More Iraqi News Saturday PM 10-31-20
TLM724 Administrator BondLady’s Corner
A decrease in the exchange rates of the dollar in the local market
Market Economy News _ Baghdad The exchange rates of the dollar on the main stock markets decreased slightly, while they stabilized in the local markets on Saturday (October 31, 2020).
The Kifah Stock Exchange recorded 125,000 dinars against 100 US dollars, while last Thursday the dollar exchange rate recorded 125.100 dinars per 100 dollars. Sales price: 125,500 dinars per $ 100. Purchase price: 124,500 dinars per $ 100. Number of observations 132 Date of addendum 10/31/2020 https://economy-news.net/content.php?id=22470
Economic Specialist For / NINA /: Iraq’s Debt This Year Will Rise From Previous Years
Saturday 31, October 2020 13:12 | Economical Views: 178 Baghdad / NINA / The specialist in economic affairs, Hussein Shaker Tahilo, said that Iraq’s debt increased this year and the deficit in the upcoming budgets in light of the decrease in oil prices due to the increase in US oil stocks, and the second wave of Corona virus that affected industrialized countries.
Tahilo said in a statement to the Iraqi National News Agency / NINA/ It: As a result of the absence of a philosophy of the Iraqi economic system, mismanagement, and the absence of development programs that have accumulated crises, the Iraqi economy was considered one of the indebted economies par excellence, as it was stated in the World Bank report for the year (2020) that an increase in the size of the external debt of Iraq is expected from (75.76) billion Dollars in (2014) to (173.53) billion dollars in (2024).
As for this year, the external debt of Iraq reached (120.7) billion dollars, and it is likely that the debt and the deficit in future budgets will increase in light of the decline in oil prices due to the increase in stocks of American oil, and the wave The second of the Corona virus that affected industrialized countries.
He added, “Several solutions can be proposed, in the forefront of which is to explain the philosophy of the Iraqi economic system and work on it, get out of the rentier depth and support the productive sectors (industry, agriculture, services), and work on comprehensive and real economic reform away from administrative corruption.”
He stressed the need to work to make expenditures in harmony with the available resources by creating a combination of financial, monetary, trade and exchange rate policies to ensure that there is an aggregate demand that matches the composition of the overall supply and by adopting measures that stimulate the sectors of goods and services (this in turn reduces imports and thus no Exiting foreign currency and depleting cash reserves) as well as activating and supporting the private sector, increasing investment in infrastructure and supporting services, as well as maximizing non-oil revenues such as customs revenues in the various ports of Iraq through automating the customs system and making it centralized according to modern technology as is the case in countries This in turn limits financial corruption, which maximizes these revenues.
He continued, “Accordingly, the internal and external financial balance will be restored, the inflationary pressures are reduced and removed, the balance of payments positioned and the creditworthiness restored, which require ensuring sustainable growth and reducing unemployment rates, as well as stability policies and reforms aimed at improving resources and raising their efficiency in the medium and long term.” / End 8 https://ninanews.com/Website/News/Details?Key=866090
The National Retirement Fund For / NINA /: The Launch Of The Retirement Salaries For The Month Of November Will Be As Soon As The Financial Funding Comes From The Ministry Of Finance
Saturday 31, October 2020 10:27 | Economical Views: 557 Baghdad / NINA / The National Pension Agency confirmed that the release of the retirement salaries for the month of November will take place as soon as the financial funding comes from the Ministry of Finance.
A source in the media office of the authority said to the Iraqi National News Agency / NINA / that the release of the salaries of the retired will take place as soon as the financial funding comes from the Ministry of Finance, and it is expected that this will take place in the next few days. https://ninanews.com/Website/News/Details?key=866041
Economic Expert For / NINA /: The Resettlement Of Industries In Iraq Will Contribute To Alleviating The Financial Crisis And Reducing Dependence On The Country’s Oil Financial Revenue
Saturday 31, October 2020 09:38 | Economical Views: 106 Baghdad / NINA / Economic expert Raad Twig said that the return of businessmen and the resettlement of industries in Iraq alleviate the financial crisis that the country is going through.
Twig said in a statement to the Iraqi National News Agency ( NINA ): Some Iraqi businessmen have factories in Arab and foreign countries such as Jordan, China and Iran, and transferring these industries to Iraq or establishing similar industries will contribute to helping their countrymen reduce the financial crisis and employ a greater number of Manpower and bring more incomes to Iraqis, especially there is a large consumer demand in Iraq and an increasing human capacity. ”
Twig called for “the return of immigrant minds and bringing projects to contribute to building their homeland, in addition to the return of immigrant capital owners to revive the economy, alleviate the financial crisis, get rid of the rentier economy, and reduce the dependence of the state’s budget on oil revenues only.” https://ninanews.com/Website/News/Details?key=866023
Egypt: Initial Agreement Between Cairo And Baghdad To Establish The “Oil For Reconstruction” Mechanism
Political Saturday 31 October 2020 | 04:50 pm| Views: 36 Today, Saturday, the Egyptian government announced that it had been agreed in principle with Iraq to establish the “oil for reconstruction” mechanism.
A statement by the Egyptian Cabinet said today that Prime Minister Mostafa Madbouly delivered a speech at the main session of the joint Egyptian-Iraqi Higher Committee meetings in the Iraqi capital, Baghdad, in which he praised “what was agreed in principle on the importance of establishing the oil-for-reconstruction mechanism.
” The statement added that the mechanism is represented by “Egyptian companies implementing development projects in brotherly Iraq, in return for the quantities of oil that Egypt will import from Iraq.”
“The establishment of this fund will contribute to doubling cooperation and enhancing the implementation of development projects on the beloved land of Mesopotamia,” Madbouly emphasized. According to a statement by the Iraqi Council of Ministers, Iraqi Prime Minister Mustafa Al-Kazemi, who heads the Iraqi side in the meetings of the Egyptian-Iraqi Joint Higher Committee, said:
Representative Economics: Finance Told Us That It Spent 39 Trillion For Salaries In The Past Months!
14:45 – 10/31/20200 Information / Special …The Parliamentary Economy Committee confirmed, on Saturday, that the Ministry of Finance informed the House of Representatives that it was 39 trillion dinars for salaries of the past months.
Committee member Mazen Al-Faily said in a statement to Al-Maalouma that “the statement by government spokesman Ahmed Mulla Talal regarding providing alternatives to secure employee salaries is surprising and unrealistic,” noting that “the amount of money provided in the borrowing law is large and unrealistic.”
He added that “the salaries of Kurdistan employees need one and a half trillion, but the government has put in the law deficit financing 3 trillion for the region,” indicating that “the priority in the borrowing law is to finance salaries and there are other doors for disbursement are not important.”
He continued, “The Ministry of Finance has informed the House of Representatives that it is the wool of 39 trillion dinars for salaries in the past months, and this is surprising.”
Last Monday, the Parliamentary Economic Committee ruled out passing the fiscal deficit financing law submitted by the government during today’s session. https://www.almaalomah.com/2020/10/31/502733/
Finance Issued A Statement Regarding The Delay In Paying Salaries For The Current Month
Posted On 2020-10-31 By Sotaliraq On Friday, the Ministry of Finance issued a statement regarding the delay in paying salaries for the current month of October, and while indicating that current revenues are insufficient to meet current expenditures, it confirmed that the government has no choice but to resort to short-term loans until the end of 2020.
“Last week, a number of public statements and inquiries were made regarding the delay in paying the salaries of the month of October, and this comes in the wake of the delay in paying the salaries of the month of September,” the ministry said in a statement.
The statement added, “The Ministry of Finance has repeatedly confirmed that the government’s current revenues, in light of low oil prices and Iraq’s commitment to OPEC decisions related to reducing oil production, are insufficient to meet the government’s current expenditures.” Currently, monthly oil revenues are less than 50% of the government’s current expenditures. We expect this situation to continue in the near future. ”
“To address structural imbalances in public finances, the Ministry of Finance has embarked on a three-pronged program to address short, medium and long-term issues that affect the Iraqi economy,” he said.
The statement pointed out that “for the very short period, between now and the end of 2020, the Ministry of Finance does not see any option but to resort to short-term loans from government banks, which will then be deducted from the Central Bank. All other options, such as increasing revenues from customs, taxes, or levies from the electricity sector, are simply not possible in the short term.
Moreover, despite the need to rationalize and activate the generation of other non-oil revenues, such measures will not compensate, in the short term, for the shortage of oil revenues, given the structure of our economy.
He indicated that “all other procedures related to public sector payroll management require legislative approval before they are translated into spending cuts or revenue generation, and in this regard, there were a number of important issues that were raised.”
The statement explained: “The ministry does not seek to increase the public debt unless it is necessary and its service is sustainable. Iraq’s debt at the present time is not excessive compared to the size of its economy. Public debt in the world has grown tremendously over the past twelve months, to address the negative consequences of the Corona pandemic, pointing out that “Globally, public debt as a percentage of GDP is close to 100%.
In Iraq it is still less than 75% of GDP. However, the Ministry of Finance is aware of the need to be careful in the way the public finance deficit is financed.
The statement pointed out that “the Ministry of Finance was open and transparent regarding the state of public finances and issued accurate and timely information when requested by the House of Representatives.” The Ministry is aware of the concerns that could arise as a result of delays in fulfilling government spending obligations.
The situation today is fundamentally different from previous periods, when public finances were under pressure due to low oil revenues. Not only did public spending grow rapidly in the past five years, but the decline in oil production and prices was longer and deeper than previous periods, in light of a difficult global economy.
He added: “The Ministry of Finance asked the House of Representatives to authorize it to borrow 41 trillion dinars for the remainder of the current year to meet the deficit in financing salaries and retirement payments, dues in 19 and 20, other expenditures and investment projects.”
The statement stated that “the Ministry of Finance plans to introduce major reforms affecting public finances in the 2021 budget. If approved by the Council of Ministers and the House of Representatives, we believe that they will form the basis for addressing the economy issues in the medium term and rationalizing public finances during the period from 2021 to 2023.” .
The ministry concluded its statement by saying: “The Ministry of Finance played a key role in leading the team that developed the White Paper. These aim to analyze the structural problems affecting the Iraqi economy and provide detailed solutions to solve them. This reform program aims to reorient the axes of the Iraqi economy. The reform program will require a great deal of legislative and institutional work and cannot be implemented without the support of Parliament. LINK
Electricity Supply In Iraq Is Threatened To Stop At Any Moment
Energy Economy News _ Baghdad The Parliamentary Energy Committee revealed, on Saturday, a danger lurking about electrical energy in Iraq, as transformers are subject to sudden and emergency malfunctions, in exchange for not allocating any money for maintenance.
Committee member Sadiq Al-Sulaiti explained in a press interview, “The government has prepared a budget of 57 trillion and 811 billion Iraqi dinars for four months, with a financial deficit of 41 trillion, to be paid by borrowing, adding to it revenues estimated at 16 trillion dinars,” indicating that “the prepared budget has not been allocated One dinar to maintain the electricity stations, which will remain vulnerable to emergency breakdowns.
Al-Sulaiti added that “the schedule allocated by the Ministry of Finance for the Financial Deficit Law included amounts for importing electric power, as well as sums to buy energy from investors in Rumaila and Basmah stations and the rest of the stations in very high amounts that overburdened the state and its budget, indicating that the finance allocated five trillions and a half trillion dinars to import and buy gas From the neighboring countries, most of them are dues for the years 2019/2020, meaning that the Ministry of Electricity will not benefit from them because most of them will go to the electricity station investors.
Al-Sulaiti called on the government and the Ministry of Finance to “amend this paragraph and allocate funds to the Ministry of Oil classified under the heading Maintenance and operation of power stations, especially diesel units whose cost of operation and maintenance is lower and give higher generation for the purpose of raising production capacity during peak periods in summer and winter, noting that the generation joint The diesel stations, whose stations are spread throughout the geographical area of the country in the south and the center and in the northern regions, did not receive full attention, as despite their scarcity they give very good efficiency and are cheaper after the hydroelectric stations and compete with gas stations in their need for maintenance and fuel as they work with heavy fuel (HFO), which is the cheapest fuel and available in quantities Very big in the Ministry of Oil. ”
Scandalous electricity secrets
Yesterday, a report of the Board of Financial Supervision broke into the loopholes contained in contracts for the purchase and supply of electricity with different countries and companies in Iraq.
Car company contract to supply Nineveh … subject to a 6-fold high price
The report shows that “the Ministry of Electricity bore the bills for transporting fuel from the refineries to the stations, which were provided by the Car Company.
The energy cost of this company is considered the highest price, as it ranged between (193 to 264) dollars per megawatt hour, while the megawatt hour is purchased from the rest of the stations at a price ranging between (32 to 47) dollars, and the Ministry of Electricity was not committed to re-negotiating with the company to reduce the energy price, contrary to the decision of the Council of Ministers issued on 4/22/2019, and fuel prices were (6) times the energy purchase price, and the amount of fuel needed for operation has not been determined, which allowed the company Equipped with quantification.
Iranian Tafanir Company (Iranian Line)
The ministry has concluded several contracts since 2006 with the company, and the price of energy purchase is based on the monthly price of oil in the OPEC basket, so that the price is not less than (55) dollars in the event of a decrease in oil prices and not more than (100) dollars in the event of high prices and the cost of energy imported from the company is For the period from (2017 to 2019), at $ 1.441 billion.
The amount of energy purchase is sufficient to develop the stations and prevent imports … and the Ministry “refuses”
According to the report, the Ministry ignored the study submitted by the Department of Energy Production in (2018) which showed that in the event that the Ministry provided an amount for the purchase of equipment and maintenance of national stations at a value of (4.435) billion dollars and transferred it to work from the simple cycle to the combined cycle, it will produce more energy than the imported energy.
And purchased from investment stations at a rate of (5806) megawatts in addition to reducing the consumption of fuel used in the stations and preserving the environment, noting that this amount is spent only once, while an amount of (3.337) billion dollars is disbursed annually, subject to increase in favor of investment stations and neighboring countries, knowing that it reached The Ministry’s allocations during the year (2019) amount to (13.375) trillion dinars.
Refusing a cheap national contract and choosing a foreigner is 7 times more expensive!
The report indicated that the ministry also ignored the study submitted by one of its departments to convert the stations (Shatt al-Arab, Rumaila and Amara) to operate in the combined cycle at a cost of $ 1.325 billion within 15 years, and it contracted with investors for those stations for a period of 15 years at a value of (9,826). One billion dollars, 7 times more than the national effort.
Neglecting the Nasiriyah station and choosing to buy energy from the stations that are doubly expensive
The national thermal stations suffer from negligence and lack of maintenance, as some of them have not been maintained since 2002, such as the Nasiriyah Thermal Station, which needs $ 200 million to be rehabilitated according to the Ministry’s opinion. The cost of producing a megawatt hour from that station is $ 15, while the cost of buying it ranged. From investment terminals from (32 to 264) dollars.
The Ministry of Electricity bore the costs of fuel spent by companies and the electric energy bills used by companies within their production units, while the report also showed the decrease in the energy produced from the national effort during the last three years in exchange for increased purchases from investors.
The office recommended resorting to rehabilitating thermal stations and the national effort instead of contracting with investors for long periods as it leads to the depletion of state resources.
Number of observations 152 Date of addendum 10/31/2020 https://economy-news.net/content.php?id=22469
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