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Parliamentary Crisis: There Is No Legal Objection To Sending The Budget To Parliament To Confront Corona !


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CNN. Broadcasting An Objection Rejection To Battle The Infection !
 

 

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Parliamentary Crisis: There is no legal objection to sending
the budget to Parliament to confront Corona

 

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12:05 - 30/03/2020
 

The Parliamentary Crisis Cell confirmed, on Monday, that there is no legal objection to sending the financial budget to Parliament by the government, stating that approving the budget will end the crisis of providing funds in the face of Corona.

The committee's spokesman, Faleh Al-Ziyadi, said in a statement to "Information" that "the resigned government avoided sending the budget to parliament not because there was no legal basis, but because of the large budget deficit without the government finding any solution to this crisis."

Al-Ziyadi added, "The sending of the budget and an amendment by the House of Representatives, especially regarding the allocations of the Ministry of Health, will contribute to strengthening the war against Corona in Iraq at an early date."

The spokesperson for the cell pointed out that "the parliament crisis cell is in continuous contract with all government agencies in order to import medical supplies and health tools that contribute to the ruins of life." 
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Rashid Bank starts paying the retirees' salaries for the month
of April


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‘’30th March, 2020


Al-Rasheed Bank announced, on Monday, the direct payment of pensioners’ salaries for next April.

The bank said in a statement received by / Mawazine News / a copy of it, that he "started paying the salaries of retirees (military and civilian) from the electronic payment card holders (Nakheel Master Card) and (KCard) for the month of April through electronic payment tools."

And he added, "Retirees can receive their salaries from our branch network located in Baghdad and the provinces or from one of the offices of the Iraq Gate Company approved." 

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Direct payment of pensioners’ salaries

 

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30th March, 2020


The National Retirement Commission announced on Monday that it would start paying the salaries of civilian and military retirees.

The authority said in a statement today that it is beginning to pay the salaries of civilian and military retirees for the month of April 2020, and distinguished pensioners can go to electronic payment outlets to receive their salaries for retired citizens whose salaries are based on electronic payment cards.

The statement added that the lists of paper (manual) exchange will be sent to banks after tomorrow, hoping that the retired brothers will adhere to health safety controls and make sure that electronic devices are sterilized before using them and leave an appropriate distance between one person and another and not to gather on the outlets of exchange.

 

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Retirement begins with the disbursement of the salaries of civilian and military retirees for the month of April

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Economist: resorting to printing currency to secure salaries is excluded, and oil imports cover 35% of them

 

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15:45 - 3/30/2020
 
 

Economic expert, Saad al-Qadi, ruled out, on Monday, that Iraq resorted to printing the currency to secure the salaries of employees in light of the economic crisis caused by low oil prices, indicating that the printing of the currency leads to high inflation rates in exchange of the Iraqi dinar against the dollar.

The judge said to / information / that "the government will face great difficulty in securing the salaries of employees for the next month in light of the continuing decline in oil prices."

He added, "What connects Iraq from the money from the imports of the sale of oil covers only 35% of the salaries of state employees," noting that "there are solutions that the government is expected to resort to to cover salary expenses."

He stated that "the first option will go to the government to reserve in the central bank, while the second option will be in the event of continued decline is compulsory savings." 

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A financial disaster in Iraq due to corruption and failure


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Last updated: March 30, 2020 - 9:36 am

Baghdad / Iraq News Network - The resigned and lost Iraqi government in a closed political maze can no longer escape from the battle of the enormous shortage of financial resources after the collapse of oil prices, at a time when its need for spending is increasing due to the repercussions of the emerging Corona Virus outbreak. Iraq relies on oil revenues in a way Almost totally in financing its annual budget, the largest part of which is spent on the salaries of nearly seven million people who receive monthly sums from the government, including employees of various civil and military institutions, retirees, the unemployed, and other segments.


Iraq set the budget for the current year based on estimates expected to sell about 3.8 million barrels of oil per day, at $ 56 a barrel. But data indicate that he sold, on Saturday 28/3, 3.5 million barrels for about $ 21 per barrel, most of which goes to oil companies under unfair contracts that are tainted by corruption, which means that his revenues from exporting The oil. And the price of most of Iraq’s raw materials is about $ 5 less than the price of the Brent mix, which is currently less than $ 25 a barrel due to considerations related to specifications, contracts, and futures, which means that Baghdad’s suffering will be doubled, whenever it loses one dollar from the price of a barrel of oil.

That Iraq must obtain in the minimum to cover the salaries of employees or part of it, with some basic needs, that the figures are not clear in Baghdad, but the deficit will be great inevitably.

And the most optimistic estimates are those that indicate that Iraq will be able to secure about One third of the salaries of his employees by the end of May For, if oil prices continue at current rates.


Among the most controversial proposals in the framework of Baghdad's efforts to contain this crisis, a proposal to print a currency for internal circulation emerges to cover the expected deficit in the salaries of employees, following in the footsteps of the regime of the late President Saddam Hussein, who resorted to this option in the nineties of the last century, during The international blockade on Iraq, which caused massive inflation in the monetary mass. 

An authorized source in the Central Bank of Iraq, commenting on the widespread controversy raised by the proposal to print currency, said, "The printing of Iraqi banknotes is a routine technical exercise by the central bank in accordance with the requirements of cash circulation." He noted that “printed papers Cash is a completely separate process from the cash issuance process. ”The official added,“ No party can withdraw banknotes from the central bank unless there are balances in their accounts that cover the amount to be withdrawn. ”He emphasized that“ printing the dinar only means strengthening the central bank’s coffers in accordance with the policy Cash management, not any other meaning or purpose. The central bank law and monetary policy do not allow the issuance of cash in favor of an account without a balance. 

The source’s statement cut off the debate regarding printing the currency unless a government dollar balance is available to cover it, which means that the government should consider other measures.

In an attempt to take advantage of these concerns in Strengthening his negotiating position, Prime Minister-designate Adnan Al-Zorfi leaked indications of what he could do if his government won the confidence of the Iraqi parliament, in response to economic challenges.

Close to al-Zorfi said that the new government, if it gained confidence, would "stop support" Governmental to productive ministries and obliging them b Paying water and electricity wages and any other services, and treating them in the same way as the winning companies responsible for providing logistical support themselves. They stressed that these measures will save a lot of money in government spending.   

A third of the employees ’salaries are covered by oil revenues in the month of April, and al-Zarfi will try, according to those close to him, to“ move the circulating cash block that is currently suspended due to the reluctance of citizens to deposit their money in banks due to their loss of confidence in government and private banks, as well as the approval of a new law that regulates and drives the work of the banking sector in the country 


Al-Zorfi’s close associates revealed that he would also seek to “start preparing a feasibility study for the activity and productivity of each of the government ministries, accompanied by the adoption of packages in project management according to the principle of reward and punishment.”

Experts say that all the necessary solutions to face the great financial crisis will not succeed, unless spending on salary financing is reduced, which is the item that swallows up the bulk of government budget spending. But a measure like this could spark a popular revolution, given that employee salaries are almost the only outlet for moving the internal economic cycle, and any affecting it will cause a great recession, and exacerbate poverty and unemployment rates.

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Strategic expert: the net Iraqi oil price reaches 10 dollars ... meaning the state bankruptcy

 

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30th March, 2020
 
 
The strategic expert, Karim Al-Karawi, revealed that the net oil price for Iraq is only 10 dollars, noting that this matter means bankruptcy of the state treasury.

Al-Karawi told Al-Ikhbaria that "oil reached $ 20, foreign production companies deducted production costs and accounting firms also deduct a percentage from it, as well as Kuwait compensation and loan interest, which means that its net price to Iraq reaches ten dollars."

He explained that "the extraction companies are not obligated to reduce production, and this means bankruptcy of the state treasury and will lead us to the same position as Greece." Foreign debt and expenditure pressure, but before all these steps we need an economic mindset, such as the Greek financial whiz who led negotiations with Europe.

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Reducing cash handling and corona virus


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30th March, 2020 by Zahra Al-Husseini

 

The payment system is the basis for the economy of any country, because it is at the center of economic activities and in general, the payment tools reflect the way in which the individual can pay for the goods and services he gets

The payment system has witnessed many developments starting with the barter system, which means exchanging a commodity in exchange for another. There was no other way to exchange, and this system was accompanied by many difficulties, which led to the creation of another method, which is commodity money, then legal paper money, and with the development of economic life more and more led to the emergence of Another innovation, which is checks, and with the era of globalization, the revolution in information technology, and the emergence of the Internet, has led to the creation of more sophisticated means, which are electronic means, and it is defined as a group of tools and methods that rely on electronic technology to transfer money, which facilitates the exchange process. In a fast and safe manner and at the lowest possible cost in the conduct of exchanges, electronic payment tools are the most controversial today, so most of the central banks in Arab countries have replaced them with traditional tools

And in Iraq, in particular, is still the most dangerous thing facing the Iraqi economy is the frequent use of liquid cash, so the proliferation of electronic tools will certainly have positive effects on the Iraqi economy. Therefore, the Central Bank of Iraq has taken several steps to develop payment tools and has been distinguished by launching several projects aimed at reducing the use of traditional tools (money), including the project of localizing the salaries of state employees as well as the spread of card services of all kinds (credit or credit card, debit or city card, prepaid card ), As well as the proliferation of mobile phone service and electronic wallets

Many economists have expected the disappearance of paper money from circulation after the emergence of the wave of modern tools, as electronic tools have become a threat to the existence of paper money, but the reality is that money has remained the main dominant in circulation, as we still use liquid money in most of our daily dealings, as is the case in small shops and refiners. Hair, taxi driver, etc. We do not accept others as a method of payment, as it represents a safe and reliable method, but in reality it is not the ideal solution

There are a group of reasons that may be the main reasons for the non-proliferation of electronic payment tools:

1- The absence of an electronic payment culture among the majority of individuals

2- There is no banking culture and awareness in society

3- The difficulty of individuals accepting these modern tools and considering them as a final alternative to the traditional means. Therefore, Iraq cannot easily dispose of the money

4- The small media campaign to introduce the importance of electronic tools

It can be said that there is an opportunity to limit monetary dealing today through the emerging virus (Corona) and what is confirmed by this is made clear by the World Health Organization that dealing with banknotes is one of the main reasons for the transmission of this virus and other experts stressed that the exchange of banknotes is a source for the transmission of all types of bacterial and viral infections Therefore, most of the world’s banks sterilized the banknotes in the automated teller machines (ATMs) to ensure no infection was transmitted, and the World Health Organization advised to switch to contactless cash payment to limit the spread of the virus. Consequently, this is an opportunity to increase awareness and turn towards the electronic card and to spread the points of sale at the stores extensively, but it requires an extensive media campaign to spread the electronic culture to individuals and shop owners and urge them and encourage them with electronic tools

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22 hours ago, DinarThug said:

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Economist: resorting to printing currency to secure salaries is excluded, and oil imports cover 35% of them

 

%D8%B1%D9%88%D8%A7%D8%AA%D8%A83-696x435.
 
 
 
15:45 - 3/30/2020
 
 

Economic expert, Saad al-Qadi, ruled out, on Monday, that Iraq resorted to printing the currency to secure the salaries of employees in light of the economic crisis caused by low oil prices, indicating that the printing of the currency leads to high inflation rates in exchange of the Iraqi dinar against the dollar.

The judge said to / information / that "the government will face great difficulty in securing the salaries of employees for the next month in light of the continuing decline in oil prices."

He added, "What connects Iraq from the money from the imports of the sale of oil covers only 35% of the salaries of state employees," noting that "there are solutions that the government is expected to resort to to cover salary expenses."

He stated that "the first option will go to the government to reserve in the central bank, while the second option will be in the event of continued decline is compulsory savings." 


 

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The Ministry of Finance : printing the currency needs a decision from 4 sides and the salaries are insured

 

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12:40 - 3/31/2020

The Ministry of Finance confirmed, on Tuesday, that the salaries of employees are fully insured and there is no need to print the currency in order to pay it, noting that printing the currency needs a decision from four sides.

The Ministry's media director, Taha al-Hashemi, said in a statement to "Information", that "the news that some websites and media circulated regarding printing currency without health", indicating that "printing the currency needs to issue a high-level decision from the Council of Ministers, the Advisors Authority, the Ministry of Finance and the Governor of the Bank Central.”

Hashemi added, "The matter was not formally presented in cabinet meetings," noting that "employee salaries are fully insured and we do not need to print a local business to pay employee salaries." 
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Congress threatens to change course of relations with Saudi Arabia if it continues to flood the oil market

 

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09:21 - 31/03/2020
 
 

Republican Senator Ted Cruz threatened, on Tuesday, to change course of relations with Saudi Arabia if it continued to flood the oil market, calling on US President Donald Trump to use his influence to pressure Saudi Arabia and Russia not to dump oil markets.

"If Saudi Arabia continues to wage an economic war against us, the Senate will radically change the course of relations," Cruz said in comments followed by "The Information." He called on Trump to "use his influence to pressure Saudi Arabia and Russia not to dump oil markets."

He added that "the Saudis and the Russians chose our preoccupation with a public health crisis to take advantage of the dumping of the oil market," stressing that "we told the Saudi ambassador that you are not behaving like a friend, but you are trying to destroy thousands of companies in Texas." 

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Al-Attar proposes to cancel the cash transaction and transfer it electronically in car shows

 

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31st March, 2020


A member of the Iraqi Economic Council, Ghadeer Al-Attar, suggested transferring work from cash to electronic in all car sales companies in the country.

”Al-Attar said in a statement that Mawazine News received a copy of that, “Government agencies are required to impose fines on car shows that are Cash sales and inviting them to work according to the financial inclusion program.

”Al-Attar indicated that “auto companies must provide a bank account through which the money is delivered and transferred electronically, ”stressing“ the necessity of removing all financial burdens on companies and individuals in Iraq for a period of 6 months.” 

The resigned Prime Minister, Adel Abdul-Mahdi, said yesterday, Sunday, that "e-government has become a necessity in Iraq."

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The New York Times: The mix of crises in Iraq has badly affected the economic situation in the country

 

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18:09 - 31/03/2020
 
 

A report of the New York Times confirmed that political tensions, low oil prices and the spread of Corona virus made Iraq in a very difficult economic situation as the country was going through its worst crisis in several decades.

The report, which was translated by Information Agency, stated that "Iraq’s economic situation is deteriorating day by day, as oil prices have declined the main source of income for the state, and with the collapse of the international price of oil, the government resorted to requesting donations to help it overcome the crisis of the Corona virus."

He added that "the curfew at the national level, which was imposed to slow the spread of the virus, led to the closure of trade and the expulsion of the vast majority of non-governmental workers from jobs, while the government wavered after the anti-government protests toppled the Prime Minister and Parliament remained unanimous in choosing a new leadership for the country."

"What makes the situation particularly bleak is that the mix of crises has virtually eliminated the entire economy," said Iraqi economist Basem Jamil Antoine, adding that "the current economic situation is worse than what we saw before because all productive sectors have been suspended, there is no industry, no tourism, nor Means of transportation and agriculture are affected to some extent, we are witnessing almost complete paralysis in economic life, with the closure of the borders between the governorates of Iraq and its borders with other countries.

The report added that "oil is currently sold for less than half its price three months ago due to a price war between Saudi Arabia and Russia. It has decreased from about $ 60 a barrel at the end of last December to less than $ 30 at the present time."

For his part, the Executive Director of the International Energy Agency in Paris, Fatih Birol said that "the drop in prices dealt a severe blow to the oil-dependent economies." But he made it clear that "he will face the most severe blow and is the number one country in terms of impact because he does not have financial reserves and because 90 percent of his revenues come from oil." "All of these economic pressures are coming in a really very tense political environment." And Antoine said that "Iraq's reserves amount to 62 billion dollars, which the International Monetary Fund considers insufficient."

The report continued that “Iraq has a limited private sector, some of which are supported by government contracts, in addition to a thriving informal economy. However, both were severely hit by the Coruna virus and by a 24-hour curfew nationwide, and construction workers, street vendors, domestic workers and taxi drivers were forced to stay in their homes. Because most of them live day after day as they earn and have little or no savings, and they may soon be on the brink of hunger. ”

A number of Iraqis said, "It is difficult to say for how long such a huge economic pain can be tolerated, but it is especially difficult in the absence of political leadership and the spread of the epidemic."

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The deterioration of oil markets: the mechanisms of the present and foreseeing the future


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31st March, 2020

 

The current global oil markets are linked to two different situations of price elasticity in supply and demand.The first market, which is the real market related to extraction, production and marketing, and which has a high degree of flexibility in the supply of crude oil under any amount of price. On the global demand side of this real market, it is the other. It has high levels of resilience that are similar in that of a common mutual price property in terms of the degree of demand price correlation with supply prices related to production and investment activity in the extraction fields and the liquidation sector in the world. Nevertheless, the entirety of this movement in the supply and demand market The real is directly related to the developments in the global economy to achieve balance. Therefore, any surplus productive quantities outside the direct required needs (including storage capabilities before liquidation and other hedges) lead to significant price implications to which everyone withdraws in the collapse of the chain of contracts based on the marketing and sale of oil, and vice versa. .؜ instead of 2.6% ؜ due to the existing corona crisis and oil price war. Noting that the world's oil production is approximately 104 million barrels of oil per day

On the other hand, there is a second market, which is the token market for future oil contracts called the oil future market, as this market engages in parallel oil financial activities based on hedging in crude oil contracts in order to maximize profit opportunities and avoid loss through speculation with financial tools denominated in crude oil such as options and others and enjoy With a high degree of price flexibility in supply and demand, this market deals at the same time with an actual oil storage equivalent to oil quantities available for a working week or less of world oil production. And that the market as markets hedge Acodalmstqublaat alone has the flexibility factors Sarahalah as mentioned in the supply and demand on the real odds market in order to avoid losses and achieve profitable financial returns from using hedging instruments hedging like oil options and futures contracts, as we mentioned

In other words, unlike the low price elasticities of the real production market, the oil market for future contracts derives its high price flexibility mentioned from the ability and speed to alter the financial trading strategies in that market and according to the so-called mechanism: change of posts If the positions in the oil contracts market change from short postions to long postions this comes on the basis of the broad expectations and the efficiency of the information available to dealers to conduct more hedging to preserve profit and avoid loss. Thus this embodies the futures market as an information market and that its adequacy in reaching its prices is derived from the information available to dealers to change their positions as quickly as possible in order to avoid loss and maximize profit Again, as noted above. Thus, the market (Nymex), for example, as a market for future oil contracts for Brent crude in New York, Nymex, is one of the most important markets in the world in generating a cycle of oil assets in the range of financial market elasticities and their fluctuations affecting the western hemisphere of the world, through exchanging centers and rebuilding Trends in pricing oil operations for future quotation

While Tocom Tokyo market is the second wing for pricing future oil contracts in the eastern hemisphere of the world. Thus, the short position here means to re-buy oil options at the moment and get rid of them in the hope that prices will descend in the future to the bottom of the price in the oil assets cycle and then buy back the contracts. At the lowest prices, in the hope of increasing the value of oil assets, another ball is a hedging process in speculating with oil prices. Here the centers change to what is called the long position. The current problem in the oil markets today is a deep decline in global oil demand and its decline to less than 70 million barrels of oil per day, which has generated a large supply of oil from available crude oils and more than 30 million barrels of oil per day. These are excess quantities offered for sale at low prices within war price policy price warThat causes pain to change

Finally

Underscores indicators exploring the future price movements in the oil market that there is a possibility of the return of activity in the global economy, particularly after the mid - summer 2020, and gradually, especially the start of transport communication and movement sector because of its importance in the consumption of petroleum energy materials and 70% ؜ of petroleum products refined from crude oil in the world, and Then the glut glut in the oil market may shrink to about 10 million barrels per day instead of more than 30 million barrels currently. And that, according to the Brent index, prices will also rise to reach higher limits, but not exceeding $ 35-38 per barrel of oil in the shadow of storage will remain high, in addition to the continued presence of an oil surplus supply that will be about 10 million barrels per day out of a continuous total global production of 104 million barrels Daily oil as we mentioned

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The days are shrinking and the budget is "absent": local and international strategies may "save" Iraq from the financial disaster ... including "ISIS investment"!


2020-03-31
 
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Yassin Iraq: Baghdad

 

The year 2020 will gradually bite its days without forming a new government and approving the federal budget for 2020, as well as the challenges facing the budget amid low oil prices and the doubling of the financial deficit suffered by the budget before the oil price crisis, as well as what Iraq faces from a health crisis that requires financial resources to surround it and represented by a virus Corona, which drives economists to consider offering alternatives before a disaster strikes.

Economic road plan

Economic expert Nabil al-Marsoumi summarizes a 15-point action plan to surround the financial crisis facing Iraq, including going to what the financial advisor to Prime Minister Mazhar Muhammad Salih went to regarding the approval of an emergency budget, as well as other domestic and international measures.

The decree reveals, in press statements monitored by Yassin Iraq, short-term measures to confront the financial crisis in Iraq, the first of which is: “Canceling the 2020 budget and organizing a crisis budget on a planned oil price of no more than $ 25 a barrel and programming public expenditures after compressing them to a minimum Possible, then organizing spending priorities on important spending sections such as salaries and health spending to meet Corona and the ration card, provided that they are within the limits of the public revenues available monthly.

He added: "Tightening control over border crossings not only to maximize customs duties, but also to support the local product, especially for goods for which there are local alternatives", as well as: "Restricting imports of luxury goods and of little importance to society and the economy or increasing the level of customs duties on them in order to reduce pressure on A window for selling foreign currencies in the central bank and maintaining the reserve balance of foreign exchange.

 

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And the decree that "the Central Bank of Iraq should launch a program for quantitative management through which a package of loans with zero or near zero interest is granted to the private sector in order to activate and strengthen the national production base and employ more manpower, and these measures would reduce the negative effects The decrease in government spending, which is the main driver of economic activity in Iraq.

He stressed "the need to work through administrative and economic reform to increase the profits of public companies and increase the proportion allocated to them by the Ministry of Finance and increase the state's revenues from its public properties in order to maximize non-oil revenues, as well as the need to work to increase all non-oil revenues that do not currently exceed seven billion Dollars a year. ”

He pointed out the necessity of "rescheduling existing debts with financial institutions and other creditor countries, and negotiating with Kuwait to postpone the payment of compensation for at least two years, as well as reviewing trade agreements with neighboring countries that exempted many of their goods from customs duties as well as the preferences given to the port of Aqaba At the expense of Iraqi ports.

Among other strategies: “Agreement with licensing companies to reduce production costs and to pay their dues in oil instead of the dollar.” He added: “Offering government bonds with fixed deadlines and certain benefits to withdraw part of the accumulated liquidity among people to use them to reduce the budget deficit prior to launching these bonds.” A wide educational and media campaign to clarify the importance of these bonds in facing the crisis as well as the interest that the citizen will receive.

 

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He stressed "new laws to reform the payroll system, prevent its politicization, amend or repeal laws that give some citizens more than a salary, amend laws on retirement, and make a serious reduction in the privileges and salaries of the three presidencies, Iraqi embassies and attachés abroad, and withdraw the sums deposited in the federal bank for the account of private Chinese banks The Iraqi-Chinese agreement and the postponement of the agreement until the financial conditions improve.

He stressed "serious work on activating taxes on mobile phone companies, foreign companies and foreign labor in Iraq, and canceling the discount granted on sales of crude oil to the Hashemite Kingdom of Jordan, which exceeds $ 47 million per month."

He pointed out the necessity of "resolving the issue of pending revenues with Kurdistan, whether it is oil revenues or other revenues related to border outlets, taxes, fees, etc., and borrowing from the central bank by deducting government securities in the secondary market as a debt to the bank with the initial discount."

International aid to “focus” on ISIS!

For his part, legal expert Ali Al-Tamimi revealed the possibility of obtaining international economic aid for Iraq in accordance with international legal provisions.

Al-Tamimi said in an interview with “Yas Iraq,” that “according to Article 50 of the Charter of the United Nations, states that fight terrorist organizations placed under Chapter Seven of the Charter of the United Nations may request economic assistance from the United Nations,” noting that it is known that ISIS has been He placed it under Chapter Seven according to UN Security Council Resolution 2170 of 2014, and various countries have declared their readiness for economic assistance to Iraq, including Britain.

Al-Tamimi stressed that "according to Article 27 of the 2008 Iraqi-American Strategic Agreement, Iraq can request economic assistance from America, as this article required."

He stressed that "the current situation and the lack of health facilities to confront the Karuna pandemic, Iraq had to move in this direction."

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Al-Tamimi stressed that "according to Article 27 of the 2008 Iraqi-American Strategic Agreement, Iraq can request economic assistance from America, as this article required.

 

LOL!!!!!!!!!!!!!!!  they want us out of their country but now want to ask for a loan?!     They can pound sand!

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30 minutes ago, markb57 said:

Al-Tamimi stressed that "according to Article 27 of the 2008 Iraqi-American Strategic Agreement, Iraq can request economic assistance from America, as this article required.

 

LOL!!!!!!!!!!!!!!!  they want us out of their country but now want to ask for a loan?!     They can pound sand!

You would think that they would have figured out by now that we elected a different president here in the good ole USA. Obummer is gone.

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1 hour ago, markb57 said:

Al-Tamimi stressed that "according to Article 27 of the 2008 Iraqi-American Strategic Agreement, Iraq can request economic assistance from America, as this article required.

 

LOL!!!!!!!!!!!!!!!  they want us out of their country but now want to ask for a loan?!     They can pound sand!

“Pound sand” isn’t the phrase I would’ve used...but it works!!!😂👍🇺🇸

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The Finance Committee: The state will not resort to issuing a new cash


Tuesday, March 31, 2020


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Baghdad / Hoda Al-Azzawi

 

Experts in the financial and economic field ruled out that the government would resort to printing new currencies outside the balance of the Central Bank of Iraq, noting at the same time that there are alternatives that can contribute to solving the crisis, including the possibility of internal borrowing from banks and banks as well as the private sector, in addition to the surplus of the 2019 budget Political circles circulated recently that there is an intention to issue paper editions to cover operating expenses and bridge the budget deficit due to the low oil prices that accompanied the spread of the Corona virus.

The decision of the Finance Committee in the House of Representatives, Dr. Ahmed Al-Saffar, stated that there is a difference between the printing of the currency and the process of the new monetary issuance, adding in a statement to Al-Sabah that “printing the currency is an ongoing process from the central bank to compensate for the damaged currency.

As for the process of creating a new currency, it is The last solution in case the cash issue is depleted, warning that this measure means inflation and a rise in prices in exchange for a decrease in the purchasing power of the currency.


Al-Saffar ruled out the state's resort to such a measure, in light of the existence of alternatives that could contribute to solving the crisis, including the possibility of internal borrowing from banks and banks as well as the private sector, in addition to that there is a financial surplus from the 2019 budget, which can be invested in case of pressure in spending and research in articles Other than oil to enhance the financial balance, enabling the government to secure employee salaries and manage the crisis at this stage.

The decision of the Parliamentary Committee stressed that the current crisis is temporary and is caused by low oil prices, which coincided with an outbreak of the Corona disease, and the failure of OPEC in agreement with exporting countries such as Saudi Arabia and Russia to reduce production and work to stabilize prices, but noted that this decline does not benefit the producers, and who They are likely to return to the negotiating table again to determine the quantities of production and supplies, thus contributing to a return to prices. 

Al-Saffar pointed out that selling a barrel of oil at a price ranging between 30 - 35 dollars, will enable Iraq to cover the salaries of employees and remove the risk of a collapse of its economy.

Al-Saffar indicated that in the event of issuing a new currency, those with limited income and salaries will be the most affected, as a result of the decrease in the value of the dinar.

On the contrary, Al-Saffar says, pumping a new currency will benefit the owners of flexible incomes from owners of companies, merchants and others, warning that this process poses a risk to the economic situation of a country like Iraq.

The Central Bank had issued an explanation regarding what some officials are deliberating on the possibility of printing an Iraqi currency to avoid economic problems, stating "The printing of Iraqi banknotes is a routine technical procedure practiced by the central bank in accordance with the requirements of cash circulation, and that the printing of banknotes is a completely separate process from the cash issuance process" .

He stressed that "any party cannot withdraw the banknotes from the central bank unless there are balances in their accounts that cover the required amount." else".

The central bank also stressed that "the bank law and monetary policy do not allow the issuance of cash in favor of an account without balance."

Meanwhile, Advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, stated that "relying on the idea of issuing cash as an alternative financing method for real revenues, to cover the government financial deficit requires a serious decision taken by the Council of Ministers and Representatives and convinced the monetary authority."

He added in a statement to "Al-Sabah" that this procedure "also requires amending Article 26 of the Central Bank Law No. 56 of 2004 which explicitly provides for prohibiting government lending, due to the deterioration in the value of the currency, especially when excessive funding of government expenses is done through this method Easy cash, whether in financing the revenue deficit or the government spending deficit. "

Saleh expected the improvement of the economic situation after the end of the Corona crisis, and this may take until the end of this summer, noting that the management of the financial crisis at this stage is not without difficulties, and the government should put this challenge among its priorities by preparing standards for exchange and ensuring reasonable wages.

In turn, Prof. Faleh Al-Zubaidi, a professor of monetary theory at Al-Mustansiriya University, stressed the importance of having in front of the issuance of a currency, a cover in the central bank from hard currencies of the dollar, the euro, or the yen, or the so-called withdrawal of special rights issued by the International Monetary Fund.

He added in a statement to "Al-Sabah" that there is a possibility for the government to resort to borrowing from the central bank with bonds, otherwise it will cause the printing of a new currency to increase the amount of the currency in the market, and thus lead to inflation, and high prices. 

And Al-Zubaidi indicated that the standard of living will decrease in the event of issuing a new currency, and this will directly affect the owners of fixed income as it affects foreign imports and services.

Also, issuing a new currency outside the central bank balance will increase the poverty rate in Iraq, according to the speaker, Dr. Faleh Al-Zubaidi.

The first vice-president of the World Bank, Dr. Mahmoud Mohieldin, had announced, on Sunday, that the world had entered a period of economic stagnation. Mohiuddin, who is the UN special envoy for the 2030 finance agenda, added that the current recession is similar to the global crisis in 2008, and that this crisis may be exacerbated if the world does not take preventive measures, noting that the bet on getting out of the recession is recovering from Corona.

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Iraq is heading for reconsideration of economic and financial policies

Wednesday 01 April 2020

 

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Baghdad / Omar Abdul Latif
 
 
The Finance Committee of the House of Representatives called for a review of the country's economic policy during the next stage and a reduction in dependence on oil. 

Committee member Dr. Ahmed Al-Saffar told Al-Sabah: “The government was planning to change the state’s general budget from items to goals, and its implementation should have started from this year in the education and health sectors, and then generalize it to other sectors.”

He added that «the current crisis requires reconsidering the financial and economic policy of the country and reducing dependence on oil as a unilateral source in financing the budget».

And Al-Saffar indicated that «the government should reduce the burden of the public sector and give its scope of participation by the private sector, and reduce through facilities and the issuance of laws and legislation that enable the private sector to do so as it exists in all countries of the world, when it manages the majority of the agricultural, industrial, health, transportation, transportation and education sectors Education under the supervision and control of the government in order not to be exploited Citizens.

Al-Saffar warned that Iraq is proceeding according to a dangerous policy through which the future can be unclear and catastrophic in the event that its dependence on oil as a primary source for financing the budget remains, since its prices are unstable and depend on international relations and supply and demand on the one hand, and it is a depleted commodity, and all reserves cannot be consumed It is located in the ground, being one of the share of future generations that must be disposed of Back then. ”

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he directed accounting and liquidation of "unproductive" public companies and reconsideration of their law ... Parliamentary finance reveals the size of Iraq's cash reserves ... and warns against tampering with it
 

March 31, 2020 5:56 PM Author: alzawraapaper
 
 
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Baghdad / Al-Zawra:


Parliamentary Finance Committee revealed, yesterday, Tuesday, the size of the central bank's reserves of foreign currency and gold bars, while warning against tampering with the reserves by the executing authorities. On the other hand, a source in the committee said that the parliament intends to hold public "unproductive" companies with a review of their law.

The committee’s rapporteur, Ahmed Al-Saffar, said in a press statement: “The central bank’s reserves reached 87 billion dollars, and it does not include cash and foreign currency only, but it includes gold bars.”

He added that "an increase in the reserves comes through the process of withdrawing and depositing, and obtaining the benefits that are taken from the loans granted by the bank to the government, banks and state institutions."

Al-Saffar added that "the central bank reserves are used in critical cases only, and any manipulation of the reserves by the implementing agencies will affect the financial arrangement of Iraq within the global rankings."

He explained that «withdrawing funds from the bank’s reserves without studying it will reduce Iraq’s B-D rating. Stressing that "this classification depends on the domestic product, the general budget and the economic situation of the country."

Fitch kept the Iraq credit rating at (B-), which is a risky degree, but with a stable outlook.

And Iraq, the second largest producer of crude oil in the Organization of Petroleum Exporting Countries (OPEC), with an average daily production of 4.5 million barrels per day.

Iraq's government debt fell to less than 50 percent of GDP in 2018, compared to 66 percent of GDP in 2016.

Foreign currency reserves, with the exception of gold, had $ 61 billion at the end of 2018, compared to $ 46 billion in 2017.

And the external debt service of the Iraqi government ranges between $ 2.5 billion and $ 2.8 billion annually in the period 2019-2021

Fitch said that the drop in oil prices leads to a renewed deterioration of the public finances and balance of payments in Iraq between 2019-2021.

Iraq, a member of OPEC, relies on oil revenues to finance up to 95 percent of the country's expenditures.

On the other hand, an official source in the Parliamentary Finance Committee said that there is a delay and decline in the activity of public companies due to the inflation of the ministries at the expense of companies, as the company is supposed to have an independent activity and is accounted for production, profits and losses, while we find that the ministry is a cover for these losses Companies and disable them. ”

He added that «every ministry has a special mechanism in dealing with companies and restraining them and stopping them from working». Noting that «the legal, financial, administrative and planning departments in the ministries have become major obstacles to these companies».

And that “the Finance Committee will have a pause in the 2020 budget in the event that it is sent by the government to host those companies for the purpose of deliberation with inquiries if they constitute large losses on the country or achieve acceptable proportions of profits, in addition to hosting the heads of the boards of directors concerned with the activities of these companies, their budgets and their policies ». He emphasized that "losing companies must liquidate, sell, or take their own concession and share them with the private sector." Noting that «there are many losing companies have a government franchise, while the latter did not make use of this franchise, and continued to pay salaries and operational budgets for these sectors, but they are not productive».

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Central Bank: We have not reached the stage of danger, crisis and panic


7 Hours ago

 

The Central Bank of Iraq


 

Ihsan Shamran, general manager of accounting at the Central Bank of Iraq, said that there is no reason to be pessimistic about the country's financial situation.

He stressed in a statement that the employees' salaries are insured, and the April salaries are available, stressing that the central bank will not leave Iraq in danger.

He pointed out that the financial situation of Iraq has not yet reached the stage of danger, nor the stage of crisis and panic, adding that there is no longer anything called the printing of the currency as he put it.

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1 hour ago, DinarThug said:

there is no reason to be pessimistic about the country's financial situation.

He stressed in a statement that the employees' salaries are insured, and the April salaries are available, stressing that the central bank will not leave Iraq in danger.

 

They aren’t pulling our leg are they 

 

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Or maybe our tongue

 

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Parliamentary Finance: The government is responsible for the salaries of the "daily wage earners"


Tuesday, March 31, 2020


alsabaah-33992.jpg 

 

Baghdad / Shaima Rashid and Wafa Amer

 

 
The Parliamentary Finance Committee affirmed that the government bears responsibility for paying the daily wages and salaries and wages in the same way as employees, because their work was suspended by the government, while the committee revealed the reason for delaying the payment of salaries of new referrals to retire, confirming its endeavor to pay their salaries during the coming period. Member of the Finance Committee Jamal Kujer said in a statement to "Al-Sabah": "Since people stopped moving, working and working on the matter of the government, the latter's responsibility is to compensate them, and this includes daily wages and the private sector." On the other hand, the head of the Parliamentary Finance Committee, Haitham al-Jabouri, said: “The delay in the payment of salaries of new retirees is due to a defect in their circles,” pointing out that “there are large numbers estimated at more than 200,000 people who were referred to retire in one day.”

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