More Iraqi News Wednesday PM 10-14-20
More Iraqi News Wednesday PM 10-14-20
TLM724 Administrator BondLady’s Corner
Private Banking Sector Challenges And Visions Of Reform
Articles Samir Al-Nasiri The complex economic conditions and the repercussions of the spread of the Corona virus, and the political quarrels and conflicts by political parties and blocs that have led to great damage to the national economy, the stopping of the economic cycle and economic stagnation, in addition to the accumulations and repercussions in the absence of a clear economic approach for governments, are not hidden from the specialists and the banking cadres working in the private banking sector.
And since the banking sector is the main link in the revitalization of the economic process, the current circumstances have contributed to the weakness of banking activity, which had clear effects on the lack of liquidity and revenues and the decline in deposits, credit and loans.
And banking facilities due to the suspension of working hours during the comprehensive curfew for more than 30 days and the reduction in working hours and banking activity during the partial curfew,which led to a significant decrease in revenues and despite the many measures taken by the Central Bank in providing many facilities for banks, including enhancing their liquidity by reducing the legal reserve ratio and delay Loan installments and suspension and postponement of fines imposed on banks.
According to the analysis of official data and statistics, the structure of the Iraqi banking sector consists of 7 banks that acquire 86% of the total deposits of the government and the public and 78% of the total assets, and private banks constitute 72 commercial and Islamic banks and invest 78% of the capital of the Iraqi banking sector and have received only 13 % Of the total annual profits achieved at the total level and the goals
The decree for the banking sector in all government programs of previous governments is focused on achieving lending for development, considering banks as a lever of development, restoring confidence with the public, and achieving financial inclusion in the sense of expansion and spread by providing banking products and services, practicing real banking and digital transformation of the banking sector.
Through an analytical view of the reality of the Iraqi economy and the challenges facing the financial and monetary policies, in particular stimulating and revitalizing the economy with 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 the objectives of its strategy for the years (2016-2020) which It achieved important and basic objectives, most notably the structural, structural and technical developments in banks,
increasing the proportion of financial inclusion and investment in human capital, and moving rapidly towards stability in the monetary system and achieving stability in the exchange rate since 2018, but private banks are still in urgent and immediate need for government support through a study Its problems in the current situation in the emergency cell for financial reform formed in the Council of Ministers for the purpose of saving some private banks from collapse. Therefore, we propose the following: -
Firstly ‐ The nature of bank activities depends on the nature of the activities of the economic sectors, and as long as the economic activity is concentrated in trade (imports), the activity of banks remains focused on external transfer and what is related to that .. So unless other sectors move (industry, agriculture, tourism, etc.) we cannot expect the diversity of activity 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’s initiative to finance small and medium enterprises.
Secondly, the legal environment must be provided and the authority of the law extended in order to eliminate the phenomenon of default in repayment of loans, as bad debts amounted to (5 trillion dinars) up to 30 June 2020, which constitute a large percentage of the total credit granted and thus the reluctance of banks to provide loans and banking facilities
Therefore, we see that the decisions of the Council of Ministers and the Economic Affairs Committee in the Council of Ministers, which were previously issued in support of the banking sector, in particular private banks, were not activated. It obstructed the business and activities of private banks and greatly affected their liquidity, revenues and deposits, for the purpose of overcoming the banking crisis, in a manner that ensures the transfer of banks from the role of banking to the developmental role and revitalizing the banking work in the current situation requires the government,
especially the distinguished cabinet and the emergency cell, to activate the decisions previously issued The Council of Ministers and the Economic Affairs Committee, which are as documented by the following numbers and dates: -
Third ‐ Activate all the decisions of the Special Economic Affairs Committee to support private banks, in particular the following:
-1 The Ministry of Finance changed its decision not to accept the opening of bank accounts for ministries and state departments in private banks and restricted them to government banks according to its letter 207 dated 1/31/2019
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 Bank for Trade.
3 Activating Cabinet Resolution No. 110 of 2009 and Economic Affairs Committee Resolution 141 dated 20/2/2012 regarding transferring government bank documentary credits up to $ 30 million to private banks through the Iraqi Trade Bank.
4 Activate the Economic Affairs Committee Decision No. 253 of 2015.
Concerning the acceptance of the instruments certified by private banks to pay insurances, customs fees and taxes.
Fourth ‐ Activate Cabinet Resolution No. 378 of 2018 regarding the collection of government fees in state departments through electronic payment.
Fifthly Activate the Financial Services Court formed according to the Central Bank Law No. 56 of 2004, and the court may refer cases that need to be referred to the competent courts in accordance with the applicable penal code.
Sixth: Considering bad debt claims owed by clients in private banks as urgent and excellent debt cases similar to government debt.
Seventh, in addition to the efforts exerted by the Central Bank, the government must also work to create conditions and take measures to help private banks obtain an internationally approved credit rating, thus strengthening international banking relations with correspondent banks.
Eighth - The Ministry of Finance compensated for the damage in monetary and fixed assets that were lost by the branches of private banks, which amount to (37) branches in the governorates occupied by the terrorist ISIS in 2014, which are documented by the Central Bank of Iraq.
Ninth ‐ Activate Cabinet Decisions No. 313 for the year 2016 and No. 218 for the year 2017 concerning the resettlement of salaries of employees and ask government departments to localize their salaries according to their desire and not direct them to settle salaries in government banks exclusively.
Number of observations 135 Date of addition 10/13/2020 https://economy-news.net/content.php?id=22240
The Governor Of The Central Bank Is Likely To Decline Hard Currency Reserves For This Reason
Time: 10/14/2020 08:44:50 Read: 3,874 times {Baghdad: Al Furat News} The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, said, on Wednesday, that foreign reserves in the bank would decline due to the increase in import financing and the decline in dollar revenues from the Ministry of Finance.
“The decline in the global price of oil and the reduction in production in Iraq, based on the OPEC agreement, led to a decrease in crude oil revenues, and thus the dollar amounts that were sold by the Ministry of Finance to the Central Bank of Iraq in exchange for the Iraqi dinar that it used to finance Expenses locally. "
The governor added, "This led to a decline in the accumulated quantities of foreign currency at the central bank, in addition to the process of discounting the securities issued by the Ministry of Finance, for the purpose of bridging the deficit witnessed by the government in financing its spending, especially the current spending by the Central Bank of Iraq for the benefit of government banks."
He noted that "most of the current spending will turn into a consumer demand that ultimately represents a demand for the US dollar, and with the central bank meeting this demand to finance imports, foreign reserves are expected to witness a decline in addition to the decline resulting from the decline in oil revenues if the current data do not change." LINK
The Governor Of The Central Bank Is Likely To Decline Hard Currency Reserves For This Reason
Editing date: 10/14/2020 9:06 • 87 read times {Baghdad: Where News} The Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, said, on Wednesday, that foreign reserves in the bank would decline due to the increase in import financing and the decline in dollar revenues from the Ministry of Finance.
“The decline in the global price of oil and the reduction in production in Iraq, based on the OPEC agreement, led to a decrease in crude oil revenues, and thus the dollar amounts that were sold by the Ministry of Finance to the Central Bank of Iraq in exchange for the Iraqi dinar that it used to finance Expenses locally. "
The governor added, "This led to a decline in the accumulated quantities of foreign currency at the central bank, in addition to the process of discounting the securities issued by the Ministry of Finance, for the purpose of bridging the deficit witnessed by the government in financing its spending, especially the current spending by the Central Bank of Iraq for the benefit of government banks."
He noted, “Most of the current spending will turn into a consumer demand that ultimately represents a demand for the US dollar, and with the central bank meeting this demand to finance imports, foreign reserves are expected to witness a decline in addition to the decline resulting from the decrease in oil revenues if the current data do not change. ".
http://www.alliraqnews.com/modules/news/article.php?storyid=102218
Abdul-Mahdi: My Government Has Suffered From What The Current Government Is Suffering
Former Prime Minister Adel Abdul Mahdi Money and business Economy News – Baghdad The response of former Prime Minister, Adel Abdul-Mahdi, to the recent statements of Finance Minister Ali Allawi regarding his government's handling of the economic file .
Abdul Mahdi said in a statement seen by "Al-Eqtisad News", that " the previous government suffered from what the current government suffers from the increase in expenditures and the lack of imports. At the end of 2019, the treasury reserves exceeded the cycle from 2018 to 2019 nearly three times, as the economy witnessed growing progress during Year 2019. '
He pointed out, "The increase in central bank reserves at the end of 2019 and the first quarter of 2020 to $ 67.6 billion compared to $ 64.3 billion at the end of 2018."
He added that the government withdrew most, if not all, of the amount in the Iraqi Chinese investment fund estimated at one billion dollars to cover some of the budget deficit.
Abdul-Mahdi pointed out, "The availability of large stocks of wheat, barley, rice, vegetables and livestock close to self-sufficiency, in addition to providing a large water reserve that exceeded 50 billion cubic meters of water."
Ziadara stressed, "The electric energy in the summer of 2019 is about 23% than it was in the summer of 2018, and the hours of cutting in 2019 were less than in other years."
He said that dependence on the national currency increased in the year 2019, " as it increased by 8% than it was in 2018 according to the World Bank report, and we made progress in localizing salaries by more than 30% by the end of 2019."
He added: "The contribution of non-oil sectors increased by 4.9% of the gross national product in 2019 compared to 2018, and this alone means 11.47 billion dollars added to the national economy."
The former prime minister’s statement concluded with “the decline in public debt from $ 115.2 billion in 2017 to $ 110.4 billion in 2018 to $ 104.4 billion in 2019, and external debt to $ 54 billion in 2019 instead of $ 59 billion and $ 69.5 billion in 2018 and 2017.” Number of observations 60 Date of addendum 10/14/2020 https://economy-news.net/content.php?id=22251
Al-Rafidain Announces The Reinstatement Of The Window To Sell The Currency In Dollars
Time: 10/14/2020 15:51:08 Read: 1,820 times {Baghdad: Al Furat News} Al-Rafidain Bank announced the reinstatement of the window for selling currency in dollars to banking companies.
The bank’s media office said in a statement that the Al Furat News Agency received a copy of it, that "it was decided to re-operate the auction window for selling currency in dollars to banking companies."
The bank called "those companies to review the main branch of the bank in Baghdad, Al Shorja, to see the conditions and instructions for selling currency, which are easy and easy terms and bring benefits and positivity to them." LINK
Re-Work The Window To Sell The Dollar In Iraq
Editing date: 10/14/2020 17:14 • 32 times read [Baghdad-Where] Al-Rafidain Bank announced the reinstatement of the window for selling currency in dollars to banking companies.
The bank’s media office said in a statement, "It has been decided to re-operate the auction window for selling currency in dollars to banking companies."
The bank called on those companies to "review the main branch of the bank in Baghdad, Al-Shorja, to view the conditions and instructions for selling currency, which are easy and easy terms and bring benefits and positive to the companies." http://www.alliraqnews.com/modules/news/article.php?storyid=102264
Kurdistan Receives The 320 Billion Dinars Sent From The Federal Government
A demonstration by the employees of the Kurdistan region of Iraq
Money and business Economy News – Baghdad A source from the Ministry of Finance and Economy in the Kurdistan Region announced, on Wednesday, the arrival of 320 billion Iraqi dinars to the Central Bank of the Kurdistan Region, and it is expected that the salaries will be distributed tomorrow.
The Kurdish network "Rudaw" quoted a source in the Ministry of Finance and Economy in the region, as saying that "the aforementioned amount arrived at the central bank, the regional branch, and salaries are expected to be distributed tomorrow, Thursday."
An official letter of the federal government, signed by the Iraqi Minister of Finance Ali Allawi, on October 13, 2020, indicates that 320 billion dinars were sent to the Kurdistan Regional Government, and it stated that the amount is allocated to pay the salaries of Kurdistan Region employees for the month of September.
And the Parliamentary Finance Committee announced, on Sunday (October 11, 2020), that the Iraqi government had sent an amount of 320 billion dinars previously agreed upon to distribute the salaries of employees. Number of observations 224 Date of addendum 10/14/2020 https://economy-news.net/content.php?id=22258
Al-Kazemi Discusses With NATO Training And Equipping Iraqi Forces
Editing date: 10/14/2020 17:21 • 16 times read [Baghdad-Where] Prime Minister Mustafa Al-Kazemi discussed with NATO training and equipping Iraqi forces.
A statement was mentioned by Al-Kazemi's office. The latter received the commander of the NATO mission in Iraq, Major General Jenny Karinian.
He added, "During the meeting, they discussed ways to provide support from the NATO mission to the Iraqi security forces of all kinds, in the areas of training, strengthening military capabilities, and raising the level of professionalism and competence." http://www.alliraqnews.com/modules/news/article.php?storyid=102266
Greek Foreign Minister From Baghdad: Our Companies Are Ready To Invest In Iraq
12:15 - 10/14/2020 The information / Baghdad ..Greek Foreign Minister Nikos Dendias affirmed, on Wednesday, the willingness of Greek companies to invest in Iraq and rebuild the regions, indicating that his country aspires to further development in relations with Iraq .
Dandbas said in a joint press conference with his Iraqi counterpart Fuad Hussein in Baghdad and followed him / the information /, that “our relationship is historical and with Iraq and Greece is a historical friend of Iraq,” indicating that “relations between Iraq and Greece are good, and we expected two memoranda of understanding to witness the development of these relations.”
He added, "We aspire to further development, especially at the economic level, especially investment," noting that "Greek companies are ready to invest in Iraq and for reconstruction."
On the other hand, the Greek minister affirmed his country's readiness to "support relations between Iraq and the European Union." End / 25 https://www.almaalomah.com/2020/10/14/499917/
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