DISCLAIMER: THIS INFORMATION REQUIRES CROSS REFERENCING FOR VALIDITY!!!!!
TEAM,
I need your help! During my IMF research last night I stumbled across the following in the latest Letter of Intent for Iraq. I BELIEVE WE STUMBLED ACROSS A TIMELINE!!! Please help me confirm.
Paragraph 22 -- Page 10
The banking sector is in urgent need of reform to foster financial intermediation andenable banks to contribute to the development of a strong private sector. With the help of the
World Bank and other international agencies, we have developed a banking sector reform
strategy. The first important step will be to finalize the restructuring of Rafidain and Rasheed
banks, based on their completed financial and operational audits. In this regard, the foreign
liabilities incurred by Rafidain and Rasheed on behalf of the previous regime and the large
suspense accounts will need be removed from these banks’ balance sheets. We aim to
complete the restructuring of the balance sheets of Rafidain and Rasheed by June 30, 2010.
Once their balance sheets are cleaned up and restructured, based on the decision already
made by the Economic Committee, the capital of Rafidain and Rasheed will be raised to
ID500 billion and ID400 billion, respectively.
THERE'S MORE - #4 AND #5
Table 2. Iraq: Prior Actions and Structural Benchmarks Under the Stand-By Arrangement
II. Structural Benchmarks Date Status
Program Safeguards and Central Banking
1. Completion by an external auditor of the audit of the CBI 2008 financial
statements in accordance with International Standards on Auditing. March 31, 2010
2. Prepare and submit to the Governor of the CBI monthly reports on the status of
the CBI's investment portfolio, in light of the investment criteria established in the
reserve management guidelines.
March 31, 2010
3. Provide to IMF staff: (i) the completed special audit data as of December 31,
2009, including on the CBI’s net international reserves and net domestic assets,
and (ii) the draft 2009 audited financial statements and draft management letter.
March 31, 2010
Bank Restructuring
4. Completion of the restructuring of the balance sheets of Rasheed and Rafidain
banks. June 30, 2010
Public Financial Management
5. Complete review of all accounts in the banking system that are classified as
central government accounts and reconcile them with Treasury records, returning
any idle balances received from the budget to the central Treasury.March 31, 2010
6. Submit
to the Board of Supreme Audit and to the Council of Representatives the
final accounts of the Federal Budget for the year ending December 31,
2008; March 31, 2010
to the Council of Representatives and publish the audited accounts of the
Federal Budget for the years ending December 31, 2005 and December
31, 2006; and March 31, 2010
to the Board of Supreme Audit and to the Council of Representatives the
final accounts of the Federal Budget for the year ending December 31,
2009. September 30, 2010
PLEASE REVIEW PDF FILE AT IMF SITE FOR ITEMS 7 - 15 -- LINK IS ABOVE
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I'M NOT SURE BUT, AND I WOULD HAVE TO CHECK SOME ACCOUNTING RULES, BUT WHEN THEY SAY "REMOVE INCURRED LIABILITIES" AND "RAISE CAPITAL TO 500 BILLION ID AND 400 BILLION ID RESPECTIVELY", IF THAT COULD EQUATE TO RV TIME!
I'LL BE MAKING CALLS ON THIS IN THE MORNING BUT IF ANYBODY COULD PROVIDE ADDITIONAL COMMENTS, I WOULD GREATLY APPRECIATE IT!!!
SCOOTER
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