Iraq News and Highlights Sunday Afternoon 7-5-20

Iraq News and Highlights Sunday Afternoon 7-5-20

TLM 724 Administrator BondLady’s Corner

The private sector ..

Sunday 05 July 2020  Salem Mashkour   Every citizen has the right to a real job opportunity that provides him with a financial income. This is one of the first duties of every government, and from the sources of every government or president that it provides job opportunities for its citizens.

The demonstrators today in front of a number of ministries are calling for appointment to the government, and the government is responding that it is burdened with the administrative angel until the bulk of the treasury goes to the salaries of employees. Those who demand appointment are right, and the government has a right.

The unemployed, especially those with diplomas, are victims of the culture of the rentier system that continues until now, and the directed central economic system that has prevailed for decades, and made the appointment after graduation a right that the graduate automatically obtains. The economy itself, in the absence of the private sector. The private sector in that culture is nothing but a group of "thieves stealing people's money."

The political system changed, but the economic system changed only in the constitutional texts, some inactive laws, and political discourse. The state is still rentier, has only income from oil, sells it and pays the salaries of employees, and the official Iraqi mentality is still - mostly - programmed according to the criteria of the directed economy, accompanied by a view of treachery to the private sector, and sought to limit all activity to the state institutions despite their plague of bureaucracy and scarcity of resources While corruption and blackmail hamper the efforts of the few who believe in the importance of the private sector in spinning the economy and providing real job opportunities that address the problem of unemployment.

This is how our economy has become without identity, so it is not a directed central, nor is it a free economy in which the private sector operates freely according to market mechanisms.

In a situation like where we are, where the government can barely provide the salaries of employees, there is no escape from activating the private sector and providing investment requirements, the first of which are the guarantor laws and the provision of security for the investor and his project and safeguarding it from extortion that is exposed to it on more than one level, the sober big companies do not come, and the private investor does not He risks his money and life without providing him with guarantees and protection. Domestic investment will play a major role in revitalizing this sector, given its large monetary block.

If all this is available, and job opportunities are available with him, the Iraqi citizen will still look to the official job as guaranteed work, even if it is without achievement. This is remedied by a law that equates work in state departments and the private sector in calculating service for retirement purposes, and provides rights and job security for workers.

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A “reform paper” to improve services

Sunday 05 July 2020  Baghdad / Omar Abdul Latif The Services and Reconstruction Committee in the House of Representatives is preparing to present a "reform paper" from five axes to Prime Minister Mustafa Al-Kazemi during the meeting that he will collect in the coming days.

Committee member Abbas Yaber Al-Atafi said in a statement singled out by Al-Sabah: “During the meeting the Prime Minister during the coming days, the committee will discuss a number of axes that can contribute to tackling the financial crisis, which enables the state to exploit it without costing it any sums, in addition to Investing external roads, housing, and distributing plots of land between citizens and stalled hospitals in Baghdad and the provinces, and 3,000 schools have stopped since 2012 after being referred for completion in a pre-fabricated manner.

And that «these axes will be presented within a reform paper prepared earlier to end all these files and advance the reality of services».

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Al-Sudani reviews economic solutions to the financial crisis

Sunday 05 July 2020  Baghdad / Al-Sabah  Independent MP Mohamed Shaya Al-Sudani called on the government to take a number of urgent measures to enable it to fulfill its obligations to employees, retirees and social welfare, as well as address the ration card and crisis cell benefits in relation to confronting the Corona virus.

Al-Sudani stressed that "the important part of the economic reforms is to collect customs tariff fees and protect the product, while controlling the window of currency sales in the central bank," asking about the destination of these funds, and what imports can come to Iraq amid the economic downturn that the region is going through?

He pointed out the importance of "the existence of tax and customs deductions before the exchange of the dollar, to ensure obtaining the right of the state, it is not possible to sell the dollar without revenues to the state treasury and without withholding fees and taxes."

Import and production

Al-Sudani pointed out that "there is another economic perspective, which is that we have confirmed the inability of the agricultural and industrial private sector to advance in light of the import of imports, with the absence of full control over the ports, the non-application of standards for standardization and quality control of incoming goods and leniency in the collection of taxes and fees on them." That "the prices of imported goods and products will crowd out the national product and all this requires reform steps to maximize revenue."

Al-Sudani noted the need to "pay attention to the returns of derivatives and extracted crude oil, which will provide large amounts of money, and in light of the current financial conditions, these funds, which amount to 8 trillion dinars, must be invested by setting 10% of the cost of extraction and $ 8 for liquidation and up to 5% for distribution, can be provided from Without raising the price of fuel for the citizen. "

He explained that "revenues are available and were not directed to the citizen, and it can provide quick revenues in addition to reducing the salaries of the three presidencies from ministers and representatives and special degrees and stopping the disbursement of allocations granted outside the laws."

Corporate debt

Al-Sudani continued, “There are judicial orders against mobile phone companies to pay about one trillion dinars, and these measures are supposed to be implemented to collect these funds in a way that increases the state’s treasury imports,” noting that there is “a required procedure which is to control the financial balances of the state’s departments and not release any amount except in accordance with Recent directions of the government regarding the rationalization of spending. "

Al-Sudani warned of the need to adopt "effective and real steps on encouraging the agricultural and industrial sectors by placing the import curriculum at the table of government producers from companies of the Ministry of Industry as well as private and mixed sector companies and identifying the goods that can be produced so that the government can issue a decision to prevent their import, as well as review the agricultural calendar including It guarantees the preservation of local agricultural products, avoids the damage of farmers, closes the ports and controls them completely. "

Central loans

Al-Sudani stressed "the importance of activating the steps of the Central Bank in granting loans to agricultural, industrial and residential banks, as well as lending to young people looking for work, while loosening the terms of the loans and defining them with the project guarantee."

He believed that "internal borrowing will secure the salaries of employees. As for the external determined at five billion dollars, it should be invested to complete development projects, including projects for investing burned gas and developing the Basra gas project with the company (Shell), which contributes to providing what the power stations need instead of buying Iranian gas in amounts It exhausts the budget, which provides other imports for the budget, and there are projects related to petrochemicals and fertilizers that can generate huge funds on the state treasury, as well as its benefits to society by pushing the wheel of economic development.

Stressing that "directing loans to these projects will put the reform process in the direction Proper. "

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The Integrity Committee opens the file of looted funds

Political| 02:52 - 05/07/2020  Baghdad - Mawazine News  , The Parliamentary Integrity Committee spoke, on Sunday, of the file of looted funds.

Member of Parliamentary Integrity Committee Jawad Hamdan promised, "The visits of the Iraqi delegations to the countries of the world are an affirmation of the economic importance of Iraq and its pivotal role in the region and the world and promotes economic openness in its Arab and international surroundings."

Hamdan pointed out that "Iraq’s important strategic location in the path of trade will contribute to restoring its economic role and strengthening its position among the countries of the region." Indicating that "Iraq’s reliance on a balance policy based on the interests of the country will enhance the principles of cooperation and investment, support the economic wheel and conclude important agreements that bring benefit to all the parties".

Hamdan stressed "the importance of eliminating corruption and working seriously to recover the stolen money and laying down plans to recover this money."

It is noteworthy that an Iraqi ministerial delegation arrived Friday in Beirut on an official visit that included the two oil ministers, Ihsan Abdul Jabbar and Agriculture Muhammad Al-Khafaji, to discuss issues of common concern, particularly the oil, health and tourism aspects, while there is an upcoming visit of a Lebanese ministerial delegation to Baghdad to complete the talks between the two parties. The final touches of the agreements that took place between the two sides in Beirut. Ended 29 / A 43

https://www.mawazin.net/Details.aspx?jimare=108472

A deputy defines an order that strengthens Iraq's economic ties

Political| 02:00 - 07/07/2020  Baghdad - Mawazine News, a member of the Economic Committee, Nofal Al-Naseen, on Sunday, specified an order that strengthens Iraq's economic relations.

The young man said, "The diplomatic openness by sending political and economic delegations to brotherly and friendly countries will enhance Iraq’s economic relations and increase the volume of trade exchange and facilitate the export of Iraqi agricultural or industrial products to some countries as a trade exchange, which achieves revenue for the budget."

And the youth added, "These visits will reflect positively on our relations with the world, in addition to that they are considered one of the sources of the economic strength of the country that enhances the wheel of the economy and growth, in addition to enhancing the region's political stability."

He pointed out, "The implementation of the government program will support the Iraqi economy, maximize the country's imports and enhance Iraq 's international standing, in addition to supporting cultural and commercial exchanges and contributing to enhancing the security of the region by adopting projects of a joint strategy."   https://www.mawazin.net/Details.aspx?jimare=108459

Iraq Stock Exchange closed lower at the first sessions of the week

Economie| 03:14 - 07/05/2020  Baghdad - Mawazine News , the Iraqi Stock Exchange index closed on Sunday, down by 0.31%, stopping at 432.95 points.

The index recorded the decline of shares of 11 companies, the rise of shares of 5 others, while 7 companies maintained their share prices.

The number of traded shares reached 468,729,845 shares, at a value of 446,397,632 Iraqi dinars, obtained from the conclusion of 258 transactions, which included 23 joint stock companies, out of 104 companies registered on the stock exchange.   https://www.mawazin.net/Details.aspx?jimare=108476

The dollar decline against the Iraqi dinar

Economie| 02:39 - 05/07/2020  Baghdad - Mawazine News  The exchange rates of the dollar fell on the Kifah Stock Exchange and the local markets, on Sunday (5 July 2020).

The prices of the Kifah Stock Exchange - Baghdad were 122,600 dinars per 100 dollars.

Buying and selling prices in banking shops

The selling price of the dollar = 123,000 dinars.

The purchase price of the dollar = 122.000 dinars. Ended 29 / p

https://www.mawazin.net/Details.aspx?jimare=108467

Hakim to Blashardt: This is an Iraqi goal

Political| 02:10 - 07/05/2020  BAGHDAD - Mawazine News, leader of the Al-Hikma Movement, Ammar Al-Hakim, clarified on Sunday to the United Nations Representative in Iraq, Jenin Blaskhardt, the role and goals of the Iraqi coalition.

Al-Hakim said in a statement received by / Mawazine News / a copy of it, that "we discussed during our reception the representative of the Secretary-General of the United Nations in Baghdad Jenin Blaskhart developments of the political scene in Iraq and the region and the health crisis facing the world."

He added: "Where we stressed the need to intensify efforts to confront the Corona pandemic and address the economic reality imposed by the declining oil prices, and we demonstrated the importance of diversifying sources of income and activating the tourism, agriculture and industry sectors."

He continued: "We also discussed the file of early elections and the need to resolve the laws related to them, and we also called on the United Nations to assist in training and exchange of experiences."

Al-Hakim continued: "On behalf of the" Iraqis "coalition, we said that it is an Iraqi coalition that seeks to support the path of the state and restore confidence in the political system, and we affirmed that its doors are open to anyone who believes in these goals." Ended 29 / A 43

https://www.mawazin.net/Details.aspx?jimare=108461

Al-Nusairi invites the Prime Minister to meet with private banks and address obstacles to their contribution to overcoming the economic crisis

Economic and banking advisor to the Iraqi Private Banking Association, Samir al-Nassiri

Banks  The Economy News – Baghdad   The Economic and Banking Adviser to the Association of Iraqi Private Banks, Samir al-Nassiri, called on Sunday, the Prime Minister to meet with Iraqi private banks similar to his meeting with Iraqi businessmen for the purpose of discussing the obstacles to their work and their contribution to overcoming the economic crisis because without a sound and sound banking sector, no sound national economy can be built.

Al-Nusairi said in an interview with "Al-Iqtisad News", that "Prime Minister Mustafa Al-Kazemi and the emergency cell for financial reform do not hide the complicated economic conditions and repercussions of the spread of Corona virus, political disputes and conflicts by the political parties and blocs that led to great harm to the national economy and stalled the economic cycle and economic stagnation Added to this are the accumulations and repercussions in the absence of a clear economic approach to previous governments, foggyness, and confusion of vision for real economic reform.

And since the banking sector is the main link in the economic process, the current conditions have contributed to stopping the banking activity, especially the private banking activity since the outbreak of the demonstrations in October 2019, and so far, which has had clear effects on the lack of liquidity, low deposits, credit, loans and banking facilities due to the stop of working hours.

During the comprehensive roaming ban for more than 30 days and reducing the permanence and banking activity during the partial curfew, which led to a significant decrease in revenues, despite the many measures taken by the Central Bank in providing several facilities package for banks, including enhancing its liquidity by reducing the percentage of the legal reserve, postponing loan installments, stopping and postponing the imposed fines On the banks.

"According to the analysis of official data and statistics, the structure of the Iraqi banking sector consists of 7 government banks that hold 86% of all government and public deposits and 78% of all assets and private banks constitute 70 commercial and Islamic banks and invest 78% of the capital of the Iraqi banking sector and did not get Only on 13% of the total annual profits achieved at the total level and that the goals set for the banking sector in all government programs of previous governments are focused on achieving them is lending for development and considering banks as a lever for development and restoring confidence with the public and achieving financial inclusion in the sense of expansion and spread by providing banking products and services and practicing Real banking and digital transformation of the banking sector.

The financial and banking advisor explained, "Through an analytical view of the reality of the Iraqi economy and the challenges facing the financial and monetary policies, in particular, stimulating and revitalizing the economy by bank financing and banking facilities, the above challenges stand in front of its implementation at the present time despite the great efforts made by the Central Bank since 2016 to implement its strategic goals for years ( 2016-2020) which achieved such goals task and key notably developments structural and structural and technical in banks and increase the proportion of comprehensive financial and investment in Ras capital human and walk pace actively towards stability In the monetary system and achieving stability in the exchange rate since 2018 and still remains, however, private banks are in urgent and urgent need of government support by studying their problems in the current circumstance in the emergency cell for financial reform formed in the cabinet for the purpose of saving some private banks from collapse.

Al-Nassiri suggested the following:

First-that the nature of the activities of banks depends on the nature of the activities of the sectors of economic , and as long as the activity of economic is concentrated in the trade (imports) remains the activity of banks concentrated on the conversion external and associated so ..lma unless moving sectors other (industry, agriculture, tourism and others) do not expect the diversity of activity The banker.

It is worth noting that without controlling imports, these sectors will not rise, which explains the lack of progress on serious loans through the Central Bank initiative to finance small and medium projects.

Secondly , the legal environment must be provided and the rule of law should be established in order to eliminate the phenomenon of defaulting in the repayment of loans, as bad debts amounted to (5 trillion dinars) up to 30 June 2020, and they constitute a large percentage of the total credit granted and thus banks are reluctant to provide loans and facilities. Banking.

Therefore, we see that the decisions of the Council of Ministers and the Economic Affairs Committee of the Council of Ministers that were previously issued to support the banking sector, especially private banks, are not activated. It led to obstructing the activities and activities of private banks and greatly affected their liquidity, revenues, and deposits for that. 

For the purpose of overcoming the banks crisis, in a way that ensures banks ’transition from the role of banking to the developmental role and revitalizing banking work in the current circumstance, it requires the government, in particular the esteemed cabinet and the emergency cell, to activate the decisions previously issued by The Council of Ministers and the Economic Affairs Committee, which are as documented with the following numbers and dates.

Third-activate all the decisions of the Committee Affairs Economic special support banks , special and in particular Mayati: -

1 ‐ The Ministry of Finance changed its decision not to accept it to open bank accounts for ministries and state departments in private banks and restrict them to government banks according to its letter 207 dated 31/1/2019

2 ‐ Activate the decision to allow ministries and government departments to open documentary credits in private banks up to $ 50 million without going through the Ministry of Finance and the Iraqi Trade Bank.

3-activating Resolution Council of Ministers No. 110 of 2009 and the decision of the Committee on Economic Affairs on 2012 141/2/20 concerning the conversion of government documentary banking up to 30 credits million dollars to private banks through the Trade Bank of Iraq.

4-activating the decision of the Committee on Affairs of Economic No. 253 of the year 2015. Regarding the acceptance of sukuk certified by private banks to pay insurance, customs fees and taxes.

Fourth-activating decision Council of Ministers No. 378 of the year 2018 and the special levy fees of government in the departments of State of through payment mail.

Fifthly: Activating the Financial Services Court formed in accordance with the Central Bank Law 56 of 2004, and the Court may refer cases that require referral to the competent courts in accordance with the applicable penal law.

VI consider claims of debt distressed owed by customers in the banks own lawsuits urgent debts excellent like government debt.

VII . Add to Mai PEOPLE by Bank Central of efforts requires the government is also working to provide conditions and take measures to help banks own to obtain the classification of credit approved internationally and thus enhance relations banking international with correspondent banks.

Eighth - The Ministry of Finance compensated for the damage in the cash and fixed assets lost by the branches of private banks, which amounted to (37) branches in the governorates occupied by ISIS in 2014 and is documented with the Central Bank of Iraq.

IX-activating the decisions of the Council of Ministers No. 313 of 2016 and No. 218 of 2017 and private employees ' salaries and settling demand from government departments to settle their salaries according to their desire and directing them not to settle salaries in government banks exclusively.

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