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The government intends to “peek” Parliament .. Alternative solutions to “rejecting internal borrowing” in the 2021 budget: resorting to citizens' money!


DWS112
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The government intends to “peek” Parliament .. Alternative solutions to “rejecting internal borrowing” in the 2021 budget: resorting to citizens' money!

11/20/2020

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Yes Iraq: Baghdad


The Prime Minister’s Adviser for Financial Affairs, Mazhar Muhammad Salih, revealed that the federal government is planning to borrow from citizens and use their savings to fill the fiscal deficit in the 2021 budget, and consider this as a public debt, instead of government banks.


Saleh said in press statements regarding the draft fiscal budget bill for the next year and their features, financing and deficit, that Iraq is going through a difficult financial situation, especially since oil export revenues constitute 50% of the "moderate" and not high revenues of the country, which has lost a lot of its resources.


And that "the budget depends on 93% of oil revenues during the past years, especially as it is committed to the decisions of OPEC to reduce production, while 2020 was a year once and" lean "on the financial policy of the country and the state that tried to secure salaries until the end of the year, adding that the year 2021 may be a year of “financial discipline” to control the operating budget, and its entries and exits in a very large way, because it absorbs about 80% of fixed expenditures.

 

On the financial deficit in the budget for next year, he indicated that "its financing will be from several internal and external parties, taking into account not borrowing from government banks, especially since there is an international financial alliance that has the willingness to deal with Iraq, and it will have an impact in supporting the country and providing it financially and sustaining financial momentum." And the economic "according to his perception", pointing out that "this is a very vital and important issue, especially to obtain aid and soft foreign loans."

 

He added that the other approach of the government in filling the deficit in the budget is to seek the help of the public and borrow from the savings they have, not from the government financial apparatus and its banks, indicating: “Yes, maybe this time borrowing from the public will be a public debt.”


He pointed out that "there is no way to fill the deficit, either by improving oil prices to obtain additional revenues or resorting to borrowing."

 

Saleh assured that there is "good preparation to complete the budget, and 👉 when it is presented, everything will become clear: the deficit, sources of financing and spending, and revenues, and maximizing non-oil revenues, especially since there is a" strong "trend to take his field in this regard and not by 6% or 7%, perhaps up to 25 % This is an excellent goal and step, and once that ceiling is reached by maximizing resources, there will be improvement to face the deficit, whose size is unknown, because Parliament will also work to amend it.

👉It is expected that the government will present the budget to Parliament during the next few days, but this depends on the ministries defining their revenues And its operating expenses and locations - and investment in the budget.

 

 

Edited by DWS112
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Something is missing.

We know 70% of the monetary mass is the chunky cash stashed at home.

We know the Iraqi citizens don’t trust the banking system

We know they have a liquidity problem 
We know financial inclusion is only 23%

 

My question is:

What kind of incentive will the GOI / CBI give to their citizens to bring the

chunky cash to the banks, so the government can use it to finance the 2021 budget.

 

Go Iraq

Go open market economy 
Go RV

Go purchasing power 

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23 minutes ago, Laid Back said:

My question is:

What kind of incentive will the GOI / CBI give to their citizens to bring the

chunky cash to the banks, so the government can use it to finance the 2021 budget.

 

 

 

1) by offering the highest interest rate when iraq citizens open account.

2) by rv'ing the iqd at least 1:1, so when iraq citizens open account in dinar, then that dinar will automatically turn into dollars once it rv and the most important is they can withdraw their dollars at anytime when they want to travel or move abroad.

3) no more bribe and corruption. Hang the corruptor's heads like saddam hussein.

 

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1 hour ago, Laid Back said:

Something is missing.

We know 70% of the monetary mass is the chunky cash stashed at home.

We know the Iraqi citizens don’t trust the banking system

We know they have a liquidity problem 
We know financial inclusion is only 23%

 

My question is:

What kind of incentive will the GOI / CBI give to their citizens to bring the

chunky cash to the banks, so the government can use it to finance the 2021 budget.

 

Go Iraq

Go open market economy 
Go RV

Go purchasing power 

I know back in the day banks used to offer a free toaster when you opened a bank account maybe that would work?? Then again maybe not since they don’t have electricity 24/7...Come on RV!!

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2 hours ago, Laid Back said:

Something is missing.

We know 70% of the monetary mass is the chunky cash stashed at home.

We know the Iraqi citizens don’t trust the banking system

We know they have a liquidity problem 
We know financial inclusion is only 23%

 

My question is:

What kind of incentive will the GOI / CBI give to their citizens to bring the

chunky cash to the banks, so the government can use it to finance the 2021 budget.

 

Go Iraq

Go open market economy 
Go RV

Go purchasing power 

I don’t think they are saying borrow from citizens.. just my opinion... when they say “borrow “ that is bad word to use. “We will give the dinar some value and the citizen will bring in their dinar and trade it for cash. So not borrowing from the citizen. We cash the citizen out and keep profits. 

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 image.jpeg.62aa8006dcd7388f4d976074df97464a.jpeg

 

Mazhar Muhammad Salih.... 

if there ever was a rv / ri Plan in place at the cbi during shabibi tenure this man im sure would know about it , he was shab's mouthpiece to the citizens and right hand man to shabibi , Maliki threw him in jail along with others at the CBI when shabibi never returned to Iraq ...

On the other hand i bet none of that home bound iqd gets brought back to the system unless forced especially since they are being told up front their money will be used to finance the 2021 budget those keeping the iqd outside the banks are not ignorant ... cheers dv'ers  

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I think the term “borrowing from the citizens” is a Brilliant way of saying RV or raise the value so the citizens would be happy to turn in their dinars in their house walls for huge purchasing power... possibly told to turn in their physical dinars to a bank and in return, you will get a MasterCard debit card and your dinars will be worth 1:1.. or something similar.. time will tell..

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Or here is how the Kurds are doing it, you either open a bank account or you don’t get paid as salaries will be deposited into bank accounts!!

 

The Kurdistan government directs its employees to open accounts in banks to receive their salaries

image-76.jpg?w=700

On Thursday, the Ministry of Finance and Economy of the Kurdistan Regional Government called on all departments to open a bank account for employees in order to receive their monthly salaries through it .

According to a document addressed to the ministries and departments not associated with the ministries, the ministry said, “Based on the reform law and within the framework of reorganizing the banking field in the region and converting banking services to the electronic form, a special bank account is opened for all employees .

And she added, “For the purpose of opening a bank account for employees who do not have any bank account, all departments and institutions must direct official letters to private banks for the purpose of opening a bank account used for the purposes of receiving salaries on a monthly basis.”

https://aynaliraqnews.com/index.php?aa=news&id22=141023

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5 hours ago, Laid Back said:

Something is missing.

We know 70% of the monetary mass is the chunky cash stashed at home.

We know the Iraqi citizens don’t trust the banking system

We know they have a liquidity problem 
We know financial inclusion is only 23%

 

My question is:

What kind of incentive will the GOI / CBI give to their citizens to bring the

chunky cash to the banks, so the government can use it to finance the 2021 budget.

 

Go Iraq

Go open market economy 
Go RV

Go purchasing power 

Exactly 

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40 minutes ago, Dinarrock said:

Or here is how the Kurds are doing it, you either open a bank account or you don’t get paid as salaries will be deposited into bank accounts!!

 

The Kurdistan government directs its employees to open accounts in banks to receive their salaries

image-76.jpg?w=700

On Thursday, the Ministry of Finance and Economy of the Kurdistan Regional Government called on all departments to open a bank account for employees in order to receive their monthly salaries through it .

According to a document addressed to the ministries and departments not associated with the ministries, the ministry said, “Based on the reform law and within the framework of reorganizing the banking field in the region and converting banking services to the electronic form, a special bank account is opened for all employees .

And she added, “For the purpose of opening a bank account for employees who do not have any bank account, all departments and institutions must direct official letters to private banks for the purpose of opening a bank account used for the purposes of receiving salaries on a monthly basis.”

https://aynaliraqnews.com/index.php?aa=news&id22=141023

Yep Germany currency exchange 101

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1 hour ago, jake21 said:

Or, it can actually mean what it says and the fleecing continues. No wonder why they keep their money under their mattresses 

I suspect Laid Back and GregH are onto to something. The Iraqis Don’t have a lot of trust for the banks much less the government. They also know that the Dinar is pretty worthless. I could easily see them going along with it if they know the dinar is going to revalue and the economy is going  to grow again!

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9 hours ago, GregHi said:

I think the term “borrowing from the citizens” is a Brilliant way of saying RV or raise the value so the citizens would be happy to turn in their dinars in their house walls for huge purchasing power... possibly told to turn in their physical dinars to a bank and in return, you will get a MasterCard debit card and your dinars will be worth 1:1.. or something similar.. time will tell..

Right on

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13 hours ago, Dinarrock said:

Or here is how the Kurds are doing it, you either open a bank account or you don’t get paid as salaries will be deposited into bank accounts!!

 

The Kurdistan government directs its employees to open accounts in banks to receive their salaries

 

This is just my opinion. this is some kind of  force and threat, not incentives. And i don't think the employees want to listen and open a bank account without any benefits and advantages because the employees can open a bank account in other banks that offer more incentives, benefit and advantages. 

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