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The Ministry of Finance: completes the reform paper and finalizes the budget (2021-2023).


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  •  Time: 10/17/2020 22:38:52
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Sarri: The white paper will not be put to a vote in Parliament
  
{Baghdad: Al Furat News} A member of the Parliamentary Finance Committee, Faleh Al-Sari, revealed that the white paper that reached the House of Representatives last week will not be put to a vote in the House of Representatives.

Al-Sari said in a statement, the Euphrates News received a copy of it, that "the white paper does not require a vote by the House of Representatives at all, and this is what was agreed upon to be discussed with the Finance Committee as it is the representative of Parliament."
The head of the Wisdom Parliamentary Bloc said, "The Finance Committee will present proposals for their maturation and it is the responsibility of the Council of Ministers after that implementation."
Wafa Al-Fatlawi

 
 
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The Ministry of Finance: completes the reform paper and finalizes the budget (2021-2023).   October 6, 2020     60 And brother of Baghdad Th

The Minister of Finance reveals a possible date for the payment of salaries of employees for October 11/1/2020  

He pointed out that: Through the authority, the currency window is canceled, alternative policies are found, and budgets are prepared for several years in line with the plans set at the national level

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On 10/14/2020 at 7:16 PM, yota691 said:

the White Paper in the meantime, stresses studying the current exchange rate of the dollar against the dinar and the requirements for financial and monetary stability, which economists considered a sign of floating the currency and finding a suitable alternative to the currency window.

 

They can't wait 3 to 5 years to initiate most of the 'white paper' reforms. It's a good road map, but they need to kick start these reforms immediately. The gov't is surviving month to month right now.  The CBI has already said they have 'begun'. Come on guys, float that currency. Let's see where it goes !! 

                                         :twothumbs:

Edited by King Bean
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Finance Minister Ali Abdul Amir Allawi "Internet"
  

 money and business


Economy News - Baghdad

The Iraqi Finance Minister, Ali Allawi, said today, Sunday, that the reform paper boldly identified the most important productive, economic and financial sectors, expanding the field of investment, and upgrading the private sector in the short term to advance it quickly, in support of improving income and creating decent job opportunities, which will reduce unemployment and poverty rates in Community .

Allawi added, through his official account on "Twitter", that the reform paper will also activate official institutions and civil society organizations to support the wheel of production, raise the level of productivity that is highly reliable and reduce consumption rates .

He continued, "We are counting on the reform paper that identified with a scientific and objective vision the economic and financial problems ."

The minister explained that these problems and cracks are a real challenge that can be overcome or overcome by the method of strategic planning, based on an objective analysis of the reality, and the extraction of strategic objectives as urgent priorities to address these problems .

 
 
Number of observations 388   Date of addendum 10/18/2020
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 2020-10-18 02:22

Shafaq News / On Sunday, the Central Bank of Iraq described its foreign currency reserves as "very good" and that they will enable it to overcome the current financial crisis that is plaguing the country due to low oil prices, and the outbreak of the new Corona virus .

The central bank’s position comes after a big jump in the exchange rates of the US dollar against the Iraqi dinar.

The Central Bank of Iraq said in a statement received by Shafaq News that "the statements that have spread recently regarding (lowering the exchange rate of the Iraqi dinar against the dollar) represent the viewpoint of those who stated it and do not represent the official position of the Central Bank." Launched by the speculators, which affected the price (temporarily) . "

He declared that "the exchange rate is fixed and has not changed, and that its monetary policy is clear and transparent," noting that its foreign currency reserves are "very good" according to all international indicators and in a way that enables it to overcome the current crisis the country is going through, according to the statement .

The Central Bank expressed its hope that "the media should approve the sources of the Central Bank exclusively in this regard ."

For his part, the Minister of Finance, Dr. Ali Allawi, stated that the reform paper diagnosed with a scientific and objective vision the economic and financial problems that have accumulated over decades and that were not the result of the current stage due to wrong policies that were tired in the past .

Allawi said   in a statement received by Shafaq News; "These problems and cracks are a real challenge that can be overcome or surpassed by the method of strategic planning based on objective analysis of the reality and extracting strategic goals as urgent priorities to address these problems ."

He added, "The reform paper boldly identified the most important productive, economic and financial sectors, expanding the field of investment and upgrading the private sector in the short term to advance it quickly in support of improving income and creating decent job opportunities, which would reduce unemployment and poverty rates in society ."

The Minister of Finance affirmed that his ministry "will also work to activate official institutions and civil society organizations to support the wheel of production, raise the level of productivity that is highly reliable and reduce consumption rates."

The Council of Ministers recently approved in one of its sessions what it called the white paper for economic and financial reform in Iraq.

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Structuring the banking sector

Monday 19 October 2020 15

Structuring the banking sector

 
Mohammed Sharif Abu Maysam
 

The concept of restructuring the banking sector is not limited to reviewing banks ’capital, in proportion to their role in the development process, with the introduction of technologies and electronic systems that contribute to the development of performance and the reduction of sagging rings, in addition to the training and development axis for raising the efficiency of workers in the context of ensuring the provision of the best services At a cost Competitive.

As the concept of restructuring withdraws to the process of merging between small banks to create large banks that can provide various and integrated banking services, while some observers see the concept of "restructuring the banking sector" as an indication of the possibility of privatizing government banks in the context of the transformation from the state's economic system towards a system market. 
In the second axis first of the white paper presented by the government, indicating that the level of capital of all government banks will be addressed, a sign that heralds the tendency towards a social market economy in which the state shares with the private sector in many circles and axes
 Economic.
However, government banks are legally described as public companies, and these companies are referred to in paragraph IV of the same axis with a paragraph that says (legislation of a law to restructure public companies and transform them into private companies) by studying the financial situation and assessing their viability, while this paragraph emphasized the evaluation of companies Among the successful companies that are totally or partially privatized, or converted into mixed joint-stock companies, which are distressed and restructured to turn them into successful companies within three years, and failed to be liquidated, with job slack in these companies being addressed after the previous procedures by transferring surplus labor to public works. 
This suggests to the reader that government banks, some of which suffer from financial imbalances, are expected to merge and do not exceed seven banks, or for privatization, within the time period specified by the paper, at a time when the private banking sector does not occupy more than ten percent of the area of banking transactions according to indicators Capital, credit rates and announced deposit ratios, at a time that is intended for him to lead the process of withdrawing the hoarded cash mass and rotating it in the trading arena, and to contribute to creating real development and paving the way for foreign capital flows. The adjustment stage in the financial reform mechanism the public.
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The White Paper ... Radical reforms to a rentier economy

 
 

 

  Baghdad: Hussein Faleh 
 


Economists believe that the white paper presented by the government includes radical reforms to the rentier economy, noting that it has defined a clear economic vision for the government to move towards activating the productive sectors, diversifying the country's non-oil resources and achieving sustainable development, while they called for adding some proposals that would maximize the state’s financial resources.


Economist Safwan Qusay said in a statement to "Al-Sabah": "The process of having a white paper that can be discussed by various parties at the academic level and political parties opens the way for putting touches on this paper."

 
Adopting a new financing approach
He added that "the paper is based on the transfer of the Iraqi economy from government funding to thinking of financing through banks and money markets in the sense of adopting economic development on a new approach to financing, which is moving savings towards Iraqi banks." And then he continued: "And then refinancing the private sector in order to be the leader." , As well as liberating part of the idle capital at the level of federal ministries, "noting that" some ministries have losing companies. These companies can be sold through the capital markets and move part of the government capital, and thus there will be new revenues for the Ministry of Finance. " "The long view of this paper is that it tries to reduce government spending or support towards the Ministry of Industry or the Ministry of Agriculture, as there are salaries in some of the departments of these ministries paid by the Ministry of Finance while these ministries are supposed to be financially independent," indicating that "In practice, there is a gradual reduction of funding at the level of 30 percent annually until these ministries are financially independent. "
 
Smart exchange rate setting
Qusay stressed that "the paper needs to be a tool to move the Iraqi economy, in addition to the outlets for selling the currency. It is possible to review the exchange rate," calling for adding some proposals on the paper to mature it, such as determining an intelligent exchange rate that distinguishes between the type of imported goods.
He added that "there are consumer goods that are supposed to not sell the dollar at the official price, that is, at the level of 1182, for investment activity or the purchase of goods that could create job opportunities inside Iraq, but without that it is more than an exchange rate depending on the type of imported goods."
He pointed out that "the process of raising the exchange rate will make there are quick revenues that will flow to the central bank and through which the deficit can be reduced, in addition to the issue of the upper limit of salaries at the level of all groups, in addition to what is included in the issue of salary scale justice and this needs legislation." "The paper is called the white paper. If the Iraqi parliament has a change in its course in another direction, there is nothing wrong with that, but in practice, the partnership between the government and parliament in changing the course of public spending and searching for new resources is the inevitable approach, because Iraq now has no choice not to pass this paper."
He went on to say that "the maturity of the paper is fine, but disabling it means that Iraq will continue to be deficient in financing salaries and social welfare items, because otherwise we will resort to monetary reserves and the economic disasters resulting from this issue."
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Editing date: 10/18/2020 19:01 • 83 times read
[Baghdad-Where]
MP for the Al-Sadiqoun bloc, Uday Awad, called on Sunday to dismiss the Ministers of Finance and Planning in Prime Minister Mustafa Al-Kazemi's government, following their presentation of the White Paper.
Awad said, according to the media of his mass, that "the Minister of Finance put forward theories far from the economic reality in Iraq, and this matter is wrong and will not solve the current crisis," noting that "The Ministers of Finance and Planning are supposed to be dismissed because of their presentation of the white paper. The Minister of Finance will be questioned soon inside the House of Representatives." .
He added that "a number of Al-Kazemi government ministers failed to manage their ministry and they must be dismissed and a suitable alternative should be brought to solve the current crisis," noting that "there are doors for money smuggling and the government is not in control of it."
He continued, "The government is incapable of controlling the existing financial and administrative corruption."
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 2020-10-19 05:40

Shafaq News / On Monday, Minister of Finance, Ali Allawi considered that addressing economic challenges is not an easy task, pointing out that the reform paper adopted by the government under the name of the "white paper" aims to restore "balance" to the Iraqi economy.

The Council of Ministers recently approved in one of its sessions what it called the white paper for economic and financial reform in Iraq.

But the paper has been criticized by officials and specialists, as they considered that it was one of the reasons for the high exchange rate of the dollar against the Iraqi dinar in the past few days.

Allawi said, in a statement to his office received by Shafaq News: "Addressing important economic challenges is not easy, and the current crisis is not emerging today and is not related to this government and its procedures, because it needs real and radical reform and long-term plans to overcome them," stressing the necessity of integration in work between the authorities to achieve what we seek.

The Minister of Finance stated that "the reform paper adopted by the current government aims to restore balance to the Iraqi economy, putting it on a path that allows the state to take appropriate steps in the future to develop it into a diversified dynamic economy that creates opportunities for citizens to live a decent life."

Allawi stressed that "the current stage should witness more cooperation between the executive and legislative authorities in a way that serves the interest of the country and the citizen, pointing to his keenness to hold continuous meetings with the parliamentary committees and representatives, as this communication reflects positively on the progress of the situation in Iraq."

The Minister of Finance pointed out that "mismanagement and absolute dependence on oil revenues is what brought us to the situation we are currently witnessing, and we   seek to address it by working to activate the sectors of agriculture, industry, tourism, investment and others to maximize the country's imports."

Iraq has been suffering from a stifling financial crisis since the beginning of this year, as a result of the decline in oil prices on the global markets, as revenues from selling crude cover more than 95 percent of state expenditures.

 

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An economist warns of 3 damages to devaluing the dinar, one of which is directly related to employees

 

 

196 Economie 2020/10/20 12:39 ht Baghdad Today-

Follow up The economic expert, Majed Al-Suri, warned, Tuesday (October 20, 2020), of the move to raise the value of the dollar exchange rate at the expense of the Iraqi dinar, because it will affect those with limited income and the poor classes. "One of the paragraphs in the white paper that the government sent to Parliament indicates that there is an intention to study the possibility of raising the value of the dollar exchange rate while preserving the monetary policy and fixing the value of the dinar," Al-Suri said in a press statement followed by (Baghdad Today), considering that these "solutions More dangerous than reducing salaries. " He added that "the meaning of devaluation is to reduce the value of salaries indirectly, and all incomes that enter the Iraqi people, as it will affect those with limited incomes and classes of the poor through the rise in commodity prices." Al-Suri clarified that, "If the value of the dinar is reduced by 25%, the prices will be multiplied by a factor of about 40 to 50%," noting that "the white paper did not explicitly say that the exchange rate would be reduced, but rather said that it is among the measures that are possible." To resort to it is to reduce the exchange rate. " "The government has not made a direct proposal calling for reducing the value of the dinar, but one of the proposals adopted by the government in its white paper is to reduce the exchange rate of the Iraqi dinar against the dollar," he added. The economist pointed out that "one of the reasons for the high exchange rate is" irresponsible statements that dealt with the issue that the government will move towards reducing the exchange rate, "adding that" other things that contributed to the increase in the price of selling the dollar are the absence of political or security stability, which led to an increase. " The price of the dollar and commodities. " The economist touched on "the solutions that the government will pursue to overcome its financial crisis, saying that" the government has several options to solve the financial crisis, including fighting corruption and reducing operational expenses by canceling all salary allocations, which are estimated at more than (15) trillion dinars out of (28) trillion dinars. Total salaries of employees in the Iraqi state. " Al-Suri added that "the government's actions in the year 2019 led to an increase in the size of salaries, which rose from 40 trillion dinars to more than 50 trillion dinars," explaining that "reducing allocations and large salaries will save very large funds amounting to more than (15) trillion dinars." . "Among the solutions or options presented are the reduction of operating expenses and the reduction of salaries over three years from 25% of the gross domestic product to 12.5%, meaning the reduction is around 50%," he stressed. I believe that "this measure will save large parts of the Iraqi people from the crisis of price inflation," noting that "also among the proposals put forward is to increase non-oil financial resources such as ports and direct and indirect taxes, activate the public, private and mixed sectors and activate industry and agriculture will lead to employment." Labor and consequently increase taxes. " The economist indicated that "among the proposals submitted to the central bank, which it rejected is to raise the exchange rate," noting that "this option is one of the last options that the central bank may resort to in the absence of other solutions to address the financial crisis."

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  •  Time: 10/21/2020 14:05:04
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Statement of the Ministry of Finance
  
{Baghdad: Al Furat News} The Ministry of Finance issued a statement today, Wednesday, regarding the economic reform and the reform paper.

According to a statement, the Euphrates News Agency received a copy of it, "within the framework of the Ministry of Finance's continuous endeavor and based on its responsibility to reform the current economic and financial reality, the ministry, through the visions that the financial reform paper carries, is moving towards a diversified, multi-source economy."
She indicated, "The reform and activation of the private sector is done by creating a stable investment environment and reviewing some self-financed public companies, in addition to activating the collection of the electricity sector."
The Finance stated that "the reform paper also seeks to change the course of the national economy from the role of state control to the role of regulation and law enforcement, paying attention to vulnerable groups and social welfare, and working on making radical improvements to the state's management of the public financial system to reduce the continuous waste of resources."
"The restructuring of the banking sector is an urgent necessity, as it is the backbone of any economic expansion through developing deposits and loans with a mechanism different from the current one," the statement continued.
The Finance pointed out, "The current decline in productivity and income due to the dominance of the non-productive public sector calls for the development of real and scientific treatments, and this is what the financial reform paper seeks to do."
Ammar Al-Masoudi

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Finance explains the goals of the 'white paper' and talks about the mechanisms for their implementation
 

Baghdad - People  

The Ministry of Finance confirmed, on Wednesday, that the financial reform paper is a step towards a diversified and integrated economy.  

The ministry said in a statement, "People" received a copy of it, (October 21, 2020), "Within the framework of the financial pursuit and based on its responsibility to reform the current economic and financial reality, the ministry, through the visions carried by the financial reform paper, is moving towards a diversified, multi-source economy." .  

The statement added, "The reform and activation of the private sector is done by creating a stable investment environment and reviewing some self-financed public companies, in addition to activating the collection of the electricity sector."  

He stressed, "The reform paper also seeks to change the course of the national economy from the role of state control to the role of regulation and law enforcement, paying attention to vulnerable groups and social care, and working on introducing radical improvements to the state's management of the public financial system to reduce the continuous waste of resources," noting that " Restructuring the banking sector is an urgent necessity, as it is the backbone of any economic expansion through developing deposits and loans with a mechanism different from the current one.  

The statement pointed out, "The current decline in productivity and income due to the dominance of the non-productive public sector calls for the development of scientific and real treatments, and this is what the financial reform paper is seeking."  

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by Moahmmad Editor Iraq news 2 Hours ago

61-161351-corona-strikes-representatives

Iraqi representatives opened the file of Iraqi money smuggled outside the country, calling on the authorities to take strict measures against the corrupt. While parliamentarians confirm that there are no accurate statistics on the sums smuggled, others estimate that money is billions of dollars.

The head of the “Change” bloc in the Iraqi parliament, Yusuf Muhammad, confirmed the existence of important judicial and banking documents regarding the smuggling of tens of billions of dollars abroad through corrupt people, including the Kurdistan region’s funds, calling on the Iraqi authorities to take strict measures regarding the file and work to stop the bleeding of Iraqi funds from The path of corruption, in parallel with the implementation of what is found in the white paper on economic reform recently proposed by the government.

He pointed out in a statement that the financial situation in the country requires difficult and bitter decisions in restructuring the Iraqi economy, stressing in a statement that there is no value for government reforms without decisive measures to combat corruption.

The head of the bloc called on Parliament to give the file of recovering Iraqi money smuggled abroad after the US occupation of Iraq in 2003 great importance in the next stage, calling for the political class in the country to assume its responsibility towards the economic crisis, and to help return those funds through the information they have about them.

The head of the "Change" bloc pointed out that there are important documents in this file through which the existence of these funds and their value can be inferred, in cooperation with European expertise that the government can seek in order to uncover, in addition to the existence of appropriate grounds in some European countries and the United States of America to help Other countries to return the smuggled money obtained through corruption.

A member of Parliament's Integrity Committee, Alia Nassif, confirmed that there is a need for government action to retrieve the frozen and smuggled funds outside Iraq, explaining in a press briefing that her committee does not have accurate statistics of the value of smuggled money.

And she continued, "The United Nations has issued a decision that can lay hands on the frozen funds, without referring to legal procedures, meaning that there are facilities that need action by the Iraqi government," indicating that the Parliamentary Integrity Committee addressed the recovery fund for Iraqi funds, and it was found that there is no cooperation with the fund from In order to return frozen, stolen or other money.

It called for initiating a round to force the ministries to cooperate with the recovery fund in order to recover the stolen money from the Iraqi people.

The former member of Parliament, Mazhar al-Janabi, explained that the government's efforts to fight corruption are not what we wish, stressing in an interview with Al-Araby Al-Jadeed the need to remove corruption whales as soon as possible, so that things go in the right way, adding: “We hope that the efforts will be to fight Corruption is greater than it is now.

Last Monday, the Deputy Speaker of Parliament, Hassan Al-Kaabi, called on the Ministries of Foreign Affairs and Finance to verify all Iraqi properties and farms in the countries of the world, indicating that there is information that Iraq has farms and various properties in a number of countries.

Al-Kaabi called on the concerned ministries to provide the House of Representatives with all the data available to them, and to indicate whether the information is correct or not.

At the end of last August, the Iraqi prime minister decided to form a committee to investigate major corruption and exceptional crimes cases, headed by the human rights team, Ahmed Taha Hashem from the Ministry of Interior, and 3 other representatives, one of them from the National Intelligence Service, the second from the National Security Agency, and the third from the Integrity Commission. , Provided that the job rank for each of them is not less than a general manager, in addition to the hiring of 25 investigators and 15 administrative employees.

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Condition economic reform

Thursday 22nd October 2020 59

Condition economic reform

 
Dr.. Basem Brahimi
There are many strategies, plans and visions that have been written and approved at the governmental level in Iraq during the past two decades, and most of them have included important ideas and proposals that are able to change the reality of the Iraqi economy from what it was to what we all aspire to, and if this is the case, a questioner may ask, then, why have you failed Those solutions and plans, and what reforms did the white paper bring about? Will her fate be like her sisters, or can she succeed?
These inquiries and proposals were the talk of social media and media councils during the past few days after the government proposed what it called the "white reform paper". 
And that ?.
The field does not expand into detailing what was stated in it and our evaluation of that detail, so I will speak in the general framework of the paper. The paper in terms of timing acquires great importance due to the economic crisis in Iraq, not because of the decline in financial returns as a result of lower oil prices only, but rather as a result of the accumulations of previous administrations, which I provided political spending at the expense of economic spending, and all I did was sleep on the "cushion of oil", which made the rest of the economic sectors weaken day after day and as a result the unilateralism of the economy deepened to the point where economic reform is difficult except by a "surgical" operation in the long term while Everyone thinks about the short term today, so some (politicians) reject the paper 
beginning. 
The paper included many ideas that were previously put forward, but perhaps what distinguishes it is that it included important insights and ideas on the level of government financial reform and financial management, especially with regard to the application of the Integrated Financial Information Management System (IFMIS) that connects electronically between all government spending units, as well as the application The unified treasury account (TSA), which combines all government accounts into one account, which, if applied, could contribute to solving the crisis, reforming financial management and reducing corruption significantly. As for the success of the paper in reform in general, the matter is completely dependent on the political will in Its application and the possibility of coordination and integrated work between the legislative and executive authorities, but if the policy entered the line negatively, we will not see from the white paper except its name.
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Finance: The reform paper seeks to change the course of the national economy

Baghdad - conscious
The Ministry of Finance affirmed that the financial reform paper is a step towards a diversified and integrated economy. 
The ministry said in a statement received by the Iraqi News Agency (INA), today, Wednesday, that reform and activation of the private sector is done by creating a stable investment environment and reviewing some self-financed public companies, in addition to activating the collection of the electricity sector.
She added, "The reform paper also seeks to change the course of the national economy from the role of state control to the role of regulation and law enforcement, paying attention to vulnerable groups and social welfare, and working for radical improvements in state management of the public financial system to reduce the continuous waste of resources."
She indicated that restructuring the banking sector is an urgent necessity, as it is the backbone of any economic expansion through developing deposits and loans with a mechanism different from the current one.
She explained that "the current decline in productivity and income due to the dominance of the non-productive public sector calls for scientific and real treatments, and this is what the financial reform paper is seeking for."
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Change: Iraq possesses important documents on money smuggling abroad

 

Pratha News  Agency 149 2020-10-21
 
 

The head of the Change Bloc in the House of Representatives, Yusuf Muhammad, admitted, on Wednesday, the existence of important judicial and banking documents on smuggling Iraqi funds abroad through the spoilers, expecting that their value would reach tens of billions of dollars.

"It is imperative that the authorities take strict measures against the corrupt and stop the bleeding of Iraqi funds through corruption, in parallel with implementing what is found in the white economic reform paper," Muhammad said in a statement.

He added, "The financial situation in the country requires difficult and bitter decisions in restructuring the economy in the country," noting that "these reforms have no value without there being decisive measures to fight corruption."

The head of the Change Bloc in the House of Representatives called for "attaching great importance to the file of recovering Iraqi money smuggled abroad after 2003 during the next stage, and for the political class in the country to assume its responsibility towards the economic crisis, and to help return those money through what it possesses information about it."

He stressed, "The presence of important documents in this file through which the existence of these funds and their value can be inferred, in cooperation with European expertise that the government can use in order to uncover them," pointing to "the existence of appropriate grounds in some European countries and the United States of America to help other countries return Smuggled money obtained through corruption. "

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Ministry of Finance: The reform paper is a step towards a diversified Iraqi economy

Ministry of Finance: The reform paper is a step towards a diversified Iraqi economy
Iraqi Finance Minister, Ali Allawi
 October 22, 2020 12:18 PM

Riyadh - Mubasher: The Iraqi Ministry of Finance said that it is moving through the visions conveyed by the financial reform paper towards a diversified, multi-source economy, within the framework of the ministry's continuous efforts and based on its responsibility to reform the current economic and financial reality.

The finance added, in a statement, that reforming and activating the private sector is done by creating a stable investment environment, reviewing some self-financed public companies, in addition to activating tax collection from the electricity sector.

The ministry explained that the reform paper also seeks to change the course of the national economy from the role of state control to the role of regulation, law enforcement, and attention to vulnerable groups and social care, and work to introduce radical improvements to the state's management of the public financial system to reduce the continuous waste of resources.

The Finance stressed that restructuring the banking sector is an urgent necessity; As the main nerve of any economic expansion through the development of deposits and loans with a mechanism different from the current one.

The ministry noted that the current decline in productivity and income due to the dominance of the unproductive public sector calls for the development of real and scientific treatments, and this is what the financial reform paper seeks to achieve.

The Iraqi Prime Minister , Mustafa Al-Kazemi, said that the white reform paper presented by the government to the political forces is a draft solution to the chronic economic management crisis, complete dependence on oil and not to diversify sources of income.

The Minister of Finance , Ali Allawi, stressed that the reform paper boldly identified the most important productive, economic and financial sectors, expanding the field of investment, and promoting the private sector in the short term to advance it quickly, in support of improving income and creating decent job opportunities, which would reduce unemployment and poverty rates in society.

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An economist warns of 3 damages to devaluing the dinar, one of which is directly related to employees

 

1,270 Economie 2020/10/20 12:39 ht Baghdad Today-

Follow up The economic expert, Majed Al-Suri, warned, Tuesday (October 20, 2020), of a move to raise the value of the exchange rate of the dollar at the expense of the Iraqi dinar, because it will affect those with limited incomes and the classes of the poor. "One of the paragraphs in the white paper that the government sent to Parliament indicates that there is an intention to study the possibility of raising the value of the dollar exchange rate while preserving the monetary policy and fixing the value of the dinar," Al-Suri said in a press statement followed by (Baghdad Today), considering that these "solutions More dangerous than reducing salaries. " He added that "the meaning of devaluation is to reduce the value of salaries indirectly, and all incomes that enter the Iraqi people, as it will affect those with limited incomes and classes of the poor through the rise in commodity prices." Al-Suri clarified that, "If the value of the dinar is reduced by 25%, the prices will be multiplied by a factor of about 40 to 50%," noting that "the white paper did not explicitly say that the exchange rate would be reduced, but rather said that it is among the measures that are possible." To resort to it is to reduce the exchange rate. " The picture added that "the government did not present a direct proposal calling for the reduction of the value of the dinar, but one of the proposals adopted by the government in its white paper is to reduce the exchange rate of the Iraqi dinar against the dollar." The economist pointed out that "one of the reasons for the high exchange rate is" irresponsible statements that dealt with the issue that the government will move towards reducing the exchange rate, "adding that" other things that contributed to the increase in the price of selling the dollar are the absence of political or security stability, which led to an increase. " The price of the dollar and commodities. " The economist touched on "the solutions that the government will pursue to overcome its financial crisis, saying that" the government has several options to solve the financial crisis, including fighting corruption and reducing operational expenses by canceling all salary allocations, which are estimated at more than (15) trillion dinars out of (28) trillion dinars. Total salaries of employees in the Iraqi state. " Al-Suri added that "the government's actions in the year 2019 led to an increase in the size of salaries, which rose from 40 trillion dinars to more than 50 trillion dinars," explaining that "reducing allocations and large salaries will save very large funds amounting to more than (15) trillion dinars." . "Among the solutions or options presented are the reduction of operating expenses and the reduction of salaries over three years from 25% of the gross domestic product to 12.5%, meaning the reduction is up to 50%," he stressed. I believe that "this measure will save large parts of the Iraqi people from the crisis of price inflation," noting that "also among the proposals put forward is to increase financial resources from non-oil such as ports and direct and indirect taxes, activate the public, private and mixed sectors and activate industry and agriculture will lead to employment." Labor and consequently increase taxes. " The economist indicated that "among the proposals submitted to the central bank, which it rejected is to raise the exchange rate," noting that "this option is one of the last options that the central bank may resort to in the absence of other solutions to address the financial crisis."

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The White Paper for Economic Reforms: vision and key objectives

 

 22 Oct 2020 - 2:50 pm 
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The Iraqi government has formally adopted the White Paper for Economic Reforms prepared by the Crisis Cell for Financial and Fiscal Reform.

The White Paper seeks to put Iraq’s economy on a path that allows the state to take appropriate steps in the future to develop it into a diversified, dynamic economy. Dr. Ali Allawi, Deputy Prime Minister and Minister of Finance

The White Paper is a comprehensive programme that sets out a clear roadmap to reform the Iraqi economy and address the accumulated, decades-old serious challenges that confront it.

Iraq’s Deputy Prime Minister and Minister of Finance, Dr. Ali Allawi said that the White Paper seeks to put Iraq’s economy on a path that allows the state to take appropriate steps in the future to develop it into a diversified, dynamic economy that creates opportunities for citizens to live a decent life.

And although the current severe fiscal crisis that Iraq is going through is related to the recent sharp decline in oil prices and to the repercussions of the Coronavirus pandemic, the White Paper makes it clear that the causes of Iraq’s economic and financial woes date back several decades.

The White Paper identifies the expansion of the role of the state as a key cause of the crisis.

The roots of the crisis

The White Paper provides a detailed outline of the factors that have distorted the Iraqi economy, undermined its capacity to provide a decent life for large number of Iraqis, and its failure to keep pace with the economic developments that the world has witnessed.

The expansion of the role of the state

The White Paper identifies the expansion of the role of the state and emergence of a command economy in Iraq as a key cause of the crisis.

From the nationalisation of vital economic sectors in 1970s, to the commandeering of all economic levers by the state to support the war effort in the 1980s, through the period of  sanctions imposed on Iraq in the 1990s, these shocks, as well as the absence of strategic planning, mismanagement, maladministration, patronage and misguided political ideology, all led to an expansion of the role of the state in all aspects of economic life in Iraq.

The Iraqi economy continued to be directed by the state after the events of 2003 because of the failure of the new political system to create a free and diversified modern economy as outlined in Iraq’s Constitution, and instead continued to rely on the state as the almost only driver of economic activity in the country.

The expansion of the role of the state, and the associated increase in the number of those employed in the public sector and the cost to Iraqi exchequer of their salaries and pensions, came at the expense of the government’s ability to invest in basic infrastructure in Iraq.

To illustrate the point, the White Paper points out that from 2004 to 2020, state expenditure on the salaries of civil servants and on public sector pensions increased by 400% in real terms, as the total number of public sector workers during the same period increased by threefold.

The cost of salaries and pensions of public sector workers is expected to be around 122% of Iraq’s oil revenue in 2020. The White Paper for Economic Reforms

And between 2006 and 2018, average public sector salaries increased by 134%, more than the increase in labour productivity, which rose by only 12%, or the cost of living, which rose by 28% during the same period.

Over the past 17 years, government spending on the salaries of state employees, and on public sector pensions became the fastest growing expenditure item in Iraq’s successive federal budgets during this period.

There are currently around 4,500,000 public sector employees and 2,500,000 pensioners.

Decline of the private sector

The expansion of the state’s role, in addition to the complex administrative system and the state’s weakness in imposing the rule of law, the militarisation of society, and the influence of non-governmental actors in public institutions, led to the decline of the Iraqi private sector.

With the exception of a number of small and medium-sized companies operating in the oil and telecommunications sectors, and very small companies operating in the fields of trade, retail, transport, construction, hospitality and textiles, there is almost a complete absence of private sector companies in manufacturing.

In addition, most of the larger private sector companies depend on providing services to the state and on government contracts.

The White Paper also identified other factors that led to the deteriorating economic situation in Iraq is, most notably:

  • The collapse of oil revenues
  • The impact of Covid-19
  • Mismanagement and lack of planning
  • The weakness of financial institutions
  • The absence of modern coherent systems for managing state revenues
  • An ineffective and outdated banking sector
  • Complex and antiquated government procedures
  • Destruction of infrastructure and the costs of the war against Daesh terrorists
Two strategic goals 

The White Paper identifies two overarching strategic objectives. The first is to initiate an immediate reform programme to address the budget deficit to create a fiscal space to give time for the process of implementing the other wider reforms over the medium term.

The second objective is to put the economy and the federal budget on a sustainable path, after which Iraqis can decide and choose the economic direction of the country.

The White Paper anticipates that the short and medium-term objectives and associated reforms will require between 3 to 5 years to implement.

The reform pillars

The White Paper identified five key pillars for the reform programmes:

1- Achieving sustainable financial stability

Key reforms include:

  • Reducing the deficit from 20% to 3% of GDP and expenditure on salaries from 25% to 12.5% of the federal budget
  • Collecting electricity tariffs from all users based on the real price of fuel on global markets
  • Recovering and returning Iraq’s smuggled and stolen money
  • Increasing revenues from customs and taxes
  • Reforming Iraq’s Pensions Fund and move to gradually end federal budget support
  • Reforming financial management systems
  • Reviewing the current exchange rate of the dollar against the dinar
2- Implementing strategic reforms and creating sustainable job opportunities

Key reforms include:

  • Modernising and rehabilitating the financial sector
  • Modernising and rehabilitating the banking system, supporting the development of private banks, reforming government banks and introducing and activating the Core Banking System in Al-Rafidain and Rasheed Banks
  • Expediting the development of e-banking services
  • Establishing new trading markets, such as a commodity market and a currency exchange market (Forex)
  • Supporting the sectors that drive the economy, such as agriculture, oil and gas
  • Introducing a private sector support fund, simplifying procedures, and providing other non-financial aid
  • Creating job opportunities in the private sector and supporting small and medium enterprises
  • Adopting a national strategy for education and training that links educational outcomes with the future need for the labour market
3- improving basic infrastructure

Building Iraq’s digital infrastructure is a key aim of the White Paper.

Key reforms include:

  • Increasing the effectiveness and improving the performance of all parts of Iraq’s electricity sector
  • Developing Iraq’s digital infrastructure, including the introduction of advanced technology (4G) at the beginning of next year, and preparing for the introduction of (5G) technology
  • Modernising the legal and regulatory framework of the transport sector, and encourage private investment in transport
  • Developing industrial cities and free zones in Iraq
4- Providing basic services and protecting vulnerable groups during and after the reform process

The reforms aim at establishing a unified and financially sustainable pension system for all Iraqis whether they are working in the public, private, cooperative or mixed sector. The White Paper for Economic Reforms

Key reforms include:

  • Improving water supply for both drinking and irrigation and complete sanitation projects and networks
  • Building 1,000 new schools during the period of the reform programme
  • Reforming the social security system
  • Establishing a unified and financially sustainable pension system for all Iraqis whether they are working in the public, private, cooperative or mixed sector
  • Completing and implementing the draft health insurance law to ensure that all Iraqis have access to essential health services
5- Improving governance and introducing changes to the legal framework to enable institutions and individuals to implement reforms
  • Reviewing and amending the official guidance in relation to government contracts
  • Introducing e-governance systems to strengthen oversight of government contracting and the collection of taxes and customs
  • Working with specialist investigative international organisations to return the large sums of money smuggled out of Iraq
  • Introducing an electronic governance system in the field of government contracting and tax and customs collection
  • Completing the project establishing the National Information Centre to facilitate the introduction of government e-services to citizens, and automate the procedures for obtaining key documents  such nationality and passports and accessing pensions and social security
  • Introducing electronic signature and transactions throughout the public administration system and phasing out paper transactions

 

A detailed implementation plan of White Paper will be published later to outline the required process, identify key stakeholders and establish timelines and monitoring mechanisms.

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For his part, the Minister of Finance, Dr. Ali Allawi, stated that the reform paper diagnosed with a scientific and objective vision the economic and financial problems that have accumulated over decades and that were not the result of the current stage due to wrong policies that were tired in the past .

 

love the word scientific because referencing the removal of zeros!

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Sounds like a good and comprehensive plan. I like that they refer to electricity as fuel, interesting things happen when the energy sector is comparable electricity-oil. And the recovery of smuggled money is an interesting thought.
 

Holding tight, waiting for all expectations to suddenly collapse. 

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Iraqi Finance: Industrialized countries and international organizations support white paper reforms

Iraqi Finance: Industrialized countries and international organizations support white paper reforms
During the tour of Prime Minister Mustafa Al-Kazemi to a number of European countries
 October 22, 2020 11:40 PM

Mubasher: Ali Abdul Amir Allawi, the Iraqi Minister of Finance, announced the support of international organizations and industrial countries for the white paper presented by the government for the state's economic reform.

Allawi stressed that the white paper received absolute support from industrialized countries and international organizations for the first time, according to the Iraqi News Agency, "INA", today, Thursday.

He came during his participation in the tour of Prime Minister Mustafa Al-Kazemi to a number of European countries.

He said: The international support and welcome of the White Paper is an achievement of the Ministry of Finance.

He added that international organizations saw that Iraq faces daunting economic challenges overshadowed by the Corona crisis and low oil prices, and that the White Paper is an ambitious program for comprehensive economic reform, strengthening the growth of the private economy and protecting the most vulnerable groups.
  
He pointed out that "the industrialized countries and international organizations declared their support for the Iraqi government's vision of reform not only to ward off the current crises, but to create permanent economic opportunities for the Iraqi people that meet their aspirations."

Earlier, the Finance Committee in the House of Representatives announced its support for the white paper that aims to reform and activate the private sector and change the course of the national economy from the role of state control to the role of organization, law enforcement, attention to vulnerable groups and social welfare, and work to introduce radical improvements to the state's management of the public financial system to reduce From the constant waste of resources.

It also seeks to restructure the banking sector and put in place scientific and real solutions to raise public sector production.

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An expert identifies the most important steps for "restructuring" public companies

 
 Baghdad: Morning
 

The government has doubled its efforts aimed at reviving the private sector and creating an investment environment that can meet the needs of the market and compete with the imported product. While the Ministry of Finance announced its intention to reconsider the restructuring of some self-financed public companies, a specialist in industrial affairs stressed the importance of this step in moving the wheel of production and reviving dozens of factories Stalled.

And the Ministry of Finance announced, at the end of last week, that reforming and activating the private sector is done by creating a stable investment environment and reviewing some self-financed public companies, in addition to activating collection from the electricity sector, while stressing that restructuring the banking sector is an urgent necessity, as it is the backbone of any Economic expansion.
 
roadmap
The industrial development and investment consultant, Amer Al-Jawahry, expressed to Al-Sabah his welcome to the step he described as a "mission", stressing that, "in cooperation with the task force team on economic reform and restructuring, and in comprehensive coordination with the advisory board and a number of UN organizations, they presented a road map before Years of restructuring of operating state-owned companies. "
Al-Jawahiri indicated that "the map included a number of classifications of companies that are to be restructured, as they included companies that are viable, able to continue operating and attract investment, and companies that are unable to operate themselves but are able to grow and need restructuring."
He pointed out that "the map also included restructuring of" hybrid companies, parts of which are characterized by the ability to grow and parts that are not viable, and this type needs a comprehensive restructuring. "
 
contribution companies
In order to achieve this important economic plan, Al-Jawahiri believes, “the necessity of relying on standards and work programs according to a detailed road map, and naming a dedicated team for each case to convert public companies or factories into public joint-stock companies to be listed in the Iraq Stock Exchange,” indicating that this can be achieved through “availability The maximum degree of sobriety, experience and professionalism of the economic team that will undertake to restructure these companies. "
The Industrial Development and Investment Consultant stressed the need for "these steps to ensure the continuation of the work and development of the production and productivity of these companies and their expansion in a way that secures a wider use of technology, research and development, and openness in partnerships with sober foreign entities to secure shares of their products in the local market and possibly for export."
Al-Jawahiri emphasized that this step, "calls for the utmost attention to enable and support the mixed sector to work within its objectives, as it is the target experience through partnerships and transformation processes into a contribution."
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2- Implementing strategic reforms and creating sustainable job opportunities

Key reforms include:

  • Modernising and rehabilitating the financial sector
  • Modernising and rehabilitating the banking system, supporting the development of private banks, reforming government banks and introducing and activating the Core Banking System in Al-Rafidain and Rasheed Banks
  • Expediting the development of e-banking services
  • Establishing new trading markets, such as a commodity market and a currency exchange market (Forex)
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On 10/18/2020 at 7:16 PM, yota691 said:

Attitudes are contagious.....is yours worth catching.

GM YOTA. Had to say I love the new 100k badge with your emoji. Lets hope we're all gone before AM needs to award a 200k. Thanks for all your contributions.

                                                                           :twothumbs:

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