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Economist: Iraq will go through a difficult economic stage due to the drop in oil prices ... and the government should use the emergency budget


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Economist: Iraq will go through a difficult economic stage due to the drop in oil prices ... and the government should use the emergency budget

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Economist: Iraq will go through a difficult economic stage due to the drop in oil prices ... and the government should use the emergency budget



The economist warned Malath Al-Amin, from a very difficult economic stage that will pass through the economy of Iraq under conditions of recovery from Corona, calling on the government to use the emergency budget.

The Secretary said in a press statement that oil markets  are under pressure in light of the decline in demand for crude due to the Corona pandemic and the isolation measures taken by governments to limit the spread of the virus, and the decline came despite the fact that "OPEC +" countries reached an agreement last week to reduce the group's production by about 10 Millions of barrels per day, for the months of May and June 2020 to support the market. ”He

emphasized: The commitment of OPEC + decisions to reduce may stop the continuing deterioration of prices, but in time stages that start from the time China fully regains health and restores its economy in addition to the recovery of European and American countries and this matter Patience requires the end of June and b State of July where the wheels will start the economySpinning and requiring more energy.

He added: At that stage, which is after the middle of this year, oil prices will climb as demand increases, so rational and rational policy should be taken by OPEC + that preserves the rights of producers and consumers. ”

He pointed out that Iraq will pass during this stage in a very difficult time under conditions of recovery. From Corona, his government will be asked to use the emergency budget, reduce spending, activate productive sectors, limit import and when the crisis intensifies, he must take a loan from the Central Bank of Iraq and not from banks and international funds, provided that this loan is paid in certain percentages annually to enable him to cross the crisis 
 
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Parliamentary Finance: A trend to reduce the interest rate on loans granted to citizens

 20/2020

 
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Baghdad - Mawazine News
, The Parliamentary Finance Committee revealed, on Monday, that there is a trend to reduce the interest rate on loans granted to citizens.
Member of the Committee, Deputy Ahmed Al-Saffar said, "The Finance Committee previously hosted the Governor of the Central Bank, Ali Al-Alaq, to discuss the interest rate on loans granted to citizens."
He added, "The central bank is the main source of funds and it is the one who determines the interest rate," noting that "the financial benefits resulting from loans are very high because the central bank has set a certain percentage and there are banks that take a commission of 1% to 2%."
He pointed out that "the governor of the bank put forward several options to reduce the interest rate," stressing "the committee's intention to follow up on the matter after the end of the current crisis, because of its importance in reducing the economic recession in the country."
He explained, "Reducing or canceling the interest rate will encourage citizens to borrow, which will lead to raising the purchasing rate and easing the recession in the markets," noting that "the United States worked to reduce interest rates to zero, while Japan set the interest rate to -1, what It means that it gives benefits to the borrower in order to encourage him to borrow. "
He stressed the need to “reduce the interest rate to 3% as a first stage, and after another period it will be completely canceled until it reaches zero.” Ended 29 / A 43

 

https://www.mawazin.net/Details.aspx?jimare=96249

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The budget costs $ 18 billion .. Deputy: 250,000 people receive more than one salary

 

2020-04-20
The budget costs $ 18 billion .. Deputy: 250,000 people receive more than one salary
 
 
 

Member of the Parliamentary Finance Committee Jamal Kujer revealed that there are more than 250,000 people who receive more than one salary. The budget costs annually more than 18 billion dollars, calling on the House of Representatives to issue a decision to choose that segment with one salary and cancel the rest.

Cougar said in an interview with Alsumaria News, "The economic crisis is severe and has greatly affected the world in general and Iraq in particular, which has caused a large budget deficit and the search for solutions to address that deficit and reduce waste of public money."
 
Cougar added , "There are more than 250,000 people, according to the International Monetary Fund , who receive more than two or three salaries and some of them reach five or nine," noting that "their salaries they receive within one year exceed 18 billion dollars."
 
He stressed that "this file needs a decision by the parliament for the person who has more than one salary, to choose one salary from what he has that contributes to the automatic resolution of an important part of the disability."
Iraq faces an economic and financial crisis as a result of the low oil prices, which have reached less than 30 dollars, especially as Iraq relies mainly on revenues from the sale of oil in its public budget, as it constitutes more than 95% of these revenues.
 
 
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Iraq between the option of "external borrowing" or "compulsory saving"

 

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arrow2.gif Iraq between the option of "external borrowing" or "compulsory saving"  
 
The Iraqi Future / Adel Al-Lami
 
The Office of the Deputy Prime Minister and Minister of Finance announced that Iraq will study the option of requesting external loans to cross the economic crisis, while voices within Parliament have come to resort again to the "compulsory saving" option for employee salaries to face the expected financial deficit.
The Deputy Prime Minister and Minister of Finance Fuad Hussein chaired an expanded meeting in the presence of the governor of the Central Bank, the undersecretary of the Ministry of Finance, general managers of the Rafidain and Rashid and Iraqi banks for trade, the customs and tax authorities and the public debt department to discuss the economic and financial situation in order to secure the needs of the government.
A statement of Hussein’s office said that the Iraqi future received a copy of it, that “the Deputy Prime Minister reviewed the recent OPEC agreement and the decision to reduce the global oil market shares and reduce approximately one million barrels per day of Iraq’s share and the implications of that decision, especially with the collapse of current oil prices and how to overcome these obstacles and cross the current stage ».
According to the statement, the Governor of the Central Bank stressed "the need to maintain the continuity of the banking system and balances and to the need to analyze data to obtain information about those balances, whether it is self-financing or central."
The meeting touched on options for entering the IMF program and requesting external loans as one of the options that the current government could make to cross the stage.
Iraq faces an economic and financial crisis as a result of low oil prices, which reached less than 30 dollars.
It depends mainly on the revenues of selling oil in its general budget, as it constitutes more than 95% of these revenues. For his part, member of the Parliamentary Finance Committee Jamal Kujer affirmed that one of the proposals to resolve the economic crisis in the country is to resort to the compulsory saving of employees.
Cougar said, in a press statement, that "the general situation of Iraq and the region is going through a severe economic crisis, and the Iraqi state is different from three quarters of the world, considering that it faces complex crises, amounting to five crises together, which makes the economic situation very difficult", indicating that "The state does not have many alternative solutions, because maximizing resources is not an easy process in record time, which makes the state facing limited options, including resorting to bank reserves and borrowing from Iraqi banks."
Cougar added that "the other option is to fight corruption and this is difficult, because it needs a strong government." He pointed out that "the third option is to issue some decisions, among them, for example, to abolish the customs exemption applied to some Iraqi ports, or to transfer the management of border ports." To destinations that you can control, as the counter-terrorism apparatus. ”
He continued, "One of the methods discussed, but it did not become a decision, is to resort to compulsory savings, but the point of disagreement in this option is who will be covered by saving." Noting that "we in the Parliamentary Finance Committee are not with savings for all salary scales, but for limited groups according to the majority of members." We set a financial ceiling for those who are included in the savings, for example, for those whose salary amounts to two or two and a half and a half dinars per month, either from their salary of 500 or more or less and has many family obligations and rental fees, it is not possible to apply compulsory savings to them because he will either be neglected in his job or resort to To corruption. ” Cougar stressed that "until the moment, no final agreement was reached, and is still in the stage of discussions on how to find solutions to the problem we have entered into," adding that "there are solutions with the government but it needs a strong government."
 
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Finance is studying proposals to change the salary system

 

2020-04-20
Finance is studying proposals to change the salary system
 
 
 
 
 

The General Secretariat of the Council of Ministers revealed, on Monday, that the Ministry of Finance is studying proposals to change the salary system, stating that this came in accordance with recent economic changes.

"The Ministry of Finance is studying proposals to change the salary system according to the recent changes in the economy, the fall in oil prices and the crises that the country is going through ," said Ala'a Glob Al-Fahd, the official spokesman for the Government Information and Communications Office at the General Secretariat of the Council .
 
Al-Fahd added to “Al-Sabah” that “the Finance Committee is studying with several experts in the Ministry of Finance several proposals and solutions to change the salary system, and among the options presented informally is to change salaries by 25% for all employees, resort to compulsory savings or reduce non-profit allocations.” These are all considered options that the government will choose the best. "
 
He added, "This matter is left to the new government, as it will present a draft budget law and proposals and solutions to change the reality of the budget situation, which suffers from a large deficit - before the Coruna crisis and the fall in oil prices - where the deficit is estimated at $ 40 billion, and there are obligations of foreign policy."
A member of the Parliamentary Finance Committee, Jamal Kujer, confirmed in an interview with Alsumaria News yesterday that one of the proposals to solve the economic crisis in the country is to resort to the compulsory saving of employees.
 
He said, "The state does not have many alternative solutions, because maximizing resources is not an easy process in a record time, which makes the state in front of limited options, including resorting to bank reserves and borrowing from Iraqi banks."
 
He continued, "One of the methods discussed - but not becoming a decision - is the resort to compulsory savings, but the point of contention in this choice is who will be included in the savings", noting that "we in the Parliamentary Finance Committee do not have the same amount." .
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Well they're trying at least.  They are in real pickle that's for and it's good they realize it and are scrambling to try and adjust in as many ways as the can.  And actually, the whole world is in a pickle as we watch and wait for the coronavirus to play out.  

Thanks for more great articles Mary B!!!

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Back to the economics of war

العودة الى اقتصاديات الحرب


Monday, April 20, 2020
 


Ibrahim al-Abadi
 
It is hoped that Mr. Al-Kadhimi's government will begin its work after gaining the confidence of parliament in the same week that the agreement of the exporting and producing countries, OPEC+, this optimistic expectation is based on the leaking of a positive atmosphere surrounding the negotiations to form a government, despite the expected difficulties.
Iraq has entered the plight of the financial and economic crisis, and economists know more than others the true meaning of this crisis, when they deal in the language of numbers and collide with the reality of the terrible figures about the decline of Iraq's financial revenues to two-thirds and the high operational cost of the state machine increased by the government These data will inevitably affect Iraqi society and its members psychologically and valuely, and the political and security situation will be shaken when the financial table shrinks significantly, the funds of the ministries are reduced and the financial flows, which were gained by the forces that succeeded in reaching out to all state facilities, will be shaken. The expectations are that the financial crisis will hit the sensitive nerve of the parties and blocs that are now taking care of their interests by fighting for positions from which they hope to collect money, interests and returns other than those that they have infiltrated before and made them a frog that supplies them with golden eggs.
The problem will be bigger than the government's capacity and stronger than all possible options, the central bank's fiscal reserves are not enough to finance the budget deficit to impose the bank's cooperation with the government in this regard, what exists no more than 67 billion dollars, which is acceptable reserves if the government does not have to finance its budget deficit, which will reach 50 percent if we assume that the fiscal revenue will not reach 30 billion dollars at the best estimates, and the measure of salaries and subsidies 7 million Iraqis will be a difficult ordeal if that requires that 50 billion dollars alone, not to mention other operating requirements, as the pressure of trade mafias and import agents, which last year released more than $60 billion to cover imports and bank transfers went unchecked.
We are facing a serious crisis by all measures and the populist rhetoric and the noise of some mPs and the speeches of politics and the media do not benefit from it.
There is no easy solution at all, the prime minister-designate realizes that success in the battle to manage the financial crisis requires the use of Iraqi economists who are not subject to blackmail and improvisation of party leaders and their representatives in parliament, and a harmonious group of economic ministers should be chosen to put an end to the regrets that have continued since 2004, where the language of political interests and vulgar clientelism has prevailed over the logic of the economy and its equations and laws, until Iraq became an example of lost opportunities and corruption protected by guns. 
Optimists talk about the possibility of turning the serious threat into an opportunity, but the only chance that has not yet been missed is to go to production and close border crossings to imports, reduce consumer spending, adjust the salary scale, reduce the differences between the layers of employees and impose an upward tax on individual income.
The government has a basket of unpopular decisions accompanied by social unrest, but the structural adjustment of the economy has become more than necessary and it is necessary to be frank the people at the first opportunity to start a mobilization of psychology and public media so that the Iraqi adapts to the economics of austerity and is satisfied with the necessities, which are more than the economics of war, which has been left little, but the return to relative welfare, will be suspended on the rotation of the economy from its miserable rent to a productive economy, a condition that will only be achieved by years of thought and a renaissance policy that will not be produced by the current political class, Political change will be a prelude to the advancement of the crumbling economy and lazy daily thought.  The world will change around us and we are forced to adapt to the new reality with all its political, economic and intellectual variables. 
And morality.

 

https://alsabaah.iq/24398/العودة-الى-اقتصاديات-الحرب

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Iraq is considering another proposal to print the currency to counter the decline in oil

20/04/2020

 
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Baghdad - Mawazine News
revealed the Parliamentary Finance Committee, today, Monday, a proposal to secure salaries based on the printing of the Iraqi currency, as happened under the previous regime.
Member of the Finance Committee Hanin Qaddo said in a statement seen by Mawazine News that "there is a proposal to print the Iraqi currency to counter the decline in global oil prices."
Qadoo pointed out that "this matter will lead to high costs of living, inflation in prices and an increase in the price of the dollar compared to the Iraqi dinar."

End / 29 BC

https://www.mawazin.net/Details.aspx?jimare=96254

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Parliamentary Economist: The Central Bank has informed us of its willingness to increase the funds of the national project for youth employment

20/20/2020
 
  
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Information / private ...

The Parliamentary Economy and Investment Committee confirmed on Monday that the Central Bank of Iraq informed it of its willingness to increase the amount of funds allocated to support the national project to employ unemployed youth.

Committee member Ibrahim Charter said in a statement to / Information /, “The central bank has allocated one trillion Iraqi dinars to support the Ministry of Planning’s plan to employ youth through the national project that relates to the agricultural and industrial aspect.” The plan recorded a great turnout by young entrepreneurs.

She added that "the Central Bank of Iraq will provide youth loans up to a maximum of 50 million dinars to be repaid in ten years and the beneficiary will be exempted from the installments for the first two years", indicating that "Fouad loans do not exceed 3%."

And the Ministry of Planning launched last week two projects within the national project to provide job opportunities for young people, which will provide job opportunities for more than two thousand young people from Dhi Qar.

 

https://www.almaalomah.com/2020/04/20/469727/

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Parliamentary Economic: The Central Bank has informed us of its willingness to increase the funds of the national project for youth employment

 

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18:44 - 20/4/2020
 
 

The Parliamentary Economy and Investment Committee confirmed on Monday that the Central Bank of Iraq informed it of its willingness to increase the amount of funds allocated to support the national project to employ unemployed youth.

Committee member Ibrahim Charter said in a statement to / Information /, “The central bank has allocated one trillion Iraqi dinars to support the Ministry of Planning’s plan to employ youth through the national project that relates to the agricultural and industrial aspect.” The plan recorded a great turnout by young entrepreneurs.

She added that "the Central Bank of Iraq will provide youth loans up to a maximum of 50 million dinars to be repaid in ten years and the beneficiary will be exempted from the installments for the first two years", indicating that "Fouad loans do not exceed 3%."

And the Ministry of Planning launched last week two projects within the national project to provide job opportunities for young people, which will provide job opportunities for more than two thousand young men from Dhi Qar.

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The appearance of Muhammad Salih, commenting on the collapse of the oil market: the battle is over

 20/04/2020

 
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Baghdad - Mawazine News 
, Advisor to the Prime Minister, Mazhar Muhammad Salih, presented, on Monday, an analytical vision about the collapse of oil markets in the North American continent, returning to the world that he entered a "fatal price war", indicating that the battle had been resolved and 
Dr. Mazhar Muhammad Salih, Advisor to the Prime Minister said that " The American market has played a dual role in recent years as an oligopoly sellers and monosopeny buyers market at the same time, especially during the past ten years gradually, as the United States consumes about 19 million barrels of oil per day and represents 19% of the world's production alone and is the largest consumer of oil in the world. .
Saleh explained that "the United States is one of the largest producers of oil in the world with a production capacity of about 13 million barrels, whether of shale or conventional oil." It is the Kingdom of Saudi Arabia, flooding the market with approximately 12 million barrels per day. "
And Saleh explained that "the whole oil world entered into a fatal price war and then turned the oil market into a recession until it reached the point of collapse." In leading the world oil market to constitute a price war, the collapse of OPEC's strength as a seller market and the victory of the US-led buyers' market.
The advisor to the Prime Minister added, "It is two chances of victory. The first is that the low demand for world oil, which is 30% less than the current supply, and the second is an additional surplus of 300 million barrels capacity in the futures market," adding, "As this market formed the symbolic advanced or forward oil camp Who led the night’s collapses through the oil futures coup. "
And the appearance of Mohamed Saleh indicated that "all speculators turned at once to the short position, that is, selling immediately for futures contracts with the hope of cheaper purchase of the contracts themselves, but at a low point without the lowest breakpoint in the world, which did not lead to the collapse of the entire oil market."
He pointed out that "the final buyer of the surplus offered is the United States market, which seized the collapsed future oil contracts, closed them, and converted them into an immediate market." In the world, in the future, the market will turn into a long position after that melting point or the breaking point above. "
Saleh concluded by saying: "It is the opportunity of the last winner who reaped the losses of the entire world 's oil. The winner is the speculators who possess crude oil stocks in the United States of America and according to a strategy the oil market will remain a buyers market forever." M hn
ended 

 

https://www.mawazin.net/Details.aspx?jimare=96351

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