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Deep differences stand in the way of approving the draft budget 2018 House of Representatives "Internet" Economy News Baghdad:
Large differences within the political blocs on the draft budget bill 2018, which will affect the economic policy of the government during the current year, according to specialists, expecting not to pass the budget in the coming days because of the intensity of the dispute between the decision-makers in the House of Representatives.
The Ministry of Finance instructed all ministries during the past month to cover their needs through the use of the approved exchange mechanism, which is 112 to face the non-adoption of the draft budget for 2018.
The parliamentary economic committee said that the non-adoption of the budget caused by the delay of the Council of Ministers to send a draft budget law and synchronized with the beginning of the legislative holiday.
The committee member, Najeeb Najib, said in a statement to "Economy News" that the reason for delaying the Council of Ministers to send the budget law to the House of Representatives, is the high oil prices have estimated the price of a barrel of $ 43 and now sold at $ 58, which prompted the government to reduce the deficit to 13 Trillion dinars after it was 23 trillion dinars.
Najib expressed her displeasure at the adoption of 12.6 percent of the province of the budget of 2018, saying at the same time that it was in accordance with the formula of "overwhelming".
She added that 12.6 percent is not enough to pay salaries in general, because the region needs 889 billion dinars a month to pay, while the ratio will provide 450 billion dinars only.
And on the losses resulting from the delayed adoption of the budget, the member of the Economic Committee, the losses are not large because the origin of investment expenditures set up for the establishment of service projects do not constitute more than 25% of the budget, most of which loans and some of them ratified in 2017.
Noting that the sovereign expenditure took a large part of the budget of 2018 to reach 45%, as well as the availability of degrees of employment but not able to cope with unemployment.
On the other hand, the Dean of the Faculty of Management and Economics, Mitham Laibi, in a statement to "Economy News" that "losses caused by delaying the adoption of the budget, will be based on the salary and salaries, because it is the first component of the budget, which weakens the investment side.
He added that the delay caused by the president of the conflict between the political blocs for the purposes of electoral propaganda and try each of them to review "political muscles."
"All political arguments have nothing to do with any economic fundamentals aimed at developing the Iraqi economy," he said.
The federal budget estimated at 108 trillion dinars, with a deficit of 13 trillion dinars, and saw the reduction of the share of the Kurdistan region from 17% to 12.67%.
"The first loser of the postponement of the budget is the Iraqi people, and the postponement of their ratification is a delay for the investment side and a semi-disruption of the operational side," said the head of the Iraqi Economists Association, Abdul Hussein al-Yasiri.
He explained that it is not losses by the delay is the management of the investment side and that the budget is a law on the basis of time limits, every day delay this law is lost investment opportunity on the Iraqi economy.
While more than 4 million people are employed by the private sector, many of whom depend on the budget for their work.
Views 217 Date Added 06/01/2018
Saleh calls on the World Bank to suppor t development projects in Iraq
Thursday, November 29,
Alsumaria News / Baghdad called on the President of the Republic , Barham Salih, Thursday, World Bank for the Middle East and North Africa, to support social and economic development projects in Iraq, stressing the importance of achieving financial, monetary and economic stability in the country.
The President of the Republic, in a statement received by Alsumaria News, a copy of it, said that "President Barham Salih received at the Peace Palace in Baghdad this afternoon, World Bank Vice President for the Middle East and North Africa Farid Belhadj, accompanied by Regional Director of the World Bank for Central Asia Saroj Kumar Jha" .
He pointed out the importance of the World Bank's support for social and economic development projects in Iraq, as well as appropriate reforms, combating corruption, the necessity of developing and diversifying the sources of the national economy and ensuring the requirements of reconstruction.
"The achievement of financial, monetary and economic stability in Iraq is not only a goal but also a basis for political stability and an important strategic project for sustainable development and civil development in the country," Barham Saleh said.
For his part, the World Bank Vice President for the Middle East and North Africa said that "the World Bank is determined to support the Iraqi economy positively and work to support partnership with Iraqi financial institutions by increasing areas of cooperation and the adoption of better investment resources and energies."
Parliamentary Finance: Iraq's debt stood at $ 119 billion and its benefits to the people
one hour ago Last updated 02:41 PM BAGHDAD / tomorrow Press:
detecting an MP for the parliamentary finance committee, Majida al - Tamimi, that Iraq 's debt stood at $ 119 billion, of which external estimates of $ 80 billion, and the rest is internal debt, noting that the loans go into the pockets of corrupt people and bears interest on the loans.
She said Tamimi's "Tomorrow 's Press," that "there are negative indicators on monetary policy as well as non - corrupt accountable , " indicating that " the loans they take Iraq went to the corrupt and the people bear their benefits."
She pointed out that " the apparent corruption through lack of investment loans properly and mostly fake and thefts to the pockets of the corrupt , " adding that " the figures that previously borrowed and squandered the money they borrow and their partners today and they have a certain pedigree."
She added that "there are a lot of files have been forwarded to the integrity, but there is no deduction for those files and if I stayed in the integrity of the year as possible to escape the corrupt out of Iraq and not be held accountable , " indicating that "Iraq is required payments of up to $ 119 billion, including debt Foreign worth 68 billion to 12 billion but increased by the recent German loan for a total of $ 80 billion. "
She explained that "Iraq 's debt to the Gulf countries reached $ 40 billion, including $ 4.6 billion of Kuwait was postponed repaid until 2018 because of financial commitments crisis , " indicating that " the debt is treated and that have not been claimed in the present time amounted to 40 billion dollars."
She stressed that "these figures were taken by the General Director of the debt after a request made by the knowledge of Iraq 's debt , " adding that "there is an internal debt of the government borrowed from the Central Bank, as well as bonds and debt peasants and others."
Thursday, May 19, 2016, Posted at: 13:08(GMT+7) PM calls for effective use of WB loans Relevant agencies must get well prepared for receiving the remainder of the World Bank's International Development Association (IDA-17) fund allocated for Vietnam in the 2014-2017 period, according to Prime Minister Nguyen Xuan Phuc.
The Prime Minister also urged all bodies to devise measures to ensure the effective use of official development assistance (ODA) and other preferential loans.
The two IDA-funded projects on strengthening the management of land and building a land database, and improving teachers’ effectiveness will remain unchanged in terms of scale, according to hime conclusion.
The Government leader assigned the Ministry of Planning and Investment to be in charge and work with the Ministries of Natural Resources and Environment, and Education and Training, to submit the projects for approval.
Relevant agencies are to complete necessary documents before May 20 to receive WB-funded projects in the fiscal year of 2016 in line with the Government’s Decree No.38/ND-CP dated April 23, 2013 on management and use of ODA and preferential loans.
The PM gave the green light to the State Bank of Vietnam to technically negotiate with the World Bank on IDA projects in the 2016 fiscal year.
He requested the Ministry of Planning and Investment to review the list of projects to be disbursed in the next fiscal year to ensure effective use of the loans.
The Ministry of Finance will cooperate with the Ministry of Planning and Investment in making reports to the Government on the safe limits of ODA and preferential loans, which does not affect the public debt ceiling.
hello again my friends. its your bud here with another worth of a take on what i see happening within the borders called iraq. and it is really good news from my vantage point! the topic of this opinion piece is the '6 major factors that influence an exchange rate'. i will cover each factor briefly in reference to iraq and hope to derive whether or not those invested are either in a good or bad position.
as many know, the importance of an exchange rate revolves around one country's trading relationships with other nations. trade relationships is the sole purpose of an exchange rate. where there is no international trade, an exchange rate tied to a currency has no domestic significance. with this in mind lets peer into the 6 factors of exchange rate influence between iraq and its trading partners.
1) Inflation - iraq has done a fantastic job steering its inflation rate. the latest report (aug 2015) has inflation at 2.2%. some economists would mark this as the ideal inflation rate. this places iraq is a great position with trading partners for determining a strong exchange rate to the iqd.
2) Interest Rates - iraq has maintained a steady interest rate of 6% over the last 5 years. compared to other nations, it is a phenomenal rate. the importance here is the attractiveness it has to foreign investors. should iraq sure up the security situation with daesh and clean up political corruption, foreign investors might feel confident enough to pour funds into iraq at these rates.
3) Current-Account - iraq has done quite well between trading partners and has held a positive current account balance (exports vs imports) over the previous 9 years except for 2010. oil is its primary export and it has been strong enough a commodity to keep iraq experiencing gains in its current accounts. as iraq build its non-oil sector through the plan for increased industry and agriculture, exports should increase and it will be reflected in the current account.
4) Public Debt - this is where the hidden gem is revealed and the reason for the title of my opinion piece. everything in the papers speak to iraq's "deficit financing". however for some reason it appears to be seen in a negative light. my opinion is much different. not all debt is good but in this instant i definitely believe it is. when most developing nations look to expand its economic markets as iraq is doing, there will be an inevitable deficit to fiscal policy (the budget). in the short term, this is a very very good thing! where most under developed nations utilize deficit financing for payment of domestic and foreign loans, this does not hold true for iraq. iraq is using this tool as developed nations would, for capital formation for economic growth and boosting the private sector. this type of debt is the best stimulate for the economy in the short term. (here is a good slide-show presentation explaining deficit financing.)
5) Terms of Trade - balance of trade for iraq is simply outstanding and last reported at approximately $40B usd ($44B previous year). compared to turkey (-$6B usd), japan (-$268B yen), germany $24B eur. i would say that iraq comparatively has a case for a strong dinar. its current accounts and balance of trades are unbeatable (maybe a little exaggeration there).
6) Political Stability & Economic Performance - well, you can't shine everywhere . unfortunately this important piece is dragging iraq down.....and i mean wayyyyyyyy down. nobody in their right mind want to stick hundreds of millions in an environment like this. this area alone is holding iraq back the most. all things considered, if this one area is corrected there is no reason why foreign investment wont flood the country and the domestic currency surge in demand.
there you have it gang. hopefully this piece wasn't too long. this should give us all a solid overview of the factors that influence the dinars TRUE exchange rate the most. from it we should be able to make a sound judgement on where the currency is headed and whether or not we want to remain involved.