Iraqi News and Highlights Tuesday PM 7-21-20

TLM724 Administrator BondLady’s Corner

Iran And Iraq Are On The Threshold Of An Agreement For Foreign Currency

Praatha News Agency36 2020-07-21  The Director of International Affairs of the Iranian Central Bank, Hamid Kanbari, has announced that it is close to reaching an agreement regarding foreign currency between Iran and Iraq.

Kanbari, who accompanied the Iranian Foreign Minister, Mohammad Javad Zarif, on his visit to Baghdad last Sunday with the aim of conducting banking negotiations with the Iraqi side, said that "the discussions were useful and constructive between the two sides, and the final stage of the Iraqi Prime Minister and his accompanying delegation will reach Tehran today, Tuesday."

He added, "In the event that this is achieved, it is expected that a significant foreign exchange will flow into the (local) market, amounting to several billion, which will cover a large part of the demand for foreign currency." Suspect

The Central Bank of Iran and its Iraqi counterpart signed a memorandum of cooperation related to banking and financial ties last year, between Qanbari, that the negotiations of the day before yesterday come as an extension of the memorandum concluded, and that the visit of the Iranian Central Bank Governor Abdel Nasser Hemati to Iraq last month comes in the same framework.

http://burathanews.com/arabic/economic/373142

Iraq And Iran Are Close To A Financial Agreement That Generates Billions Of Dollars

Time: 7/21/2020 11:58:10 Reading: 6,292 times  {International: Al Furat News} The Director of International Affairs of the Central Bank of Iran announced that an agreement on foreign currency between Iran and Iraq will soon be reached.

Hamid Kanbari, who accompanied Foreign Minister Mohammed Javad Zarif on his visit to Baghdad the day before yesterday with the aim of conducting banking negotiations with the Iraqi side, said that the negotiations were beneficial and constructive between the two sides, and they will reach the final stage in the visit of the Iraqi Prime Minister and his accompanying delegation to Tehran today.

He added that in the event it is due, it is expected that a remarkable foreign exchange will flow into the market, amounting to several billion {dollars}, as it would cover a large part of the currency’s demand through it.

The Central Bank of Iraq and its Iranian counterpart signed a memorandum of cooperation related to banking and financial ties last year.

Kanbari also indicated that the negotiations on the day before yesterday, Sunday, are an extension of the memorandum concluded, and that the visit of the Central Governor Abdel Nasser Hemati to Iraq last month comes in the same framework.   LINK

Lebanese Banks Implement A "Soft Withdrawal" From Iraq

Time: 7/21/2020 08:59:21  Read: 2,899 times   {International: Al Furat News} The repercussions of the liquidity crisis in foreign currencies in Lebanon are spreading rapidly, to move from the original market of the Lebanese banking system to its external proliferation network,

which is under increasing pressure due to the failure to automatically respond to the requirements of increasing capital {capital accumulation} imposed by central banks in Some countries of banking presence, diminishing competitiveness of subsidiary units in foreign markets, and restructuring strategic options to focus on the "most feasible" in reducing or enhancing proliferation, depending on the financial and monetary crises hitting Lebanon and private sector institutions in it.

It seems that the presence of banks owned by the majority of its shares for Lebanese banks, numbering 10 in the Iraqi market, entered a difficult labor shortly after reducing the rating of the local banking sector according to reducing the sovereign rating closest to the degree of "default", and the difficulty of responding to the new measures imposed by the Central Bank of Iraq, especially in terms of compatibility With the minimum required for the assets at the end of next year, not to allow the transfer of the profits achieved for three consecutive years, in addition to the decline in the returns achieved compared to the investment invested.

This remarkable development comes as a second qualitative and strong change received by the external spread network of Lebanese banks. It was preceded by the banks ’administrations“ forced ”to voluntarily reduce the work of the seven banks affiliated with them in the Syrian market and isolate their budgets from the data collected for completely different reasons related to the Syrian crisis and successive US sanctions, the latest of which is the start of the implementation of the“ Caesar’s Law ”that pursues individuals and companies who conduct commercial and financial transactions With "the Syrian regime."

Sources said that two Lebanese banks affiliated to the Iraqi market, at least, the "Fransabank" and "Lebanese Credit" groups, officially informed the Iraqi Central Bank of their withdrawal intention, while strictly observing the approved rules that guarantee the full protection of the rights of clients. While the departments of 5 banks continue to examine options, with similar decisions likely to be taken, especially in light of discouraging assessments of feasibility in exchange for pumping new private funds. While 3 banks will maintain their subsidiaries because they basically meet the required Iraqi conditions.

A concerned banking reference confirmed that most bank departments are restructuring their external presence, in a manner consistent with feasibility and profitability, and not because of the failure to respond to the requirements of increasing capital. In this context, the decision of the "Lebanese Credit Bank" focuses on expanding its spread in Africa through its independent "International Credit Bank" in Senegal, which has a license from the Central Bank of West African States (BCEAO), to establish subsidiary banks in 8 countries that share a unified monetary authority. . In addition to the banks ’tendency to reinforce subsidiary branches in Cyprus.

And an understanding from banking sources that the withdrawal process will not mean liquidation, but rather will be through direct sale to Lebanese banks wishing to continue in the Iraqi market.

Information has been confirmed on the completion of an agreement relating to one of the two banks, and the completion of the second is expected similarly. While it is likely that a later option would be joined by the banks that intend to stop their activities, according to the fact that the assets of each are around $ 100 million, and it is difficult for them to raise them to $ 210 million by the end of 2021, as required. Consequently, its portfolios can be sold to Iraqi banks or for the benefit of the three or four Lebanese banks that will decide to continue out of the 10 licensed and operating in the Iraqi market.

The Central Bank of Iraq was to impose that foreign banking units meet a set of new standards; Among them, the size of the budget of the subsidiary branch should be parallel to the value of the Iraqi bank’s capital of 250 billion Iraqi dinars; The equivalent of $ 210 million, not later than the end of next year.

And it was allowed to be 20 per cent of the capital of the banking unit outside Iraq. However, the bank stipulated that it be deposited with banks with a credit rating of "B" and above, in addition to preventing the transfer of profits achieved for the years 2019, 2020 and 2021.

The list of Lebanese banks in Iraq, in order of total updated assets, includes banks: “Beirut and Arab countries”, “Byblos”, “Odeh”, “Meed (the Mediterranean)”, and “Bloom (Lebanon and Overseas)”, and MIAB (Middle East and Africa), IBL (Intercontinental Bank), Fransabank,

The total assets of these banks are about $ 1.9 billion, as they are at the end of the first quarter of this year; This is about 0.9 of the total budget for the Lebanese banks.   LINK

The Minister Of Labor Calls For An Amendment Of The Retirement And Social Security Law

money and business  The Economy News – Baghdad  The Minister of Labor and Social Affairs, Adel Al-Rikabi, called for amending the retirement and social security law to raise the level of the working class in Iraq, while directing the Retirement and Social Security Department to submit proposals for amendment to the law within 15 days.

The Minister said during a meeting chaired yesterday, Monday, in the presence of the Director General of the Retirement and Social Security Department for Workers and the Federation of Trade Unions in Iraq and the president and members of the General Retirement Authority in a statement seen by "The Economy News", "There is a government request to indicate the Ministry's opinion regarding the progress of the Social Insurance Law or Amendments to the Workers' Retirement and Social Security Law.

He added, "There are many problems in the public retirement law, as well as the case with the private sector," noting that "merging the retirement and guarantee funds without addressing these problems may create a new crisis and work must be done to address the legal foundations in both laws and postpone the issue of merging the two funds to another time".

The Minister stated, according to the statement, that "the Social Insurance Law needs further amendment and extensive study because the combination of the two funds needs to unify all the provisions and privileges granted to employees in the government sector and workers in the private sector to ensure that no injustice or injustice is brought to an entity."

He pointed out that "the retirement and social security law, despite the gaps in it, but it is the closest currently to dealing with workers' issues, and the ministry is proceeding with making amendments to the law in line with the rights of the working class."

The Minister directed the "Department of Retirement and Social Security to submit proposals for amendment to the law within 15 days and held another meeting in the presence of the General Secretariat of the Council of Ministers to explain the opinion on the amendments or the draft law amended in advance and was reviewed by both the State Consultative Council and the Council of Ministers in order to achieve the desired goal to encourage the private sector and reduce the burden The government sector in employment. "

Number of views 34 Date added 21/07/2020  http://economy-news.net/content.php?id=21118

Riyad Al-Masoudi To / Nina:: Iraq Needs To Build A National Strategy With A Real Partnership To Launch An Influential Role For The World

Tuesday 21, July 2020 10:10 | PoliticalViews: 106   Baghdad / Nina / Member of the House of Representatives for the Alliance for Raiders Riyad Al-Masoudi stressed that Iraq needs to build a national strategy with a real partnership to launch an influential role in the region and the world.

He told the Iraqi National News Agency ( NINA ): If we want to be at a high level of responsibility and at a high level by making the real political decision based on the interest of Iraq and the people, we have to start by establishing an administrative political and economic system at home in which the central government’s authority is clear and its decision is clear and therefore we will move To build a regional and international strategy.

He explained that: Iraq does not have a decision in the Syrian file, for example, or the file of the Labor Party in Kurdistan, and we have no influence on the Lebanese, Yemeni, or Libyan file. Noting that: The lack of an Iraqi decision and role in these files makes Iraq with a weak position. / End 3

https://ninanews.com/Website/News/Details?Key=845188

Deputy For Diyala: Control Of The Border Outlets In The Governorate Will Secure 80% Of The Revenues For The State Treasury

Tuesday 21, July 2020 12:35 | EconomicalViews: 46   Baquba / Nina / Deputy Diyala Ahmad Mazhar Al-Jubouri affirmed that imposing the rule of law on border crossings in the governorate with Iran will secure 80% of the financial revenues of the state treasury.

Jubouri said in a press statement today that "the process of imposing the rule of law and the deployment of security forces at the border crossings with Iran in eastern Diyala will secure 80% of the monthly financial revenue to the state treasury."

He explained that "the financial revenues of the crossings can be a substitute for oil in the public budget, if applied correctly with taking appropriate measures to confront corruption." / End

https://ninanews.com/Website/News/Details?key=845227

Al-Issawi: Iraq Has Promising Investment Opportunities

Tuesday 21, July 2020 17:22 | EconomicalViews: 12  Amman / NINA / Director General of the One Stop Shop and Investor Services Department at the National Investment Commission, Jamil Al-Issawi, stressed that Iraq abounds with promising investment opportunities, calling on Jordanian investors and business owners to benefit from them, especially in the construction sector and housing construction.

He said during his participation today in an Iraqi-Jordanian economic forum through visual communication technology organized by the Jordanian Investment Authority and in cooperation with the Iraqi Business Council in Amman, that Iraq has excellent projects estimated at billions of dollars, most notably the area surrounding Baghdad Airport.

He added that Iraq has an annual investment map that occurs constantly and includes investment opportunities in various sectors besides an advanced investment law, noting that the country needs to build two million housing units, calling on Jordanian investment companies to benefit from them.

And that the presence of Jordanian investment companies in Iraq is weak compared to the volume of Iraqi investments in Jordan, calling for this reason to be identified and addressed.

Al-Essawi said during the forum, which came under the title / Jordanian-Iraqi economic relations, investment environment and opportunities available between the two countries /, that Iraq is searching for employment and building housing units, and is not looking for financial returns.

He pointed out that the current Iraqi government has drawn up a practical plan and there are daily meetings to address the obstacles facing investors and investment projects, stressing the existence of a "short-term and long-term plan" to attract foreign capital.

Al-Essawy continued, that within the plan is to activate the single window and serve the investor through it, as he finds delegates from the ministries to obtain the full approvals, pointing to a decision to be issued soon in this regard.

He pointed out that the agreement to protect and encourage investment signed between the two countries in 2015 is enough to address the challenges facing Iraqi and Jordanian investors, especially when compelling crises such as the emerging Corona virus crisis occur, stressing the need to activate them to increase the volume of joint investments.

In turn, the Ambassador of Iraq in the capital, Haider Al-Athari, indicated that the Iraqi investments in Jordan are old, distributed among the sectors of hotels, real estate, industry and general trade, especially cars, pointing to the role the embassy plays to support Iraqi investors in Jordan and identify the challenges facing them.

Ambassador Al-Athari assured that there is an official Jordanian interest and under the guidance of King Abdullah II to facilitate the work of Iraqi investors in the Kingdom, stressing that Jordan is one of the most important countries for Iraqi investment.

He explained that the trade exchanges of the two countries have been increasing continuously during the last three years, reaching 2017 amounted to 521 million dollars and 596 million dollars in 2018, while it reached 790 million dollars last year 2019. The

Ambassador Al-Athari indicated that the Iraqi business owners had a positive impact on the Jordanian economy What requires their support from the Iraqi embassy and Jordanian official bodies and overcoming the obstacles facing their business.

For his part, Jordan’s Ambassador to Iraq, Dr. Montaser Al-Oqlah indicated that Jordan has many great strengths that attract investments and promising investment opportunities that will serve the Iraqi market, which contributed to creating an attractive business environment and made the Kingdom an investment destination in the region.

He stressed that the Jordanian embassy in Iraq, in cooperation with the Jordanian Investment Authority, is fully prepared to provide all support and facilities to the Iraqi investor, pointing to the great progress that has arrived in connection with the establishment of the economic zone on the borders of the two countries.

To that, the head of the Jordanian Investment Authority, Dr. Khaled Al-Wazani, said that the Iraqi investor constitutes an asset to the Jordanian economy and an attractive factor for Arab and foreign investments, and that the Iraqi investor is an example to be followed by the non-Jordanian investor for the success he achieved in light of various challenges and circumstances.

He added that the Iraqi investor has a historical privacy due to his contributions in promoting internal and external trade, noting that the Investment Authority is the investor’s home and the umbrella of sustainability and empowerment.

In turn, the President of the Iraqi Business Council in Amman, Dr. Majed Al-Saadi, thanked the Jordanian government for its efforts in providing all facilities for the Iraqi investor and the efforts of the Investment Authority in continuing to search for solutions to the obstacles and challenges facing Iraqi investors, who number about 3700 companies whose activities vary between the health and tourism sectors And industry as well as the trade sector, and according to Al-Saadi, the volume of Iraqi investment in Jordan amounts to more than 16 billion US dollars.

Al-Saadi called for exerting more efforts to overcome the obstacles that limit the flow and expansion of investments, especially that Jordan abounds with investment advantages that must be exploited to encourage investors to direct their investments to Jordan, stressing the need to address the challenges facing the trade of the two countries and affect the flow of Jordanian goods entering the market. Iraq, particularly in terms of fee opportunities for Iraqi imports from abroad. / End

https://ninanews.com/Website/News/Details?key=845271

Parliamentary Investment: The Coming Days Will Witness The Resolution Of The Chinese Agreement

Editing Date: 7/21/2020 14:18 • 79 read times  [Baghdad-Where]  The Parliamentary Commission on Economy and Investment confirmed today, Tuesday, that the coming days will witness the resolution of the Chinese agreement, while pointing to the existence of reasons that delay the implementation of the agreement.

Committee member Nada Shaker Jawdat said: "The drop in oil prices, in addition to the outbreak of the Corona pandemic, led to a delay in the implementation of the Chinese agreement," stressing that "the coming days will witness the resolution of the agreement file."

Jawdat added that "this agreement is one of the most important economic agreements, and includes many issues", pointing out that "this agreement will eliminate corruption, which may happen through some gaps."

The deputy of the Alliance of Ali Sa`doun al-Lami called on the Prime Minister to accelerate the implementation of the Iraqi-Chinese agreement, stressing that it would contribute to solving the problems of Iraq.  http://www.alliraqnews.com/modules/news/article.php?storyid=96565

US Report: Closing The Borders Due To Corona Has Brought Life To Iraqi Agriculture

Economy  Tuesday, July 21, 2020 | 05:33 pm| Views: 9  A report of the American newspaper Al-Monitor confirmed on Tuesday that the Iraqi agricultural sector has recovered during the past few months after the government closed its borders and banned the import of agricultural products as a precautionary measure against the outbreak of the Corona virus .

The report stated that "closing the Iraqi borders as a proactive measure against the Corona virus helped to revive the agricultural sector and expand the work of Iraqi farmers who increased their production to the Iraqi market, which for 17 years has been dependent on imports from neighboring countries ."

He added that "the production was so large that the Minister of Agriculture, Muhammad Al-Khafaji, announced the existence of requests to export tomatoes, eggplants and potatoes, at a quantity of 500 tons per crop, as many countries want Iraqi agricultural products, including meat ."

He added, "The Iraqi Ministry of Trade announced earlier the realization of self-sufficiency in wheat produced by Iraqi farms, as Iraq was a major grain importer in the Middle East ."

He continued that “vast areas of Iraqi agricultural lands have faced desertification in the past few years, after opening the borders to imported products. Most of the markets lacked any Iraqi agricultural products, so closing the borders helped return production again . ”

“The ministry has supported farmers by paying their dues and presenting their plans to promote Iraqi agriculture, and Iraq may choose to export abroad in the next stage,” said Ministry of Agriculture spokesman Hamid Nayef, adding that “controlling border crossings and curbing smuggling will give Iraqi agriculture a greater opportunity to prove its strength. And its quality in the markets .

A number of farmers said that "closing the borders this season gave a golden opportunity for Iraqi farmers to market their local produce. We are not asking much from the state, but we are asking simple things to support the agricultural process, because the local product is better and cheaper than the imported product because of the lack of competition . ”

The report pointed out that “the Iraqi Ministry of Agriculture announced self-sufficiency with 28 agricultural products, and it is the first time in 17 years that Iraq has achieved this number. Essential for oil. ”   https://aynaliraqnews.com/index.php?aa=news&id22=136578

Parliamentary Services: It Was Agreed With Siemens And We Will Open The Files Of "General Electric"

Baghdad Post Tuesday, July 21, 2020 02:29 PM  The Parliamentary Services Committee confirmed that the House of Representatives will open all files related to the American General Electric Company, which has acquired electrical power contracts for the past years.

Member of the committee Mudher Khazaal said in a press statement: "The parliamentary committee formed to follow up the contracts of the Ministry of Electricity will open all files related to the American General Electric Company that have acquired electrical energy contracts for the past years." He pointed out: "All of these files will be seriously checked." to detect financial reason thefts fell energy. "

He added:" The government finally agreed with Siemens German , "noting:" Iraq imports your electricity from any neighboring country offers performances suits him, the fact that solving problematic electricity is not one year. "   LINK

Use An International Company .. Iraq Starts Auditing Phone Licenses Contracts Since 2007

11:57 - 21/07/2020  Information / Baghdad ..Member of the House of Representatives, Mohamed Shi'a Al-Sudani, announced, on Tuesday, the approval of the Presidency of the House of Representatives to issue a representative order to assign the Financial Supervision Bureau to use the purpose of consulting a global company specialized in the communications sector to audit financial, administrative, technical and legal obligations related to mobile phone licenses contracts since the year (2007) to (2020).

"This matter came after he submitted an official request that won the support of (84) deputies to open this investigation, which won the approval of the Speaker and his first deputy," Al-Sudani said in a statement seen by him / the information, stressing that he will follow the developments of this matter as he is a member of a committee. Follow up the implementation of the government program and strategic planning.

He added, "This step enhances the professional supervisory work that is based on the constitution and the law and contributes to holding accountable all who caused the waste of public money, regardless of its location."

The Sudanese had previously demanded not to implement the recent cabinet decision to extend the contracts for mobile phone licenses and the consequent abortion of the fourth national license as well as the existence of waste of public money in this file, which he mentioned repeatedly in the print and visual media and official books. Ended / 25   https://www.almaalomah.com/2020/07/21/486039/

British Newspaper: Iraq Plans To Borrow 18 Billion Dollars

Time: 7/21/2020 08:49:53 Read: 3,289 times  (International: Al Furat News) A British newspaper said that the Iraqi government plans to borrow $ 18 billion.

And the Financial Times published a report for her correspondent in the Middle East, Chloe Corniche, entitled "Iraq Warns that Economic Problems May Raise Insecurity."

The title of the report is a phrase quoted from a speech by Finance Minister Ali Allawi, who said that "the issues that were buried because of the rise and growth of oil revenues are taking shape now", referring to the inflated expenditures and a monthly wage bill of $ 5 billion, and this includes payments for an estimated 300 thousand of "Ghosts" or imaginary employees, according to the author.

The writer says that the financial situation in Iraq, the second largest oil producer in OPEC, is receiving a devastating blow after the drop in crude oil prices by more than half compared to last year.

The author is based on the Oxford Institute for Energy Studies when referring to the decline in Iraqi revenues from oil exports, from $ 6.1 billion in January to its lowest level at 1.

The author returns to Allawi, who says that Baghdad is no longer able to rely on current oil prices.

And Chloe quoted Allawi as saying that Iraq "has been holding regular and very intense discussions with the International Monetary Fund for some time now," adding that Baghdad "may apply for some budget support." "There is now a growing recognition that we are moving to an environment with relatively low oil prices. We really have to find an alternative to restructure our public finances, to take account of this new normal," he says.

The country's poverty rate is expected to rise to 31.7 percent this year, from 20 percent in 2018, as the Corona epidemic is pushing 4.5 million Iraqis to fall below the poverty line, according to a new joint assessment by the government, the United Nations, the World Bank and Oxford University.

The writer says that low oil prices leave the government with little room to maneuver.

The author relies on the words of analysts who said that the government can take advantage of $ 68 billion in foreign reserves to cover dollar bills, such as imports and debt service, and is expected to borrow $ 18 billion from home and abroad to cover government wages for the next few months. LINK

Financial Times: Iraq's Spending Is Inflated And Includes Payments For Some 300,000 "Ghosts"

July 21, 2020 at 8:08 am  33 Views  Direction / follow  The British Financial Times newspaper published a report entitled "Iraq warns that economic problems may cause insecurity."

The Middle East correspondent in the Financial Times, Chloe Corniche, stated that the title of the report is a phrase quoted from an interview of the Iraqi Finance Minister Ali Allawi, who said that "the issues that were buried because of the rise and growth of oil revenues are taking shape now," in reference to the inflated spending and a monthly wage bill worth 5 billion dollars. This includes payments for an estimated 300,000 “ghosts” or fictional employees, according to the author.

The writer says that the financial situation in Iraq, the second largest oil producer in OPEC, is receiving a devastating blow after crude oil prices fell by more than half compared to last year.

The author is based on the Oxford Institute for Energy Studies when referring to the decline in Iraqi revenues from oil exports, from $ 6.1 billion in January to its lowest level at $ 1.4 billion in April.

The author returns to Allawi, who says that Baghdad is no longer able to rely on current oil prices.

And Chloe quoted Allawi as saying that Iraq "has been holding regular and very intense discussions with the International Monetary Fund for some time now," adding that Baghdad "may apply for some budget support." "There is now a growing recognition that we are moving to an environment with relatively low oil prices. We really have to find an alternative to restructure our public finances, to take account of this new normal," he says.

The country's poverty rate is expected to rise to 31.7 percent this year, from 20 percent in 2018, as the Corona epidemic is pushing 4.5 million Iraqis to fall below the poverty line, according to a new joint assessment by the government, the United Nations, the World Bank and Oxford University.

The writer says that low oil prices leave the government with little room to maneuver.

The author relies on the words of analysts who said that the government can take advantage of $ 68 billion in foreign reserves to cover dollar bills, such as imports and debt service, and is expected to borrow $ 18 billion from home and abroad to cover government wages for the next few months. LINK

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