KTFA Members "News and Views" Sunday PM 11-15-2020

KTFA:

OlLar:  Calling for the inclusion of Large investment companies ? In the coming days?

Samson:  Erbil Stock Exchange announces its opening near to investors

15th November, 2020

The director of the Erbil Stock Exchange, Sherwan Mustafa, announced that the Erbil Stock Exchange will open in the coming days after removing obstacles, calling for the inclusion of large investment companies on the stock exchange

Mustafa said, that all circumstances have been removed before the opening of the Erbil Stock Exchange, as during the coming days the stock exchange will open to investors, adding that consulting companies will be present to provide advice to new investors

Mustafa called for the large investment companies to be listed on the stock exchange because they get great privileges represented by tax exemptions, explaining that there are a number of companies that create excuses for not being listed on the stock exchange  LINK

Samson:  Parliamentary Finance issues conflicting figures about Iraq's debt ... and its President: $ 70 billion owed by us!

15th November, 2020  (In reference to post 44)

The head of the Parliamentary Finance Committee, Haitham al-Jubouri, announced, on Sunday, that the volume of external and internal debts owed by the Iraqi government amounted to $ 70 billion, contradicting what a member of his committee, Abdul Hadi al-Saadawi, confirmed that the country's debts amounted to $160 billion

Al-Jubouri said in a brief statement today (November 15, 2020) followed by Digital Media NRT, that "a lot is being asked about the size of the debts on the Iraqi state ... the total debt is $ 70 billion. He added that "the external, including 24 billion dollars, and the internal 46 billion dollars

As a member of the committee, Abdul Hadi Al-Saadawi, said in a statement reported by Al-Sabah newspaper, that the total internal and external debts of Iraq amounted to more than $ 160 billion, indicating that the total debt increased after the approval of the fiscal deficit law during the past months

He added that “the external debts owed by Iraq and established within (the Paris Club, Kuwait debts and the Iraq-Iran war) amounted to more than 136 billion dollars, and the total volume of debts increased after the increase in external borrowing after 2014 and until now, bringing the total debt to more than 160 billion Most of the dollars are foreign debts, and have a very high interest rate

He continued by saying that “the government has spent sums of internal borrowing outside the legal frameworks, and we need data from the Ministry of Finance that clarify the mechanisms and outlets of spending,” indicating that “the borrowing and local revenues of the state were divided into two parts, which is that 80% of these funds are for the operational budget and 20% for the budget. Investment, where the 20% investment was divided into two parts; 50% for ministries' projects, and the same for regional development projects  LINK

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Don961:  After the conclusion of the last months, the eyes are “apprehensive” from 2021: Iraq’s only bet may be a “loser” ... and the economy is in “dire need” for a treasure lurking in the homes of Iraqis

2020-11-15  Yes Iraq: Baghdad

After the passage of the borrowing law, and the solution to the crisis issue of salaries for the remaining months of this year, frightening expectations about the next year began to appear, carrying with it news that was not much different from the current year.

Amidst the push and pull and severe rejection through which the borrowing law was difficult to pass, it seems that Iraq is promised more borrowing in the next year.

The national economy is “desperately needed” for a solution latent in Iraqi homes

On Sunday, the economic expert, Mazhar Muhammad Salih, identified two roads for the country to fill the actual deficit in the budget for next year, while noting that borrowing will be this time from individuals.

Saleh said in a press statement followed by "Yes Iraq", "The large financial surplus of individuals is important in internal investment, and reducing the state of deficit in the next budget."

He added that if the budget for next year is based on an actual and not hypothetical deficit, then it will be financed from the oil price differentials when the oil market improves for the benefit of exporters, then the deficit is only funded by borrowing.

He pointed out that "there may be a greater role for external borrowing this time, and internal borrowing this time will be directly from individuals or the public, by making substantial improvements to the secondary market that handles buying and selling."

He pointed out that "the Iraq Stock Exchange will have a fundamental role in expressing the secondary market and promoting dealing with financial debt instruments, among the public directly as individuals and institutions."

He explained, "There is a large financial surplus among the public, concentrated in the form of hoarding disconnected from the income cycle," indicating that "the national economy urgently needs it in moving real material and human resources, through investment and its financing from Iraq's internal financial energies."

We will borrow and borrow!

Earlier, the economist, Nabil Al-Marsoumi, wrote "shocking" lines about the country's economic situation, while addressing the "dissatisfied" with borrowing and those speaking about resorting to non-oil revenues.

Al-Marsoumi said in a blog posted by "Yes Iraq": "Why discontent with borrowing? It is a country totally dependent on oil, whose revenues constitute 99% of total exports, more than half of the GDP and 93% of public revenues."

He added, "Iraq does not have a diversified production base and does not have new resources that generate foreign currencies except oil. Oil in Iraq, gentlemen, is the backbone of economic life and it is the main engine for it, and without it, the country's revenues become zero or so."

He continued: “Even non-oil revenues depend on oil, our dinar derives its power from oil, our imports depend on oil, we import everything and we do not export anything, our incomes depend on oil, our agriculture and our industry are disrupted, but even our oil has been referred to foreigners to extract it from under our feet. “.

And he continued: "What other resources are you talking about, politicians who did not think and not contemplate the black day that we are going through today. You have spent hundreds of billions of dollars and yet you have failed not in building a diversified economy but even in establishing a sovereign fund that could be the repercussion of days of crisis." .

Al-Marsoumi stressed: “We will borrow, borrow and borrow until Corona dies or God decides something that was in effect!”.link

Godlover:  The articles are becoming even more encouraging for what we seek within the 2021 budget imo. I realize this is someone that may be in the know, however he talks in the article of something many on this forum have stated as well, that just does not make sense to me imo. Frank as well has stated it, but it seems to go against what WS had stated long ago imo. Why the supposed necessity to get citizens to the banks to deposit there stash of cash? WS had stated the NSCN's & the large notes would coexist with equal value imo. That would mean that a 25k IQD note would have the same value as a 25 IQD note imo. The citizens would over time return the large bills to the banks imo. As well, the necessity of bank accounts would be accomplished after the release of the NSCN's/ RI imo. 

Deepwoodz:  Imo....agreed Godlover! I don’t see any delay due to salaries. Of course I am just an electrician. The 1:1 in country makes it dummy proof in my mind. The phrase “drop the 3 zeros” helps as well. If they pay salaries now, like they’ve said, it’s electronically. These funds can have 3 zeros dropped just as easy as the push of a rate change button.

Citizens should have no problem understanding that,just like they shouldn’t have a problem understanding a 25k is now a 25 once those nscn’s come out. 

No reason to say you can’t change the rate. 

Don961:  The huge numbers are not "important": Iraq's debt ratio is "low" compared to other countries ... but a "minor point" makes it "the most dangerous."

2020-11-15 Yes Iraq: Baghdad

An economist revealed, the general situation of Iraq's debt, which seems "reassuring" in numbers compared to other countries, but the goal behind borrowing is more dangerous threatening the country.

Business expert Manar Al-Obeidi said, in a blog posted by "Yass Iraq", that "the numbers differed about the value of public debt, but the most correct figures are $ 70 billion, including $ 24 billion in foreign debts." There are two factors that affect the effect of public debt on the economy.

Regarding these two factors, Al-Obaidi shows that the first factor is “the ratio of public debt to GDP, and the proportion of Iraq is reasonable, as the ratio is around 30%, which is good if compared to the general average for countries as it reached close to 100% and some countries such as Japan, the public debt reached 238%. Of the GDP and Lebanon, whose debt-to-GDP ratio has reached 150%.

He pointed out that it is "a percentage that shows the possibility of the state repaying the debt through the domestic product, and the smaller the percentage, the more possible the possibility of repaying the debt."

As for the second factor, which is the areas of debt disbursement, Al-Obeidi explains that “many countries borrow for development projects that contribute to increasing the domestic product through investment projects and projects that perpetuate the community. Often countries have assets equal to or increase the value of the debt, but if the debt is As in the case of Iraq, it has mostly gone to operating expenses such as the disbursement of salaries and other things. It is a dangerous indication that these debts are not equivalent to real assets such as investment projects and the like equivalent to the value of those debts, and that these debts have gone unheeded.

He considered that "Iraq still has an opportunity to increase external borrowing to build development investment projects that contribute to strengthening its economy, providing real job opportunities and diversifying the revenues of the Iraqi government. However, the main reason for not borrowing for development goals is the lack of transparency of government programs and fear of bureaucracy and corruption, which prevent the donors of loans in Providing long-term loans that contribute to building an effective and strong Iraqi economy.

The main thing is to dissolve all obstacles to investment and reduce bureaucracy and corruption, which are the basis for the development of the Iraqi economy, which suffers from its mismanagement and ineffective laws. link

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Samson:  The arrest of counterfeit currency dealers in central Baghdad

15th November, 2020
A security force affiliated with the intelligence agency managed to arrest counterfeit currency dealers in the center of the capital, Baghdad.

A statement by the Intelligence Agency and received by (Al-Mustaqillah) today, Sunday, said that a force from the Baghdad Intelligence Directorate at the Ministry of the Interior managed to arrest two suspects trading in counterfeit currency in the Bab al-Sheikh area of ​​Baghdad.

The statement added that the two defendants were arrested with the flagrante delicto and in possession of three million fake Iraqi dinars, denominated in ten thousand dinars.

He pointed out that the counterfeit currency was seized in a seizure report and delivered with the accused to the competent authorities according to a fundamentalist receipt.   LINK

Samson:  An Iraqi government official was arrested on charges of bribery

16th November 2020
On Sunday, the Federal Integrity Commission announced the implementation of the arrest warrant issued against the General Director of Kirkuk Education, indicating that the order was issued based on the provisions of Article 307/1 of the Penal Code.

The investigation department of the authority, in its discussion of the details of the implementation of the arrest warrant issued by the judiciary, noted that the staff of the authority's investigation office in the governorate, under the supervision of the katoon enforcement agencies, implemented the arrest warrant issued against the General Director of Kirkuk Education. On charges of bribery. The department continued, explaining that the subject of the accusation was that the accused took sums of money in exchange for granting a position (department official) in the directorate. As a result, the court order issued against him was implemented.

The accused, accompanied by seized criminal exhibits and preliminary investigative papers, was brought to the competent investigating judge, as his statements were recorded in a court of law, and the judge decided to release him on a financial guarantee of ten million dinars.

On the twenty-second of last July, the Commission announced the issuance of an arrest warrant against the General Director of Kirkuk Governorate Education and members of the Pricing Committee, based on the provisions of Article (340) of the Penal Code, against the background of suspicions of wasting public money in the matter of maintenance and restoration of the equipment section in Preserved breeding.

LINK

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Samson:  Al-Kazemi's advisor talks about the stolen cards: We have distributed 13 million cards

15th January, 2020

Advisor to the Prime Minister for Elections Affairs, Abdul Hussein Al-Hindawi revealed, on Sunday, the distribution of 13 million biometric cards and 3 million under distribution, while indicating that the stolen cards will be disabled.

According to the official agency, Al-Hindawi said, "The biometric card is in the law, and about the past two months there was a meeting of the political blocs, in which they emphasized the importance of adopting biometrics exclusively in voting in the upcoming elections."

 He added, "The Commission's work is continuing in this direction, and there are more than 63 percent of the long-term biometric card for voters ready, as nearly 13 million have been distributed, and 3 million are in the process of distribution."

He pointed out that "the commission is in the process of distributing the remainder of it, as well as completing the voters who have not yet registered in the biometrics." He stressed that "there are agreements with the relevant companies, as well as the existence of all plans, so that the commission is ready before the next elections." He explained, "The short-term card has been withdrawn, as the approval of the long-term biometric card is supposed to be exclusive in the upcoming elections."

He stated, "The voter who has updated his electoral record, the Commission will deliver the card to him in various ways, whether by mail or other mechanisms taken to deliver it to the voter." He stated, "Any stolen card will be unfit for use, and therefore it is idle," stressing that "the long-term biometric card granted by the commission cannot be stolen or made outside the law," stressing that "the commission is determined to distribute the biometric card." For everyone". He pointed out, "The old short-term cards that were used in the previous elections have no effect, so there is a campaign in which everyone should contribute to our encouragement, which is distributing the new card, because without it the voter cannot vote, unless there is any other decision." 

 He noted that "the commission has started working diligently to educate citizens and push them to register and receive the biometric card for elections exclusively."   LINK

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