession for a generation, and national elections beckoning in December, the government must take the initiative.
Foreign firms are desperate to get into Iraq. However, they need to be sure that their staff will be safe, and that they will get paid. The loan scheme gives them that assurance.
http://www.meed.com/commentary/2009/05/loans_will_open_iraq_to_business.html
and this ladies and gentleman is why it will rv! this is the marscall plan all over again!