The Parliamentary Finance Decision Talks About A Threat To The Central Bank's Foreign Currency Reserves !

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CNN. Broadcasting From The Valet Camel Parking Stand At The CBI’s Headquarters !
 

 

The parliamentary finance decision talks about a threat to the central bank's foreign currency reserves

 

Economie 06/20/2020 19:04 421     

Baghdad today - Baghdad  

 

A member of the Parliamentary Finance Committee, Ahmed Al-Saffar, said today, Monday, that the Central Bank of Iraq succeeded in light of the global crisis caused by the collapse of oil prices, while stressing that the window to sell the dollar currently poses a risk to the bank's reserves.

Ahmed Al-Saffar said, in an interview with (Baghdad Today), that "the value of what is sold from the dollar within the window of the Central Bank of Iraq is much greater than the proceeds from the sale of crude oil, given that the latter constitutes the most important source of hard currency in the country, and therefore the window already affects the cash reserve Although this money goes on the basis of supporting importers according to the official papers provided by banks that participate in the currency auction. "

Al-Saffar added, "With a calculation between what is sold from the dollar through the currency, and what is returned by selling the dollar, it reveals a big difference that actually affects the cash reserve, but the latter, according to his policy, tries to maintain the dollar exchange rate against the Iraqi dinar, because any reduction It will lead to an increase in the value of the dollar and a reduction of the dinar, and consequently an increase in prices. He is trying to strike a balance between the value of the dinar and the reserve. "

A member of the Parliamentary Finance Committee confirmed that "the central bank is an independent institution, and it is not possible to interfere in its monetary policy, and it succeeded in the last period because it maintained the rate of inflation and the exchange rate of the dollar after the collapse of global oil prices and their accompanying repercussions in the health crisis." 

He pointed out that "the situation of Iraq is better than the neighboring countries, some of which collapsed in currencies," noting that "the central bank policy is particularly good and made sure that people with limited incomes and those with daily wages are not affected by inflation or high prices in the markets." 

Earlier, a member of the Parliamentary Finance Committee, Muhammad Sahib al-Darraji, published a tweet in which he stated that “one day, the currency window sells $ 207 million and the average daily oil sales are $ 60 million (according to the price of $ 40 quality discount $ 6 + production cost $ 9) export rate 2.4 Million barrels). " 

And he added: "So the difference between the dollar entering the country and abroad to import 147 million dollars! In one day, and if it continues, it means 53 billion a year! Why?"

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On 6/28/2020 at 8:41 AM, DinarThug said:

         

Source: Al-Kazemi will strike again in the coming days  

27th June, 2020
 

A source close to Prime Minister Mustafa Al-Kazemi revealed that the latter would launch new reform strikes within the next few days.

The source told "Al-Ikhbaria" that "the prime minister will launch new reform strikes in the next few days, taking advantage of his non-partisan and non-binding powers."

He added, "Al-Kazemi held a mini-meeting with a number of leaders close to him and told them that he would not give in or surrender to the will of the parties."

 

Parliamentary and political support for Al-Kazimi's reform steps

 

Monday, June 29, 2020
 

 

Baghdad / Shaima Rashid and Muhannad Abdul-Wahab

 

Politicians believe that the reforms that Prime Minister Mustafa Al-Kazemi intends to carry out are important, especially in the health and economic aspects, calling for the implementation of the reform paper called by Al-Kazemi and the adoption of new mechanisms to change important positions in the country, and this comes at a time; In it, a source close to the Prime Minister revealed that the latter would launch new reform strikes within the next few days.

 

The source said in a press statement: “The Prime Minister will launch new reform strikes during the next few days, taking advantage of his non-partisan and non-binding powers, and that Al-Kazemi held a mini-meeting with a number of leaders close to him and informed them that he would not give in or surrender to the will of the parties.”

 

High positions

Member of Parliament Ali Saadoun Al-Lami told Al-Sabah: “If the Prime Minister wants to change the names of the top positions; He must come up with a new mechanism that differs from the previous mechanism in which these names came to these positions, and he must choose professional personalities from the institution itself and be familiar with it, and it must be honest and efficient personalities, and he must stay away from pressure from the parties that try to install certain names to manage these positions Noting that «the reason for the failure of most institutions is the personalities that parties bring and imposes on me 

Prime Minister".

He added, “After choosing the personalities, Al-Kazemi should send them to Parliament so that the positions will not remain by proxy and lacking authority, and therefore you will not be able to implement what is in the interests of the institution.” Important positions can be replaced and Parliament can hold a session to vote on it even if the session is electronic.

In turn, among the members of the House of Representatives, Riyad Al-Masoudi, that "the change in the special grades is a true corrective path and we encourage the Prime Minister, but we do not want to bring people close to him or through the parties; Rather, professional personalities according to criteria 

Specific ».

Al-Masoudi told Al-Sabah: “The person responsible for appointing special grades is the cabinet, and the role of the parliament is to certify whether or not it is, but for everyone to know that private grades are acquired by parties, so 90 percent of them are not under the authority of the prime minister, and that The Prime Minister previously stated that he will make changes in the special grades that may be faced with rejection by the parties, stressing “the need to separate party and institutional work.”

 

Legislative support

To that, Member of Parliament Melhan Al-Mutwar called on the Prime Minister to implement his program that came with it, and the legislative authority will be with him on his path.

Al-Mukawtar told Al-Sabah: “The names that are raised in changing some important positions are still just media talk, and if they are correct, they must be in agreement with the blocs and their chiefs, and Al-Kazemi has the right to bring whoever he sees.” suitable".

Independent MP Asaad Al-Murshidi told Al-Sabah: “The Council expects the Prime Minister to present the reform paper, and because the situation in the country is critical, the Prime Minister must take bold steps, including controlling border crossings and searching for alternative oil resources.”

He added, "The prime minister's total steps begin with relying on the domestic product, protecting it and imposing taxes on imported goods."

And he stated that "political reform begins with eliminating corruption, because without this step there will be no value for economic reforms. Corruption is the basis for the country's retreat", indicating that "corruption has spread more during the caretaker government, and therefore political reform plans must begin to parallel economic reform." And support it. ”

He pointed out that "the Prime Minister's reform steps are positive, and independent representatives in the House of Representatives are supportive of these steps, and in all reformist directions in the administrative and oversight apparatus."

 

Repair steps

For his part, Salim Hamzah, a member of the Kurdistan Islamic Group, said in his interview with Al-Sabah that "the House of Representatives blesses the Prime Minister's reform efforts that contribute to eliminating corruption."

He pointed out that "the reforms are of two types, political and economic, and they are going in one direction parallel, because economic reforms will not succeed if they do not have political reforms that support them in decisions and legislations." These are steps that the Iraqi street is waiting for as it restores the prestige of the state.

In an interview with "Al-Sabah", independent MP Muhammad Shia'a Al-Sudani believes that "in light of the challenges facing the country, the government has a number of urgent measures to enhance the oil balance, which enables the government to fulfill its obligations, especially employees, retirees, social welfare, treatment of the ration card and the benefits of the crisis cell in Related to facing a Corona virus  ».

He noted «not to raise the price of oil derivatives and extracted crude oil, which is given to distribution companies and refineries ending in oil derivatives, which provides large amounts of money that were going to the Ministry of Oil, whether in the form of distributing profits to employees or undertaking projects of social benefit, and under the current financial conditions must To invest this money, which amounts to 8 trillion dinars, in the case of controlling oil revenues by setting 10 percent of the costs of extraction and 8 dollars for liquidation and within 5 percent of the distribution with giving incentives, there are 8 trillion dinars that can be saved from the income of oil derivatives without To raise the price of petroleum products to the citizen, which are available revenues that were not directed to the citizen and can provide quick revenues, in addition to reducing the salaries of the three presidencies from ministers and representatives and special grades and stopping the disbursement of allocations granted outside the laws, and these are all reduced Of spending »
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Announcing facilities for lawyers when reviewing banks, using
the identity of the union

2020.06.29 - 15:53

 

Baghdad - people  

 

The Iraqi Bar Association announced, on Monday, new facilities for lawyers as
they review banks.  

The union said in a statement, "People" received a copy of it, (June 29, 2020),
that it "received a book addressed to the Association of Iraqi Banks, confirming
the necessity of facilitating the work of lawyers and the application of Article (26)
of the Iraqi law firm, and by reference to the book of the union."  

The Director General of the Administrative Department of the
Central Bank of Iraq, Salih Ma Hood Salman, instructed,
according to the statement, "by ordering all Iraqi banks, the
necessity of facilitating the task of lawyers when reviewing
them, and only highlighting the identity of the practice of the
legal profession, as it is officially retained."  

He added, "The president of the Iraqi Bar Association, Diaa
Al-Saadi, thanked the cooperation between the two sides,
guiding the necessity of respecting the legal rules and
ensuring that the lawyer gave proper respect to the profession."  

  

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In 5 steps, Al-Kazemi's advisor reveals the government's
efforts to increase budget revenues

 

29th June, 2020

The economic advisor to the Prime Minister, Hisham Dawood, revealed on Monday the government's efforts to increase the revenues of the public budget, while stressing that the government is serious about fighting corruption with regard to sovereign outlets.

Dawood said, "The government is looking for more revenue for the state budget," pointing out that "border crossings are one of these revenues, in addition to relying on the internal product without accepting only import." He added, "Combating corruption in all its forms in state institutions, rationalizing exchange and government spending and fighting waste, are also other outlets for increasing budget revenues."

He stressed, "Any country that wants to respect its prestige and sovereignty must control its borders," noting that "the issue of ports is not convenient for the government and the prime minister, and what is rumored here and there that the anti-terror apparatus will interfere here and there is incorrect."

He explained, "The real and correct opinion is that the law should take its place and place with regard to airports and border crossings." He continued: "From here, it is natural for the future government of Prime Minister Mustafa Al-Kazimi to move and act in this direction," stressing that "the government is serious about fighting corruption with regard to sovereign outlets."

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Fiscal policy in Iraq between debt and reform

- 3 Minutes Past

 

 

Researcher Shatha Khalil *

Although the new government was able to secure the salaries of employees, the financial problem remains essential in the Iraqi economy, and its viability and sustainability in light of the fluctuations in international oil prices that cause the financial deficit of the Iraqi budget, which mainly depends on oil revenues, and the high volume Public debt, as well as risks arising from unfair budget distribution; Based on the political agreements in distributing public expenditures to the governorates and the region, as well as the low allocations of the investment budget, as well as the deterioration of public sector companies and their transformation from profitable producing companies into losing companies.

The decrease in the public financial ability to achieve efficiency in spending is due to the influence of the political side in the public budget, as well as the failure to follow the criteria for efficiency in spending, and the dependence of the Iraqi economy on oil revenues by more than a barrier (88%); Which exposes him to financial shocks and high public debt, and thus financial insecurity.

Looking at all budgets after (2003), it is noted that fiscal policy is not based on macroeconomic development, but rather in a large part of it directs resources to the operational side of the general budget.

Likewise, the lack of institutional harmony and the escalation of the specter of quotas, in addition to the security threats that the country is constantly passing through. Reflecting on the social side, many of the problems, especially those related to citizens in general, included the spread of alien ideas on society, with cases of moral corruption, family disintegration and other social problems expanding.

As for the economic problems, they include many obstacles that are in private contact with the citizen, as the prevalence of poverty and corruption in government departments, in addition to unemployment and disguised unemployment in most government departments and many problems in government administration.

These problems are interconnected in a direct way with other problems, as political problems are a root of the roots of economic problems and the last are the basis for social problems. This means that increasing economic problems leads to increasing other problems and vice versa.

This makes the solution to these problems a real crisis facing the political administration in the first place because it has the decision in that, in addition to the great necessity of specialized scientific consultations for each problem separately.

Iraq incurred heavy financial losses due to the deterioration of oil prices resulting from the Corona epidemic, as Iraq prepared for the year 2020 budget deficit of 50 trillion dinars, equivalent to 42 billion dollars. This account was based on a price of $ 54 a barrel of oil.

But the shock of the epidemic and the differences between OPEC + members led to a sharp drop in the price of crude, which reached at the end of March to $ 23, showing the vast difference between the low price that reached the oil mechanism and the approved price in the budget of $ 34. As Iraq's exports are 3.8 million b / d, the daily loss will reach $ 129 million.

It is a huge loss because oil revenues represent 89% of general budget revenues and 99% of total export earnings, and the draft budget was recently amended, so the approved price became $ 30 a barrel. But this measure will not address the serious consequences of the financial crisis.

The high public debt, according to officials and specialists, has exacerbated public debts amounting to $ 125 billion, equivalent to 56% of GDP. Even the external debt will not be easy due to the Corona global crisis, and the credit rating of Iraq is very weak. He obtained a "negative B" score by Fitch and Standard and Powers, and most importantly the loss of confidence in economic policy. Experience has shown that the funds granted after the elimination of ISIS were not used in an acceptable manner in the reconstruction.

Here we come to important facts that must be placed within the plans of the state and to benefit from crises and the lessons we draw from to correct the path of economic reform in Iraq:

كور The Corona pandemic has proven beyond any doubt that countries that depend on importing food, medicine and health equipment are suffering from a serious crisis, especially if their financial viability is limited. The risk increases as this dependence increases. And dependence on exports that finance imports on a single substance, such as oil, whose price has rapidly deteriorated. And Iraq is at the forefront of the countries that meet these specifications.

• To address the current financial crisis, the Iraqi government must follow various steps, including: encouraging local agricultural and industrial investment, and providing various forms of support for this production through more public spending on scientific research and technological development, focus on all sectors and consider them complementary to each other and important for a strong state .
• Giving a large role and encouraging the agricultural sector and considering it one of the most important sectors and restoring life to Iraqi agriculture by adopting the project (who plantes owning the land) and this means whoever wants land should strive to obtain it and organize that by a specific law that guarantees non-exploitation and criminalizes its distribution to residential provinces.
• Setting new investment decisions that help investors to work even if the interest is low in the first place, but it will recover if this investment succeeds in a specific region or province, for example, we may lose the land, but we gain 5,000 jobs in almost every new project to eliminate unemployment and employ the workforce In order to eliminate or at least start reducing the level of poverty in Iraq because it has become a dangerous level.

On the other hand, so that the state can surround the problem well and treat each problem mainly from the political side, drawing the public policy based on the principles of real extrapolation to the problem is what avoids us falling into unrealistic or unrealistic treatments, and from these steps through which it can address The financial crisis, adopting an economic policy for the Iraqi state that depends on the fundamentals of capitalist work, where the problems that arise show that there is a lack of coherence or harmony between the democratic political system and the socialist economic system. Al-Aini for Money This makes the liquidity in banks continuously while adopting awareness programs for citizens on saving.

And giving great importance to the private sector and placing it within a legal framework, in order to guarantee its employees after-service rights, and this reduces government burdens significantly, especially in the matter of appointments, as 80% of those requesting employment aspire to obtain pension benefits that guarantee their lives.

The most important is coordination between the two sectors (public and private) in the law for the employment of government workers in private companies and deduction of their salaries from the company, for example, workers of military manufacturing companies or companies that are suspended from work, such as iron and steel company workers, while ensuring that they are not exploited by companies by a specific legal protocol.

We reach an important conclusion, which is the necessity of reforming the financial policy so that it gives special importance to the health, educational, social and other services sectors, as well as to local industrial and agricultural productive activities.

Setting plans that adopt a policy of economic spending in important fields that transform this policy, the ability to respond to health crises and without addressing urgent financial problems, and it has become necessary to make fundamental adjustments to them by reducing military and security spending, and making the regular army sufficient and strengthening it, and totally dispensing with the endowment bodies of all religions and sects and limiting their tasks. However, the state is minimalistic.

And poverty, which has become a dangerous level, must be addressed, as it constitutes a third of the Iraqi population. These ordeals can only be taken advantage of after all the obstacles of state administration are eliminated so that the country can rebalance again.

Economic Studies Unit,
Links Center for Research and Strategic Studies

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Deputy: Borrowing cannot proceed without this step

 

 

13:15 - 06/29/2020

The deputy for the Alliance of Raiders Riyad Al-Masoudi stressed on Monday that the government is obligated to present a comprehensive economic reform paper within the next two months, indicating that it is not possible to proceed with external borrowing without taking a step in expanding Iraqi income sources.

Al-Masoudi said in a statement to the "information" that "it is not possible to support the government absolutely and continuously without seeking political blocs seriously in reforming the economic situation is clear."

He added that "the government is obligated to present the economic, political and security reform paper in the coming days to parliament in order to vote on it," noting that "the borrowing law includes a provision for the reform paper that the government will present within the next two months that can never be crossed."

He continued, "There are hopes for the rise of oil prices during the next stage of about 55 dollars per barrel, and the government should develop a strategic plan for investing surplus funds in operating factories and other development projects." 

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Economist: Imposing control of border crossings will
create 1 million jobs

 

29th June, 2020

 

Economist Haider Faraj confirmed today, Monday, that in the event that the government controls border crossings, it will provide more than a million job opportunities in the sectors of agriculture, industry and administration, pointing out that the cause of chaos and the non-discharge of local products is due to the entry of goods from outside the country without fundamental approval or collection As a customs office.

Faraj told Al-Ikhbaria, "We need to announce a national mobilization to control the corruption of border crossings throughout Iraq and to re-impose state prestige on all ports without exception."

He added that "within a year of controlling the border outlets, there will be a million job opportunities in the industrial and agricultural sectors, as well as in the management sector."

Faraj pointed out that "the imported product comes at 60% less than its price in Iraq in order to destroy the country to pass regional agendas from certain countries and pass their plans to support terrorism." He explained that "75% of the goods enter Iraq from abroad without any formal or official approval or examination, or even a customs tax, which led to dumping markets and the Iraqi product not recovering."

It is noteworthy that Prime Minister Mustafa Al-Kazemi had promised in the past few days to launch a campaign that he said is very close to controlling all the official border outlets for Iraq, and there are 13 outlets, including the Kurdistan region of Iraq.

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Shhh ..... It’s A Secret !  

 

     

 

 

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Source: Al-Maliki and Al-Amri are working secretly to get rid of the Al-Kazemi government

 

29th June, 2020

An informed political source revealed that the leader of the State of Law coalition, Nuri al-Maliki, and the head of the Al-Fath coalition, Hadi al-Amiri, are working in secret to get rid of the government of Prime Minister Mustafa al-Kazemi.

The source told "Al-Ikhbaria" that "Al-Maliki and Al-Amiri decided to work in silence and with great caution to implement the process of leasing the government and Al-Kazemi to parliament."

He added that "a large secret work is being prepared to get rid of the government through parliament first and then demonstrations and other methods," noting that "the head of the Popular Mobilization Committee Faleh al-Fayyad does not mind joining them."

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The meeting of Al-Fayadh, Al-Maliki, and Al-Amri ends with the delivery of a strongly worded message to Al-Kazemi

 

29th June 2020

 

A political source revealed, on Monday, the end of a meeting of Shiite political forces in the home of the President of the Alliance of Fath Hadi al-Amiri, noting that the meeting recommended the delivery of a strongly worded message to Prime Minister Mustafa al-Kazemi.


The source told "Al-Ikhbaria" that "a meeting of the Shiite political forces ended in the house of the head of the Al-Fath Alliance Hadi al-Amiri and in the presence of the head of the State of Law coalition Nuri al-Maliki and Faleh al-Fayyad and most other political forces."

He added, "The meeting ended with the delivery of messages to Prime Minister Mustafa Al-Kazemi expressing "discontent" over the government's lack of interest in tackling the Corona crisis and the economic crisis, as well as the Shiite leaders' assertion that they are not satisfied with targeting the popular crowd

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Parliamentary finance shows the reason for delaying the payment of salaries for the month of June

 

 

14:30 - 29/06/2020

The Parliamentary Finance Committee attributed, on Monday, the delay in the disbursement of employee salaries and grants for the month of June to the absence of cash liquidity, explaining that the reason for this is due to the failure of the amount borrowed from local banks to the state treasury recently approved by Parliament.

Member of the Committee, MP Jamal Cougar, said in a statement to "Information", that "the delay in the process of disbursing salaries and grants for the month of June is due to the absence of cash at the public treasury."

He added that "the main reason for the delay in salaries is the delay in receiving financial loans from local banks that the government allowed the government to borrow on paying salaries", stressing that "the coming days will be the salaries paid to those who are entitled to them."

Cougar pointed out that "the amounts of internal loans will suffice to pay salaries between four and five months and the government must urgently undertake financial reforms to avoid dumping the state treasury with internal or external debts." 

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20 hours ago, DinarThug said:

The government is close to sending the economic reform law to parliament

 

Monday, June 29, 2020

 

Baghdad / Omar Abdul Latif

 

 

The government is close to sending the economic reform bill to parliament for discussion and voting, while the parliamentary Economic and Investment Committee confirmed that the law will establish a federal reform council linked to the cabinet.

 

The law works to give the private sector an essential role in the development and development and raising the efficiency of economic projects, while providing social protection networks and social insurance funds, and the launch of loans for projects and the development of the banking system.

The Deputy Prime Minister and Minister of Finance Ali Abdul Amir Allawi confirmed that the government is in the process of forming a complete and integrated program to reform and advance the economy, and Allawi said to the Iraqi News Agency (INA): "This program will be presented to the House of Representatives during the next three months and will be comprehensive." Until «the plans in the program will address all sectors of the economy and the productive and service sectors».

He added that «the program includes enhancing the state’s revenues from other sources such as customs and taxes, stopping waste and also the process of removing suffocation from the economy», stressing that «the government will enhance and strengthen the activity of the private sector, because its growth will provide jobs and increase domestic production».

 

Activating the private sector

Member of the Parliamentary Economy and Investment Committee Nehru Mahmoud Rawandzi said in a statement to Al-Sabah: “The law seeks to transform the Iraqi economy into a market economy and give the private sector a key role in development and development and raise the efficiency of economic projects and increase their production and competitiveness”, noting that “the goal This includes diversifying economic resources, improving efficiency in managing natural resources according to the principles of fair and legitimate competition, and diversifying the sources of financing the federal budget. 

He added that «this law will increase the returns of companies, and facilitate the process of entering into partnerships between the public and private sectors, and the transition from the central administration of the economy to decentralization by granting a greater role to the regions and governorates that are not organized in a region, and also stimulates financial decentralization to ensure financial capacity in order to finance development needs Local economic, to raise the standard of living for members of society and increase employment opportunities ».

He pointed out that «this will ensure the creation of an investment climate to encourage local and foreign investors to manage the ownership of economic units, developing and expanding the activities of financial markets and supporting the broad participation of the public in dealing in stocks, bonds and various securities, and achieving justice in the distribution of the returns of economic activities». 

"Achieving the objectives of this law comes through proposing an economic policy that includes the provision of public services, taxes and employment, while ensuring harmony between financial, monetary, tax, commercial and development policies and labor policies, and implementing the economic reform program and the principles and rules set forth In this law ».

Adoption of governance

The MP pointed out that «this law will promote the adoption of good governance in the management of public companies in accordance with international principles and practices, the separation of ownership and management, enhancing the efficiency of management and competition between public companies, regulating relationships between ownership and management of natural resources and facilitating the privatization of public companies, and working to achieve transparency and equal treatment between Stakeholders from the private sector, encouraging dialogue between the public sector and social partners, while providing social protection networks and their integrity, social insurance funds such as pension funds, unemployment insurance, labor market regulation and instructions regulating the labor market, facilitating the establishment and development of small and medium enterprises, and stimulating the provision of soft loans to them from During the establishment of lending funds or financing through partnership between the public and private sectors ».

A member of the Parliamentary Committee on Economy and Investment stressed that “the law will create a legal environment conducive to partnership between companies and private and public institutions, including concession rights, participation contracts, project management, and the role of the private sector to ensure equality and fair competition in the market, and work to remove legal obstacles that negatively affect the development of The private sector, encouraging investment in the agricultural sector, providing basic and adequate inputs, and reforming legislation and procedures related to land and ways of using it. 

 

Banking system reform

Rawandzi reported that «the law will work to reform and restructure the banking system and expand commercial banking operations to provide the financing required for investment, and provide effective mechanisms to reduce risks, increase credit and work to convert government banks into joint stock companies, and ensure expansion in the banking sector under the supervision of the central bank, and the introduction Modern mechanisms and banking technology to facilitate access to better financing and services. ”
The deputy pointed out that «the economic reform law regulates and develops financial markets by assessing capital according to international accounting standards, stimulating the introduction of modern and environmentally friendly technology, adopting urban development principles and planning to ensure the availability of public lands and facilities to motivate different sectors, and taking the necessary and progressive measures to regulate the restrictions that Governing fiscal and monetary policies, identifying sustainable development areas in geographical locations that suffer from a lack of economic capabilities and developmental imbalances, and granting these areas economic incentives to attract investors, encouraging local companies and setting up projects, and working to reform the tax system And the financial ».

Rawandzi hinted that, “According to the law, he will establish the Federal Economic Reform Council, which is linked to the Council of Ministers, enjoys moral personality and is represented by the Speaker or whoever he authorizes, and it consists of the Department of Economic and Legislative Reform, the Department of Strategic Planning and Studies and International Relations, the Department of Land Exploitation, and the Department of Legal and Administrative Affairs And the Department of Small and Medium Enterprises Development and the Control and Internal Audit Department, stressing “the creation of an economic reform department in each ministry concerned with that to implement the reform tasks in each sector of the relevant ministry managed by an employee with the title of director with an initial university degree at least and with experience And jurisdiction ».

LINK

 

The government is close to sending the economic reform law to parliament 

Monday, June 29, 2020
 

 

Baghdad / Omar Abdul Latif

 

 

The government is close to sending the economic reform bill to parliament for discussion and voting, while the parliamentary Economic and Investment Committee confirmed that the law will establish a federal reform council linked to the cabinet.

 

The law works to give the private sector an essential role in the development and development and raising the efficiency of economic projects, while providing social protection networks and social insurance funds, and the launch of loans for projects and the development of the banking system.

The Deputy Prime Minister and Minister of Finance Ali Abdul Amir Allawi confirmed that the government is in the process of forming a complete and integrated program to reform and advance the economy, and Allawi said to the Iraqi News Agency (INA): "This program will be presented to the House of Representatives during the next three months and will be comprehensive." Until «the plans in the program will address all sectors of the economy and the productive and service sectors».

He added that «the program includes enhancing the state’s revenues from other sources such as customs and taxes, stopping waste and also the process of removing suffocation from the economy», stressing that «the government will enhance and strengthen the activity of the private sector, because its growth will provide jobs and increase domestic production».

 

Activating the private sector

Member of the Parliamentary Economy and Investment Committee Nehru Mahmoud Rawandzi said in a statement to Al-Sabah: “The law seeks to transform the Iraqi economy into a market economy and give the private sector a key role in development and development and raise the efficiency of economic projects and increase their production and competitiveness”, noting that “the goal This includes diversifying economic resources, improving efficiency in managing natural resources according to the principles of fair and legitimate competition, and diversifying the sources of financing the federal budget. 

He added that «this law will increase the returns of companies, and facilitate the process of entering into partnerships between the public and private sectors, and the transition from the central administration of the economy to decentralization by granting a greater role to the regions and governorates that are not organized in a region, and also stimulates financial decentralization to ensure financial capacity in order to finance development needs Local economic, to raise the standard of living for members of society and increase employment opportunities ».

He pointed out that «this will ensure the creation of an investment climate to encourage local and foreign investors to manage the ownership of economic units, developing and expanding the activities of financial markets and supporting the broad participation of the public in dealing in stocks, bonds and various securities, and achieving justice in the distribution of the returns of economic activities». 

"Achieving the objectives of this law comes through proposing an economic policy that includes the provision of public services, taxes and employment, while ensuring harmony between financial, monetary, tax, commercial and development policies and labor policies, and implementing the economic reform program and the principles and rules set forth In this law ».

Adoption of governance

The MP pointed out that «this law will promote the adoption of good governance in the management of public companies in accordance with international principles and practices, the separation of ownership and management, enhancing the efficiency of management and competition between public companies, regulating relationships between ownership and management of natural resources and facilitating the privatization of public companies, and working to achieve transparency and equal treatment between Stakeholders from the private sector, encouraging dialogue between the public sector and social partners, while providing social protection networks and their integrity, social insurance funds such as pension funds, unemployment insurance, labor market regulation and instructions regulating the labor market, facilitating the establishment and development of small and medium enterprises, and stimulating the provision of soft loans to them from During the establishment of lending funds or financing through partnership between the public and private sectors ».

A member of the Parliamentary Committee on Economy and Investment stressed that “the law will create a legal environment conducive to partnership between companies and private and public institutions, including concession rights, participation contracts, project management, and the role of the private sector to ensure equality and fair competition in the market, and work to remove legal obstacles that negatively affect the development of The private sector, encouraging investment in the agricultural sector, providing basic and adequate inputs, and reforming legislation and procedures related to land and ways of using it. 

 

Banking system reform

Rawandzi reported that «the law will work to reform and restructure the banking system and expand commercial banking operations to provide the financing required for investment, and provide effective mechanisms to reduce risks, increase credit and work to convert government banks into joint stock companies, and ensure expansion in the banking sector under the supervision of the central bank, and the introduction Modern mechanisms and banking technology to facilitate access to better financing and services. ”
The deputy pointed out that «the economic reform law regulates and develops financial markets by assessing capital according to international accounting standards, stimulating the introduction of modern and environmentally friendly technology, adopting urban development principles and planning to ensure the availability of public lands and facilities to motivate different sectors, and taking the necessary and progressive measures to regulate the restrictions that Governing fiscal and monetary policies, identifying sustainable development areas in geographical locations that suffer from a lack of economic capabilities and developmental imbalances, and granting these areas economic incentives to attract investors, encouraging local companies and setting up projects, and working to reform the tax system And the financial ».

Rawandzi hinted that, “According to the law, he will establish the Federal Economic Reform Council, which is linked to the Council of Ministers, enjoys moral personality and is represented by the Speaker or whoever he authorizes, and it consists of the Department of Economic and Legislative Reform, the Department of Strategic Planning and Studies and International Relations, the Department of Land Exploitation, and the Department of Legal and Administrative Affairs And the Department of Small and Medium Enterprises Development and the Control and Internal Audit Department, stressing “the creation of an economic reform department in each ministry concerned with that to implement the reform tasks in each sector of the relevant ministry managed by an employee with the title of director with an initial university degree at least and with experience And jurisdiction ».

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[DinarThug]

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The Secretary-General of the Gulf Cooperation Council affirms his keenness to visit Iraq in the next stage

 

29th June, 2020
 

Nayef Al-Hajraf, Secretary-General of the Cooperation Council for the Arab States of the Gulf, affirmed his keenness to visit Iraq in the next stage.

A statement on the Iraqi Ministry of Foreign Affairs received by Al-Akhbariya stated that "Qahtan Taha, the ambassador of the Republic of Iraq in the Kingdom of Saudi Arabia, discussed with Nayef Al-Hajraf, Secretary-General of the Cooperation Council for the Arab States of the Gulf, at the headquarters of the General Secretariat."

He added, "The two sides discussed ways to activate cooperation between Iraq and the General Secretariat of the Cooperation Council for the Arab Gulf States in the next stage."

The Secretary-General stressed "the support of the GCC states for Iraq, and their eagerness to achieve a qualitative leap in relations, because of the importance and weight that Iraq represents."

The Secretary-General indicated that he would "strive to visit Iraq and make it one of his priorities in the coming stage."

For his part, the ambassador affirmed that "Iraq is keen to develop its relations with the General Secretariat in a manner that serves the interests of the Iraqi people and the peoples of the Gulf states."

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Senior Gulf official: I will visit Iraq soon and strive to make a qualitative leap in relations  LINK

[DinarThug]

 

 

     
 

Specialists warn of the repercussions of the devaluation of the dinar

 

Tuesday, June 30, 2020
 

 

Baghdad / Hussein Thugb 

 

 Mustafa Al Hashemi

 

At a time when reports have spoken that the government is considering reducing the value of the dinar against foreign currencies, as measures to confront the financial crisis caused by the decline in oil prices and the repercussions of (corona), a group of specialists in economic affairs confirmed that the reduction of the dinar price against the dollar is not based on objective grounds and cannot Its approval of the resulting damage to the Iraqi economy, the purchasing power of the citizenry, the strength of Iraqi bonds abroad and the country's credit rating.

The economist reported Dr. Fadel Muhammad Jawad said that "the central bank has a direct relationship to the issue, as it is the financial and monetary adviser to the government, and therefore cannot be excluded from the process."

He added that "the Iraqi-Jordanian Business Council (the owner of the proposal to reduce the value of the Iraqi dinar) - according to Jawad - will not be affected by the decline as it is affected by the citizen who lives inside Iraq, as he bears the results more than he who lives outside and deals in dollars and foreign currencies, not in the Iraqi dinar."

Jawad called "the central bank and Iraqi economists inside the country to clarify their opinion on this sensitive issue that concerns the country and the citizen."

For his part, the economic advisor to the Speaker of Parliament, Dr. Hammam Al-Shamaa, “The advocates of reducing the dinar’s exchange rate are not unaware of its inflationary effects, and the resulting social tensions will deepen the misallocation of income.” From selling foreign currencies when the exchange rate is lowered. "

"They promise the government to increase an additional 60 billion dinars, and a total of 18 trillion dinars annually if the proposal is implemented, but they have forgotten that the cost of establishing a robust and strong social protection network for five million Iraqis without the poverty line, compensating 73 percent of retirees whose monthly income is less than 500 thousand dinars, and compensation for a million and a half million employees whose monthly income is less than 500 thousand dinars, will generate huge numbers of those who receive support because of this procedure, and whose value may reach the value of the amounts deposited due to the reduction.

He noted that "the social protection network will be an ongoing case, as in the ration card program, which is 32 years old and no one dares to cancel it until now."

Al-Shamaa stated that “the advocates of the reduction forgot the experience of printing and converting paper into a currency in the 1990s and how this printing weakened the purchasing power of the middle class,which turned into destitute had it not been for the adoption of the ration card program at the time”, pointing out that “reducing the dinar exchange rate is a process Quite similar to the printing of banknotes, in the end it means that the government wastes part of the purchasing power of people with fixed income and is ultimately an innovative way to deduct a portion of the employees ’salaries by 60 billion dinars per day, initially, as price relations soon create an upward inflation that falls on the poor.” .

Al-Shamaa felt that "the advocates of the reduction are the beneficiaries to promote their local products, whether agricultural or industrial, and this is legitimate and we call for administrative and customs measures to reduce competition from the local product and not by reducing the exchange rate of the dinar."

He pointed out that "the monetary policy drawn up and implemented by the central bank, whether in Iraq or in any country in the world is a policy independent of the will of the executive authority, without this implying the absence of coordination between the fiscal and monetary policies."

And that "the exchange policy and its system is one of the most important pillars of monetary policy, and therefore the statement that the central has nothing to do with the exchange system indicates the lack of awareness of economic facts, just as saying that money is government money is a fallacy because the government and the monetary authority and the legislative and judicial authority are the components of the state Whose cornerstone is the people. "

For his part, the economic researcher d. Ahmed Al-Husseini said, "It is not appropriate now to carry out a currency devaluation, especially since thinking about this measure coincides with the state of the global economic recession and the recession in the local economy."

He explained that "devaluation of the currency in order to finance the fiscal deficit in the budget will have unforeseeable economic effects, especially the rise in the general level of prices due to increased inflation," noting that "the economy currently cannot tolerate such effects, as well as the effects of economic dumping on the market With goods that may be of poor quality due to the lack of a customs deterrent that might prevent this from being achieved, stressing, "The devaluation should not be the first line of confrontation for the financial crisis caused by the drop in oil prices and the effects of (corona)."

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[jcav]

Thanks for posting Thugs.  Lets hope these people do what they say. 

[DinarThug]

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Central Bureau of Statistics: Iraqi per capita GDP amounted
to 1100 dollars

 

 

29th June, 2020

 

The Central Statistical Organization announced, on Monday, that the Iraqi per capita share of the gross domestic product for the first quarter of this year amounted to 1100 dollars

The agency affiliated with the Ministry of Planning said in a statistic that was viewed by the "Economy News", that "the average per capita GDP at current prices for the first half of this year 2020 amounted to one million and 341 thousand dinars, or the equivalent of $ 1,100, compared to the first quarter of 2019, which amounted to It has a million and 707 thousand dinars, or the equivalent of 1300 dollars, a decrease of 12.3%

He added, "The average per capita gross domestic product at current prices for the first half of this year also decreased from the average per capita GDP for the fourth quarter of 2019, which amounted to $ 1,400, at an average of 21.4%

A United Nations study revealed, in 2018, that Iraq ranks 108 globally and 10 Arabs out of 122 countries, in the ranking of countries globally in terms of per capita income of gross domestic product in dollars annually, while Qatar came first in the world and Morocco ranked the world rank 122

 

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Central Bureau of Statistics: Iraqi per capita GDP amounted to 1100 dollars    LINK

[DinarThug]

Parliamentary Finance: 30% of Iraq’s money is stored in homes

20:27 - 29/06/2020

  

 

Information / Baghdad

 

Member of the Parliamentary Finance Committee MP Ahmad Al-Saffar confirmed on Monday that the amount of money hoarded in homes amounts to 30% of the liquidity in Iraq .

Al-Saffar said in an interview with "The Information", that "the amount of money hoarded in homes and individuals in Iraq amounts to in my view more than 30% of liquidity and this is a big mistake because monetary policy depends on the movement of money and the amount of circulation."

Al-Saffar added, “Many reasons pushed citizens and individuals to hoard funds away from banks, but it is a bad thing, and it must be reconsidered, cultivated confidence, and eased the procedures, which gives ease in placing money in banks or withdrawing them.”

Iraq has been suffering from a stifling financial crisis for months due to the collapse of crude oil prices and the repercussions of the Corona virus and its economic effects on most of the countries of the world. 
25 p. Ended

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[Rochester]

Iraq is at "the end of the Roll"🚽🧻...time ⏰ for Plan B 

[DinarThug]

19 minutes ago, Rochester said:

Iraq is at "the end of the Roll"🚽🧻...time ⏰ for Plan B 

Fyi - Their ‘Plan B’ Had Always Been ‘Plan A’ For Centuries ...
 

 

Just Hike Up Ur ‘Burqa’ While Walking Bent Over And Backwards Into A Sandstorm !  

 

 

And Back Then, If The Wind Wasn’t Blowing - Their ‘Plan B’ Was To Just Go Pound Sand ...

 

     

[DinarThug]

The Economic Committee: The government sells oil cheaply to import its derivatives millions of dollars after refining it abroad!

 

2020-06-29

 

 

Oil pump in a photo from Reuters archive.

 

Yassin Iraq: Baghdad
 

Today, Monday, the Parliamentary Committee on Economy and Investment criticized Iraq for importing fuel from abroad while selling oil at a very low price.

Member of the Parliamentary Committee, Nada Shaker, said in a press statement that "the lack of an economic vision for the Iraqi government to provide the necessary resources and revenues that supply the budget with money, led to the import of fuel at high prices compared to the price of selling oil in the global market."

And, "Shaker" added, "The government's lack of control over the economic resources raised the wrath of the Iraqi people, especially with regard to the border outlets and other productive sectors, and did not take action with the region to force it to hand over its funds to the center."

And she continued, "The government pays millions of dollars to buy gasoline, while it sells oil at a very low price and this is very defective and indicates the lack of strategic economic planning for it.

And she stressed "the necessity of relying on a deliberate economic policy and attracting expertise and competencies to amend the path of economic plans pursued by the government and its dimensions from the policy and internal and external interventions."

LINK

[DinarThug]

A source in the central bank reveals a development that will allow the distribution of June's salaries within two days

 

 

Economie 20/06/2020 17:03 6315    

Baghdad today - Baghdad 

 

A source familiar with the Central Bank revealed, on  Monday (29 June 2020), a development that will allow the release of employee salaries for the current month of June within two days.

The source said in an interview with (Baghdad today), that "the central bank has provided sufficient liquidity to the Ministry of Finance, and it is expected that salaries will be released within the next two days ."

He pointed out that "the central bank deducted the retirement commission's transfers to provide funds to the Ministry of Finance." 

Yesterday, the decision of the Finance Committee in the House of Representatives, Ahmed Al-Saffar, revealed a problem that delayed the distribution of employee salaries, while stressing the direction to solve it . 

Al-Saffar said, in an interview with (Baghdad Today) that "the government is obligated to distribute the salaries of the employees as soon as possible, and the salaries are late and the government feels the conditions of the people and it is necessary to find a specific mechanism for the delivery of salaries, whether in relative terms, or to specify specific days for the distribution of salaries ."

He pointed out that "Parliament agreed to borrow from banks for the salaries of employees," noting that "the problem of delay is the availability of financial liquidity, but it will be resolved ."

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[DinarThug]

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Parliamentary Finance: We do not know the reasons for not paying the salaries of employees despite the availability of liquidity

 

 

19:00 - 29/06/2020
 

 

Member of Parliamentary Finance Committee MP Ahmad Al-Saffar confirmed on Monday that the reasons for delaying the payment of state employees salaries are unknown to the committee despite the availability of funds in Iraqi banks.

Al-Saffar said to / Information /, “It is assumed that the salary payment instruction should start since the approval of the internal and external borrowing law, because the law is in effect from the time of formal voting in Parliament, in addition to that there is an official directive from the government to the Ministry of Finance to expedite the disbursement.”

He added, "The financial liquidity is in the banks, but we do not yet know why the Ministry of Finance was late in spending it," expressing his hope to "expedite the payment of salaries at the earliest opportunity possible, especially as millions depend on them for their livelihoods."

The House of Representatives was closer last Wednesday to the internal and external borrowing law to give more room to the government to secure the payment of salaries to state employees.

[DinarThug]

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Deputy: Parliament said its word, and the government should send the budget according to the specified time

 

 

09:06 - 30/06/2020

 

The deputy of the Al-Fateh Alliance Fadel Al-Fatlawi stressed the need to expedite the approval of the 2020 budget and the government's commitment to the timelines that Parliament required Al-Kazemi to present the budget in order to vote on.

Al-Fatlawi said to "Information", that "the 2020 budget should be submitted to Parliament after committing the government and the Ministry of Finance to present the budget within a date no later than today."

He added that "a lot of money is wasted, especially in the border crossings, communications and Baghdad's dues from the region with regard to oil exports and taxes."

Al-Fatlawi said, "Keeping Iraq without a budget will increase financial chaos, as the papers should be arranged again and exploitation of contacts that could be the second resource for the country after oil." 

[DinarThug]

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An expert warns of the collapse of the Iraqi economy if the government ignores the 2020 budget

 

 

08:42 - 30/06/2020
 

 

Economist Wissam Al-Tamimi warned, on Tuesday, of the collapse of the Iraqi economy with the government continuing to ignore the issue of the budget, pointing out that a lot of money may be misplaced and unprecedented corruption may occur.

Al-Tamimi told “Information” that “Parliament obligated the government to send the 2020 budget, even for the remaining months of this year in conjunction with the vote on the borrowing law.”

He added that "Iraq may witness the largest corruption and theft in its history in the event that it did not approve a budget for the current year, as borrowing money may be used incorrectly and go to the pockets of the corrupt", noting that "the statements of Kurdistan employees that were sent to Baghdad need to be investigated and audited through control teams honest sent to the region to check in the field with the names mentioned in the lists, where there can be fraud in those names and thefts to balance the country.

Al-Tamimi warned of "the collapse of the Iraqi economy in the event that parliament's decisions regarding the budget and theft of internal and external loans are ignored, and therefore Iraq will be burdened with debt at a time when it is still suffering from a stifling financial crisis." 

[DinarThug]

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Parliamentary economy shows the interest rate
for foreign loans
 

 

17:59 - 29/06/2020

 

The Parliamentary Economy and Investment Committee revealed, on Monday, the interest rate that will be imposed on external loans to finance the federal budget.

Committee member, the Charter of Ibrahim said in a statement to the "information", that "the interest rate will be less than 1% for external loans because the country is unable to pay a high fouad because of the collapse of the Iraqi economy in the shadow of the Corona pandemic," pointing out that "loan funds were not secured even now you need time to discuss with the IMF.”

She added that "the government is obligated to support the local industries and the private sector to maintain the hard currency inside Iraq and avoid the collapse of the currency", indicating that "external borrowing is an incorrect solution, except that the government is obligated to it because of the financial situation it is currently undergoing."

And the Parliamentary Committee on Economy and Investment indicated, the day before yesterday, Saturday, that the borrowing law voted by the House of Representatives will be valid for only three months. 

[DinarThug]

Al-Sudani offers proposals to get out of the financial crisis: phone companies and dollars selling taxes

2020.06.30 - 10:20

People - Baghdad 

 

On Tuesday, Deputy Muhammad Shia'a Al-Sudani presented a set of "solutions" that he said would remove the Iraqi government from the current crisis and secure financial obligations for employees, retirees and social welfare, as well as providing the benefits of the crisis cell against Corona.  

The Sudanese Media Office said in a statement, "People" received a copy of it, (30 June 2020), that "in light of the challenges facing the country, the government has a number of urgent measures in place to enable it to fulfill its obligations, specifically in front of employees, retirees, social welfare, treatment of the ration card and benefits." Crisis Cell regarding confronting Corona Virus. "  

The Sudanese confirmed, according to the statement, that "the important part of the economic reforms is to collect customs tariff fees and protect the product while controlling the window of currency sales from the central bank in which the sale reached large numbers, including 240 million dollars sold in one day," asking: "For whom This money was directed? What imports could come to Iraq in light of the economic downturn that the entire region is going through? Without withholding fees and taxes. "  

Al-Sudani pointed out that "there is another economic perspective, which we made sure that the agricultural and industrial private sector did not rise in light of the import of imports from official and unofficial outlets and in the absence of complete control over the ports and the absence of standardization and quality control of the goods entering and in the absence of taxes and fees being met from them Certainly, the prices of imported goods and products will crowd out the national product, and all of this needs reform steps to maximize revenue. "  

He noted that "the oil derivatives and the extracted crude oil that is given to the distribution companies and refineries ends with the oil derivatives provides large amounts of money that were going to the Ministry of Oil whether to distribute profits to employees or to carry out projects of social benefit; therefore, in light of the current financial conditions, you should invest This money, which amounts to 8 trillion dinars, in the event of controlling oil revenues by setting the rate of 10% of the cost of extraction and $ 8 for liquidation and within the limits of 5% for distribution with the granting of hooves, there are 8 trillion dinars that can be saved from the revenues of oil derivatives without raising the price of oil products to the citizen These are available revenues that were not directed to the citizen, and it can provide quick revenues in addition to reducing the salaries of the three presidencies from ministers and representatives and special degrees and stopping the disbursement of allocations granted outside the laws. "  

He continued, "There are judicial orders against mobile phone companies, Asia Cell, Atheer, and Korek to pay what is up to a trillion dinars, and it is assumed that these measures are implemented to collect these funds, not to mention the existence of state-controlled real estate from political parties that the government is supposed to take quick decisions against by examining the amounts of their leasing amounts. Or selling it at the prevailing market price and this increases the state’s treasury imports, ”pointing out that there is a“ required procedure which is controlling the financial balances of the state’s departments and not releasing any amount except in accordance with the recent directions of the government regarding the rationalization of spending. ”  

According to Al-Sudani, there is "importance to push towards effective and real steps on encouraging the agricultural and industrial sectors by placing the import curriculum at the table of government producers from companies of the Ministry of Industry as well as private and mixed sector companies and identifying the goods that can be produced so that the government can issue a decision to prevent their import as well as review the calendar Agricultural activities to ensure the preservation of local agricultural products and spare farmers the damage and close the ports and control them completely. "  

 Al-Sudani stressed the importance of activating the steps of the Central Bank in granting loans to agricultural, industrial and residential banks, as well as lending to young people looking for work, while loosening the terms of the loans and defining them with the project’s guarantee.  

He explained that "internal borrowing will secure the salaries of employees. As for external borrowing, which is set at $ 5 billion, it must be invested to complete development projects, including investment projects for burned gas and the development of the Basra gas project with the Shell Company, which contributes to providing what the power stations need instead of buying Iranian gas in amounts that exhaust the budget. Other imports to the budget, and there are projects related to petrochemicals and fertilizers that can bring large sums of money to the state’s treasury not to mention its benefits to society by pushing the wheel of economic development, stressing that “directing loans to these projects will put the reform process in the proper direction.”  

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