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Eleven Solutions To The Current Financial Crisis In Iraq … What?
Economie| 11:57 – 11/02/2020 Baghdad – Mawazine News The Iraq Center for Legal Development, icld, on Monday morning presented eleven proposals in which it addressed solutions and beneficial treatments to the current financial crisis that the country is going through as a result of low oil prices and the contraction of the global economy as a result of the continuing threat of the Corona pandemic and the negative impact of all this on Iraq.
The Center addressed the three presidencies in an official letter seen by Mawazine News, in which he explained solutions to financial problems and their repercussions on various state facilities in accordance with legal and constitutional visions, stressing the model of the white paper for economic and financial reform, and the difficulty of implementing many of its paragraphs at the present time and the need for most of the consequences. On the implementation of its paragraphs for a long time.
The center recommended “deducting 10% of the sums transferred through private banks and resulting from the currency sale auction, as tax and customs guarantees, and taking advantage of the price difference by selling the dollar to banks at a rate of (1250) dinars to the dollar, and following up on imports of oil derivatives sold by the Ministry of Oil For public and private fuel stations,
imposing an airport departure fee of (100) dollars per person, imposing tax insurances on mobile phone companies at a rate of 20% to be paid in advance, and on oil companies at a rate of 10%, and privatizing all companies of the Ministry of Industry, indicating that the sum provided to the state As a result of the previous measures, it reaches more than (23) billion dollars annually. ”Ended 29 / A43 https://www.mawazin.net/Details.aspx?jimare=128795
The Iraq Center For Legal Development Proposes To The Three Presidencies Eleven Solutions To The Current Financial Crisis
Monday 02, November 2020 19:10 | Economical Views: 34 Baghdad / NINA / The Iraq Center for Legal Development presented eleven proposals in which it addressed solutions and beneficial treatments to the current financial crisis that the country is going through as a result of low oil prices and the contraction of the global economy due to the continuing threat of the Corona pandemic and the negative impact of all this on Iraq.
In a statement, the Center addressed: The three presidencies in an official letter explaining solutions to financial problems and their implications for the various state facilities, in accordance with legal and constitutional visions.
He emphasized: The typicality of the white paper for economic and financial reform, the difficulty of implementing many of its paragraphs at the present time and the need for most of the results of implementing its paragraphs for a long time.
The Center recommended: deducting 10% of the sums transferred through private banks and resulting from the currency sale auction, as tax and customs bonds, and taking advantage of the price difference by selling the dollar to banks at a rate of 1250 dinars to the dollar, and following up on imports of oil derivatives sold by the Ministry of Oil For public and private fuel stations,
imposing an airport departure fee of (100) dollars per person, imposing tax insurances on mobile phone companies at a rate of 20% to be paid in advance, and on oil companies at a rate of 10%, and privatizing all companies of the Ministry of Industry, indicating that the sum provided to the state As a result of the aforementioned procedures, it reaches more than (23) billion dollars annually. / End 3
The Minister Of Finance Sets The Date For Paying Employees’ Salaries And Reveals The Size Of Iraq’s Debts
The Minister of Finance, Ali Abdul-Amir Allawi, set the date for paying employees’ salaries, and while noting that there are no job ranks in the budget for next year, he revealed the size of Iraq’s internal and external debts.
Allawi said in a press statement, yesterday, that “the financial crisis that the country is going through is not a newborn today, and it is the result of the decline in oil prices and the consequent reduction in production that affected Iraq’s revenues in a large way due to reducing Iraq’s share of exports, indicating that Reducing oil exports caused an increase in the fees of contracting and licensing companies.
He added, “The options for maximizing revenues quickly and in the short term in order to bridge the deficit are almost impossible,” noting that “increasing revenues from other sources through taking measures that require in the short term from 3 to 6 months, especially since the state was dependent on oil from Without paying attention to other sources for years. ”
He pointed out that “the current government faced the crisis without financial liquidity, so there is no choice but to borrow internally in the short term,” noting that “external borrowing, which amounted to $ 5 billion, cannot be used to bridge the deficit, but is allocated to finance projects.”
He continued, “The House of Representatives set a ceiling for the first internal borrowing, which reached 15 trillion, despite our objection, which was not sufficient to meet the salaries and expenditures until last September, which forced the ministry to request a new borrowing with a higher ceiling of 41 trillion, so that we can fill the deficit in salaries and related ruling expenses.”
By importing electricity, fuel, foreign debt, the ration card and supporting farmers, “noting that” the amount included in the new borrowing covers salaries and expenses for the remainder of the current year and the first two months of next year. ”
“The House of Representatives has the right to demand a reduction in the amount contained in the borrowing law, but this is the country’s financial reality,” he stressed, stressing the difficulty of controlling expenditures entirely in light of the state building on a financially unstable base and expenditures based on unrealistic assumptions such as high oil prices.
He explained that the mechanism for repaying internal borrowing is through the revenues generated from oil and the benefits arising from hypothetically through an understanding with banks and the Central Bank without being subject to market controls. He added that the government has taken short-term measures to maximize revenues and has an integrated plan for the purpose of facing the economic crisis.
He pointed out that the salaries of employees for the month of last November will be paid, perhaps within two or three weeks, in the event that the borrowing law is not passed, but in the event of voting on it, it will be launched directly.
He cautioned that “the monthly revenues generated from exporting oil with the funds in the Ministry of Finance are not sufficient to cover the salaries of all employees, but rather need some kind of scheduling,” noting that “without resolving the basic crisis will remain accumulated and the salary delay will persist.” And that “oil revenues constitute 93% of the general budget and the remainder of non-oil revenues, such as customs, ports, taxes and others.”
He pointed out that “there is a decline in customs revenues for various reasons, including defects in the way they are obtained, abuses, smuggling and thefts,” stressing the importance of controlling customs in order to increase revenues, but they do not constitute 15% of oil revenues in addition to taxes, which are difficult to work on. Its increase in light of the economic recession. ”
He pointed out that “there is a strong tendency to activate the collection of electricity by installing electronic meters to control it and covering part of the volume of allocations to the electricity sector, which amounts to about 14 trillion.” And he stressed the need to spread culture among the general public by paying the fees, stressing work to encourage investors in the sectors of generation, distribution and transportation.
Allawi revealed the size of Iraq’s debt, although it is not large, according to him, pointing out that “the foreign debt is estimated between 60 to 70 billion dollars.” He pointed out that “external debts, half of which are inherited and the other added after 2003, for various purposes, including financing projects,” explaining that “internal debts are also estimated at 60 trillion.”
Allawi pointed out that “the white paper presented by the government needs time to change the method of work and the economic structure, and another needs legal or legislative change,” noting that “the white paper needs a complete institution that supervises the implementation and implementation process.”
He explained that the mechanism for implementing the white paper will be presented to the Council of Ministers and perhaps also to the House of Representatives for approval, noting that “the process of pivotal change in the Iraqi economy requires persistence and continuous follow-up, and this needs a specialized body for follow-up, as well as working to change some laws, legislation and contexts over a period of years and is not limited to the government. She is six months old or a year old. ”
He pointed out that “the 2021 budget will be presented this month that includes a plan based on the medium term and basic changes to be implemented in the first phase of the white paper.” He pointed out that “the price of oil was based on $ 41 in the budget for next year,” indicating that the majority of employees are not included in the proposed deduction in the allocations, which is under discussion in the budget, “indicating that the deduction from the allocations includes specific categories without prejudice to the nominal salary.”
Allawi stressed that the GDP should be reduced from 25% to 10 to 12 during the next three years. He pointed out that there are many proposals, the most important of which is the implementation of the main objectives of the White Paper without prejudice to the poor classes and the majority of employees and work to support them. He pointed out that the 2021 budget does not include functional degrees, but there is the possibility of investing in the degrees of deletion and creation.
Allawi announced the existence of large projects for public works, supporting projects with a social aspect, moving contractors, and launching various projects, including paving roads in addition to supporting small projects. Covering the private sector with the conditions applied in the public sector in terms of standardizing retirement referral years, deductions, etc., stressing the importance of clearing the space for the private sector. Regarding Resolution 315, the Minister of Finance emphasized the difficulty of implementing it in the absence of the budget law.
Dollar Exchange Rates In The Iraqi Market
Pratha News Agency142 2020-11-02 The exchange rates of the dollar on the main stock markets rose slightly, while it stabilized in the local markets on Monday (November 2, 2020).
Al-Kifah Stock Exchange recorded 125,200 dinars against 100 US dollars, while the exchange rate of the dollar on Saturday recorded 125,100 dinars per 100 dollars.
Sales price: 125,500 dinars per $ 100. Purchase price: 124,500 dinars per $ 100.
The exchange rates in Basra Governorate were recorded at 125,200 dinars per $ 100.
While the exchange rates in Sulaymaniyah Governorate were recorded at 125,550 dinars per 100 dollars.
A Parliamentary Committee Warns Of A Popular Explosion As A Result Of Delayed Salaries Of Employees
Monday 02, November 2020 17:35 | Economical Views: 209 Baghdad / NINA / The Parliamentary Services and Reconstruction Committee has warned of a popular explosion as a result of delayed salaries of employees, while confirming that their disbursement by borrowing is evidence of the failure of the financial policy.
A member of the committee, Representative Burhan Al-Mamouri, confirmed: “The Iraqi family has suffered because of the economic fluctuations resulting from the wrong financial policies adopted, which has caused a widening gap of mistrust between citizens on the one hand and those who stand up to the financial decision in the country on the other hand.”
He added, in a press release: “The country has sources of revenue, which makes it among the ranks of rich countries, but corruption and poor planning were the most important factors that led to the local economy becoming vulnerable to collapse at any moment,” noting: “The payment of salaries for employees and retirees is subject to borrowing. It indicates the failure of the country’s fiscal policy. ”
Al-Maamouri warned against the boiling point of the street, which may threaten a popular explosion in the face of the government, calling for correcting the course of the financial policy before it is too late, and taking immediate measures to restore the citizen’s confidence in his government, stressing the need to adopt a policy that puts the salaries insurance of employees and retirees at the top of its priorities and not to prejudice it or delay it In the future. / https://ninanews.com/Website/News/Details?key=866526
Parliamentary Finance For / NINA /: The Government’s Approach To Restructure The Salary Scale For State Employees / Expanded
Monday 02, November 2020 16:58 | Economical Views: 326 Baghdad ( NINA ) – The Parliamentary Finance Committee revealed a government approach to restructure the salary scale for employees of state departments.
The committee’s rapporteur, Ahmad al-Saffar, said in a statement to the Iraqi National News Agency / NINA /: “The government is in the process of restructuring and preparing the salary scale, in a way that achieves social justice and ensures the reduction of the difference between the salaries of higher and lower-ranking employees,” indicating: “The reduction of salaries will be limited. Higher ranks and special positions. ”
Al-Saffar added, “There are tendencies to maximize revenues, rationalize expenditures, exclude unnecessary expenditures, and stop wasting such as unaccounted-for provisions, dispatches, miscellaneous and hospitality.”
The Parliamentary Finance Committee recommended the Presidency of the Council of Representatives not to include the draft law on financing the fiscal deficit “borrowing” on the agenda of Parliament sessions, until the government responds regarding dispensing with the legislation of the law or not.
Last week, the Finance Committee sent an official letter to the Prime Minister to state his opinion of dispensing with the legislation of the fiscal deficit financing law, in response to the statement of the government spokesman, about the existence of solutions at the Ministry of Finance to provide cash liquidity to secure salaries in the event that the law was not voted on. https://ninanews.com/Website/News/Details?key=866518
United Nations Development Program: We implemented hundreds of service and humanitarian projects in the liberated governorates
Money and business Economy News _ Baghdad The United Nations Development Program in Iraq confirmed, on Monday, that it has implemented hundreds of service and humanitarian projects in the liberated provinces and has continued to do so.
According to the Iraqi News Agency, “the program has implemented 271 service and humanitarian projects in Salah al-Din, 20 thousand residential homes have been rehabilitated in Anbar Governorate, and 1754 service projects have been implemented in Nineveh Governorate.”
The program also implemented, according to the agency, “hundreds of service and humanitarian projects in the liberated governorates, confirming that it will continue implementing new projects.”
Number of observations 155 Date added 11/02/2020 https://economy-news.net/content.php?id=22512
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