Delta, MilitiaMan and KTFA Members "Final Report" 10-14-2020

KTFA:

DELTA:  Finance Minister Ali Allawi expected the salary crisis to continue, while he presented a number of reasons.

"We are forced to face the problem of salaries" on a monthly basis, "Allawi said in a televised interview that he followed on the eighth day, as oil revenues are no longer sufficient and cannot cover half the value of salaries.

He added that "the amount rounded up from the previous government exceeded a trillion dinars a little, meaning that the current government did not receive only a very small amount of the previous one, and therefore the government came in the month of May and it is loaded with financial burdens, especially how to secure salaries."

He pointed out that "if borrowing exceeds certain figures, it will have negative repercussions on the economic situation of the country, especially with regard to material prices and paves the way for inflation, and it must be with a certain limit, not that the borrowing be endless."

 He stressed that "the current government requested an open ceiling for borrowing this year to pay salaries and urgent expenditures, and the House of Representatives stipulated that the internal borrowing does not exceed $ 15 billion and the external $ 5 billion, and according to the indicators, it is unrealistic because it is insufficient as the borrowed money ran out within 3 months and the crisis has returned."

And that "the salaries of employees are not the problem and it is reasonable, but the allocations that reach 400% of the value of the salary in some ministries and the allocations must be reconsidered because it is the problem and not the salaries."

The minister, Ali Allawi, said that “the employee’s productivity is very low and reaches 0% in some departments,” indicating that “there must be a return to the state from the services provided by the employee and this does not exist, and non-productive employees must also be transferred to productive projects for investment. "Their efforts and we will present a project to transfer them from another place."

He continued, “The Ministry of Finance paid the salaries of September after reviewing the financial engineering, and we are now at a crossroads. There must be financing to bridge the salary deficit and there are 3 solutions. The first is to increase imports and this is linked to the value of oil exports and it is not encouraging because it does not exceed the $ 15 billion until the end Year ”.

He added, "In return, we need financing of at least 58 trillion dinars to cover the ruling expenses. The second solution is to reduce expenditures and the third is to find a way to finance the deficit."

Regarding customs funds, the minister replied by saying that "the issue is related to imports, and it has been very less due to the Corona crisis," indicating that "there is a large part of Iraq's internal imports that are exempt from fees and what is entered through investment is also exempt, and this means that no resources are achieved for these two reasons."

He continued, "The percentage of resources that enter through customs does not exceed 15% of the value of what is imposed due to the above reasons," saying, "What we expect does not exceed the 4 billion dollars annually, and therefore customs will not be a major source of state funding."

"As for taxes, their base is very narrow, and those who pay most are the employees," he said, noting that "70% of the private sector is unorganized and cannot be collected because most projects are small and there is no culture of paying taxes."

Regarding what is being raised about the existence of an expected change in the exchange rate, the minister stressed that “changing the exchange rate of the dinar against the dollar must be done in agreement with the Central Bank and the International Monetary Fund. Presenting numbers is currently a sensitive issue. Reducing the value of the dinar will have positives and negatives and will help us financially in the first period. But we must contain its repercussions, especially inflation. "

He cautioned that "reducing the value of the dinar will create real competition and activate the industrial and agricultural sectors in Iraq."

He pointed out that "the year 2020 witnessed an ill-considered increase in the value of what is paid for salaries if it doubled to the level of half from the previous year, and rose from 40 billion dollars annually to 65 billion."

Ross:  "expected change" The whole world is expecting this change...time to deliver this baby.

"must be done in agreement with the CBI and the IMF."   Duh of course it already is a done deal.

Billuke:  BABY !!!!   This thing has taken so long...it will give birth to an adult!   lol

Safeone:  Thing thing has taken so long it will give birth to not only an adult, but a senior citizen; IMO.  I might add that senior citizen is probably on social security and wearing a mask!!!!   Imo lol

Clare:  THANKS DELTA!.......... EXCELLENT!    changing the exchange rate of the dinar against the dollar must be done in agreement with the Central Bank and the International Monetary Fund. Presenting numbers is currently a sensitive issue.   "MUST BE DONE"!!  "currently a sensitive issue." YES!! imo

MilitiaMan:  The Minster of Finance tells us that changing the value of the exchange rate is between the Central Bank and the IMF. It doesn't say Parliament.

 However, they will at some point be exposed to a rate change, whether they like it or not. Take note they say that the issue of presenting numbers or basis (rate) is sensitive.

Of course it is and very sensitive, hence, they haven't exposed it yet to Parliament.

 Not only from the 2019 FMLA and the 2020 Budget, nor the White Papers, yet. When they say "reducing the value of the Dinar", they mean the reduction of the three zeros from the exchange rate. They are not going to be devaluing the currency.

By "reducing the zeros from the exchange rate" (raise the value) allows them to go into the or a market economy where the real competition is. It will activate the industrial and agricultural sectors when doing so. imo

There main issue to be in the forefront now is that within the White Papers is a Final Report on Financial Reforms.

In that paper it appears they have to get to the main issue in the report, so they can determine and crystallize the "common basis" that can be agreed upon and approved (rate).

Well that foundation of the basis (rate) is about the value at which the currency is to be when they change it. It is that simple, imo. This is now down to the IMF and CBI putting a common basis into stone!

This supports they are at that final stage to set that gem in place. Just as the Emergency Cell states. It is the FINAL REPORT and they are now to have or have presented the necessary legislation to proceed with implementation procedures.

This is very good indeed! I suspect they have every intention now with all the work done and sorted accordingly, we are in a very good place to see the golden ring. ~ imo ~ MM