Monday Iraq Economy News Highlights 5-23-22

Monday Iraq Economy News Highlights 5-23-22

International Monetary: Rising oil prices are an opportunity to implement reforms of the White Paper

Posted On 2022-05-23 By Sotal   Translation: Hamed Ahmed]The Iraqi economy is expected to fully recover, and return to its pre-Coronavirus situation, after the apparent rise in global oil prices, with indications of a doubling of financial budgets and recording a surplus of domestic product. The International Monetary Fund believes that this financial improvement is an appropriate opportunity to implement measures stipulated in the white paper to reform the economic situation, stressing that this includes improving the quality of public services and creating investment opportunities, as well as supporting social welfare.

A report published by (The National), the news website and its translation (Al-Mada), stated that "the International Monetary Fund stated in a statement that the strengthening of oil production is expected to push the growth rate of Iraq's gross domestic product this year to rise by 10%."

The report added, "The International Monetary Fund's estimates indicate that Iraq's economy has begun to recover in a new way." And he stated, "The IMF expected that the real GDP this year would reach its pre-Corona pandemic rate, as the country, which is the second largest oil producer in OPEC, will benefit from the rise in oil prices."

The report indicated that “the domestic product of the non-oil sector, which expanded by 20% during the year 2021, is expected to expand by another 5% during this year, due to the resumption of economic activity as well as a stronger financial consensual position and more stimulating measures than the Central Bank of Iraq.” “.

The head of the International Monetary Fund mission in Iraq, Tokher Mirzov, said that "the economic recovery is going well."

Mirzov suggested that "the current fiscal and monetary balances will double and record a relative surplus in the country's gross domestic product."

The report stated, "Crude oil prices, which rose to less than $140 a barrel in mid-March after the United States and its allies imposed economic sanctions on Russia in response to its military invasion of Ukraine, have made some gains, but are still rising." And he spoke about "a 67% increase in oil prices during the year 2021 due to increased demand and the mobilization of global economic momentum."

And the report indicated that "Brent crude, the international benchmark for two-thirds of the world's oil, and West Texas Intermediate crude, have recently reached more than $111 per barrel." He stated, "The economies of the oil and gas exporting countries in the Middle East are making profits from the rise in energy prices, and the International Monetary Fund expects the economic growth rate of these countries to rise this year by 5.4%."

The report continued, "Consumer prices are on the rise in Iraq, despite the rise in oil prices," expecting "the inflation rate in the country will rise during this year to 6.9%, and one of the reasons for this is due to the rise in food prices."

While the fund's envoy, Mirzov, stressed that "high oil revenues this year will compensate for the rise in food prices and imported energy," but he considered that "caution against the impact of high food prices on the most affected segment must remain an urgent priority."

And Finance Minister Ali Allawi said last month, "Iraq, as is the case with other oil-exporting countries in the region, is trying to reform its economy and diversify its sources."

Allawi pointed out that "the country is seeking technical assistance and moral support from the international community to strengthen its reform program." The report stressed, "An economic reform document called the White Paper was submitted by Iraqi Prime Minister Mustafa Al-Kazemi to Parliament in 2020, and recommended stopping financial support for sectors considered vital to Iraq's economy, especially the energy sector."

Mirzov returns to say, "The current favorable conditions of the oil market also provide an opportunity to expedite the structural reforms stipulated in the white paper." Mirzov added, "This includes enhancing the quality of public services and creating a financial space for the more needed investments," explaining that "the social protection network requires a reform of civil services, reducing the ineffective rate of energy subsidies, diversifying sources of financial resources and strengthening management." The report continues, "The IMF stated that reforming the electric power sector will be vital to reduce financial costs and enhance the productivity of the private sector."

He pointed out that "improving social aid coverage and targeting will also help protect the most affected segment of the country."

And the report indicated, "The country needs to build a protective budget for the future by saving part of oil imports through a well-designed sovereign fund."

The director of the Middle East and North Africa region at the International Monetary Fund, Jihad Azor, said last April that "the current situation does not allow time to be wasted. It is important to take advantage of this sudden gain from high oil prices to accelerate and strengthen the economic transformation that Iraq needs."

Azor added, "The country needs to maintain a rate of progress in the optimal use of resources stemming from the increase in oil prices, while also taking the necessary structural reforms in the medium term in order to avoid the impact of any fluctuation in oil prices."   About: The National News  LINK

Iraq Raises Its Holdings Of US Bonds To More Than Two Billion Dollars

Shafaq News/ The US Treasury announced, on Monday, that Iraq's holdings of US bonds increased to more than two billion dollars during the month of March.

The Treasury said in its latest schedule seen by Shafak News Agency, that "Iraq's possession of US Treasury bonds for the month of March of 2022 increased by two billion and 117 million dollars, or 8.79%, to reach 26.203 billion dollars, after it was 24.086 billion dollars in the month of February." .

And she indicated that "these bonds also rose from the same month last year 2021, when Iraq's possession of bonds amounted to 17.8 billion dollars."

She added that "Iraqi bonds, including long-term guarantees amounting to 11.348 billion dollars and short-term guarantees amounting to 14.855 billion dollars," noting that "these bonds represent 0.3% of the world's bonds."

In the Arab world, Saudi Arabia is at the forefront of the countries with the most US bonds, raising its holdings to reach $115,461 billion. Kuwait comes second with $46.815 billion, the UAE is third with 45,640, then Iraq is fourth and Oman is fifth with $5.690 billion, then Morocco is $3.672 billion.

And the US Treasury indicated that "the most holder of US bonds is Japan with 1,232.382 trillion dollars, followed by China with 1,039.590 trillion dollars, the United Kingdom with 634.948 billion dollars, and then Ireland with 315,858 billion dollars."   LINK

The Iraqi Stock Exchange Records Trading Of More Than 10 Billion Dinars In A Week

Shafaq News/ The Iraq Stock Exchange announced today, Sunday, the trading of shares with a financial value of more than 10 billion dinars during the past week.

The market said in a report seen by Shafak News Agency, "The number of companies whose shares were traded during the past week amounted to 51 joint-stock companies, while the shares of 38 companies were not traded due to the lack of convergence of purchase orders prices with sales orders, while 14 companies continued to be suspended for not providing disclosure out of 103 companies." listed on the market.

He added that "the number of traded shares reached 5 billion and 895 million and 797 thousand shares, with a financial value of 10 billion and 15 million and 299 thousand dinars, through the implementation of 3105 deals," noting that "the ISX60 traded price index closed at 583.47 points, recording a decrease of 1.65 % from its closing in the previous session.

He pointed out that the number of shares purchased from non-Iraqi investors last week amounted to 48 million shares, with a financial value of 207 million dinars, through the implementation of 11 deals, while the number of shares sold from non-Iraqi investors reached 590 million shares, with a financial value of 966 million dinars, through the implementation of 507 deals. .

The Iraqi Stock Exchange organizes five trading sessions per week from Sunday to Thursday, and includes 103 Iraqi joint stock companies representing the sectors of banking, telecommunications, industry, agriculture, insurance, financial investment, tourism and hotels.  LINK

Efforts For A “Legal Justification” Granting Al-Kazemi’s Government The Authority To Send The Budget To Parliament

2022-05-23 06:04  Shafaq News/ Parliamentary sources revealed, on Sunday, that there are efforts to find a legal justification to give the caretaker prime minister an official authorization to send the draft federal budget law for the year 2022, for the purpose of passing it by the House of Representatives.

Experts in Iraqi law confirm that authorizing the caretaker Prime Minister, Mustafa Al-Kazemi, to send the draft budget, requires an absolute majority vote of the members of the Iraqi Council of Representatives, i.e. (half of the total number + one) to enable the latter to perform this procedure exclusively.

And the Federal Court (the highest judicial authority in Iraq), had canceled last week, the draft law on emergency support for food security and development, sent by the Al-Kazemi government, and it was scheduled to be voted on by the House of Representatives during a regular session, based on a lawsuit filed by Representative Basem Khashan. .

In a clarification following the cancellation of the Food Security Law, the Federal Court noted the inability of the caretaker government to send bills to Parliament, and that such a procedure requires the presence of a government with full powers, which raised fears of disrupting the current year's draft budget.

The political blockage and the intransigence of the parties controlling the scene with their demands was the formation of the government, which contributed to the disruption of a number of bills that have direct contact with the citizen, including the General Budget Law, which was expected to include setting a financial ceiling for job grades long awaited by unemployed graduates. .

Regarding the above, a parliamentary source told Shafak News Agency, "The information obtained confirms that the caretaker government may refer the budget law for the current year to the Parliament for passage, if it obtains an official parliamentary mandate that enables it to refer the bill to Parliament."

The source added, "All the data indicate the interaction of most parliamentary forces with that, to ensure the passage of all projects of interest to the citizen," noting that "passing the emergency food security support law does not contradict the budget law, given that the first aims to accelerate the disbursement of financial allocations to the authorities." concerned with food and medicine and the energy profile (electricity and fuel)."

For his part, the legal expert, Ali Al-Tamimi, suggested the possibility of parliament authorizing the government to "administer daily affairs" the right to send the general budget law, because it is related to food security, which is one of the first priorities of the caretaker government.

Al-Tamimi explained, to Shafaq News Agency, that "this mandate needs a vote of the absolute majority of the number of members (half +1), and that this right is limited only to the budget law exclusively, and the mandate must include the approval of the final accounts of the previous year's budget in accordance with the Financial Management and Debt Law Year No. 6 of 2019, all in accordance with Articles 62, 5 and 61 of the Constitution and 12 and 13 of the Financial Management and Public Debt Law No. 6 of 2019 and Articles 128 to 138 of the Parliament’s bylaws. LINK

The Parliamentary Economy Is “Dissatisfied” With The Lack Of Transparency In Kurdistan Oil Contracts

Politician  Last Update 05/23/2022  The Information/Baghdad…A member of the Parliamentary Economy and Industry Committee, Soran Omar, confirmed on Monday that there is clear resentment at the lack of transparency of oil contracts in the Kurdistan region of Iraq, noting that the partnership contracts between foreign companies and the region are threatened with termination by the International Court.

Omar said in an interview seen by / the information /, that "the implementation of the decisions related to the Federal Court needs to form the next new government, because the current government does not have sufficient powers for this purpose, and we believe that the legislation of the oil and gas law in this electoral cycle is the only solution that represents a turning point." to solve the political and economic crises in the country.

He added, "If the region delivers oil to the company (SOMO), its profits will be more than the present time, provided that its imports are transparent, as well as the adoption of the federal budget law and the guarantee of the right of the Kurds and the prescribed share of the region."

He pointed out that "the oil contracts concluded by companies with the region must be reformulated again, because they were not at the required level, such as the contracts of the federal government," stressing that "the federal government and the regional government must find a common solution to serve the people and citizens, and that imports be transparent and clear."

Omar explained, "Foreign oil companies have interests and partnerships with the region, and in the event of a crisis between the government and those companies in the region, the International Court in London is the one who decides the possibility of rescinding those contracts, and in this case these formulas and decisions will not be in favor of the Kurdistan region." And he indicated that "there is clear resentment at the lack of transparency of oil contracts in the region." finished/25   https://almaalomah.me/2022/05/23/599395/

He did not abide by the court's decision.. Parliamentary integrity talks about disavowal from Kurdis

article at link   https://baghdadtoday.news/ar/news/189755/A

Politician: The Reconstruction Fund Finances Al-Halbousi Economics Offices In The Governorates

Politician   Last Update 05/23/2022   Information / Baghdad...The Iraqi politician, Jamal Hassan, confirmed, on Tuesday, that the Reconstruction Fund finances the economic offices of the party of the current Speaker of Parliament, Muhammad al-Halbousi, in the liberated provinces.

Hassan said in an interview with "The Information", "The Reconstruction Fund is financed by the treasury of Iraq, not a political party or alliance, and it is supposed to carry out its work away from any political debates and to be impartial and not subject to quotas between parties."

Hassan added, “The vision of the projects of the Reconstruction Fund and the bodies that announce their supervision, and this is a position in the image and sound, but there are hundreds of videos that reflect the message that the fund is affiliated with the Halbousi party and not an independent government agency,” stressing that “there are indications that the fund’s projects have turned into a financier. Al-Halbousi’s party offices in the liberated governorates.

He pointed out that “politicizing the projects of the Reconstruction Fund is a fatal mistake that is borne by the Al-Kazemi government, which turns a blind eye to the politicization of state institutions and transfers billions of dinars into pockets of political parties and alliances.”

Several political circles in the liberated provinces criticized the projects of the Reconstruction Fund and the dominance of Al-Halbousi's party over them. https://almaalomah.me/2022/05/23/599427/