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Iraqi Dinar Buzz Updates

IMF: Iraq: First Review Under the Stand-by Agreement
2010-10-23 05:15:47

(Pg 26)-Similarly, little progress was made in the restructuring of the balance sheets of the two largest state-owned banks, Rafidain and Rasheed. With the assistance of the IMF, however, we have now developed a way forward to remove the legacy items of the Saddam-era regime from the balance sheets of these banks. More specifically, we will establish a Bank Reconciliation Unit (BRU), with participation at a technical level of staff from these two banks, the CBI, the Ministry of Finance, the BSA, and experts of Ernst & Young (who were the agents of the Ministry of Finance in the external debt restructuring process) to: (i) deal with all legacy external liabilities taking into account the government’s actions in the context of Iraq’s external debt restructuring (ii) indentify and propose to write-off nonperforming loans to defunct state-owned enterprises; (iii) propose a course of action for other remaining unreconciled accounts; and (iv) after the balance sheets have been cleaned up, revalue the remaining foreign currency denominated balance sheet items. The BRU will work under the supervision of the Restructuring Oversight Committee (ROC), consisting of the Minister of Finance, the Governor of the CBI, and the Chairman of the BSA. The BRU will send its recommendations for final approval to the ROC to ensure that the restructuring of these banks’ balance sheet has the necessary support and authorization. Through this process, we aim to complete the restructuring of the balance sheets of Rafidain and Rasheed by end-June 2011 (a new date for the completion of this structural benchmark).

(Pg 27)-Furthermore, the CBI will continue to have an external auditor conduct reviews of its net international reserves and also of its net domestic assets for each test date under the SBA (with the exception of end-March), with the review for end-June 2010 to be completed by end-October 2010 (another new structural benchmark under the program), and with the scope of the NDA review