KTFA Members "News and Views" Thursday Afternoon 5-19-2022
KTFA:
Popeye7: Imo, a green light possibly?... They obviously concluded this for a reason, and could this be the go ahead for the CBI to change the rate?..
Clare: IMF Staff Concludes Staff Visit to Iraq
May 19, 2022
Washington, DC: An International Monetary Fund (IMF) mission, led by Tokhir Mirzoev, visited to Amman, Jordan, during May 14-18, 2022, to discuss with the Iraqi authorities recent economic developments, the impact of global events on the economic outlook, and the country’s policy priorities. At the conclusion of the visit, Mr. Mirzoev issued the following statement:
“The economic recovery is well underway.
Cushioning the impact of surging food prices on the most vulnerable is the most urgent priority.
Using the current favorable oil market conditions to accelerate structural reforms and advance socio-economic priorities will be key to strengthen Iraq’s medium-term economic resilience.
Washington, DC: An International Monetary Fund (IMF) mission, led by Tokhir Mirzoev, visited to Amman, Jordan, during May 14-18, 2022, to discuss with the Iraqi authorities recent economic developments, the impact of global events on the economic outlook, and the country’s policy priorities. At the conclusion of the visit, Mr. Mirzoev issued the following statement:
“The economic recovery is well underway. In 2021, buoyed by the resumption of activity, a more accommodative fiscal stance, and stimulus measures by the central bank, real non-oil GDP rebounded by an estimated 20 percent and is poised to expand by around 5 percent this year. Oil output is projected to reach its pre-pandemic level and bring overall real GDP growth to 10 percent in 2022. The war in Ukraine is affecting Iraq mainly through its global impact on commodity prices.
In 2022, soaring oil revenues will more than offset the increased food and energy import bills. As a result, the fiscal and current account balances are projected to post double-digit surpluses in percent of GDP. Nonetheless, headline inflation is expected to climb to 6.9 percent, up from 6 percent last year, driven in part by higher food prices, which are adversely affecting the poorest segments of the population.
“Cushioning the impact of surging food prices on the most vulnerable is thus the most urgent priority. With fiscal policy paralyzed by the absence of the 2022 budget—which limits current fiscal expenditures to last year’s level—strengthening spending efficiency, maintaining tight control over public hiring, and reprioritizing expenditures within the overall budget cap will be essential to enable boosting targeted cash transfers to the most vulnerable and containing the poverty impact of the rising cost of living.
“In an environment of high oil prices and against the background of elevated global risks and uncertainty, the focus of macroeconomic policies needs to shift toward consolidating economic stability and strengthening Iraq’s long-term economic resilience. In the short run, maintaining fiscal discipline and tapering the central bank’s lending support to the real estate sector will help avoid adding to inflationary pressures. In addition, despite large reconstruction and other investment needs, limited near-term absorptive capacity, fiscal vulnerability to oil price volatility, and the challenges of the global energy transition call for building buffers for the future by saving a portion of oil revenues via a carefully designed sovereign wealth fund.
“The current favorable oil market conditions also provide an opportunity to accelerate structural reforms envisaged in the authorities’ “White Paper.” Strengthening the quality of public services and creating the fiscal space for much-needed investments and the social safety net require a civil service reform, reducing inefficient energy subsidies, diversifying fiscal revenues, and strengthening governance.
Fixing the electricity sector will be crucial to reduce fiscal costs and enable private sector productivity. Improving the coverage and targeting of social assistance will help better protect the most vulnerable. Enhancing governance in large state-owned banks and completing their audits and restructuring will facilitate access to finance and job creation by the private sector.
“The mission welcomes the authorities’ increased attention to the challenges of climate change and the release of Iraq’s first Nationally Determined Contribution document last year. In the coming months, the mission encourages prioritizing the preparation of national climate adaptation and mitigation plans, development of green financing, and full integration of climate-related priorities into the macroeconomic policy framework. The IMF stands ready to support Iraq in these endeavors.
“The IMF staff team would like to thank the authorities for candid and productive discussions and looks forward to continuing close cooperation with Iraq in the period ahead.”
IMF Communications Department LINK
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Clare: Iraq achieves a financial surplus of more than 11.4 trillion dinars in the first quarter of 2022
05/19/2022
The Ministry of Finance revealed that the percentage of non-oil revenues did not exceed 4% of the total revenues during the first quarter of 2022.
A report on the ministry, seen by "Al-Iqtisad News", stated that "the total oil revenues amounted to 33.3 trillion dinars, while the total non-oil revenues amounted to 1.5 trillion."
The total oil and non-oil revenues amounted to "34.9 trillion dinars until March of 2022."
The report indicated that "the percentage of oil revenues out of the total revenues amounted to 96%, compared to 4% the percentage of non-oil revenues."
According to these data, Iraq achieved a financial surplus of 11.41 trillion dinars during the first 3 months of 2022.
Economists expect Iraq's oil revenues to exceed 100 billion dinars by the end of this year, thanks to the rise in global oil prices. LINK
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Clare: Opening it may bring down big heads.. Parliamentary Integrity: “Corruption files” are closed with a “political veto”
2022-05-19
On Thursday, the Parliamentary Integrity Committee revealed efforts and close steps to uncover major corruption files that topple large political and partisan heads, and uncover cover-up and procrastination of cases that have devoured the country's resources and public money.
The head of the committee, Nahida Al-Dayni, told Shafak News Agency; "Major corruption files closed with a political and party veto that have not been opened so far over several parliamentary sessions due to their resounding results that topple large fortified parliamentary political and party heads and deals that cannot be aborted."
Aldaene noted; He pointed out that "the current Integrity Committee includes new faces and personalities who are determined to work professionally in parliament, away from party and factional affiliations, and that a number of large files will be opened and presented to the supervisory and integrity authorities to take the necessary measures."
Al-Daini indicated that "the politically-wrapped corruption files looted about a third of the country's revenues and the budgets of projects and services in all sectors, amid the inability of government and regulatory agencies to address them."
She called a member of Parliamentary Integrity; The government authorities concerned with integrity and oversight, to cooperate with the Parliamentary Integrity Committee, to take deterrent legal measures regarding corruption cases and to restore the citizen’s confidence in the supervisory and legislative authority. LINK
GMan: A Check mark on my list. I've noticed this "Corruption Files" theme is happening in other places as well. In agreement "Exciting Times" for sure.
Zeeman: This is a very telling article and if they finally get the big ones this will help the country and citizens. imo could this be a reason that Malaki and company are fighting so hard because they will lose their immunity?
Clare: Source: The dismissal of the Governor of Salah El-Din came from the Prime Minister due to mismanagement and corruption
2022-05-19
A parliamentary source revealed, on Thursday, that the dismissal of Salah al-Din Governor Ammar Jabour al-Jubouri from his position came from the Presidency of the Council of Ministers to the House of Representatives.
The source told Shafaq News Agency, "The reason for dismissing al-Jubouri came after the recommendation of the investigative committees in the Council of Ministers, which diagnosed the governorate's mismanagement and waste of public money, and accordingly the committees recommended in their report that the governor be relieved of his position."
And earlier today, the Iraqi parliament voted, in today's session, to dismiss the governor of Salah al-Din Ammar Jabour al-Jubouri by an absolute majority.
Later, a source close to the dismissed governor of Salah al-Din, Ammar al-Jubouri, told Shafaq News Agency, "Al-Jubouri is still exercising his administrative duties as governor of Salah al-Din, and he will hand over his duties to his representative after the arrival of the administrative order that includes the approval of the Council of Ministers for his dismissal."
He explained that "the parliament's vote to dismiss him (Ammar Jabor Al-Jubouri) does not mean that it will be implemented at the time of approving the dismissal, but rather that the matter is valid if it is approved by Prime Minister Mustafa Al-Kazemi," adding that "(Al-Kazemi) will take over the administration of the province by proxy. until the appointment of a new governor. LINK
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Clare: The Anti-Money Laundering and Terrorist Financing Office signs a bilateral cooperation agreement with the Integrity Commission in the Kurdistan Region
May 19, 2022
The Anti-Money Laundering and Terrorist Financing Office signs a bilateral cooperation agreement with the Integrity Commission in the Kurdistan Region
Under the patronage of the Chairman of the Anti-Money Laundering and Terrorist Financing Council, Governor of the Central Bank of Iraq, and based on the office’s tasks in combating money laundering and terrorist financing crimes, and based on the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2015, the office signed on 05/19/2022
A cooperation agreement with the Integrity Commission in the Kurdistan Region to work on facilitating the exchange of information with the office regarding suspicious financial operations, limiting money laundering and terrorist financing operations, advancing an Iraqi reality protected from money laundering crimes, prosecuting wanted persons by Iraqi authorities, and recovering smuggled corruption funds in line with the Iraqi constitution and Iraq’s obligations Towards international organizations related to combating money laundering and terrorist financing, which require concerted local efforts to confront these crimes and combat their emerging methods.
Central Bank of Iraq
Media Office
May 19, 2022
https://cbi.iq/news/view/2004