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The Ministry Of Finance Invites All Ministries’ Spending Units To Review Them To Receive Instructions For Implementing The Budget

Time: 04/25/2021 Read: 4,680 times   {Economical: Al Furat News} The Ministry of Finance called on, on Sunday, all ministries’ spending units to review them to receive instructions for implementing the budget / 2021.   In a statement, the Euphrates News received a copy of it, the ministry said, “The instructions for implementing the federal budget law for 2021, approved by the Presidency of the Republic, have been completed.”

She added that, “in view of the legislation and publication of Law No. 23 of 2021, the federal state budget of the Republic of Iraq for the fiscal year 2021 in the Official Iraqi Gazette No. / Budget Department on Monday corresponding to 4/26/2021 for the purpose of receiving instructions for implementing the general budget for the fiscal year 2021 and instructions for implementing the planning budget for the public sector and self-financed bodies and companies.

The Finance confirmed “the completion of the federal budget instructions for the year 2021 after a final audit by the Ministries of Finance and Planning,” stressing that “appeals to the budget will not delay its implementation.”   LINK

IN The Document … The Agenda For Tomorrow’s Parliament Session, With One Paragraph

Time: 04/25/2021 13:56:25 Read: 3,536 times  {Politics: Al Furat News} The House of Representatives will hold an emergency session on Monday.

His agenda included one paragraph devoted to discussing the Ibn Al-Khatib Hospital incident.

A fire broke out in the intensive care unit at Ibn Al-Khatib Hospital, southeast of the capital, Baghdad, yesterday evening, and the accident resulted in the death of 82 people and the injury of 110 others, according to the Ministry of Interior.

Medical sources said that the fire was caused by an explosion caused by “failure to comply with safety conditions related to storing oxygen cylinders.”

The face of Prime Minister Mustafa Kazemi in a security emergency meeting yesterday to declare mourning the souls of the martyrs of the tragic incident in the hospital , “urged” to submit the results of the investigation into the incident within 24 hours. ”

He stressed that” any complacency Snhasabh strongly , “attributing the incident and the fall of the martyrs to” the result of negligence must No one tells me that an electrical short is faulty. ”

The Ministry of Health announced that the Prime Minister decided to withdraw the hand of each of {the Director General of the Baghdad Health Department Al-Rusafa, the Director of Ibn Al-Khatib Hospital, the Administrative and Technical Assistant of the Hospital, and the Director of the Engineering and Maintenance Department}.   LINK

The Parliamentary Economic And Investment Committee Hosts The President Of The National Investment Commission

04/25/2021   On Sunday 4/25/2021, the Economic and Investment Committee chaired by Representative Ahmed Salim Al-Kinani hosted Mrs. Suha Al-Najjar, head of the National Investment Commission.

During the meeting, they reviewed the progress of work in the authority, as well as discussing a number of important investment projects.

Al-Kinani stressed that the Economic and Investment Committee supports the government’s intention to withdraw investment licenses, calling on the National Investment Authority to study the files of lagging investment licenses and follow the legal contexts against violators according to the applicable investment law.

Al-Kinani said that the committee had previously called on the National Investment Commission to withdraw the investment licenses that were lagging, which had been granted for a long period, and that no progress had been made in its projects based on the investment law that imposed penalties and fines against violators, including the withdrawal of the investment license.

Al-Kinani explained that the cancellation of the investment license is not related to the end of the period of implementing the project itself and has not started with it. The red tape and bureaucracy in government departments that deal with the investor, as well as the opposition to some decisions issued in contravention of the laws in force, which complicates the investment work and puts it in circles.

Al-Kinani stated that there must be specific timings that government agencies adhere to, which is outrageous to facilitate the investment process, starting from granting licenses to approving designs and other implementation procedures that government agencies adhere to.

In return, there must be a commitment by the investor to complete the project according to The specific timings and the imposition of legal measures against the investor who is lagging in the absence of a real excuse for delaying work.

House of Representatives   Information  Department 4/25/2021   LINK

Iraq And The Internal And External Debt Crisis

Asaad Abdullah Abd Ali156 2021-04-25   Asaad Abdullah Abdali ||The external debt of Iraq continues to rise annually and in a frightening manner, which is a very dangerous indicator for the future of Iraq. The collapse of oil prices, and the cost of the war that Iraq is waging against ISIS, in addition to its debts inherited from the era of the Saddam regime.

In this article, we will try to clarify what the sovereign debt is, what is happening in Iraq, and what is the future of our country if it continues with this approach?

Question: What is sovereign debt or public debt?

It is the money that the government borrows from individuals and institutions in order to face emergency situations, and to achieve various goals, when public revenues are not sufficient to cover the public expenditures required by these emergency situations, such as war and hyperinflation, and to finance development projects, and to face normal current expenditures, until taxes are collected. , As the collection dates may not completely coincide with the dates of current expenditures.

Also, they are debts owed by sovereign governments, and most of these debts take the form of non-negotiable bonds, treasury bills for about three months, or negotiable bonds.

The size of the state’s public debt is determined by calculating the ratio of public debt as a percentage of the country’s GDP.

  • Sovereign debt crisis

When we ask about the sovereign debt crisis, it can be said: It is the failure of the government to service its debts denominated in foreign currencies, due to its inability to procure the currencies necessary to pay the obligations owed by it under the sovereign debt, and most of the world’s governments are keen not to fail to pay their obligations towards their sovereign debts, and that Keen to preserve its credit rating in the borrowing market from deteriorating,

because if the government stops paying, investors in international markets lose confidence in the government of this country, and they avoid participating in any tenders to buy its bonds in the future, more than that, the response of investors It is not limited to those who hold state bonds, but also financial panic extends to the rest of foreign investors in this country who do not hold these bonds.

A kind of economic blockade takes place by major international companies and major investors, with the withdrawal of those present inside the country, which means a large case of foreign currency leakage outside the country, which means the collapse of the local currency, as everyone refrains from working in such an unreliable country.

  • Iraq’s debts to the year 2048

Member of the government program follow-up committee, Hazem Al-Khalidi, said in a press statement: “The draft budget, which the House of Representatives voted on a number of its paragraphs, in which many foreign loans have been affirmed, which burden Iraq and rob the rights of future generations.” Loans We will pay Iraq to pay debts until 2048, the last payment if other loans are added. “It is clear that the future of Iraq is in great danger due to the failed administration of the country by the alliance of parties.

This means mortgaging the future of previous generations because of the recklessness and corruption of the political class, as its own interests precede the interests of the country, and this is the misfortune of Iraq since a class of thieves and corrupt people took control of the government.

  • Domestic debt inflation after 2014

In a seminar in 2017 held by the Progress Institute for Development Policy, which was supervised by MP and former Minister of Planning Mahdi Al-Hafez, and it was attended by experts and specialists in financial and economic affairs, the financial advisor to the former Prime Minister, Dr. Mazhar Muhammad Salih, spoke about important details related to the Iraqi debt file, as he revealed Noting that Iraq “succeeded in 2004 in writing off about $ 100 billion from its debts on the back of the signing of the Paris Club agreement.”

And Saleh indicated that the Paris Club agreement is “a standard agreement to resolve the sovereign debts owed by Iraq to 65 countries, including 19 countries within the Paris Club and 46 countries outside it.” But he says: “The internal debt after 2014 increased from 10 billion to 46 billion dollars, thus bringing the total debt, both internal and external, to about $ 110 billion, including the outstanding Gulf debt until the end of 2016.”

Most of today’s debts are the product of political action after 2004, and this indicates the successive failure of governments to manage the state.

The most important question: Who benefits from the internal debt? The answer: They are the same parties that plundered the treasury and caused an increase in the external debt. They are the ones that lend the government with great interest.

Who pays the debts of the Kurdistan region?

We can ask about the loans of the Kurdistan region, and whether they will be included in the public debt of Iraq? The President of the Kurdistan Regional Government in northern Iraq, Masrour Barzani, announced at the end of 2020: “The region’s debts reached 27 billion dollars.” The negative effects of the outbreak of the Corona virus and the decline in oil prices globally. ”

Relations between Baghdad and Erbil witness multiple political, security and economic disagreements, among them is how to manage the oil wealth, as the region exports oil separately, intersecting with its agreements with the Iraqi government.

The question here is who bears the region’s debts? Is it in the neck of the region, or in the neck of the Iraqi government?

Bankruptcy of states

There are no specific regulations governing the state’s bankruptcy process, as is the case for companies, which are often forced to fill out a bankruptcy form, in order to take the necessary legal measures to liquidate the company. As for countries that fall into a sovereign debt crisis, they often resort to trying to manage Foreign exchange through its own methods first.

If it fails, it will either resort to informal institutions such as the Paris Club, which is an informal institution representing a gathering of creditors from the rich countries of the world, which was established in 1956 as a result of the talks that took place in Paris between the Argentine government and its creditors.

The club has the task of restructuring the sovereign debts of countries, easing the burden of some debts, or even canceling some of these sovereign debts, as happened when the club canceled all of Iraq’s debts in 2004.

Often the club’s decisions are based on a recommendation from the International Monetary Fund, but the country’s political decision becomes dependent on the IMF.

  • Resorting to the International Monetary Fund

The state turns to international official institutions such as the International Monetary Fund requesting assistance in paying its debts, so the Fund evaluates the state’s conditions. If the stoppage of payment is due to emergency circumstances, for example the decline in the prices of this country’s exports, then it concludes with it a so-called Standby Agreement, according to which The state shall grant cash facilities in foreign currencies in the form of a specified percentage of its quota with the fund, without imposing measures on the state to correct its economic and financial structure.

But if the stoppage of payment is due to a structural problem related to the weakness of the state’s revenue structure, poor pricing of public goods and services, or the inadequacy of the process of evaluating the exchange rate of its local currency … etc.

The fund requires in this case that the process of providing assistance to the state (including that which will be provided by the Paris Club of course) is linked to the need for the state to follow a structural reform program that includes a set of proposed measures that the state should follow, so that it can reform its general budget structure, reduce the deficit in its balance of payments, and improve Its ability to borrow and repay in the future.

That is, the country falls into the captivity of the International Monetary Fund, which imposes its will on governments, and its intervention becomes widespread.

Planning Establishes The Social Fund For Development

Sunday 25th April 2021   145  Baghdad: Nassar Hajj   The Ministry of Planning is working to support the poorest villages in the governorates, through the establishment of the Social Fund for Development, which is responsible for implementing service projects, health centers, schools, and municipal services such as water, electricity and roads, indicating that the projects achieve two things, the first is the provision of services, and the second is creating job opportunities that contribute to achieving income. To families of villages The poorest.

The ministry’s spokesman, Abdul Zahra Al-Hindawi, told “INA”: “The selection of the project is done by the people of the village and has been implemented as a first stage in ten villages for each of the governorates of Muthanna, Salah al-Din and Dohuk,” explaining that “a number of projects have been implemented and governorates will be included. Others with the same mechanism and choose the poorest villages during the current year ».

Al-Hindawi added that “among the ministry’s strategy is to increase the allocations of the Ministry of Labor and Social Affairs to improve the income of the poor through two tracks.

The first is to increase allocations of the social protection network in order to be able to increase the salary provided to families while increasing financial allocations to include new families in the social protection network, and the second track is to increase the amount of support through Loans for small enterprises for unemployed youth to provide income for their families and stabilize their livelihood.

He pointed out that “the ministry has set policies and strategic plans to reduce poverty in the country, including the strategy to combat poverty in Iraq, which it launched in 2018 and continues until 2022, as well as the five-year development plan 2018-2022, which includes enabling the poor to achieve income, housing, education and improve their living conditions.”

Regarding the poorest among the governorates, he explained that “the poverty rate in Muthanna is 52% and it is the poorest, followed by Diwaniyah, then Dhi Qar with 47%, then the central and southern governorates, and finally the western and Kurdistan region with the lowest poverty rate in the country, and for the most governorates in which it is increasing The numbers of the poor, Baghdad is the most numerous, because it represents the largest population bloc in Iraq, followed by Nineveh because it is the second population bloc in the country.    LINK

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