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Getting paid in
post-war Iraq
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| Using the local
bank is not that easy in Baghdad |
Paris,
3 July 2003
- As prospects for early establishment of representative government in
Baghdad look increasingly remote, foreign suppliers to Iraq face uncertainty
about contracts entered into before Saddam Hussein's overthrow.
The tangled legal
situation of those contracts now and in the future is the subject of the
main article in the July issue of DCInsight, the quarterly newsletter
published by the International Chamber of Commerce on developments in
international trade finance.
Questions tackled
in the article by financial journalist Mark Ford include the legality
of contracts struck under the United Nations sanctions regime and securing
payment under documentary credits.
The article says that
the future of documentary credits in Iraq depends on the establishment
of a sound financial sector. It warns that the process of building a stable
and credit-worthy stock of local institutions is likely to take some time.
"A few commercial
banks have reopened since Baghdad fell, but they are facing difficulties
providing facilities for transactions within Iraq, let alone those involving
foreign trading partners," Mark Ford writes.
To read the full article
on Documentary Credits in Iraq and expert commentaries on such related
issues as eUCP - the electronic adaptation of ICC's rules on documentary
credit - subscribe to ICC DCInsight, the specialist newsletter on trade
finance.
To
order DC Insight click here and go to the DC Insight icon
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