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Iraqi News Friday AM 10-2-20

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MP Burhan Al-Mamouri Calls For Redrawing Banking Policy For The Benefit Of The Citizen And The National Economy

02/10/2020   Deputy “Burhan Al-Mamouri” demanded on Thursday 10/1/2020 to redraw the financial policy that banks follow, in a way that benefits the citizens and the national economy.

Al-Mamouri said: The economic crisis that Iraq is going through makes it imperative that decision-makers search for realistic solutions for financial reform to save the country from going towards the abyss of indebtedness that will have disastrous effects on the present and future of the nation’s people.

Al-Mamouri added: Iraq is a generous country in which the competencies and experiences can be found, with which solutions can be found to overcome this crisis, and even to move from relying on oil as a main source of income to diversifying financial inputs and ensuring economic development.

As a first step in the path of financial reform for the country, the MP called for redrawing the financial policy that banks follow, in order to achieve the benefit of citizens and the national economy by increasing interest on savings accounts funds and reducing the profits imposed on advances.

Al-Mamouri indicated that the increase in interest will push towards investing the hoarded money in the homes of citizens, and that reducing the profits imposed on advances will lead to an increase in borrowing to implement projects, employ manpower and move the economy wheel.

House of Representatives   Media   Department 10/2/2020   LINK

Small Denominations Of Banknotes

October 01, 2020   The Central Bank of Iraq decided, and based on the minutes of the Currency Affairs Committee meeting No. (6) for the year 2020 held on 9/23/2020

Re-impose a shortage fine on the small denominations ( 1000 , 500 , 250 ), starting from the date of 1/10/2020 and according to the instructions of the standards for circulation and replacement of banknotes and the mechanisms of counting and sorting.

In The First Economic Impact After Trump Was Hit By Corona … Oil Prices Fell

Pratha News Agency79 2020-10-02   Today, Friday, oil prices fell by about 3%, after US President Donald Trump said he had contracted the emerging coronavirus, amid economic concerns about crude demand.

By 11:20 Moscow time, US crude futures were trading at $ 37.66 a barrel, down 2.74% from the previous closing price.

Brent crude futures traded below $ 40 a barrel, at $ 39.80 a barrel, down 2.76% from the previous settlement price.

The US President said on Twitter that he and First Lady Melania Trump had tested positive for the new Corona virus, and that they would be quarantined.

Analysts commented on that, saying, “This may turn his campaign upside down.” The news could cause a new wave of volatility in the market as investors prepare for the presidential elections scheduled for next November.

For his part, Japanese Economy Minister Yasutoshi Nishimura said today, Friday, that the news of the US president’s infection with the Corona virus has a great impact on financial markets.

He expressed, during statements to reporters, his hope that Trump will recover quickly.

Ports: More Than 100 Billion Dinars In Customs And Tax Revenues That Were Achieved In September 2020

Time: 2020/10/02 16:09:36 Read: 1,482 times   {Baghdad: Al-Furat News} The Border Ports Authority announced that more than 100 billion dinars of customs and tax revenues were achieved last September.

The commission revealed, in a statement, the Euphrates News Agency received a copy of it today, “the total revenue generated from customs and tax revenues for the month of September for the year 2020, which amounted to {100,979,929,000} billion Iraqi dinars resulting from the movement of trade exchange at the border crossings.

The commission confirmed, according to the statement, “its constant and relentless endeavor to maximize the state’s revenues to overcome the financial crisis that our beloved country is going through, by working in the spirit of one team and uniting the efforts of all departments working at border outlets to achieve high revenues consistent with government support and the directives of Prime Minister Mustafa Al-Kazemi in strengthening Indeed , the imposition of security and prestige of the state and provide a safe environment for workers at border crossing points.   LINK

Tohme: The PPP Law Is A Serious Threat To The Economy And Wealth Of Iraq

Time: 2020/10/02 14:53:13 Read: 1,820 times   {Baghdad: Al Furat News} The head of the National Approach bloc, Ammar Tohme, considered the Public-Private Partnership Law “a serious threat to the Iraqi economy and its natural wealth.”

Tohme presented, in a statement, a copy of which the Al Furat News Agency received a set of notes on the partnership law between the public and private sector:

1- Partnership was defined as activity related to infrastructure, production and service projects. Productivity, such as the oil and gas sector, or services, such as the electricity, health, and other sectors. ”

He added that“ the Iraqi constitution is explicit in limiting the ownership of oil, gas and infrastructure involved in its production, extraction and marketing to the Iraqi people and administered by the constitutional authorities that the people have authorized to manage them according to specific and clear criteria, not including the concession of authoritarianism. And owning a number of merchants is the most important resource for the national economy. ”

And Tohme continued, “The same is the case with the Ministry of Electricity’s facilities and its infrastructure, including production stations, transmission and distribution networks, on which the Iraqi state has spent tens of billions of dollars in decades of years.

How can merchants and political influencers participate in their ownership and are granted to them as soon as a partnership contract with the public sector is concluded or for a small fee Stressing that “this approach involves a clear neglect and a waste of state property that benefits the people.”

2- This law paves the way for restricting the state’s economic resources and its vital service facilities in the hands of a number of merchants lining up behind them in support and sharing the benefit with influential politicians by the decision of the administration of these public institutions and setting their general policies and the profits resulting from operating them.

4- The partnership contract includes assigning the tasks of designing, implementing, financing, maintaining and operating projects to the private sector, so are the technical competencies and expert cadres in the ministries lacking to carry out such tasks and why the state public companies are not entrusted with the implementation of those tasks and they can contract with experts and technicians from outside their cadres according to the formulas of a service contract for the benefit From her experiences.

5- One of the risks of this law is that it allows foreign companies to partner with the public sector (state departments and its public productive companies) in infrastructure and production projects, including even the oil sector and the infrastructure already in place according to a formula for expansion or modification of that project, meaning that the infrastructure that has been spent The state owes billions of dollars in which the foreigner participates, as the law stipulates that the private sector be entrusted with full or partial financing for these projects, which requires that it be involved in the ownership of these projects and their infrastructure!

6- The law grants the region and the governorate that is not organized in a region the right to contract a partnership with the foreign private sector, including infrastructure and production companies, and this includes even oil and gas, and then the country’s economic resources will be dispersed and subject to contracts that grant foreign companies to participate in their management decisions and formulate their production, extractive and marketing policies, and this is the most dangerous The results are on the country’s economy and the independence of its economic decision.

7 – The law grants the exclusive right to the private sector in the matter of a project covered by the provisions of this law without competition with others, and this contravenes the principles of competition and transparency stipulated in Article Two of the Law.

8- Presenting such a law is a prelude to a dangerous approach in managing the national economy that is intended to adopt partnership contracts with foreign companies in developing the oil and gas sector, and then it will be linked and dependent on the country’s future, economy and sovereign decision to the mood and desires of those major companies.

9 – The law granted (the Public Private Partnership Council) the power to conclude partnership contracts, which may include productive sectors such as oil and gas, and services such as electricity and health, without requiring the approval of the Council of Ministers despite some of its members with the rank of director general!

10- There is an overlap in the powers between the (public-private partnership) council and the (public-private sector partnership) department regarding the mechanisms and methods of partnership contracts, even if they differ, which opinions are presented and applied?

11- The law stipulates that the partnership contract includes determining the ownership of the funds and assets of the projects. The law permits the partnership contract to include infrastructure projects that already exist through the formula of expansion, modernization or modification.

According to these powers, part of an existing infrastructure project that was established and constructed with funds may be produced in accordance with these powers. The state has a businessman participating in his ownership in part according to the partnership contract formula, or he owns it completely in exchange for providing some of his services and benefits to the public!

12 – The law makes the partnership contract a substitute and a ruler over the laws in force so that it can suspend these laws by including the partnership contract with clauses opposing it and ruling on it and this is a dangerous trend that robs the legislative authority of its powers and empties these laws of their meaning and replaces them with a contract concluded by the Partnership Council, which includes in its membership a person with the rank of director Public.

13- The determination of the tools of control, supervision and follow-up of the project is limited to what is included in the partnership contract, while there are bodies and departments concerned with these duties of control, supervision and follow-up in accordance with applicable laws whose role will be suspended.

14- The term of the partnership contract may reach fifty years, noting that Article (11) of the law permits the parties to the partnership contract to be subject to legal jurisdiction other than the Iraqi law, and here the point of danger is that the private partner can file a lawsuit in international courts and has influence on their decisions – especially companies The major foreigner – Iraq then bears one of two dangers, one of which is more severe than the other. Either it submits to the private partner’s desire to change the contents of the contract in his favor and at the expense of the Iraqi interest to avoid decisions of international courts, or that those courts issue decisions that carry the Iraqi economy high costs and burdensome obligations.

15- Article (14) of the law states that the government provides project support through the use of infrastructure by the private partner for free, although the state has spent billions of dollars on it and the government presents it as a gift to big merchants, not for anything but they are partners of influential politicians in the state’s decision. .

16 – The law stipulates that the government provides the project with financial facilities and any other means required by the project and bears part of the project risks, providing land, existing infrastructure, and public utility services. The partner after this so that the state can provide him with all these grants !?

17- The types of contracts mentioned in the law permit the ownership of the project for a period of fifty years in partnership with the state, and if the contract includes renewal of a concession in specific circumstances, the period of ownership of the private partner may be extended for an additional period.

18-The law permits the creation of exclusive rights for the private partner during the implementation of the contract, enabling him to collect new concessions at the expense of the interests of the public sector, and if the state wants to cancel those added exclusive rights, the approval of the local partnership that includes the private partner must be obtained.

19 – A partner may waive his obligations mentioned in the partnership contract for the purpose of financing by a new partner, and this means that the initial partner entrusts the introduction of new partners who were not contracted with them in the original partnership contract.   LINK

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