KTFA (MilitiaMan & Don961)

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Don961: Finance Minister: We will present the white paper for reform to the cabinet next Tuesday

10/10/2020 12:48:03 PM

Baghdad / Al-Masalla: The Minister of Finance, Ali Abdul Amir Allawi, revealed, on Saturday, October 10, 2020, the date for submitting the reform paper to the Council of Ministers and its contents.

Allawi said in a statement followed by the obelisk: “We will present the white paper for economic reform to the cabinet next Tuesday.”  

He added, “The paper includes a diagnosis of the origin of economic problems and treatments that will be difficult, but there is no alternative to them.” 

“We have a problem in providing salaries for the remaining months of the year without voting on the borrowing law,” Allawi said, pointing out, “We will deal with increasing the interest rate on bank loans by reducing it.”   LINK

MilitaMan:  What is the take away from that the White Paper that was due out on August 24th, 2020, and to date has not been fully finished and sent into the Parliament with the final amendments?

Why is Tuesday the 13th the day the cabinet is to get the White Paper back?

As you will see below the Parliament has seen the papers and they were returned on the same day to be amended, yet to arrive.

Now realize, the Government and the CBI dictate the rate within the papers and or past or present budgets. We have not only not seen the White Papers Amended, we have not seen the 2019 FML Amendment nor the 2020 Budget, yet.

It should be clear to everyone that there is a reason for that. The reason, is the most important and sensitive issue we have before us. Which is the rate that is in the documents that will need to be exposed prior to the 2021 ever getting to the ground floor.

Just as the Salaries are said to be paid and not yet paid? According, to the below they have yet to be paid. Again why is that?

Because, none of the three aforementioned items have been finalized, yet.

They require imo the new rate.

Just as getting into a market economy needs it too. In fact requires it..

Directly below they, tell us 09/18/2020 they will send the White Papers to the PFC in the middle of next month. Well Tuesday the 13th is right on time or a tad early for the WPs to arrive.

They have even told us on the 10/09/2020 they will repeat the “delay” in Salaries until they expose the rate effectively. imo

But, notice below they say they will not repeat that what was done in regard to the September Salaries for subsequent future months ahead.  Why the change in tune over a 24 hour period?

Well the WPs are apparently going to the Cabinet again and likely with the amendments to paragraphs within them on the 13th. I’ll bet key paragraphs that were left out for a reason when the PFC had them. A very sensitive one. One that will or would have exposed the exchange rate, hence, the repetitive delays in paying salaries to date.

Will they pay tomorrow, as they suggest below? Don’t know, but if they do will it be at a program rate or not? That is to be determined, however, they could have paid them already at a program rate and have not due to liquidity issues, nor could at a new rate with out having one yet.. lol

As far back as 06/22/2020 they talk about the Fiscal and Monetary Policy and have again recently. That fact they are talking about Fiscal Policy is rate sensitive, just as interest rates are.

Allawi talks about interest rates above and a problem with providing salaries for the months ending 2020. Yet, it does say he had a diagnosis for that and it will solve the problem.

Raising the value will fix it and will allow for the borrowing law to be voted on.. It will have to be, as the rate is the law to be for 2021, 2022 and 2023 from the looks of it.

Lets see what the day brings tomorrow, Monday and Tuesday the 13th, a day when the US Mint will adjust Silver Pricing. Coincidence? Don’t know, but if the US Mint adjusts large? It may not be one.. imo

Iraq is now ripe for investors, as we witnessed with the IMF, the WB, WTO, BIS, EBRD, EuroClear, IBBC, etc.. All are in town to help the country be successful. I am very optimistic they have every intention to go to a market economy!!  imo ~ MM

Shafaq News / The Parliamentary Finance Committee revealed, on Friday, that the government will send the reform paper to the House of Representatives in the middle of next month.

2020-09-18 11:29

Committee member Jamal Cougar told Shafaq News Agency, “The government will present the reform paper to the House of Representatives in the middle of next month,” noting that “the paper includes reducing the salaries of higher and special posts while preserving the salaries of employees.”
He added that “the paper that the Ministry of Finance is preparing will include several reforms, including the spending fields, stopping waste, operational and investment budgets, and providing the appropriate environment for foreign companies to invest.”

On Monday, June 22, 2020, Prime Minister Mustafa Al-Kadhimi announced the details of the paper prepared by the Council of Ministers, which includes economic, financial and administrative reforms.

He pointed out that mismanagement and fully dependence on oil revenues is what led Iraq to this difficult economic situation, and “we seek to address it by working to activate the agriculture, industry, tourism and investment, and other sector.”

https://shafaq.com/en/Iraq-News/Disclosure-of-details-about-the-governmental-reform-paper

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Shafaq News / The Financial Committee of the Iraqi Parliament proposed submitting the “white reform paper” to solve the “Crisis of Salaries in the Iraqi state”.

2020-10-07 07:04

A member of the committee, Naji Al-Saeedi, told Shafaq News Agency, “the white reform paper addresses the fiscal and monetary policy“, indicating, “this paper encompasses creating real economic resources to consolidate the existing financial resources and reducing unnecessary expenditures”.
Al-Saeedi explained, “it helps finding additional income for the budget and reducing the deficit. This will positively affect the provision of employees’ salaries and secures them for the upcoming period”.

Al-Saeedi stated, “the white reform paper is a futuristic vision for the Iraqi government, in cooperation with the Council of Representatives, to end the employee salaries crisis, as well as other financial and economic crises. This paper is not part of the solution but rather the entire solution”.

“The parliament will follow up on the implementation of this paper as soon as it is approved. Our position will depend on how serious the government is in implementing the paragraphs of this paper“, he continued.

The government of Iraqi Prime Minister Mustafa Al-Kadhimi is heavily criticized for its inability to secure sufficient funds to pay the salaries of state employees, which may expose it to tremendous pressure in the coming months. The government had not yet released the salaries of state employees for September, even after a week of October has passed already.

https://shafaq.com/en/Economy/The-White-Reform-Paper-is-the-only-solution-to-the-Salaries-Crisis-MP-says

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Parliament is awaiting two bills from the government on the budget and borrowing

10th October, 2020

The Parliamentary Finance Committee said on Saturday that Parliament is still awaiting sending two draft laws from the government regarding the financial budget and borrowing.

The committee’s reporter, Ahmed Al-Saffar, explained to Shafaq News, “The government did not send any law to the parliament, whether it was the general budget law for 2020 or the new borrowing law.

He added, “We in the Parliamentary Finance Committee hope that the government will send a reform paper or a law in which there are all operational and investment expenditures for the past months in order to know the size of government spending for the year 2020 and adopt it on 1/12.

Last month, the government approved the fiscal budget bill and sent it to Parliament, before withdrawing it again for amendments.  LINK

Al-Halbousi: Parliament does not neglect the issue of salaries or other expenses, and the government bears responsibility

10/10/2020 17:01:43

Parliament Speaker Muhammad al-Halbousi affirmed, on Saturday, that parliament is not neglecting the issue of salaries or other expenses, and the government bears responsibility.

Al-Halbousi commented on the issue of employee salaries during today’s session, saying, “No governmental request has reached the House of Representatives to legislate a law that strengthens the government’s budget to fulfill its obligations before citizens.”

Al-Halbousi added, according to the council’s statement, that “a letter amending a borrowing law has not been sent to the House of Representatives,” indicating that “a budget law was received by the parliament that was withdrawn on the same day to make amendments to it.”

And Al-Halbousi indicated, “We are waiting for the government to send to the House of Representatives a draft law that enhances the government’s revenues to enable it to fulfill its obligations before the citizens.”  LINK

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Reassurances about employee salaries for the remaining months

10th October, 2020

The repercussions of the employee salaries crisis are still present, despite the Ministry of Finance’s announcement a few days ago that it had released state departments’ dues and some of them received their dues

A member of the Parliamentary Finance Committee, Jamal Cougar, confirmed in an official statement, today, Saturday, that the government has secured salaries for the coming months

Cougar said, “Salaries will be secured for the coming months, and what happened in September of the delay will not be repeated, especially after the assurances launched by the prime minister. He added, “There are about eight million families who benefit directly from the salaries, whether they are employees, retirees, or within social care and others, such as the private sector, markets or merchants

The Ministry of Finance is supposed to complete the financing of the salaries of the remaining departments that have not been spent on Thursday, as the ministry said in a statement that it is making efforts to complete the procedures for paying the salaries of all state and governorate departments and will complete the financing of the salaries of the rest of the other departments next Sunday

Al-Rasheed and Al-Rafidain Bank confirm that they resume official working hours on holidays to complete the payment of late September salaries.  In turn, a member of the Parliamentary Finance Committee, Naji Erdis, said that the government is able to secure employees’ salaries through non-oil revenues

Erdis pointed out that “Iraq has many sources of funding that can supply the state treasury, most notably the border crossings, taxes and communications, which could reach if real reforms are implemented within the framework of maximizing them to 3 trillion per month

And Erdis indicated that “non-oil revenues can be secured through which employees’ salaries are in addition to oil revenues and the expert, Ahmed Ibrihi, had previously confirmed that the problem is not in salaries, as the current crisis can be managed with internal borrowing, and the central bank is helping government banks to perform this task, for the remainder of 2020 and 2021

Ibrihi suggests that 70% of the non-oil exports targeted in the investment program be from the share of the manufacturing industry, and the rest from non-oil mining (including gas and agriculture), and that we have no other choice. As for the infrastructure, there are specific proposals for its development LINK