Windreader1--November 14, 2010
I expect the Security Council will pass another resolution next month extending the Chapter VII immunity for the DFI based on the following facts.
1) The Iraq government requested the extension of the DFI immunity under Chapter VII in the latest report filed with the Security Council. This was due to the inability of the Iraqi government to establish the same level of immunity that is currently provided by Chapter VII protection.
2) The IMF standby arrangement is now linked to the Chapter VII protection. Including the IMF Standby Arrangement was one of the procedures ordered by the Security Council in Resolution 1905 (2009).
3) The IMF is monitoring the status of the time line action plan ordered under Resolution 1905. Status of this action plan and what had been presented to the Security Council was included in the latest report from Iraq to the IMF. It was included in the Oct/2010--First review under Standby Arrangement.
4) Iraq has a standby arrangement for 3.6 billion USD. To date they have received two loans totally approximately 1.2 billion USD. The last date for a projected payment is Oct 30, 2011.
5) There were two new target dates in Iraq’s request to the Security Council. The first was the extension of immunity for another year. The second was June/2011. Iraq is concerned that there are still commercial creditors from the previous regime that might try to seize Iraqi funds and assets. They have requested that the Security Council include a clause that Iraq will not be liable for such claims after June/2011.
6) The June/2011 was part of the IMF review report. Iraq has made no progress in the restructuring of the balance sheets of the two largest state-owned banks, Rafidain and Rasheed. The IMF has extended the deadline for cleaning up these bank balance sheets of Saddam-era assets and liabilities until end-June/2011. Assets of these two banks were seized as part of the Security Council’s Sanction Committee as authorized under Resolution 1483 (2003) and Resolution 1518 (2003) along with the Central Bank of Iraq. Those entities have not yet been released by the Sanctions Committee.
7) The IMF and World Bank are collaborating on Iraq’s financial and banking reforms. The World Bank also has a vested interest in the continued protection of the DFI funds.
8) There are still issues with the oil metering system. The SG’s 3rd report was presented by the Controller of the UN who stated the implementation plan was already behind schedule with only 51 per cent of the required meters had been installed. It is to be completed by the end of 2011. The Security Council is still issuing statements regarding their concerns over the timely completion of this project.
9) I did find one very interesting item. The Security Council issued a Communique regarding the Nov 10th closed door meeting. These countries asked to be allowed to attend the hearing. “The President, with the consent of the Council, invited the representatives of Australia, Bahrain, Belgium, the Czech Republic, Denmark, Egypt, Finland, Germany, Greece, Hungary, Indonesia, Iraq, Jordan, Kazakhstan, Kuwait, Malaysia, the Netherlands, the Philippines, Poland, Portugal, Slovakia, Slovenia, Sweden, Switzerland, the Syrian Arab Republic and Qatar, at their request, to participate.” These countries are not part of the Security Council. The Communique issued for the July 12 DFI closed meeting also stated there were other countries that requested attendance, but did not list the specific countries.
I am still cross referencing reports from the IMF, World Bank, Iraq and the United Nations. If I find any other links to the immunity extension, I will post against this thread.
I expect the Security Council will pass another resolution next month extending the Chapter VII immunity for the DFI based on the following facts.
1) The Iraq government requested the extension of the DFI immunity under Chapter VII in the latest report filed with the Security Council. This was due to the inability of the Iraqi government to establish the same level of immunity that is currently provided by Chapter VII protection.
2) The IMF standby arrangement is now linked to the Chapter VII protection. Including the IMF Standby Arrangement was one of the procedures ordered by the Security Council in Resolution 1905 (2009).
3) The IMF is monitoring the status of the time line action plan ordered under Resolution 1905. Status of this action plan and what had been presented to the Security Council was included in the latest report from Iraq to the IMF. It was included in the Oct/2010--First review under Standby Arrangement.
4) Iraq has a standby arrangement for 3.6 billion USD. To date they have received two loans totally approximately 1.2 billion USD. The last date for a projected payment is Oct 30, 2011.
5) There were two new target dates in Iraq’s request to the Security Council. The first was the extension of immunity for another year. The second was June/2011. Iraq is concerned that there are still commercial creditors from the previous regime that might try to seize Iraqi funds and assets. They have requested that the Security Council include a clause that Iraq will not be liable for such claims after June/2011.
6) The June/2011 was part of the IMF review report. Iraq has made no progress in the restructuring of the balance sheets of the two largest state-owned banks, Rafidain and Rasheed. The IMF has extended the deadline for cleaning up these bank balance sheets of Saddam-era assets and liabilities until end-June/2011. Assets of these two banks were seized as part of the Security Council’s Sanction Committee as authorized under Resolution 1483 (2003) and Resolution 1518 (2003) along with the Central Bank of Iraq. Those entities have not yet been released by the Sanctions Committee.
7) The IMF and World Bank are collaborating on Iraq’s financial and banking reforms. The World Bank also has a vested interest in the continued protection of the DFI funds.
8) There are still issues with the oil metering system. The SG’s 3rd report was presented by the Controller of the UN who stated the implementation plan was already behind schedule with only 51 per cent of the required meters had been installed. It is to be completed by the end of 2011. The Security Council is still issuing statements regarding their concerns over the timely completion of this project.
9) I did find one very interesting item. The Security Council issued a Communique regarding the Nov 10th closed door meeting. These countries asked to be allowed to attend the hearing. “The President, with the consent of the Council, invited the representatives of Australia, Bahrain, Belgium, the Czech Republic, Denmark, Egypt, Finland, Germany, Greece, Hungary, Indonesia, Iraq, Jordan, Kazakhstan, Kuwait, Malaysia, the Netherlands, the Philippines, Poland, Portugal, Slovakia, Slovenia, Sweden, Switzerland, the Syrian Arab Republic and Qatar, at their request, to participate.” These countries are not part of the Security Council. The Communique issued for the July 12 DFI closed meeting also stated there were other countries that requested attendance, but did not list the specific countries.
I am still cross referencing reports from the IMF, World Bank, Iraq and the United Nations. If I find any other links to the immunity extension, I will post against this thread.
