Samson: Finance Minister: We will work to reduce the higher salaries and resort to savings to the fifth degree
Today, Friday, Finance Minister Ali Abdul Amir Allawi revealed the categories covered by reducing salaries, while specifying the deduction mechanism and ways to reduce it or withdraw it saving.
Allawi said in a televised meeting, “The government will determine the priorities of the crushed and poor class and that any reduction in salaries will not include employees, or retirees at lower levels who receive a salary of 500 thousand dinars or less,” noting that “the rest of the other groups that consume half the budget with high salaries will be Included in treatment and reduction.”
He added that a waste represented in the allocations of the higher grades would be covered by the reduction, noting that “the group close to the fifth degree will try to reduce the damage to it by reducing the reduction or withdraw it saving and link it to health or housing insurance or health insurance.”
He pointed out that “the method of drawing the budget is wrong and lacks the economic and realistic view and vision, which is a collection of numbers and every year new numbers are added to it,” noting that “the budget problem is great because of salaries, allocations and state expenditures associated with legal benefits, where laws are enacted without taking their financial impact, Such as increasing salaries, increasing the social network, increasing benefits, or retirement and all these things are reflected in the budget.” He continued, “We should not count on the rise in oil prices, and we must rely on resources and self-possibilities as it is a major axis of the economy.” the prices”.
And Allawi said that “Iraq does not have safety valves such as those in the Gulf, which drives the government to deal with international institutions such as the International Monetary Fund and the World Bank, but the IMF has a kind of immediate support based on technical measures, which may require months, while the financial problem we have requires Very fast processing.”
Allawi pointed out that “solutions exist in spite of a fundamental error in the structure of the Iraqi economy, this error is reflected on the budget as a whole,” noting that “there are some institutions still sound like the central bank and the central bank reserves are 65 billion dollars, which is good, and in this Unusual circumstances require concerted efforts, including institutions, in general they must take a conservative stance against interference in the economic and financial affairs of the country, stressing that “there is supposed to be a unified account for all the state’s money, but there are pockets out of control in which billions exist, and there are accounts Trillions of some ministries.”
He noted that “the government does not want to finance salaries only, as there are state expenditures that must be taken into account, such as external debts linked to schedules and have contractual implications, and other issues including necessary security purchases and others related to the ration card and other budget items”, explaining that “the problem in operational budgets is She has no resources.”
He explained that the crisis began in March and April, so the surplus in the country was allocated to cover salaries, including retirees, for the fourth, fifth and sixth months, while keeping partial liquidity at the ministry representing a safety valve, adding that any new government to start with an ideal start must have cash at least Ten trillion, but what was available at the beginning of the government’s taking over was only two and a half trillion.” LINK
MilitiaMan: This one speaks for it’s self. It looks as though they have the money for salaries allocated already. I am not so sure they need loans nor are they going to get them for to finance Salaries. Especially while at a program rate. The salaries are to be paid this month after Eid Al-Fitr.
What will they do in July and August, etc.? Finance more salaries? lol.. No, they are not imo.. Imo They have the nscn’s to give out, as purchase power is a gift during a time of giving..
They cut off Iran and Iraq’s electricity dealings yesterday and earlier than the original 30 day extension they had, let alone the 120 day extension they had in place. That was a head fake or what? lol
The energy is now coming from Saudi Arabia. That means to me they are international in regard to doing business. The implications of that are huge. The UNSC 2 Billion Dinars not yet given out from their 05/13/2020 meeting, nor the meetings with the new Deputy Prime Minister / Finance Minister going to Kuwait, Saudi Arabia, UAE, Lebanon, Jordan, Egypt, etc., where fruitful in obtaining loans. But those meetings were more likely about about interlinking their economies.
Allocating the monies from prior conferences, contracts or agreements, yet to be activated, until apparently now, as noted by SA. Imo.. If that is the case then, that is looking to be regional reconciliation for the area!!
We know the plan is to become a social market economy for Iraq. That requires internationalism.
Doing so requires Iraq to be article 8 compliant.
From the looks of the recent agreement with Saudi Arabia, they are showing that they are now compliant, ioo. The meetings with the Finance Minister, aka Deputiy Prime Minister, has me thinking they are or may have brought or now are bringing the REER (Real Effective Exchange Rate) to the neighboring countries.
The neighboring countries in the region will have a need to know the REER within a very short period of time to adjust pricing inline with Iraq at the borders for things such as; customs, taxes, fees, etc… Just as SA would need to know the REER for the energy pricing for Iraq’s energy needs. imo Times are seriously getting real, imo!!
Lets see what they do going forward. Even Sistani has moved the Eid Al-Fitr back one more day. They are in lock down during the holiday period. What a perfect cover under or being behind the COVD-19 mask era.
We know the CBI printed 4 trillion dinar in April. They didn’t print large notes. They printed smaller increments of money. imo.
We know they showed us they were destroying large amounts of perfectly good large notes. The new money is to replace the large with smalls.
The education process for the new currency will come once the REER is exposed and that would or could be easily done while they are under the curfew, imo. Everyone will be home and behind a TV or some sort of social media.
They could show the new money and educate for re opening of the ISX well before they open. It is hard to imagine they would have a perfect cover to just waste it.. imo
So, lets see what they do next. But, it sure looks like we are in a good place.. imo ~ MM
Samson: Finance Minister: Agreement to activate the electrical connection between Iraq and Saudi Arabia LINK
MilitiaMan: The move that supports they are Article 8 compliant in business.. imo ~ MM
Samson: Under royal directives, the Saudi ambassador returns to work in Baghdad
23rd May, 2020
The Saudi Foreign Minister, Faisal bin Farhan, announced today, Saturday, the issuance of directives from King Salman bin Abdulaziz, the return of the ambassador to Iraq to start his work at the earliest time, in order to translate the Kingdom’s desire to strengthen relations between the two countries
The Saudi newspaper “Okaz” stated that “Saudi Foreign Minister Faisal bin Farhan renewed during his meeting with the representative of Prime Minister Mustafa Al-Kadhemi and Minister of Finance Ali Abdel Amir Allawi, affirming the Kingdom’s concern for the unity of the Iraqi people, and the importance of cooperation with the new Iraqi government to achieve mutual interests and enhance ties Bilateral relationship between the two brotherly countries
The Minister of Foreign Affairs expressed the Kingdom’s support for Iraq in a manner that achieves its security and stability and countering terrorism
He pointed out “the importance of the Iraqi-Saudi Coordination Council, which was established with the guidance of the leadership of the Kingdom as a mechanism for developing relations between the two countries to broader horizons and cooperation in the political, economic, security, commercial and investment fields LINK
MilitiaMan: Looks like more of the PM hitting the ground and running!! This is also huge and supportive Iraq has agreed to be compliant and international.. imo ~ MM
Samson: In the document .. The Kurdistan government approves the Baghdad proposal to settle the financial situation
23rd May, 2020
The Ministry of Finance of the Kurdistan Region announced today, Saturday, its approval of the content of a letter sent by Federal Minister of Finance Ali Allawi on May 19th, which included four proposals for a financial settlement between Baghdad and Erbil
According to the document, obtained by “Gilgamesh Press”, “The proposed steps include the payment of 400 billion dinars for the month of April by the Ministry of Finance to the Kurdistan region, in addition to entering intensive meetings between representatives of the two governments for the purpose of agreeing to a final settlement within a period of not more than 30 days And adopts the Federal Financial Management Law as the basis for it
In response to this document, the provincial finance minister, Awat Sheikh Janab, sent a letter to Allawi’s Minister of Finance, saying, “The Kurdistan Regional Government confirms its approval of the content contained in your book
The Kurdistan Regional Council of Ministers announced earlier that the federal government had verbally agreed to send 400 billion dinars to the Kurdistan region LINK
MilitiaMan: We see the Kurds are in agreement with the new PM on the implementation of the FMLA of 2019.. Oh Buddy.. That my friends is so very welcome, you may not have any idea, but, this is music to my ears. They agreed on the REER for the future budgets and will be in preparation for their fundamental implementation…. No wonder Saudi Arabia is off and running.. Word travels fast. This looks like a notification that was dated May 19th.. 1) DONE 2) DONE and 3) DONE. lol imo ~ MM
YoungSC: As Frank stated on Fridays YouTube Iraq is article 8 and we will see the REER posted soon based on Iraq’s meeting with Saudi Arabia. Having the open market and opening their country for investment
Don961: A bet on the ‘back rooms’
Washington on the line of the economic crisis in Iraq .. And Al-Kazemi’s team is on a date with the test!
2020.05.24 – 12:53 Baghdad – people
Al-Sharq Al-Awsat newspaper said that US Secretary of State Mike Pompeo paved the way for the upcoming strategic dialogue between Washington and Baghdad, through a phone call, which the newspaper considered to be meaningful as he held it with Iraqi Prime Minister Mustafa Al-Kazemi.
The newspaper pointed out in a report, which was viewed by “people” (May 24, 2020), that the dialogue between Baghdad and Washington should be transformed from a political-security dialogue to an economic-investment dialogue, and “here it will test the ability of Al-Kazemi and his government team and the intentions of the Iraqi political forces ruling In the political process. ”
The following is the text of the report:
US Secretary of State Mike Pompeo paved the way for the upcoming strategic dialogue between Washington and Baghdad, with a meaningful phone call he made with Iraqi Prime Minister Mustafa al-Kazemi.
Pompeo, according to the statement issued by the US State Department, discussed with Al-Kazemi «the economic crisis in Iraq, and the next strategic dialogue between the United States and Iraq».
The statement added that «the minister urged Prime Minister Al-Kazemi to follow the real reforms while working with international institutions, to provide financial assistance to Iraq».
And if the State Department statement focused on the economic crisis, as a first priority that the Iraqi government should address, including the trend towards international institutions to provide assistance to Iraq, the statement issued by the Information Office of the Prime Minister of Iraq did not go away on the essence of Iraqi-American priorities, including In that upcoming dialogue between the two countries, described by both of them as strategic dialogue.
According to what political observers see in Baghdad, the prospective dialogue is linked from the viewpoint of the parties close to Iran, particularly the armed factions, to the American military presence, which must end with the departure of the American soldiers from the bases in which they are located, starting from “Ain al-Assad” in western Iraq. , To a “silk” base in Kurdistan in northern Iraq.
The Iraqi government, which finds itself between several pathways and anvils, has not yet disclosed the nature of this dialogue, and what it might include.
For its part, the political parties that make up the Iraqi parliament are divided among themselves, who reject the survival of the Americans, who are the majority of the Shiite forces, and support for their survival, namely the Sunnis and the Kurds.
In this context, American support for al-Kazemi comes as a reliable and worthy prime minister. In return, Iran is still declaring its support for Al-Kazemi without reservation of any step I take, knowing that Al-Kazemi’s priorities now are how to pay the salaries of employees that amount to more than two billion dollars per month. In this context, there is an equation that seems very imbalanced, and that is a complete openness to Saudi Arabia by Al-Kazemi, with the beginning of a strategic dialogue with the Americans in light of the ambiguous relations between the Iranians and the Americans.
Member of the Committee on Foreign Relations in the Iraqi parliament, Dr. Dhafer Al-Ani, trying in his speech to “Al-Sharq Al-Awsat” to try to solve the mystery of this equation, saying that “Al-Kazemi’s government was born amid the complexities of the Iraqi scene economically, security and health; Indeed, even internationally, according to Iraq, according to its current capabilities, Iraq is unable to face these conditions without external assistance.
Al-Ani added: “The government, which is based on an initial positive external impression on it, is trying to invest this in overcoming its plight through a wide openness to countries that are characterized by assistance, in order to consolidate the pillars of the new government and push it towards rational rational decisions.”
Al-Ani explained that “the Arab Gulf states, especially the Kingdom of Saudi Arabia, the Emirates and Kuwait, have ties of Arabism and neighborliness with them, and have previously helped Iraq in previous years, and they are at the forefront of countries that will initiate Iraq to seek aid to support its stability, driven by a certain awareness that the stability of Iraq is stability For the entire region, and that strengthening the new government is an important factor for restoring Iraq’s independence and sovereignty. ”
With regard to Iran, Al-Ani says that “Iran continues to interfere in Iraq to steal its sovereign decision, through direct sabotage action economically, security and culturally, and indirectly through the armed factions loyal to it in Iraq.” Regionally and internationally, it is continuous and wide, to send enough assurances that it is determined to take serious steps towards consolidating the independence and unity of Iraq. ‘
As for the professor of national security, Dr. Hussein Allawi, he sees in his talk to “Al-Sharq Al-Awsat” about the strategic dialogue between Baghdad and Washington, that “both countries are ready for dialogue in an open manner without reservations or red lines; As it is time for Iraq to make the right choices without Iranian pressure or local investment by armed factions.
Allawi adds that «the position of Prime Minister Mustafa Al-Kazemi represents today the forces of national moderation, the government apparatus, and society, in terms of dialogue with the Americans.
Allawi explained that «the fate of the American forces will remain in the light of the advisory and coordination work, training, information exchange, and maintenance of American equipment in the ranks of the armed forces, through American companies, and this was determined in the light of the strategic relocation plan in the Iraqi military bases, at (Ein Al-Assad base) And (Harir), and in the event that the Iraqi government asks for more than that, the American response will be through the International Alliance and the North Atlantic Treaty Organization (NATO).
Allawi pointed out that «the dialogue must be transferred from a political-security dialogue to an economic-investment dialogue, and here it will test the ability of Al-Kazemi and his government team and the intentions of the Iraqi political forces ruling in the political process», explaining that «the back rooms of the Iranian-American negotiations are capable of dismantling The complex of the American-Iranian conflict, but Al-Kazemi wants to launch relations towards a comprehensive and parallel path, in order to preserve Iraqi national interests, since Al-Kazemi is closer to the protest forces that reject Iranian influence over the Iraqi political-economic decision, but want a normal relationship without interference, which is what He made the Iranians realize this through decision-making systems that showed a clear retreat, which makes them focus on interests, markets and trade between Iran and Iraq, with the parallel line of aid continuing to their friendly parties in Iraq. link
MilitiaMan: Sounds like the the USA and Iraq, have allies in the region and Iran has been notified, as of the other day and today.. USA, Iraq and the region see that stability in Iraq is very important!! Especially now.. oh ya! imo ~ MM
Don961: Finance Minister to a Saudi newspaper: Iraq’s request to borrow three billion dollars from Saudi Arabia is totally incorrect!
Policy , 05/24 2020 11:49 Baghdad – Iraq today:
Ali Allawi denied the authenticity of the news about Iraq’s request from Saudi Arabia to borrow about $ 3 billion, and he said that this talk is not true, but if we talk about the volume of support we will get from Saudi projects that can be implemented in Iraq, and if the capital is raised for these Projects: «We may reach this number and more, we want to move the investment inside Iraq».
In a question about the fact that these projects will take a long time, in return for Iraq being required to fill the deficit and provide the salaries of workers and retirees for the coming months, Allawi answered: “We have in Iraq immediate financial problems related to deficits and loss of flexibility, and the Iraqi budget is based on two assumptions: one of which is volatile, and it is The price of oil and the amount of its production, and the second is fixed, which are salaries and pensions and workers, and this equation is very concerned.
He added: “The decline has greatly affected the state’s liquidity, and the funds must be rationalized as much as possible so that we can address friends to help support the deficit in the immediate term. As for the short and medium term, the commercial projects are almost ready, and only implementation remains.”
He demanded the Iraqi people, especially from the category of employees who have a rise in their returns, to accept sacrifices for the sake of rebalancing and rebuilding Iraq, but the poor of them are able to guarantee them. LINK
MilitiaMan: All the worry about loans, should be off the table and off ones mind. They have the ability in place now to not need them. They’ll want the monies from many different mechanisms or tools if you will, to jump start the new social market economy. The FMLA of 2019 is looking to be be in place and ready to be applied.. Only the final implementation is what looks to be all that is waited on.. imo ~ MM
Samson: Finance Minister: We seek to increase the share of Saudi Arabia inside Iraq .. And reveals a “detailed note”
Finance Minister Ali Abdul Amir Allawi said that Iraq wants to restore economic balance with neighboring countries.
Allawi, who visited Saudi Arabia recently and returned yesterday to Baghdad after the end of his meetings with Saudi officials, said that “one of the goals of the Iraqi government is to restore the Iraqi balance with the countries of the region, in terms of economic and trade, and that the Saudi economic role in Iraq is somewhat shy – as he put it – Especially since the size of the Saudi economy is equivalent to half the size of the Arab world’s economy, but its presence is relatively weak compared to Turkey and Iran, whose investments amount to 12 billion dollars a year, compared to the volume of Saudi investments in Iraq, which amounts to one billion dollars per year. And between: “We want to change Balance, and we seek to increase the share of Saudi Arabia inside Iraq in various fields including electricity, oil, petrochemical and agriculture. “
He pointed out that “the flow of Saudi investments in Iraq, despite the obstacles that exist in front of the Saudi investor, plays a more important and greater role in the process of rebuilding Iraq, acknowledging that there are major obstacles inside Iraq, from the legal system to administrative arrangements to stifling bureaucracy to the loss of financial banking support for the country And the weakness of the banking sector led to security problems, and all of these affected the Iraqi economy during the last period.
He emphasized that “the Saudi-Iraqi Coordination Council is still standing, but it is generally in stages, as the interest of the Saudi side is very high, but the conditions inside Iraq and the successive political crises have prevented some kind of activating this axis.”
Allawi said, “We want to activate this axis, and we are going according to a serious plan to implement all our obligations and promises to the Kingdom.“
He added agreed during my meetings with the Saudi side to provide a detailed note next week on how to develop a relationship, and what obstacles and projects that can be implemented in the long immediate and medium, which may be a model of economic relations, to be built on the objectives and structure of numbers. LINK
MilitiaMan: Activation. This time with the new PM in place, they trust that the activation will happen and is happening. There has been many things that show that the Kingdom believes the new PM is going to do what is promised.. This is also huge support that actions were taken and clearly a key component is the on going reconciliation between the regional government and the federal government and the region as a whole.. They need the security and stability of Iraq to be a beacon again for the region. It is going to happen.. Once they activate the sovereignty of the nation with a new international mechanism for trade? The real work gets under way to re build Iraq.. Oh ya.. Looking so very international now.. Wow.. imo ~ MM
Don961: A Kurdish deputy calls on the Minister of Finance to take steps to stop manipulating Iraqi imports from Zakho to Basra
Policy 05/24 2020 18:17 224 Editor: ht Baghdad today –
Baghdad On Sunday (24 May 2020), the Kurdish MP, Hoshyar Abdullah, called on the Minister of Finance, Abdul Amir Allawi, to take steps to stop manipulating Iraqi imports from Zakho to Basra.
Abdullah had said Saturday (023 May 2020), “There is optimism in the performance of the Minister of Finance and I see that he is yet accurate in his proposals to reduce the repercussions of the financial crisis to a large extent, and therefore I see that his steps deserve support and support.”
The statement added: “We are waiting for him to look at the employees of the region as he looks at the employees of the rest of the provinces,” noting that “there is an opportunity to resolve financial problems with the region constitutionally, and we must make this crisis an opportunity to implement radical financial reforms.”
He stressed “the need for the regional and center governments to solve their problems away from prejudice to employee salaries.” link
MilitiaMan: Thank you Don, another gem talking about implementing radical financial reforms.. Radical as in the removal of three zeros and apply REER? That would work for me.. lol ~ MM