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More Iraqi News Tuesday PM 10-27-20

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In Numbers … While The Finance Seeks To Borrow More Than 2 Trillion Dinars Of Its Money Locked Up In The Vaults Of 22 Destinations

Money  and business  Economy News _ Baghdad  The lack of financial liquidity in Iraq, which came due to low oil prices and increased expenditures, caused a tightening of the screws on the government and the Ministry of Finance, which began signs of its inability to fulfill its financial obligations towards employees, retirees, social welfare and other dues.

This prompted the Ministry of Finance and the government to embark on a very difficult adventure and to meet strong parliamentary and popular objections, represented by resorting to borrowing, and the benefits that the state will have to pay for many years.

Today, Tuesday, the Parliamentary Finance Committee will hold a meeting for the purpose of discussing the fiscal deficit financing law, which is linked to the fate of the salaries for the remaining three months of this year, headed by the First Deputy Speaker of Parliament, Hassan Al Kaabi.

It is possible that the Finance Committee will reduce the amount of borrowing from 41 trillion to less than 12 trillion, as the Finance Committee believes that the government needs more than 20 trillion to pay the salaries for the remaining three months, and by calculating the expected oil and non-oil revenues according to the Financial Committee, Iraq may achieve 12 trillion within 3 months.

While the government is sitting in a state of conflict with the Finance Committee and Parliament, the reports of the Bureau of Financial Supervision indicate that there are funds from the share of the Ministry of Finance and Treasury “locked up” with state-owned public companies that have not paid their debts and the Ministry of Finance dues from the profits made by these companies.

Economist Nabil Al-Marsoumi quoted in a blog post monitored by Al-Iqtisad News, asking: “Why did the Ministry of Finance not obtain its share of the profits of public companies?”

He added: “The annual report for 2019 issued by the Bureau of Financial Supervision indicates that many public companies have not paid the public treasury’s share of the profits made to them, some of which go back to previous years and which represent the treasury dues owed by a number of public companies affiliated with different ministries.”

And he stated that “it became clear from the report that 22 public companies did not pay the Ministry of Finance’s share, which amounted to 2,302 trillion dinars, at a time when the Ministry of Finance is complaining about the scarcity of financial resources that forced it to borrow internally to pay the salaries of employees.” Number of observations 97 date of addendum 10/27/2020

https://economy-news.net/content.php?id=22405

Saleh Told “Al-Eqtisad News”: Iraq Desperately Needs An International Financial Alliance

Financial advisor, Dr. Mazhar Muhammad Saleh   Money  and business  Economy News – Baghdad    The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, revealed that Iraq desperately needs an international financial and economic alliance to help it in the current financial crisis.

In Britain, during Al-Kazemi’s visit, he announced the formation of the Economic Contact Group for Iraq, which is a financial alliance that includes the Group of Seven, the International Monetary Fund, the World Bank, the Central Bank of Iraq, the Ministry of Finance and the Parliamentary Finance Committee.

Saleh said in his speech to “Al-Eqtisad News”, ” Iraq, due to the Corona pandemic, the crisis of its oil resources, and its harmful repercussions on the national economy, is in dire need of an international financial and economic alliance from the great countries, similar to the statement of the Tokyo Summit of the Seven Big Countries in May 2016, which supported Iraq economically in May 2016.” Confronting its economic crisis and fighting ISIS terrorism . ”

He added that the former financial alliance form at the Tokyo Conference in 2016 to support Iraq financially and economically to cope with the budget deficit and the balance of payments due to the deterioration 2014-2017 oil prices and the day of Iraq signed an agreement to prepare credit with the International Monetary Fund SBA Fund to provide amount of loan 5.2 billion dollars as well as pledged to the World Bank 3 billion dollars to support the budget, then the Kuwait Conference for the Reconstruction of Iraq was held. In addition to the grants provided by the European Union and others through the United Nations for the reconstruction of areas liberated from terrorism . ”

Number of observations 253 Date of addendum 10/27/2020   https://economy-news.net/content.php?id=22408

The Government Provides The Finance Committee With A List Of The Chapters For Disbursing Borrowing Amounts

Money  and business  Economy News _ Baghdad  The Parliamentary Finance Committee announced, on Tuesday, that it sent a letter to the Ministry of Finance to inquire about the money paid after the borrowing law was approved, while it indicated that the Ministry of Finance responded and we are going to review the accounts.

Committee member Siham Al-Aqili said in an interview with the Iraqi News Agency and seen by “Al-Iqtisad News”, “All members of the Finance Committee have an objection regarding the fiscal deficit financing law sent by the government, so there was an agreement to host Finance Minister Ali Allawi and Central Bank Governor Mustafa Ghaleb Scary in Monday’s session, in order to find out the details of the amount.

She added that “the committee sent a letter to the Ministry of Finance, containing an inquiry about the sums paid according to the chapters of exchange, after the financial borrowing law was approved,” indicating that “after receiving the answer from the Ministry of Finance, the committee will review the accounts and decide.”

The Finance Committee is scheduled to meet today, Tuesday, to review the borrowing law to finance the fiscal deficit and to amend and reduce borrowing numbers, in order to vote on the law that will allow the disbursement of salaries and dues. Number of observations 85   Date of addendum 10/27/2020   https://economy-news.net/content.php?id=22407

Baghdad And Washington Are Discussing Cooperation Between The Iraqi Judiciary And The American Investigation Authorities

Editing date: 10/27/2020 14:36 • 58 times read   [Baghdad-Where] The President of the Supreme Judicial Council, Judge Faik Zaidan, discussed, on Tuesday, with the Ambassador of the United States of America in Baghdad, Matthew Toller, the exclusionary cooperation frameworks between the two alternatives.

The judicial flags said in a statement. “The President of the Supreme Judicial Council, Judge Faeq Zaidan, received in his office the Ambassador of the United States of America in Baghdad, Matthew Toller.”

The statement added that “the two sides discussed frameworks for cooperation between the Iraqi judiciary and the American investigation authorities in completing the investigation in cases involving accused persons from Iraq.” http://www.alliraqnews.com/modules/news/article.php?storyid=102880

Negative Expectations For OPEC Will Be Painful For Iraq In The Coming Months

Energy   Economy News _ Baghdad  A report issued by the Organization of Arab Petroleum Exporting Countries (OAPEC) stated that the monthly average price of the OPEC basket decreased to $ 40.62 a barrel during the month of October 2020.

The report stated, “The latest preliminary estimates of” OPEC “indicate a decrease in the monthly average price of its basket of raw materials to $ 40.62 a barrel during the month of October 2020. A decrease of about 2.2% compared to the previous month.

It added, “It is expected that the annual average price of the OPEC basket of crudes will decline in 2020 to $ 40.62 a barrel, which is an average less than $ 23.4 per barrel, or 36.6%, compared to 2019.”

The report pointed out, “The reason for the decline in oil is the increase in the number of daily infections with the new Corona virus worldwide, which led to the imposition of more stringent restrictions and a return to partial closure and total isolation, as oil prices were negatively affected by the growing investor concerns about the oil supply glut, against the backdrop of the announcement of the National Corporation In Libya, the state of force majeure has increased in all oil fields, and it is expected to reach production of more than one million by the end of November.

With this estimate, the average price of a barrel of Iraqi oil will be around $ 38 a barrel, as it is less than two dollars a barrel.   Number of observations 42 Date of addendum 10/27/2020  https://economy-news.net/content.php?id=22418

Oil Prices Are Rising After Recent Sharp Losses

Economie| 11:12 – 27/10/2020   Follow-up – Mawazine News  Oil prices rose today, after recent sharp losses, but market sentiment remains weak, as the high number of COVID-19 cases hurts the outlook for fuel demand while supplies rise.

By 06:51 GMT, Brent crude was up 1%, at $ 40.88 a barrel.

While US crude rose by 1%, too, to $ 38.93 a barrel. The two benchmarks fell more than 3% on Monday.

The lack of progress on agreeing on a package to mitigate the repercussions of the Corona virus in the United States has been added to the gloomy atmosphere in the market, although Nancy Pelosi, the Speaker of the US House of Representatives, said on Monday that she hopes that an agreement can be reached before the date of the US presidential elections.

A wave of coronavirus infections is sweeping across the United States, Russia, France and many other countries, undermining global economic prospects, with record numbers of new cases forcing some countries to impose new restrictions as winter approaches.

“We believe demand from now on will really struggle to grow,” said Vivek Dahar, commodities analyst at Bank of Australia. The restrictions of Covid-19 are all part of that. ”The bank expects US oil to reach an average of $ 38, and for Brent to average $ 41 in the last quarter of this year.

Prices have received some support from a possible drop in US production, as it began Oil companies close offshore platforms as a hurricane approaches the Gulf of Mexico.   https://www.mawazin.net/Details.aspx?jimare=127962

The Stock Market Drops For The Second Session In A Row

Iraq Stock Exchange  Market  Economy News – Baghdad  On Tuesday, the stock market index fell by 0.24% for the second consecutive session.    1.05 billion shares were traded in Tuesday’s session, at a value of 812.2 million dinars. Shares of 11 companies decreased, while those of 7 companies rose.

Number of observations 57 Date of addendum 10/27/2020   https://economy-news.net/content.php?id=22421

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