Iraqi News Wednesday Afternoon 11-3-21
Iraqi News Wednesday Afternoon 11-3-21
TLM724 Administrator BondLady’s Corner
How Will Iraq Benefit From The Rise In Oil Prices In The Global Market?
Posted On 2021-11-03 By Sotaliraq With the rise in crude oil prices in the global market to reach the barrier of 85 dollars per barrel, and with expectations of exceeding 100 dollars per barrel next year, especially with the reservations of OPEC + to increase production, despite the increase in global demand, this rise did not create great hopes for the Iraqis, As a result of the accumulation of debts owed by Iraq, corruption, mismanagement and planning, and the ambiguity of the Iraqi oil policy, with regard to licensing rounds, and the monopoly of international companies for it for decades to come.
Accumulated Debts
The price of a barrel of oil, which is supposed to be determined to calculate the revenues in the next year’s budget 2022, ranges between 50 to 60 dollars per barrel, according to what was said by the financial and economic advisor to the Presidency of the Council of Ministers, Mazhar Muhammad Salih, who confirmed in his speech to (Al Mada) that “the Council of Ministers said: The ministers took into consideration that oil constitutes 90% of the total budget revenues, and the rest of the revenues are left to non-oil revenues.”
Saleh added that "the federal general budget for the year 2021 was based on the price of a barrel of oil for export purposes, which was estimated at about $45 a barrel, and such an estimate with non-oil revenues caused a deficit of 29 trillion dinars out of total expenditures of 129 trillion dinars."
Regarding the volume of debts owed by Iraq, Salih affirmed that it is divided into “the Iraqi foreign debt prior to 1991, and it is constantly decreasing, and the actual sovereign debt under the Paris Club agreement remains only less than 6 billion dollars, and it is on the way to repayment by way of installment payment with interest.” And that is until the maturity date at the end of 2028, and it is accompanied by commercial debts that were also scheduled after they were deducted by 80% in 2006,” noting that “the remaining amount of it amounts to 2.7 billion dollars.”
He also added that “there are other external debts that do not exceed 12-13 billion dollars that arose during the financing of the war on the terrorist Daesh after the year 2015 and it has a gradual payment mechanism and it is also decreasing, and all the aforementioned foreign debts have allocations for their extinguishment that were placed in the annual general budget, and there are also there Internal sovereign debts estimated at about 50 billion dollars, which are liabilities or liabilities within the institutions of the official or government system itself, all of which are between public finance, the central bank and government banks, and there are steps to extinguish them without affecting the integrity of the economic development plan or affecting the national financial sustainability.
Corruption And Mismanagement
The Iraqi monetary policy depends on the proceeds of what Iraq produces of oil by 90% and the rest of the resources related to trade, taxes and customs, which do not reach what achieves financial sufficiency due to the random accumulations in the Iraqi monetary policy over the past years.
Economist Hazem Hadi believes that "oil prices do not stop at a certain limit as long as they depend on supply and demand, and that Iraq's imports of oil with its high prices in the global market must address many of the problems facing the Iraqi economy, including unemployment, poverty and reducing debt levels."
Hadi confirmed to (Al-Mada) that "the Iraqi monetary fiscal policy does not live up to what Iraq aspires to because of the confusions based on the reaction to every crisis facing the Iraqi economy," noting that "the fiscal policy must rely on long-term strategies to get out of these crises and prepare The Iraqi economy for future generations.
Researchers believe that the increase in corruption, mismanagement and lack of planning is one of the most important reasons that make benefiting from high oil prices questionable, especially with the presence of effective economic offices in various state institutions that finance their parties through state funds, in addition to the partisan quotas that these institutions witness.
According to the researcher in Iraqi economic affairs, Ahmed Eid, "economic reform must begin through deterrent legal measures, foremost of which is holding the corrupt accountable and recovering the looted money from the state treasury in a realistic and tangible way."
Eid indicated to (Al-Mada) that "the looted funds and rampant corruption issues cannot be reduced or bypassed in light of the presence of the current political class that has been able to penetrate all institutions and make them sources of financial and economic funding."
Take Advantage Of Higher Prices
However, Mazhar Muhammad Salih, the economic advisor to the Prime Minister, believes that “the citizen’s benefit from the rise in oil prices is reflected in the rise in budget revenues, and those revenues are linked to the state’s ability to convert them into real investments that increase the material capital accumulation of the country, and strengthen human development in education and health and achieve rates Growth in the gross domestic product and the maximization of the country’s total national income, which is something that must enhance economic prosperity and eliminate the scourge of unemployment when there is a job opportunity for every citizen.”
As for the researcher in Iraqi economic affairs, Hamza Al-Hardan, confirmed in an interview with (Al-Mada) that “the country’s financial and economic management is one of the most important problems facing the Iraqi economy, because the Iraqi monetary policy depends on the volume of irresponsible spending and depends on operating budgets only and did not take into account finding Development and investment funds in which at least 30% of oil revenues can be invested.”
Al-Hardan added that “investing in the rise of oil prices in development and providing ways for the success of the labor market enables the state to maintain its economic balance, except that the matter continues on random spending, and it is not possible to address the economic problems in the country and fulfill the requirements of the Iraqi citizen unless there is a real investment of these revenues.” LINK
Oil prices are falling after a large increase in crude oil inventories
Wednesday 03 November 2021 09:14 | Economic Number of readings: 206 Baghdad / NINA / - Oil prices fell today, Wednesday, as industry data indicated a significant increase in crude oil and distillate inventories in the United States, in the world's largest oil consumer, and with mounting pressure on OPEC to increase supplies.
Brent Crude Futures Fell To $84.00 A Barrel.
US West Texas Intermediate crude futures fell to $82.81 a barrel.
The American Petroleum Institute announced the sixth consecutive week of increasing crude oil inventories, and with the Biden administration exhausting every possible appeal to OPEC + members before benefiting from the Strategic Petroleum Reserve./End 8 https://ninanews.com/Website/News/Details?key=936851
President Barham Salih Sends A Video Message To The Climate Summit In Glasgow
Wednesday 03 November 2021 17:00 | politicalNumber of readings: 39 Baghdad / NINA / - The President of the Republic, Barham Salih, sent a video message to the United Nations Climate Summit COP26, held in the Scottish city of Glasgow.
President Salih said: "Desertification affects 39% of Iraq's lands, and 54% of agricultural lands are threatened with losing their fertility due to salinity."
He added, "Iraq is heading towards entering a new environmental era through regional and international partnerships," noting that "the difficult conditions that have afflicted Iraq during the past 40 years have made the country one of the most vulnerable to climate change."/ End 5
https://ninanews.com/Website/News/Details?key=936948
Iraq Officially Joins The Paris Agreement On Climate Change
The Ministry of Environment confirmed the completion of all legal and constitutional steps for Iraq's full accession to the Paris Agreement, so that Iraq would become a full-fledged party.
The authorized representative of the Ministry of Environment, member of the participating Iraqi delegation, Dr. Jassim Al-Falahi, confirmed in a press statement that the Office of the Secretary-General of the United Nations announced during the Glasgow Conference that Iraq had officially joined the Paris Agreement on Climate Change and deposited the instrument of accession and had the right to vote and enter the global financing mechanisms.
Al-Falahi added that Iraq worked seriously and effectively through the National Committee on Climate Change, stressing the preparation of the Iraqi contribution, which has now been submitted to the 26th Cup in Glasgow in the United Kingdom, which included a high road map to confront the impact of climate change by mitigating emissions and adapting the infrastructure in addition to To actively contribute with the international community to confront the problems of climate change and global warming, noting that economic diversification through the supportive green economy and diversification of energy sources is one of the main objectives that the Iraqi government has worked and is working on.
The Iraqi delegation participating in the work of the Glasgow Conference in the United Kingdom met with leaders, ministers and heads of government, and meetings were held with the Arab Group and the Ministers of Environment for West Asia and the Pacific, and an important meeting with the Green Climate Fund and with the Global Environment Facility to discuss financial support for Iraq in facing environmental challenges. https://www.radionawa.com/all-detail.aspx?jimare=26298
To read more current and reliable Iraqi news please visit BondLady’s Corner: