More Iraqi News Monday PM 11-23-20

More Iraqi News Monday PM 11-23-20

TLM724 Administrator BondLady’s Corner

A Government Advisor Warns Of Continuing Borrowing Policy

The appearance of Muhammad Saleh  Dialogues  Economy News – Baghdad  The financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, warned against continuing the borrowing policy to meet the government's operating expenses instead of going to investment projects that generate revenues for the state.

Saleh said in an interview with the Kuwaiti newspaper An-Nahar, which was reviewed by "Al-Iktissad News", "There are two restrictions on the federal budget for 2021, which are the continued decline in oil revenues and the continuation of operational spending at its high levels, and this will inevitably push to borrow to fill the actual deficit gap in this case, and in order for us to have financial space, i.e. the ability to borrow and pay, operational expenditures should be reset. Again, he directed borrowing to be related to income-generating projects.

Otherwise, what is called debt exhaustion and entering into very worried financial failures will occur, and therefore I see that the fiscal policy in light of the white paper will take the following path, as the 2021 budget was built on an actual and not hypothetical deficit financed from differences Oil prices when the oil market improves in the interest of exporters, then the deficit will only be financed by borrowing, and perhaps the role of external borrowing will be greater this time, and perhaps internal borrowing this time will be directly from individuals or the public, but it will require substantial improvements to the secondary market that handles buying and selling.

The Iraq Stock Exchange has a fundamental role in expressing the secondary market and promoting dealing with financial debt instruments among the public directly as individuals and institutions..

He pointed out that there is a large financial surplus among the public, concentrated in the form of hoarding disconnected from the income cycle, and the national economy is urgently needed to move the real material and human resources through investment and its financing from Iraq's internal financial energies.

The borrowing policy for investment and employment is the change that will dominate the policy. Finance in the next stage to avoid the risk of unproductive debt exhaustion

He pointed out that the extent of the matter related to the transformative industrial sector, which today constitutes the components of the gross domestic product and includes 16% of the workforce, has been the victim of the transformation in the economic policy climates in the last two decades of time.

The year 2003 and the launch of the freedom of external transfer without restrictions supported by a financial leverage represented by the availability of unilateral oil revenues funded for economic activity easily and easily through budget expenditures that constitute 40% of GDP, has transformed the national economy in general and national capitalism (industrial, agricultural and real estate) in particular to To be attracted by a non-productive pattern of rentier capitalism called finance capitalism, which is represented by the capacity for capital transfer in order to invest in banks, financial companies, banking and financial transfer offices, and commercial (finance) companies..

He added, "As the national capital as a whole has turned into the phenomenon of searching for accumulation and achieving rapid profit through coexistence on the role of oil rents in financing consumer activity without production due to the inflation of the government operating budget and the increase in spending in it in low-productivity services that generate incomes for a large, almost idle work force.

The coexistence of the source of the parasite parasitism with financial capitalism or capitalism rentier RENTAL capitalism , opted money towards the operational investment generating rapid profit capital which is the establishment of community banks rentier attracts easy savings and the remains of rents oil, to take over the consumer trade finance and in the integrated commercial capital cycle financial, but integrated into the economy of globalization and functions Its production abroad as a heavy-consuming commercial financing power is a double that is driven by domestic consumption .

The advisor to the Prime Minister of Iraq said, “The contribution of agriculture and manufacturing industry as an activity that constitutes nothing in the gross domestic product is only 6% and 37% of the Iraqi labor force works in it with very low productivity, while the government production function, especially the governmental manufacturing industry, has shrunk to an almost production force.

Today, it includes more than half a million unemployed workers who receive a monthly salary from the Ministry of Finance in the form of monthly grants in exchange for providing nothing from work since 2003 until now, and more than 100 state-owned enterprises that include hundreds of factories and production units, the majority of which are idle industrial, in return we find an expansion Massive in the government service sector, to include more than 3 million more than odd employees (except for the number of unemployed workers in the aforementioned state-owned companies), and they only provide 1,200 services that are supposed to be with a small digital force after their number two decades ago did not exceed 750 A thousand employees, and receive wages and salaries that are currently twice the per capita shareThe gross domestic product and productivity is said to not exceed 17 minutes out of eight hours of work per day.

Saleh added that the liberal economic rentier economic model disrupts production and the bulk of consumption supported by the import sector and dumping policies that suppressed national economic activity and inflated the unemployment figure, which exceeds 20% of the current work force and is constantly increasing with the growth of the population of one million people annually, and the labor market receives about 400 thousand new workers annually and they are added to the army of the unemployed because the capacity of the private sector has become limited and that the financing capital has moved away from real production and its work was limited to commercial, financial and marketing services activities, all linked to the strong availability of government oil revenues, so employment opportunities in the private sector have become stagnant. And marginal after the government is saturated with jobs and semi-unemployed professions . ”

Saleh explained that “there are 50,000 licensed companies, most of them from industry activities in the private sector, and only 9% of them work in the best case, as the private sector suffers from a distortion in the laws to guarantee workers upon retirement, and out of 7 million workers in the private sector, the insured of them do not More than the quarter million, which disrupted private activity and resort to government employment that provides retirement and unemployment insurance. I see it as the social dilemma that comes after the disruption of the real production function and the transformation of capital into a rentier force that serves the economic consumption pattern .

Number of observations 39, date of addendum 11/23/2020  https://economy-news.net/content.php?id=22831

The High Exchange Rate Of The Dollar In The Iraqi Market

Pratha News Agency147 2020-11-23  The exchange rates of the dollar rose in the main stock markets, while it stabilized in the local markets today, Monday (November 23, 2020)

Al-Kifah Stock Exchange recorded 125,000 dinars against 100 US dollars, while the exchange rate of the dollar for Sunday was 124,900 dinars per 100 dollars.   As for the exchange rate on the local market, it stabilized where it was Sales price: 125,500 dinars per $ 100.   Purchase price: 124,500 dinars per $ 100.

http://burathanews.com/arabic/economic/381054

The Ministry Of Finance Signs An Agreement For The Reconstruction Of The Liberated Areas With The German Development Bank

Reconstruction and building  Economy News _ Baghdad    The Ministry of Finance announced, on Monday, that Minister Ali Allawi has signed a reconstruction agreement for liberated areas with the German Development Bank.

The Minister’s Media Office said in a statement seen by "Al-Iqtisad News" that Finance Minister Ali Allawi signed a reconstruction agreement for liberated areas with the German Development Bank, in the presence of the head of the Liberated Areas Reconstruction Fund, Muhammad al-Ani, and the German ambassador in Baghdad.

In its statement, the media office stated that the signed agreement included two grants, the first to build fast-track hospitals to support the health system in Iraq to confront the Corona pandemic, and the second to support the activities of the Liberated Areas Reconstruction Fund in returning the displaced to their homes.

Number of observations 191 Date of addendum 11/23/2020  https://economy-news.net/content.php?id=22813

Justice And Agriculture Sign An Agreement To Pay Creditors' Dues Electronically

Banks  Economy News – Baghdad  The Ministry of Justice entered into an agreement with the Agricultural Cooperative Bank to pay the dues to the credit beneficiaries through electronic payment cards.

The Director General of the Implementation Department at the Ministry of Justice, Raad Saad Agency, said in a statement reported by the official Al-Sabah newspaper, “The department has signed an agreement with the Agricultural Cooperative Bank that includes the payment of dues to the beneficiaries through electronic payment cards in order to facilitate the creditors' receipt of their financial dues from anywhere and according to their desire without the need. To review the implementation directorates in Baghdad and the provinces. "

He added, "This measure came in view of the current conditions that the country is going through and the outbreak of the Corona pandemic."

He continued, "The project contributes to reducing the momentum of the directorates as well as eliminating a large percentage of financial and administrative corruption, in addition to including the agreement electronically archiving executive files, which leads to preserving them from damage, loss or theft, as well as developing the work of the department and its directorates by expediting the completion of transactions." And support for the experience of electronic governance and the transition to the technical method in the performance of judicial tasks.

Number of observations 110 Date of addendum 11/23/2020  https://economy-news.net/content.php?id=22814

Parliamentary Finance: $ 500 Billion Is The Size Of Iraq's Funds In Foreign Banks

Political| 04:26 - 23/11/2020  Baghdad - Mawazine News  Parliamentary Finance Reporter Ahmed Al-Saffar revealed, on Monday, the estimates of frozen funds in foreign banks, indicating that most of the estimates suggest that there are no less than 500 billion dollars.

According to the official agency, Al-Saffar said, "There are estimates and there are no accurate figures, but the majority indicate that the amount of money outside Iraq is not less than 500 billion dollars."

He added that "the process of accessing funds abroad is very necessary, as it is assumed that there will be a move by the government to retrieve it, especially as it is the easiest way to obtain funds and get out of the crisis."

He pointed out that "if information is available about the whereabouts of the funds, with which names are registered, and in which banks, the government can resort to international assistance to recover these funds." https://www.mawazin.net/Details.aspx?jimare=131501

Parliamentary Finance: $ 500 Billion Is The Size Of Iraq's Funds In Foreign Banks

Editing date: 11/23/2020 16:56 • 69 times read  [Baghdad-Where]  Parliamentary Finance Reporter Ahmed Al-Saffar revealed, on Monday, the estimates of the frozen funds in foreign banks, indicating that most of the estimates suggest that there are no less than 500 billion dollars.

According to the official agency, Al-Saffar said, "There are estimates and there are no accurate figures, but the majority indicate that the amount of money outside Iraq is not less than 500 billion dollars."

He added that "the process of accessing funds abroad is very necessary, as it is assumed that there will be a move by the government to retrieve it, especially as it is the easiest way to obtain funds and get out of the crisis."

He pointed out that "if information is available about where the funds are located, with which names are they are registered, and in which banks, the government can resort to international assistance to recover these funds." http://www.alliraqnews.com/modules/news/article.php?storyid=104255

Disclosure Of The Value Of The Fiscal Deficit In The 2021 Budget ... A Parliamentarian Warns

Economy  Monday 23 November 2020 | 03:12 p.m.| Views: 221     The deputy of the Saeroun Alliance, Riad Al-Masoudi, revealed, on Monday, the value of the expected fiscal deficit in the draft federal budget law for 2021 .

Al-Masoudi said that "the draft federal budget bill for 2021 will have a deficit of 70 trillion if the government does not provide any reform treatments," noting that "most of the government's statements to solve the financial crisis are marketing and unrealistic ."

He added that "the country's financial policy must be addressed by developing real and thoughtful solutions," noting that "all previous governments failed to put in place a financial policy that preserves the Iraqi economy, and if government remedies remain the same, the deficit and covering it in the 2021 budget will not be easy ." https://aynaliraqnews.com/index.php?aa=news&id22=141122

Complete The Procedures For Questioning The Minister Of Finance And Sending It To The Presidency Of Parliament

14:20 - 23/11/2020  The information / Baghdad ..Member of Parliament Yusef Al-Kalabi announced, on Monday, that the special procedures have been completed to question the Minister of Finance, Ali Allawi, and send them to the presidency of Parliament.

Al-Kalabi said in a tweet on his page on the social networking site "Twitter", which was seen by the information. Al-Kalabi added that it was sent to the Presidency Council to set the date. End / 25

https://www.almaalomah.com/2020/11/23/506628/

Economist: The Government Will Surround The Country Financially And Enter It Into A State Of Real Bankruptcy

08:51 - 11/23/2020  Information / Private  The economist, Wissam Al-Tamimi, said that the government will besiege the country economically and financially because of its ill-considered policies, pointing out that Iraq will enter a phase of real bankruptcy if the situation remains as it is without finding real solutions.

Al-Tamimi told "the information", that "the government going towards deducting employee allocations in the budget for next year will lead to a great public ferment, which may lead to the complete eradication of the government."

He added, "The government's tendency to impose taxes, especially on the currency auction, will lead to an increase in the dollar’s​​exchange rate in the next stage, in addition to imposing these taxes will lead to higher prices in general."

And that " IraqHe will suffer greatly in the coming period in light of the current government’s policies and lack of financial control or finding an alternative plan to borrowing, as the situation remains unknown in the coming year in light of the failure to deliver the budget to the House of Representatives. 25 n

https://www.almaalomah.com/2020/11/23/506556/

Collecting Parliamentary Signatures In Preparation For Questioning The Governor Of The Central Bank

Monday, 23 November 2020 2:58 PM  Classification: Iraqi Post View: 22  Baghdad / National News Center -A parliamentary source announced, today, Monday, that a group of representatives began collecting parliamentary signatures in preparation for questioning the governor of the Central Bank, Mustafa Ghaleb.

The source said, in a statement, followed by the National News Center agency,: “The answers of the governor of the Central Bank, Mustafa Ghalebmakhif, did not convince the member of the Parliamentary Finance Committee, Faleh Al-Sari, after asking the verbal question. And proceed to collect the signatures necessary for this procedure.

https://nnciraq.com/44835/

 

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