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Iraqi News Sunday AM 10-11-20

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Iraq’s Accession To Membership In The European Bank Is A Step To Develop The Banking System

Sunday 11 October 2020   25   Baghdad: Hussein Faleh , experts and specialists in economic and financial affairs, believe that Iraq’s accession to membership in the European Bank is an important step towards developing the Iraqi banking system, and while they emphasized the need to gain experience and transfer global technology to the Iraqi banking system, they indicated that developing the banking system is important in the process of economic development. .

A member of the Baghdad Economic Forum and an expert in financial affairs, Abdul Aziz Al-Hassoun, told Al-Sabah: “The banking system in Iraq needs to restore confidence between the citizen and the banks by strengthening security guarantees, meaning that when a citizen deposits money in a bank he can recover it, However, this has been missed recently ».

He added that «local banks need to acquire global expertise to develop the performance of their work, whether through twinning or training or advice and others», indicating that «Iraq’s joining the membership of the European Bank is an important step for the development of the banking system in Iraq».

He pointed out that «the development of the banking system does not need legal legislation, but to the real will to fight corruption and reorganize through the issuance of new instructions by the Central Bank of Iraq», stressing that Iraq can use advanced European expertise in this area, in order to develop the banking system.

He continued, that the development of the banking system is important in the development process, because it will encourage investment as well as attract financial deposits.

For his part, a member of the Parliamentary Finance Committee, Representative Hanin al-Qaddo, confirmed that «the banking system in Iraq needs to develop and keep pace with global developments in the field of banking».

Al-Qadu said in a statement to Al-Sabah: “The development of the banking system is an internal matter and depends on the capabilities and staff of banks,” noting that “there are several international organizations that have provided their services in order to develop the banking system, but the existing corruption and due to the political and economic conditions prevented that”.

He added, “Many local banks do not operate with modern mechanization or the ki-card system, stressing that the development process needs a lot of work, not only with Iraq joining the European Bank.” He stressed the need for Iraq to benefit from its accession to the European Bank membership in support and development The Iraqi banking system ».

The Ministry of Foreign Affairs had announced earlier, Iraq’s formal accession to membership in the European Bank.

A statement by the ministry stated: “The relentless efforts of the Ministry of Foreign Affairs, represented by the Embassy of the Republic of Iraq in London and the European Bank for Reconstruction and Development, expressed the approval of the members of the Board of Governors of the Bank to Iraq’s accession to the Council, during the voting process witnessed by the annual meeting of the Board of Governors held in London For the period 7-8 October ».

The ministry indicated that «Iraq’s formal accession to the bank’s membership will allow it to benefit from international banking expertise to develop the banking sector, and to obtain technical support and assistance that creates a suitable ground for investment.  LINK

Financial inclusion and the electronic horizon

Saturday 10 October 2020  40  Baghdad: Mustafa Al-Hashemi

Specialists in financial and economic affairs called on banks contributing to salary resettlement, to expedite the implementation of financial inclusion measures, especially after resettlement of the salaries of employees of ministries and departments with their permanent owners and contracts.

Financial inclusion, an economic term that means the introduction or merging of groups, which are called financially marginalized or with low financial income, who are not allowed to engage in the operations of the banking system, by dealing with the banking system through the digital work system using mobile phones, meaning the completion of all financial transactions.

Electronically.

Loans and advances

The specialist in financial affairs, Nawras Hassan, called those in charge of the salary settlement file to “pay attention to the segment of contract employees, especially those with long years of service, because there are banks that refrain from granting loans and advances to contract employees despite having their salaries localized to them, which is inconsistent with the steps to achieve financial inclusion announced by the bank. Central ».

He added, “Contract employees are still seen as second-class employees, while financial inclusion is equal to all classes of employees, as long as their salaries are based in banks, so the principle of Emiratisation must be one and apply to all employees in terms of their inclusion in advances and loans. Without distinction ».

Address the discrepancy

In turn, the economic researcher, Aya Adel, endorsed the necessity to “urgently address this contradiction, since the Central Bank’s instructions directed to banks (government and private) do not stipulate the comparison between one employee and another as long as they have localized their salaries at those banks.” In Iraq – according to the central – ».

Adel stated that “the efforts of the Central Bank to achieve financial inclusion appeared in the last two years,” adding that “the jurisprudence of some banks’ administrations prevented the achievement of justice in this aspect, especially between contract employees and permanent owners.”

And it included them with loans and advances of various amounts ».

Unifying vision

For his part, the academic and economist Dr. Majid Al-Baidani said, “The banks operating in Iraq and contributing to the salary localization project should unify their vision of the concept of financial inclusion, especially for employees whose salaries are domiciled.”

He believed that «the current stage requires the openness of all banks to exercise their role in society, especially by facilitating the granting of advances and loans to all employees whose salaries are settled at those banks».

He pointed out that «government banks own a lot of deposits that have not been invested in the right way in order to benefit the employee and contribute to improving his financial situation, especially contract employees whose salaries have settled in government and private banks».  LINK

Parliament Awaits “Borrowing Law”

Sunday 11 October 2020  103  Baghdad – Al-Sabah: Shaima Rasheed

So far, the local borrowing law has not reached the House of Representatives, despite the continuous parliamentary calls for the government to speed up sending it, in order to find a legal solution that secures the salaries of employees.

It seems that the government is “reluctant” to send it, in light of the presence of a representative trend that rejects the continuous resort to borrowing without real reforms that maximize non-oil revenues.

The Ministry of Finance has borrowed 15 trillion dinars, while it is currently looking for a new borrowing of 27 trillion dinars, in contrast, the deficit in the draft budget for this year is 81 trillion dinars.

A member of the Finance Committee, Jamal Cougar, said in a statement to Al-Sabah: “The government is reluctant to send the local borrowing law to Parliament because it believes that the law will not be voted on.”

The deputy directs an “inquiry” to the Ministry of Finance regarding securing the salaries of September, after it announced its deficit, while confirming that “Parliament will pass the law on borrowing so that it is not said that it is the reason for cutting salaries.”

Cougar revealed that there are “8 million families who benefit directly from salaries, whether they are employees, retirees, or social welfare.” For his part, a member of the committee, Naji Ardis, said in a press statement, “Iraq has many sources of funding that can supply the state treasury, most notably the border crossings, taxes and communications, which could reach if real reforms are implemented within the framework of maximizing it to 3 trillion dinars. monthly”.

He added, “Non-oil revenues can be used to secure employee salaries along with oil revenues.”

He pointed out that “the white reform paper presented by the Minister of Finance to improve the economic reality in Iraq focused on two very important aspects in order to be applied during the next short period, the first: stopping waste in state public expenditures, for example, we buy imported Iranian gas 3 times more, then give it The electricity production company in the Bismayah area sells energy to the government three times as much, and this causes a great waste of public money.

He added that “the other important aspect of the reform paper is to maximize public revenues, whether direct tax or customs, as well as setting a new salary scale to achieve the principle of social justice, to reduce the disparity in the salaries of ministries and government institutions.”  LINK

Issue (4598) Was Published From The Iraqi Newspaper Al-Waqi’a, Issued On 5/10/2020

2020-10-11 12:29:00

1- Republic Decrees No. (30) and (31) for the year 2020.

2- Decision issued by the Committee to freeze terrorist funds No. (36) for the year 2020.

3- Bylaw of the General Company for Glass and Refractories No. (1) for the year 2020.

4- A statement issued by the Ministry of Finance No. (2) of 2020.

5- A statement issued by the Ministry of Finance No. (6) for the year 2020.

Those wishing to acquire the Iraqi factsheet can refer to the Iraqi investigation department located in Salhiya / Haifa Street (Ministry of Justice building) and obtain the required number   https://www.moj.gov.iq/view.5157/

Iraq Renews Its Commitment To The Decisions Of {OPEC +}

Sunday 11 October 2020  121  Baghdad: Saad Al-Sammak  Yesterday, Saturday, the Minister of Oil, Ihsan Abdul-Jabbar Ismail, affirmed Iraq’s commitment to the determinants of “OPEC” and “OPEC +” in reducing oil production, explaining that the issue of “increasing production” is subject to discussion with our partners in the organization after the deadline between OPEC countries expires. And its allies.

The minister said, “Total crude oil exports for the current month of October are still stable at two million and 600 thousand standard barrels per day,” adding that “it will continue at this level, according to the (OPEC Plus) agreement.” And he continued, “Iraq’s commitment to oil production cuts. Current; achieved the full reduction percentage established within the country’s share of the total reduction.

Abdul-Jabbar stressed that Iraq is looking forward to achieving more cooperation with OPEC member producers to achieve common goals to maintain the stability of the price of a barrel of crude oil in the global market.

On the other hand, the Minister of Oil revealed that “the government estimated the price of a barrel of oil at 42 dollars in the draft general budget for the year 2021, according to the economic data of the global oil market and the repercussions of (Covid-19) on the activity of industrialized countries and its impact on the volume of demand and the price of a barrel on the global market.” .  LINK

Purchasing Power

Sunday 11 October 2020  58  Yasser Al-Metwally   The facts indicate that a sharp decline will occur in the purchasing power of citizens, and the reason is the continued fluctuation of oil prices, towards a decline and stability at a price that does not match what the budgets have been separated annually.

We warned over a little over a year ago that a severe financial crisis would plague the country, based on the decline in global oil prices, and this was accompanied soon after by the Corona pandemic, which has greatly affected oil prices and continues. Notice with me that the liquidity crisis related to the monthly salary distribution is continuing, and it will lead to the dislocation of the local market and will result in the stability and stability of exchange rates beyond any doubt.

We have repeatedly warned against relying on oil rents and the need to diversify sources of income by activating the productive sectors to absorb unemployment and reduce dependence on foreign importers in order to preserve foreign exchange, but the government has no choice but to borrow internally and externally, which will flood the country with indebtedness that has no consequences.

The strangest thing is that the executive and legislative bodies are involved in conflicts over borrowing without sitting down to find alternative solutions.

As for the dangerous reason in our expectation of the decline in purchasing power, it is summarized that the government is forced to go either to raise taxes in general or to reduce salaries and the Ministry of Finance is going ahead and pressing in this direction. The citizen is required to reveal the reality of the situation we have reached due to the wrong policies of the successive governments that left the treasury confused before the government.  New.

So what is the solution?

Dedication is required to think about facing this ordeal, which can only be resolved by activating the productive sectors and allowing the private sector to take over this file and the state to devote itself to planning, and we previously expected that austerity is coming, and here I mean that the state prepares for the phase of declining purchasing power and fluctuating exchange rates, which seemed clear towards Reducing the value of the dinar as one of the indicators of declining purchasing power, and the Central Bank should pay attention to this phenomenon, which appeared to be accelerating without any remarkable action.

The UAE, with its economic strength and weak absorption capacity of funds, means that its revenue is greater than the proportions of its population.

For some time, in order to avoid the effects of the Corona pandemic, it adopted a program of guidance to its citizens on the need to pressure expenditures and rationalize consumption, so what about our financial situation?  LINK

Export … An Economic Power That Must Be Attributed

Sunday 11 October 2020  19  Baghdad: Farah Al-Khafaf  Economic expert Raed Al-Amiri considered that the Ministry of Trade granted 93 export licenses during the month of September as a “positive step.”

Al-Amiri said to “Al-Sabah”: “Despite the current economic conditions and the outbreak of the Coronavirus, export operations have begun to move better than the previous period, especially since the export operations included various materials (agricultural and industrial), including for the first time exported to countries such as Russia and France.”

Real attribution

He called on the government agencies concerned to provide all facilities to exporters, whether they are Iraqis or foreigners, indicating that “export operations may develop and become at the level of ambition, especially agricultural ones, in the event that the real support is found, especially since it may enter millions of dollars into the country.” .

And the Minister of Agriculture recently announced that the quantity to be exported of dates is estimated at 700 thousand tons to most Asian countries (India, Pakistan, Turkey, Russia, France and other countries), indicating that “the private sector has the ability to follow advanced methods of exporting according to international standards from During the prevention department, and following modern methods of fumigation and granting export licenses.

93 export authorization

In the same context, the Ministry of Trade announced granting the State Company for Fairs and Commercial Services of Iraq 93 export licenses

To Iraqi traders during the month of September.

The general manager of the company, Sarmad Taha Saeed, said: “The company also issued (92) import IDs and (16) export IDs during the same month, adding that“ export licenses were granted for various foodstuffs, chemicals, cars, medicines, and others. ”

Economic policies

He continued: “One of the company’s work priorities is to organize the import and export process, which falls among the tasks assigned to the Ministry of Commerce in drawing up the country’s economic and foreign policies,” stressing the issuance of directives for the necessity to simplify procedures before citizens during their reviews and to deal transparently in keeping the transactions according to the followed instructions.   LINK

Allawi: Next Year Will See The Implementation Of Income Tax On Employee Salary Allocations

Finance Minister Ali Abdul Amir Allawi “Internet”

Money  and business  Economy News – Baghdad  The Minister of Finance, Ali Abdul-Amir Allawi, said that Iraq’s revenues from the beginning of this month until the end of the year do not exceed 15 trillion dinars, explaining that the Ministry of Finance will implement, from next year, income tax on employee salaries allocations.

Allawi added, in an interview with the Euphrates channel, which was seen by “Al-Eqtisad News”, that the ruling expenditures, which are represented by retirement and foreign debt benefits that reach 50 billion dollars, and social security, oil revenues are not sufficient to meet these monthly requirements, indicating that the Ministry of Finance is looking for A way to increase non-oil revenue to finance salaries.

He stressed that without cooperation between the Ministry of Finance and the Central Bank, this crisis cannot be avoided, and therefore any rupture between the two parties will harm the economy, explaining that the Iraqi reserves of foreign currency are estimated at between 53-55 billion dollars, and an investor is between deposits in US bonds.

He added that the white paper includes a vision of moving the Iraqi economy to the post-oil era and gives an opportunity to advance the economy, and address all obstacles and distortions in the economic map, stressing that the reform paper clarifies the economic dilemma and the solutions put forward to treat this dilemma.

And that the World Bank confirmed that Iraq is on the verge of an economic disaster, and the situation is dangerous and acknowledged by the most important international party, explaining that the salaries of employees and retirees accounted for 20% of oil revenues, while today they constitute more than 120% of oil revenues, stressing that the salaries of retirees amount to 1.2 One trillion dinars per month.

He pointed out that the productivity of the Iraqi employee is the lowest in the world, indicating that the reform paper may be implemented within a period of 10 years, and anyone who has a realistic vision for managing the economy must present it.

He explained that the previous government opened the doors to employment in an ill-considered and unrealistic manner, and its repercussions occurred on this government, stressing that it is not permissible to employ any person under the scale of salaries and allocations.

He stressed that the 2021 budget will be presented to the Council of Ministers during the month of November, and will include rationalization of the electricity and oil sector, and the expansion of the network of direct taxes on employee salaries, because salary allocations sometimes reach five times the salary.

He noted that the ration card allocations amount to 5 trillion dinars, which is part of the ruling expenses and not to prejudice them.

On the relationship between Baghdad and Erbil, Allawi said that the region’s benefits represent 12% of the general budget, and oil exports must be under Baghdad’s control.

He added that the agreement between Baghdad and Erbil now is to give the region its oil and revenues from the border crossings to Baghdad, but the region has not yet provided and has reasons, explaining that Kurdistan grants oil companies 25% of the extracted oil revenues, due to participation contracts and not service contracts.

He stressed that Baghdad did not grant the region funds in the sixth and seventh months of this year, because he did not send oil to Baghdad, stressing that the closure of the US embassy in Iraq will have economic repercussions on Iraq.

Number of observations 660 Date of addendum 10/11/2020  https://economy-news.net/content.php?id=22196

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