KTFA Members "Sunday News" 7-5-2020
KTFA:
Samson: Iraq wins an international position that it did not obtain in 50 years
5th July, 2020
The Ministry of Education announced today, Saturday, that Iraq won the position of Director of the Department of Science and Scientific Research at the International Science and Culture Organization (ALEXO) for the first time in 50 years.
She said in a statement received by Shafaq News Agency, that the Minister of Education and Chairman of the National Committee for Education, Culture and Science in Iraq Ali Hamid Mekhlef congratulated all intellectuals and academics on the victory of Iraq in the position of Director of the Department of Science and Scientific Research in ALEXO, which he did not obtain in 50 years.
He added that, "after strenuous efforts made by the Iraqi National Commission for Education, Culture and Science for two consecutive years, the fourth day of July culminated in the approval by ALEXO of this victory in its 113th session, which was held remotely after intense competition between seven Arab countries."
The Arab Organization for Education, Culture and Science (ALECSO) is a specialized organization, based in Tunisia, working within the framework of the League of Arab States and mainly concerned with the advancement of Arab culture by developing the fields of education, culture and science at the regional and national levels and coordination between them among the Arab member states.
The organization was established under Article III of the Charter of Arab Cultural Unity, and its establishment was officially announced in Cairo on July 25, 1970. LINK
Samson: Al-Nusairi invites the Prime Minister to meet with private banks and address obstacles to their contribution to overcoming the economic crisis
5th July, 2020
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 the stimulation and revitalization of 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 objectives for the 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
Second, the legal environment must be provided and the rule of law should be extended 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, and for the purpose of overcoming the banks crisis, in a way that ensures banks moving from the role of banking to the developmental role and revitalizing banking work in the current circumstance requires the government, in particular the esteemed cabinet and the emergency cell, to activate the decisions previously issued The Council of Ministers and the Economic Affairs Committee 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 confine them to government banks according to its letter 207 on 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 fixed and cash assets lost by the branches of private banks, which amounted to (37) branches in the governorates occupied by ISIS in 2014 and is documented by 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
Samson: The stock market starts its week with losses
5th July, 2020
Stock index fell, Sunday, in the first sessions of the week, as the index fell by 0.31%
The number of traded shares reached 468.7 million, valued at 446.3 million dinars
The index witnessed a decrease of 11 shares offered by Middle East Bank shares by 10.00% and Gulf Bank shares by 7.69%
While the shares of five companies, offered by the National Bank, increased by 8.00% and the shares of Zain Bank of Iraq increased by 2.70%
Foreign investors sold 8 million shares, worth 27 million dinars LINK
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Samson: Brent crude is expected to reach $ 60 a barrel
4th July, 2020
On Friday, experts at Capital Economics expected that Brent crude prices would rise to $ 60 a barrel by the end of 2022 from their current levels of $ 42.
These expectations come despite the slowdown in demand for crude oil in light of OPEC + cuts.
Experts at the bank indicated that it is likely that oil prices will not rise quickly, and that recovery in demand for crude oil will be slow, especially with the increase in the numbers of infections with the Corona virus again, which may raise concerns about a second wave of the virus. LINK
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Samson: Private banks: The capital of banks operating in Iraq amounted to more than 15 trillion dinars
09:42 - 07/05/2020
The Iraqi Private Banking Association revealed the size of the Iraqi banking sector, as the capital of banks operating inside the country reached more than 15 trillion dinars.
The Executive Director of the Association of Iraqi Private Banks, Ali Tariq said in a statement received / information /, a copy of it, that "the data prepared by the Central Bank indicates an increase in the capital of the banking sector to more than 15 trillion dinars."
Tariq added, "The banking sector has witnessed a great development during the past years, and was able to increase the volume of lending and deposits in banks, which will positively affect the Iraqi economy, especially after the central bank reduced interest on small and medium projects."
Tareq stressed that "the capital of Iraqi banks reached until the year 2019 more than 15.3 trillion dinars, divided into 3.3 trillion dinars, the capital of government banks, while the capital of private banks amounted to 12 trillion dinars", noting that "deposits in the banking system amounted to 82.1 One trillion dinars, of which 71.38 trillion dinars are in government banks, while in private banks 10.72 trillion dinars.
Tariq pointed out that “cash credit amounted to 42 trillion dinars divided into 34.2 trillion dinars provided by government banks and 7.8 trillion dinars provided by private banks, while pledge credit amounted to 25.2 trillion dinars divided into 17.2 trillion dinars from government banks and 8 trillion dinars from Private banks.”
He stressed that "bad debts amounted to 4.1 trillion dinars divided into 2.37 trillion dinars in government banks and 1.77 trillion in private banks, and this failure is due to the lack of commitment of borrowers to pay back borrowing money, explaining that the profits of banks during the past year amounted to 1090 billion dinars divided into 956 billion Dinars for government banks and 134 billion dinars for private banks. LINK
Don961: The Iraqi Institute for Economic Reform contracts with experts
Saturday 04 July 2020 Baghdad / Al-Sabah
The Iraqi Institute for Economic Reform seeks to contract with experts who can supplement the Institute's sessions with proposals, by submitting a policy paper and by two papers in session.
A statement of the institute conveyed that this step comes in line with the principle of societal partnership in formulating economic reforms in cooperation with (CIPE) to organize three electronic dialogue sessions, in order to issue reform packages that address the challenges faced by the national economy.
The statement pointed out that the three sessions will stand at three important joints in the national economy,as the first focuses on rationalizing public spending, addressing slack career and reforming the salary scale and the role of the private sector in that,while the second joint stands when working on developing the private sector and providing the necessary financial liquidity
The third chapter deals with maximizing public revenues through tax and customs channels. link
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Samson: The Iranian riyal continues its decline and records a new record collapse
5th July, 2020
The Iranian riyal continued its decline against the dollar, to record today a new record collapse of 217 thousand riyals per dollar. Iran is living in deteriorating economic conditions as a result of the US sanctions and the spread of the Coruna virus.
In the meeting of the government economic team, Iranian President Hassan Rouhani directed the central bank to control the foreign exchange market, and pointed to the disruption of trade with neighboring countries during the past months due to the Corona pandemic, and said that "stability will return to the economy, and the currency market, after the return of import and export in the future To what it was before the Corona outbreak."
Rouhani said that "the enemies seek to manipulate the prices of the dollar, gold coins and investment markets," considering that they are "tools of psychological enemies to confront Iran," stressing that "the enemy will not succeed in pushing the Iranian economy toward collapse." Rouhani denied that the economic situation was beyond the control of the government, and said that "the country's economy is under management."
Representatives in the Iranian parliament are seeking to pressure the government against the background of economic conditions, as dozens of deputies signed a project to hold President Hassan Rouhani accountable regarding the collapse of the national currency, the high prices of real estate and cars, and the nuclear deal. LINK
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Samson: The Integrity Committee opens the file of looted funds
5th July, 2020
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 it promotes economic openness in its Arab and international surroundings."
Hamdan pointed out that "Iraq’s important strategic location in the way of trade will contribute to restoring its economic role and strengthening its position among the countries of the region." 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 to 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. LINK