Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content

The Finance Committee reveals the mechanism for paying Iraqi debts .. And the Central reveals its policy to control the exchange rate


Recommended Posts

Iraq's budget: $ 4.6 billion for external loans and public debt of $ 130 trillion

04:37 - 06/01/2019

 
image
 
 

Private - Mawazin News 
A member of the Finance Committee parliamentary Faisal al-Issawi, on Sunday, the existence of 4 billion dollars in the budget as benefits to Iraq's foreign loans, while noting that Iraq is indebted to the amount of up to 130 trillion dinars. 
"The budget includes 4 billion dollars as interest on foreign loans obtained by Iraq," Al-Issawi said in an interview with Mawazine News. "The presence of 10 billion dollars is financed by foreign loans," he said. 
He added that "the debts of Iraq up to 130 trillion dinars, which is partly divided as compensation for the invasion of Kuwait and the Paris Club debt section and another part of the former regime."

  • Thanks 2
  • Upvote 2
Link to post
Share on other sites
  • 2 weeks later...
  • Replies 360
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

This is threw another translation online not google...Currency experts table Sunday July 7, 2019 98 currency experts Baghdad table / Hussein Tgb of the importance of the Iraqi currency and its impact

They are doing the calculations at 1,200 IQD per dollar.... The actual rate is 1,190 1.2 IQD per $1  = $0.83 $1 / 1,200. = $0.00083  after deleting the 000 = $0.83   Go RV ASA

Yep. Christmas was a bit tough this year. Had a nice tree but 1 gift under it for my boy. It didnt work. Hes such a good kid. He didnt care but kinda messed up my attitude for a while. It could be wor

Posted Images


Monday 14 January 2019 01:34 PM
| Number of readings: 286

France cancels Iraq debt through Paris Club


 

irq_1287240594_1547462083.jpg&max_width=300

 

 

BAGHDAD / Prime Minister Adel Abdul-Mahdi on Monday thanked French Foreign Minister Jean-Yves Lourdien for his country's position on canceling debts owed by Iraq through the Paris Club.

"France is a country that is friendly to Iraq and its relations are very important for its position and its strong and distinguished role. We look forward to a greater contribution and presence in the fields of economy, services, culture and education, in continuation of France's position with Iraq in its war against Da'ash, And to continue coordination and communication on support for security and stability in the region.

He pointed out that "the democratic experiment in Iraq is being strengthened and made progress for the benefit of all Iraqis, and that a supporter is not an Iraqi industry but a backward and extremist thinking industry, calling for building balances that support moderation, moderation and civic values." He stressed his keenness to develop partnership with France in combating terrorism, , And expressed full readiness to overcome obstacles and legacies.

The Prime Minister thanked France's position to cancel the debt owed by Iraq through the Paris Club, while proposing a study twinning between the cities of Paris and Baghdad welcomed by the French side and promised to study.

For his part , the French Foreign Minister said that we came to declare our full support for Iraq and its government and to express France's will to expand relations with Iraq and to continue to stand by Iraq in building after our supporting position in defeating the support and support of the Iraqi forces. He added that Iraq has become a key player in stability and its policy. And that France will go forward with the partnership and cooperation with Iraq and support the Iraqi government, which is leading Iraq successfully, referring to the upcoming visit of French President Macaron to Baghdad to reaffirm support and develop friendly relations and cooperation. The existing partnership between the two countries. Finished

http://aynaliraqnews.com/index.php?aa=news&id22=112251

  • Upvote 4
Link to post
Share on other sites
  • yota691 changed the title to France cancels Iraq debt through Paris Club
  • 4 weeks later...

Sound the alarm “Iraq’s debts”, betting the oil country to creditors

By Editor
 
January 5, 2019
 
- In Releases
 
 
 
 

%D8%AF%D9%8A%D9%88%D9%86-%D8%A7%D9%84%D8

Shatha Khalil *
Iraq is entering the circle of danger because of the doubling of debts and the rise of them , where the expert and economist , Iraqi professor Dr. Abdul Rahman Najm Mashhadani confirmed the warning of the Deputy President of the International Monetary Fund to the Iraqi government in the “Kuwait Conference for the reconstruction of Iraq” that the policy of borrowing has become dangerous to Iraq and the interests that Iraq must pay it in the year 2022 about (60%) of its revenues, i.e. it will be unable to repay its debts and the payment of the interests on them also, Iraq is moving towards a real disaster that the government does not care about it .
Mashhadani stressed that Iraq during 2014 and 2016 wasted $ 202 billion, which came from $ 36 billion in foreign loans; $ 23 billion from the decrease of reserve in central bank, $ 33 billion comes from the rise of in domestic debt, and (120) Billion dollars of oil revenues.
Mashhadani added that Iraq needs 30 years to repay its internal and external debts, which will put Iraq’s oil resources for many years under the mortgage of banks and creditor countries.
In the same context, specialists stressed what was reported in a recent and important news , confirmed that there are more than (4) million government employees and (3.7) million retirees, plus 2 million Iraqis registered under the so-called social welfare network that they receive monthly salaries to lift them out of poverty.
The Ministry of Planning, according to figures and statistics, sounded the alarm that began to threaten the body of the Iraqi state and the future of development, in a country that its government was forced to borrow for the third year in a row to secure (42) Billion ” dollars annually to cover its operating budget, and experts described the private sector as the savior, in the event that the State has started to support it and urge it to work again in the local market.
Mashhadani criticized the budget of 2019 because it is illogical, and there is an exaggeration of operational figures, surprising the context of the distribution of proportions to the provinces and ministries, and pointed out that he was expected to press the expenses, not to maximize, adding that the budget needs to be significantly modified because the large increase is suicidal, because of the large deficit and borrowing, stressing that in (2022) Iraq will not be able to repay its external debt only by paying (60%) of its imports !!
Economists and experts said that the proposed draft bill (2019) , shows any follower that Iraq is steeped in its debts and the interests of previous debts, which may amount to the extent that Iraq would lose more than (15%) of its budget to pay these debts, if oil prices did not increase , It would be possible that these debts and their payments would amount to 70 percent of Iraq’s annual budget.
A member of the Iraqi Finance Committee in the Iraqi parliament Rahim Darraji, said that since 2003 and to date, Iraq resulted in many debts due to the wrong policies of successive governments, and that the governments that took power has no wisdom in managing the financial and monetary policy of the country, and the budgets of Iraq’s previous budgets were exaggerated and lack of good management and not based on study and planning, but on the basis of so-called fill-in spaces, that future generations will bear the current debt burden.
A member of the economic committee in the Iraqi parliament, Nora al-Bajari, said that the debts that have burdened the Iraqi economy caused by rampant corruption in the country, and the fight against the terrorist organization ISIS, in addition to the seizure of officials and parties affiliated to take over projects in the deals of corruption.

11.jpg

%D8%B1%D9%88%D8%A7%D8%A8%D8%B7-22.jpg

%D8%B1%D9%88%D8%A7%D8%A8%D8%B7-22-.jpg

%D8%B1%D9%88%D8%A7%D8%A8%D8%B7-333.jpg

%D8%B1%D9%88%D8%A7%D8%A8%D8%B7-333-.jpg

%D8%B1%D9%88%D8%A7%D8%A8%D8%B7-333-0.jpg

The total amount of these benefits and repayments to Iraq about 12423.5 billion Iraqi dinars, equivalent to about 12770 billion dollars.
When borrowing is positive?
State borrowing can be useful and positive in many situations, most notably:
• States should have plans and objectives for borrowing, with their causes, dimensions and sources, and not for patchwork.
• The borrowing should not be based on sovereign guarantees in a way that guarantees the unity of the country and non-interference in its affairs.
• The borrowing should be for urgent necessities such as wars or investment to maximize returns.
• The State should have the proven capacity to serve the debts and repay the debts within their deadlines without renewal.
• The lending state should be easy and can give some permissiveness such as reprogramming loans.
• Not to borrow with greedy countries or to have hostile objectives or to save grudges with borrowers.
• Prior intentions must be made to restore the loan schedule or to extinguish it or settle it amicably without acquiescence.
• Borrowing is a unanimous collective decision and not based on an individual opinion and involves corruption.
• There is a real will to pay loans on time and not to beg to postpone them year after year.

Iraqi Finance Committee:
The Parliamentary Finance Committee has not classified foreign loans that its value is more than $ 70 billion, some of which are bad debts that were considered debt despite being subsidized during the first Gulf War. Some of them can also can be settled at the Paris Club for Debt. Other debts can be negotiated to extinguish them or convert them into investments or any formula agreed upon, as part of their political and military goalsand as done with a political system that has ended and can not pay any dollar. According to data provided by Iraq in 2012, Iraq ranked (60) between countries in terms of indebtedness, which is a good rank if there have been serious policies to address the debt, but the reality is not telling good news l, as external loans and internal indebtedness multiply year after year, noting that in the draft federal budget for the year 2018, it was planned to address the budget deficit of (12) trillion dinars, by authorizing the Ministry of Finance to find External sources of borrowing, as well as the inclusion of expenditure paragraphs to be financed through loans previously agreed, leaving the door open to borrow from the Central Bank by treasury bills, bonds, credit and other available means.
This means that loans are generated annually in the hope of rising oil prices, a possibility that is difficult to achieve , if not impossible, because alternatives to oil are possible and can prevent any crises to supply black gold (oil), after there are more possibilities for export, and to limit the crisis of hgh prices , a the most serious issue is that the IMF has long hands in Iraq and can influence the government to make decisions that do not take into account the interests of the poor, which are increasing annually. The measures for economic reform and increasing national income need an administration and will that are not currently available, There is a real need for (200) billion dollars, in order to put things back to normal, which requires attention before it is too late.

Note: The tables are for Rawabet center

Translated by : mudhaffar al-kusairi

Economic Studies Unit

Rawabet Center for Research and Strategic Studies

https://rawabetcenter.com/en/?p=6841

 
  • Thanks 2
  • Upvote 2
Link to post
Share on other sites

Thanks for the article Butifldrm.  If Iraq would go after all the corrupt politicians who have been ripping off the Iraqi wealth and shake them down like Saudi Arabia, the debt could be paid down or off quickly.  Start with Maliki and his sons, that would account for 100B.  

  • Like 1
  • Upvote 5
Link to post
Share on other sites
  • yota691 changed the title to Sound the alarm “Iraq’s debts”, betting the oil country to creditors
  • 2 weeks later...

Parliamentary Finance: Iraq will pay its external debt until 2053

15:40 - 27/02/2019
0
 
  
6363-1-or-1434725531.jpg

Information / Special ...

The parliamentary finance committee confirmed on Wednesday that the Iraqi government will continue to pay the country's external debt until the end of 2053.

"The foreign debts of Iraq are divided into two parts, which will be fully paid by the end of 2024," committee member Ahmed Hama said in a statement. "The other part will be completed by the end of 2053 as the government has not submitted On international borrowing again. "

He added that "Parliament obliged the government not to go towards external borrowing to fill the budget deficit during the current year and will continue this decision in the coming years to prevent the rise of foreign debt," noting that "debt repayments will be scheduled on the public budgets and not from surplus funds high oil prices" .

The coalition of victory was likely, earlier, go to the surplus from the budget of 2019 towards the launch of grades for graduates and the reconstruction of cities liberated from the call of the terrorist and the payment of external debt.

https://www.almaalomah.com/2019/02/27/391010/

  • Upvote 6
Link to post
Share on other sites
On 2/12/2019 at 6:33 PM, Butifldrm said:

The total amount of these repayments equivalent to about 12770 billion dollars.

 

Apparently, the only bank in the world that Iraq DOESN'T owe a loan payback. :moneybag:

 

                Related image
  • Like 1
  • Thanks 1
  • Haha 2
Link to post
Share on other sites
2 hours ago, King Bean said:

 

Apparently, the only bank in the world that Iraq DOESN'T owe a loan payback. :moneybag:

 

                Related image

 

Watch for the articles to come out next week . . . " National Australia Bank loans Iraq 500 million Dollars - CEO says glad to step up and ' HOP TO IT  " . . . small bank DEEP pockets;)

  • Like 1
  • Haha 3
Link to post
Share on other sites
  • yota691 changed the title to Deputy reveals cases of corruption in the amount of indebtedness of Iraq
30-05-2019 03:13 PM
image.php?token=12601551046032896d36db015c2d4c54&c=1338557&size=
 


 

Baghdad

Revealed the deputy of the Finance Committee Parliamentary Ahlal Dulaimi, on Thursday, there are cases of corruption in the amount of indebtedness of Iraq, noting that the economy of Iraq does not bear more foreign borrowing.

"The amount of indebtedness of Iraq is very large, and part of it went to the pockets of corrupt and some political parties, through the imaginary projects in the absence of transparency from 2003 until the end of 2014," Dulaimi said in an interview with Al Jazeera Net.

"The budget of 2014 contains external and internal loans disbursed without the knowledge of anyone in mysterious circumstances because it was not approved within the parliament with the provision of accounts final to them."

"Dilaimi pointed out that" there are debts have been disbursed, and the country is obliged to pay its dues and benefits, and "these funds did not go to achieve development, but pockets of corrupt."

She pointed out that "the proportion of loans in each budget after 2003, between 20 and 25% of the total budget, because of the failed economic policies of previous governments, which are economic plans indiscriminate not dependent on the economy, but on the parties and businessmen loyal to them, and tampering with the country's ability to During the militias, according to their expression. "

"The Finance Committee has taken a decision during the current parliamentary session to prevent the government from borrowing abroad, as was approved in the budget of 2019, because the country's economy does not bear more foreign borrowing, which includes the risk of reducing support for the poor and raising the prices of derivatives Oil and other taxes. "

 
  • Upvote 2
Link to post
Share on other sites
16 minutes ago, KDuesing said:

I'm calling it for Tue!

 

 

Help a brother out .... which month and what year. Just wanna be ready to jump. 😆

 

This waiting is becoming brutal.:tiphat:

  • Thanks 1
  • Upvote 3
Link to post
Share on other sites
  • yota691 changed the title to The debts of Iraq .. Challenges facing the Iraqi economy
 
2,230 views

Today, the Iraqi economy is facing huge challenges: a high debt volume, with $ 15 billion being allocated to repay debt and interest payments in 2019 as a result of increased borrowing over the past 10 years.

A matter attributed to specialists, according to "Al Jazeera Net", to the financial and administrative corruption prevalent in the country, and go to the pockets of the parties to finance their activities instead of sustainable development. 

The story of Iraq began with the religion in the Iran-Iraq war in the 1980s, where the debt out of the sum of eighty billion dollars, and in 2003 reached Iraq's debt to nearly 120 billion dollars, before the debt is settled with some countries by paying the principal Without any benefits, in cooperation with the United Nations and the International Monetary Fund .

 
 


In 2014, Iraq was hit by a financial crisis with a third of its territory out of government control, plus high operating costs, making it resort to external and domestic borrowing to fill its budget deficit and cover war costs. 

The foreign debt, according to the International Monetary Fund (IMF) , is currently $ 85.3 billion. It includes the entitlements of foreign companies operating in the energy sector and the purchase of electricity and gas from Iran , while the internal debt is $ 40 billion, mostly to the central bank and the three government banks: Rafidain, For trade, and the National Retirement Authority.


Today, Iraq owes the Gulf states about $ 41 billion, borrowed from Saddam Hussein's former political system, as well as Paris Club debt of $ 9 billion. Iraq's debt has come close to the level of the red line to reach 55% of GDP. 

The director of the Department of Financial Operations and Debt Management of the Central Bank of Iraq, Dr. Mahmoud Dagher , said in a press interview that " Iraq's debt is not classified as excessive debt, because they are within the rational range, when compared with GDP. 

"Iraq's debt currently stands at $ 68 billion, divided into $ 40 billion in domestic debt and $ 28 billion in foreign debt," he said.

He added that some international organizations add to the total debt of $ 41 billion to become a total of $ 109 billion, while these debts are not "suspended" in terms of payment of interest and receivables, and need to negotiate, and may be extinguished of 80%, as happened with the Paris Club countries 

Dagher pointed out that some parties calculate the entitlements of foreign companies operating inside Iraq , as well as the import of electricity and gas within the debt, which is incorrect, because these are settled annually in the general budget, and allocate funds. 

He stressed that the compensation of Kuwait is within the debt, and the rest of which 4.3 billion dollars, "We pay annually 0.5% of oil revenues."

He pointed out that there are two types of debt: the first went to fill the budget deficit, specifically during the years 2015 and 2016 because of increased military spending to recover land from the state organization, which was accompanied by a financial crisis due to low oil prices, which made the state go to borrow to fill the budget deficit Operational insurance for staff pensions, war costs and others. 

The second type of religion went to investment projects to develop them, the private loans to the International Monetary Fund and the World Bank and the Japan Agency for International Cooperation "JICA" and others, according to the same speaker. 

Dagher pointed out that Iraq began repaying loans and interest in 2018, and is expected to end the external loans during the next ten years, because the loan period ranging from five to seven years, while the domestic loans are very few and are settled annually.


The amount of indebtedness of Iraq is very large, and part of it went to the pockets of corrupt and some political parties, through fictitious projects in the absence of transparency from 2003 until the end of 2014," said Deputy Speaker of the Parliamentary Finance Committee Ikhlas Dulaimi. 

"The budget of 2014 contains external and internal loans disbursed without the knowledge of anyone in mysterious circumstances because it was not approved within the parliament with the provision of accounts final to them." 

Sistani Dulaimi pointed out that there are debts disbursed, and the country is obliged to pay its dues and benefits, and "these funds did not go to achieve development, but pockets of corrupt."

She pointed out that "the proportion of loans in each budget after 2003, between 20 and 25% of the total budget, because of the failed economic policies of previous governments, which are economic plans indiscriminate not dependent on the economy, but on the parties and businessmen loyal to them, and tampering with the country's ability to during the militias, according to the expression. 


For their part, economists emphasized that the problem of Iraq is the lack of control over the debt, which made many international organizations refuse to lend directly, but through the support service projects supervised by, for fear of financial and administrative corruption. 

said Bassem Jamil Antoine Vice - President of the Assembly For Iraqi economists in a press interview that " the problem of IraqThe money that entered the country of oil estimated at one trillion dollars, since 2003 until now, and is able to build the country, and not to borrow from any external or internal. " 

He added that the problem that accompanied the Iraqi debt is financial and administrative corruption, and part of the This debt went to support the financial budget in the closure of salaries of employees and public expenditures and others, while there are projects funded funded from public debt 

He explained that some international organizations and countries began to grant funds to the Iraqi government, in the form of installments after the completion of the stage of each project, The money was also getting in the past.

  • Upvote 3
Link to post
Share on other sites
  • yota691 changed the title to Deputy: The volume of Iraqi debt is more than 133 billion dollars
 
 
1,444 views
 

MP Mahmoud al-Kaabi, on Wednesday, that the volume of Iraqi debt is more than 133 billion dollars, noting that Iraq pays 10.8 trillion dinars.

Al-Kaabi said in an interview with Alsumaria News that "the report of the Parliamentary Finance Committee showed that the volume of debt owed by Iraq amounted to 133 billion and 700 million dollars," noting that "the budget showed that Iraq pays 10.8 trillion dinars due to debt and interest of 4.5 trillion dinars because of these debts "He said.
 

"We have asked the Department of Public Debt at the Ministry of Finance mechanism to pay these debts and their schedule and interest and the size of internal and external debt, but the Department refrained from that," adding that "will be approached by the Ministry of Finance on this and we await response to all our concerns." 

Al-Kaabi said that "there are suspicions that require us to investigate the matter," stressing that "we will inform the people on all the results, whether negative or positive." 

The debt of 
Iraq amounted to nearly 120 billion dollars in 2003, before the debt settlement with some countries by paying the principal only without interest, in cooperation with the United Nations and the International Monetary Fund .
In 2014, 
Iraq
 was hit by a financial crisis with a third of its territory out of government control, plus high operating costs, making it resort to external and domestic borrowing to fill its budget deficit and cover war costs.
  • Upvote 1
Link to post
Share on other sites

 

Change the value of the Iraqi currency ... benefits and costs


2019-07-04

Change the value of the Iraqi currency ... benefits and costs

 

Change the value of the Iraqi currency ... benefits and costs


The importance of the Iraqi currency and its impact on the Iraqi economy in light of the current changes The Department of Economic Studies in Beit al-Hikma held a scientific symposium entitled "Change in the value of the Iraqi currency, benefits and costs" under the chairmanship of Prof. Dr. Falah Hassan Thoini, / 7/2019 on the seminar hall in Beit al-Hikma. 
The seminar was attended by Dr. Mazhar Mohammed Saleh, financial adviser to the Prime Minister, as well as Professor Dr. Mahmoud Mohammed Dagher, Director of the Department of Financial Operations and Debt Management of the Central Bank of Iraq. 
The participants discussed the problem of changing the value of the Iraqi currency and the reduction of the Iraqi dinar and its impact on the Iraqi economy, some describe this reduction as support for the global economy and some see the deterioration of the purchasing power of the Iraqi individual.
Dr. Mazhar Mohammed Saleh talked about the policy of the Central Bank since its establishment so far in a concise and clear as the goal of the bank is to manage the monetary expectations and how Iraq's oil revenues since 2003 to 2014 is improving continuously so there was no budget deficit. He pointed to the role of Iraq and the agreements signed with the International Monetary Fund and its impact on the Iraqi economy. 
He concluded by discussing the need for new policies that are consistent with the central bank's policy of reaching solutions. 
Dr. Mahmoud Mohammed Dagher discussed the current exchange rate regime for two years in Iraq and mentioned facts about the Iraqi economy for 2019. 
The promise of the devaluation of the Iraqi currency affects all the real and monetary balances of the Iraqi economy because one of the reasons for inflation accompanying the reduction ignites expectations and pressures towards the continuation of subsequent reductions decisions.
In conclusion, there were comments from the audience and views and proposals on the decision to reduce the Iraqi dinar. 

The seminar was attended by Dr. Ihsan Al-Amin, Chairman of the Board of Trustees of Bayt Al-Hikma and a number of prominent personalities in the banking and financial field and a number of academics.  

201974EE.jpg

201974EEE.jpg

201974EEEE.jpg

201974EEEEE.jpg

201974EEEEEE.jpg

201974EEEEEEE.jpg

 

 

 

 

 

Source http://www.baytalhikma.iq/News_Details.php?ID=1025

  • Thanks 8
  • Haha 1
  • Confused 1
  • Upvote 5
Link to post
Share on other sites

"In conclusion, there were comments from the audience and views and proposals on the decision to reduce the Iraqi dinar."

 

Is it just me, or does this article sound like this is something that they are just starting to talk about and getting opinions on, as to whether this is a good idea or not?

 

They needed a symposium about this, at this late date?

  • Upvote 1
Link to post
Share on other sites
8 minutes ago, Floridian said:

"In conclusion, there were comments from the audience and views and proposals on the decision to reduce the Iraqi dinar."

 

Is it just me, or does this article sound like this is something that they are just starting to talk about and getting opinions on, as to whether this is a good idea or not?

 

They needed a symposium about this, at this late date?

lol, thats what it sounded like to me too.

  • Thanks 1
Link to post
Share on other sites
10 minutes ago, denster said:

Don't lose confidence in the Dinar it will come up in valve, they are already to low. The oil country's around them have high valve to there money , 

 

 

If you look up currency values you will see this 1 to USD value 

Nigeria 1 to .0028 USD

Lydia  1 to .71 USD

Algerians. 1 to .0084 USD

Iran 1 to . 000024 USD

Kuwait 3.29 USD

UAE .27 USD

IQD .00084 USD

Angola .0031 USD

Russia .015 USD 

So all these oil producers are big oil producers.  If you look at the value of their currency its valued all over the board. 

  • Thanks 3
  • Upvote 1
Link to post
Share on other sites
  • yota691 changed the title to The Finance Committee reveals the mechanism for paying Iraqi debts .. And the Central reveals its policy to control the exchange rate
  • TexasGranny locked this topic
Guest
This topic is now closed to further replies.
  • Recently Browsing   0 members

    No registered users viewing this page.




  • Similar Content

    • By Mary B
      Parliamentary Finance: The country's fiscal deficit is 6 trillion dinars per month
         NEW MORNING  IRAQI AFFAIRS  OCTOBER 26TH, 2020  COMMENTSON PARLIAMENTARY FINANCE: THE COUNTRY'S FISCAL DEFICIT IS 6 TRILLION DINARS PER MONTH, CLOSED  13 VIEWS     This week the second reading of the approval of the government loan law will be completed
      Baghdad - Waad Al-Shammari:
      The Finance Committee in the House of Representatives confirmed, yesterday, Monday, that the amount of the monthly deficit of Iraq reaches 6 trillion dinars, indicating that the passage of the fiscal deficit financing law depends on the reduction of the value of the loan that it implies, stressing that the second reading of the project will take place during the current week.
      The committee’s rapporteur, Ahmad al-Saffar, said, “The House of Representatives agreed to complete the second reading of the fiscal deficit financing law during the current week.”
      Al-Saffar added, in an interview with “The New Morning”, that “the government informed us that it is unable to disburse the employees’ salaries unless we complete this law, as it includes in its provisions obtaining new loans. ”
      He pointed out, "The amount of what is included in the law is very large for what Iraq actually needs, especially since the treasury achieves monthly revenues, even if they are low, but amounts that reduce the rates of need for new debts."
      And Al-Saffar, that "the amount of 41 trillion dinars to cover the expenses of three months is very large compared to the budget for a whole year, it represents about 40% of the budget.
      He stressed, "Iraq achieves about 4 trillion dinars every month through its oil resources, direct and indirect taxes, and border crossings."
      Al-Saffar stressed that "Iraq needs monthly to secure its necessary expenses, including the salaries of employees and retirees, to 10 trillion dinars."
      And he goes on, that "the monthly deficit according to revenue figures compared to expenditures does not exceed 6 trillion dinars, which is less than half the amount that the government wants in the loan."
      Al-Saffar continues, "The second reading will pass, without problems, and after that we will hold direct meetings with the government to see the truth about the amounts it wants and its expenditures."
      Al-Saffar went on to say, "The current circumstance requires the government to put in place rapid economic plans aimed at maximizing the state's resources, and not relying solely on oil revenues."
      In addition, a member of the Committee, Representative Jamal Cougar, said, in a statement to "The New Morning," that "the House of Representatives will not stand in the way of the government about any action that would improve the financial and economic situation of the country."
      Cougar added, "linking salaries to the enactment of the disability law should be overridden by the government and not repeat the same scenario last month when it stopped paying employees' dues for about 45 days."
      He mortgaged "the House of Representatives vote on the financing of the fiscal deficit law by reducing the amount of the loan you want. As for insisting on it, we will never allow that."
      Cougar concluded, "the need to hold quick meetings with officials in the Ministry of Finance to discuss the draft law and come up with a text and an amount consistent with the actual need of Iraq."
      It is noteworthy that the House of Representatives is currently discussing a draft law on financing the fiscal deficit sent by the government to avoid delaying the distribution of salaries to employees, retirees and the social welfare network.
      http://newsabah.com/newspaper/245678
    • By Butifldrm
      02/20/2020 09:08 Views 91 Section: Iraq   Government official: Iraq still owes Kuwait seven billion dollars
      Baghdad / Obelisk: The financial advisor to the Prime Minister, Mohammed Mazhar Saleh, announced on Tuesday 4 February 2020 that Iraq is still in debt to Kuwait with an amount of seven billion dollars, after he paid 52 billion as a result of the invasion of the previous regime to Kuwait in the nineties of the last century, while he indicated that the agreement with China was launched from The principle of building bridges and reviving the Silk Road.
      Saleh said in a press statement, that China is one of the developed countries in infrastructure, and that the real development in any country can only be achieved with a solid infrastructure.
      He added, that the 100,000 agreed barrels should enter the Development Fund, and then deduct from it the compensation for the Kuwait war, which remains approximately 7 billion dollars, after Iraq paid about 52 billion dollars.
      He pointed out that this agreement was based on the principle of building bridges and reviving the Silk Road, which China seeks to restore in order to bring peace and increase economic development in the world, especially since the countries that lie on the belt line constitute 65 percent of the world's population.
      Follow the obelisk
      http://almasalah.com/ar/news/187312/مسؤول-حكومي-العراق-مازال-مدينا-للكويت-بسبعة-مليارات-دولار
    • By TrinityeXchange
      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. 
       
      be blessed!  
    • By Jim1cor13
      Posted on May 16, 2015by Martin Armstrong  
       
      This Sovereign Debt Crisis is the nature of the beast we face. Understanding that crisis is half the battle for after the business cycle turns, there will be a lot of finger-pointing but you can bet it will never be pointing at government. It does not matter what country we are from, the people are the same. The audience last night in Warsaw was articulate, understood, and the audience made it known that they too distrust government. It really matters not our nationality. People never start wars, only governments which are not the people.
       

       
      It is also never private debt that causes the end of a nation, it is the debt of government. When people default, their assets are seized and they were often thrown in debtors prison. When government defaults, you get revolution. Adam Smith called this the highest impertinence of kings to pretend to watch over the debts of the people and not their own. This cycle of political change is about 309.6 years. The last wave began in the 1600s and culminated in the late 1700s, The wave before that is where capitalism began during the 14th century with the reintroduction of wages and taxes following the Black Death of 1346-1353.
       
       

       
      The American people were not in support of the revolution until the very end like a Phase Transition. Those who wanted to leave Britain were only about 33%. Then a writer issued a pamphlet by the name of Thomas Paine entitled Common Sense. Paine explained that the nation or society is only the people and that government views itself as the nation yet is entirely different right from its origin. He further explained that “Society is produced by our wants, and government by our wickedness; the former promotes our POSITIVELY by uniting our affections, the latter  NEGATIVELY by restraining our vices. The one encourages intercourse (cooperation of people creating an economy) the other creates distinctions. The first a patron, the last a punisher.”
       
       

       
       
      We can see that despite the American and French Revolutions, government reverts always back to the dominant punisher assuming the very same power against which the people revolted to begin with. We can see Thomas Paine’s words are applicable today. The US government called Snowden a traitor for telling the people the government was illegally searching and seizing everything. It was irrelevant that he informed the people about the illegal acts of government. It was treason by their definition because he revealed what they were doing illegally to the people. That reflect what Paine said – they see themselves as the nation not the people who they exploit for their own survival.
       
      Understanding who is the enemy is the very first step in the reform process. About every 309 years we reach a crisis in government. This has been resolved unfortunately with violence for whoever is in power never goes quietly into the light. The late 1700s was of course the American and French Revolutions and today the people of both nations have less rights than existed when they rose up in their respective revolutions. Both were sparked by a debt crisis.
       
      In Britain, George III needed money so badly, he was taking Spanish coins and counterstamping his own image and making them English. The Assignates were paper money issued by the French that was back by confiscating the property of the Catholic Church. The Crown had bailed out the debt of the Mississippi Bubble of 1720 and that imposed harsh taxes upon the French people. We are in the very same position of a Sovereign Debt Crisis once again that is turning to confiscating everything we have as well as government is always driven by debt.
       
      Thomas Jefferson was highly practical. He wanted the Constitution to automatically expire every 19 years and he was against any government debt. Why? A national debt to Jefferson was taxing the next generation without representation. Indeed, we are being heavily taxed to support the continued rollover of debt.
       
      Without question, this is where we are once again. Jefferson understood looking at history that it repeats because human nature never changes. He saw war was caused by standing armies and once government is paying to maintain such a force, it is like have a car you never drive.
       
      If we look back 309 years from the 1700s, we come to the 14th-15th centuries. In Florence it began with a revolution where they too ran out and hanged bankers. The great series of tax revolts began on that cycle in England and France that finally culminated following the Black Death (1346–53) where capitalism really began with the reintroduction of wages given the shortage of labor.
       
      Perhaps this time we can put pressure for political change in eliminating debts and this viscous cycle of Sovereign Debt Defaults that destroy society. We can prepare for our individual survival by comprehending the nature of the beast. As was discussed in the session in Warsaw, it is true gold is no longer the savior since we cannot hop on a plane with a briefcase full of gold and seek a new start. Gold’s role may be local and in an underground economy, but make no mistake about that, government is well aware of that role as well.
       
      Governments are robbing anything travelers might have these days. There were even signs in Poland warning if you have more than €10,000 in cash or “assets” when traveling it was illegal. They will look for jewelry, stocks, gold, or diamonds. Anything they deem of value they can confiscate.
       
      This is a new age of authoritarianism and is not ending nicely. The idea of crypto-currencies is also rather foolish for nothing can compete against a government that is ruthless and broke. They have the guns and then tanks and will use them against the people. Our hope is to identify the problem and spread the word. Yeltsin stood on the tanks in Russia and asked the troops not to fire on their own people. If the pawns of government refuse to massacre their own people, then we can win. It is critical to understand that police and military will become the tool for both sides.
       
      This is why Brussels is now calling for a European Army. That will be their power and sending Greek troops into Germany will prevent the troops from siding with the people. This is also why there is a mad rush to create robots for war. They have no emotions and cannot be turned. Government understands their weak-link for throughout history it has always been the loyalty of the troops.
       
      That is what we must understand and we must understand that private assets are the means to survive – not pensions or government bonds. Eliminating cash is their way to force people into banks and prevent a bank-run. That will end in the total authoritarian government for you will not be allowed to buy or sell except without the grace of government.
    • By Sgwmax
      I am trying to understand what the community is referring too when the topic of taxes are raised as it relates to the impending CE.  I asked my tax advisor, and he explained to me that because the Currency being exchanged is in fact a debt note, and NOT a SECURITY, there are no taxes to be paid on any gains realized when the exchange is completed... so, please help me with understanding what I'm missing... Thanks everyone~!
  • Testing the Rocker Badge!

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.