Samson: Central Bank of Iraq: deduction of transfers of up to 9 trillion dinars to secure the salaries of the months of June and July LINK
Deepwoodz: What exactly does a deduction of transfers mean really?
DELTA: DISCOUNT ……..
MilitiaMan: Lets hope that the discount is from Trillions to Billions.. And that the new instructions that the CBI mentioned are used in the payments for July. Lets also hope the distribution has been recommended to be changed and will execute this week..
Imo.. They mean they secured the money back in May ($5 bln USD/15 Trln IQD) and now can deduct from those monies to pay out. The interesting thing is they say they have distributed / will distribute / begins distributing / have started distribution electronically the salaries for July.
I feel that this payment(s) may be different than the ones in June though. Don’t forget the payments in June were staggered for some reason or another, too..?? Has the restructuring been completed noted above and is a change now warranted? Did we not see the CBI tell the banks to hold up and await for new instructions? I think so. ~ MM
StephenMac63: From Bad, to Worse, to Better, to Best.
Lets pretend you just got yourself hired on to be Minister of Finance for Iraq and your sole job was to disburse funds for the month of July that you received from the CBI. Ok, sounds simple, a couple of clicks on the keyboard and done for the day. So you hope.
Upon you taking this job you will probably use the same system as the last payments were made. You discover that you have a country of 40 million-plus people.
Then you discover that you also have to send money to the Minister of Defence so he can pay his troops. You notice that the Minister of Defence is putting in a claim for 80 thousand troops located out in the middle of nowhere as well as many other troops scattered throughout the country for “sovereignty defense and Isis control”. These troops have been in existence since 2003 and were greatly enlarged after the Mosul Incident. You also notice there is a footnote on the request for the fund that says “Give funds to Hakeem only”. And since Iraq doesnt deal with cheques, its all cash….for 80000 troops and Hakeem will disperse the funds.
Thats a lot of people and you dont question because its been going on for years but there’s something nagging about that so you decide to investigate as you have been given the powers to justify the payouts. You then call the Minister of Defence and inform him that you will need to go to the last known location of the troops to verify existence. The Minister pauses for a moment then gives you a location, of which takes a day and a half to get there and upon arrival, you discover 5 guys out in the middle of nowwhere and you ask “Where is everyone?” They reply “Oh, they pulled camp last night and are out on maneuvers”. Uh Huh.
Upon returning to Baghdad you are informed that the Minister of Defence has complained to the PM about your activities. You are only to be a paymaster, “thats all”, the minister says.
You then figure out who the Defence Minister was, Maliki by proxy. All the way up until he was placed in forced retirement. He’s been getting monthly payouts for many ghost troops of which is why he never had a Defence Minister, didn’t want to share.
The above scenario was posted to introduce the problem with Liquidity. Liquidity is defined as available cash. https://www.myaccountingcourse.com/accounting-dictionary/liquidity
The problem you see is that the Monetary figures state that there are, at this moment, 80 billion dinars
You have some, I have some, Central Banks around the world have some but the country itself doesnt have liquidity? I realize that Iraq likes to stuff mattresses due to distrust of the banking system. The question remains…..where is it. Didn’t up and vanished, it’s somewhere…..it is physically somewhere.
Actually, imo, its all over the world, in accounts, real estate properties but for the most part it’s in Iran. The 80000 troop’s wages went to Iran to support the Shia Cause. And that’s just with the example of the 80k troops as there are many other areas of pilfering that Iran took advantage of. Pilferaging at the ports, extortion to release imports to iraq businessmen. Ect.
When you took on the job as Finance Minister, the CBI also gave you a head start due to previous problems of former management. Ya need to clean up a mess before you can start anew. The CBI knew of the liquidity problem (money disappearing from circulation) and came up with a way to solve the liquidity issue for once and all……by going “Electronic”. No need for expenses relating to producing cash for circulation. Other benefits include no counterfeiting and with the citizens encouraged to open accounts. The value of a dinar on a debit card has the same value as cash, yet the debit card provides identification and easier census counts.
I know that this posting is “preaching to the choir” but there are actually folks to this day that have been in this spec investment for a long time yet can’t grasp why does it take so long to pay wages. Right at this moment, I believe that the CBI and Finance Minister are about to wrap up the organization structure of being able to not only provide wages but to plan ahead in the future for the next finance minister to be able to go to work, bang a couple of clicks on the keyboard and go home….because everything will be accountable. We really are in a Great place.
IMO, Of Course
Don961: A source close to the prime minister sets the date of his visit to Washington .. and analysts: Karisma Al-Kazemi leads the dialogue with “Iraq, the state”, not “Iraq the square”
7/25/2020 9:39:25 AM Baghdad / Obelisk:
A source close to Prime Minister Mustafa Al-Kazemi told Al-Masala, Saturday, July 25, 2020 that Al-Kazemi’s visit to Washington will most likely be at the end of July or during the month of August, confirming that The deadline has not yet been set, while analyzes indicate that Karisma Mustafa al-Kazemi will lead the discussions to a dialogue with “Iraq, the state,” not “Iraq, the square.”
Sources indicate that Al-Kazemi will address in his meetings with the White House the relations between the two countries, while the issue of completing the strategic dialogue will have priority in the visit program, which will be at the head of a high-level ministerial delegation that will also discuss with US officials, supporting Iraq to get out of the financial crisis. As well as security, political and economic files.
And the second round of the Iraqi-American negotiations is still continuing, after its first round, which started on the eleventh of this month.
The White House is preparing to receive Al-Kazemi, after he expressed reluctance to receive the former Prime Minister, Adel Abdul-Mahdi.
The joint statement between the two countries, after the first session of the dialogue, had adopted a number of understandings, including reducing the number of American forces in Iraq.
According to analyzes heard by the obelisk, that the meeting of Prime Minister Mustafa Al-Kazemi with the American President, Donald Trump, is a major turning point in regaining confidence in the relations between the two countries, where indications of Al-Kazemi’s policies indicate that he will seek to establish a balanced and balanced relationship away from interference in the affairs of Internal Iraq, and that Iraq should not be a battleground for regional conflict, noting that Al-Kazimi seeks to understand the White House, that the view on Iraq must be based on the position of it as “Iraq is the state” not “Iraq the square.” LINK
Don961: Member of Parliament Finance warns the government: People will boil over the door if not all salaries are distributed before Eid
Economie 7/26/2020 18:17 343
Baghdad today – follow up
Member of the Parliamentary Finance Committee Jamal Cougar, the government and the central bank, cautioned against not completing the process of distributing the salaries of employees before the Eid, and confining them to categories without the other, indicating that they will face the people if any retreat occurs.
Cougar said in a televised interview I followed (Baghdad today) “We are at the beginning of the week and there is time for waiting to send a notice from the Ministry of Finance to banks to pay salaries to all employees: ”
The central bank announced last month that it had secured the salaries of June, July and August, and it should be Liquidity is available and the government has the borrowing law and it resorted to it and borrowed from the inside and therefore there is no justification for delaying the payment of salaries because liquidity is available. ”
He pointed out that“ the central bank is responsible for implementing its obligations to the people and the people should be reassured on a solid basis and we believe that lack of commitment It will bring people to a boil and put the government up against the people. ”
On Sunday (July 26, 2020), the Rafidain Bank announced that it would begin distributing the salaries of the ministries and institutions of the endemic country, their salaries with the bank for the month of July through electronic payment tools.
The media office of the bank stated in a statement received (Baghdad today), that “the salaries of employees of state ministries and institutions have been commenced from those who have received sukuk, financing their salaries and financial allocation with the bank.”
The bank indicated that “employees can receive their salaries from anywhere they are.”
Earlier, economist Rasim al-Aqidi, on Sunday, put forward an option that would be an alternative to external and internal borrowing and achieve five benefits for Iraqis, the most prominent of which is the continuous provision of salaries.
Al-Aqidi said in an interview with (Baghdad Today), that “45% of Iraqi money is chunky in homes due to the lack of trust among citizens in government and private banks, in addition to the fact that government banks still adopt very traditional frameworks in depositing deposits and withdrawing them, making the citizen away from depositing His money. ”
He added, “The financial liquidity hoarded in the homes of Iraqis can be paid to deposit in banks by liberalizing the interest rate to mobilize savings and up to 10%, which will push many to deposit in banks, pointing out that this cash block will give the state flexibility in securing payment of salary dues without Any problems in addition to that it will give profit margin to civilians and reduce the repercussions of theft and give flexibility to the movement of markets because the banks will have a large liquidity for lending and project financing. ”
Al-Akidi said, “Most of the countries of the world adopt the automatic payment method and have paid to settle the salaries of their employees through current accounts in banks, meaning that the process of carrying cash is very limited and payment is made through automated payment cards as it will lead to legalizing the transfer of funds and prevent the financing of terrorism and the smuggling of money And reduce the windows of corruption. “ LINK