“Tidbits From TNT” Thursday Morning 3-27-2025
TNT:
Tishwash: Sending budget tables to the Cabinet
The government issued new assurances on Wednesday regarding the country's financial situation. Deputy Prime Minister and Minister of Planning, Mohammed Tamim, announced the completion of the 2025 budget schedules and their submission to the Council of Ministers. Meanwhile, the Prime Minister's Advisor for Financial Affairs, Mazhar Mohammed Salih, confirmed that Iraq's public finances are resilient to oil price fluctuations.
The Ministry of Finance, for its part, ensured financial stability by disbursing salaries on time, as well as disbursing pensioners' salaries before Eid al-Fitr. In a meeting with the Parliamentary Finance Committee, the Minister of Planning confirmed that the schedules include funding for ongoing projects without adding new ones.
According to information published by "Al-Sabah", the (2025) budget is expected to reach about (200) trillion dinars with an estimated deficit of (64) trillion dinars. For his part, the financial advisor, Mazhar Muhammad Salih, explained that Iraq is hedging against oil price fluctuations, and that the first quarter of (2025) passed without financial turmoil, while ensuring the stability of salaries and social care, in addition to implementing service projects.
Saleh pointed out that "the price of a barrel of oil in the Federal Budget Law for the three years, issued pursuant to Law No. (13) of (2023), was set at about (70) dollars, which ensures the stability of public revenues despite global economic challenges." link
Tishwash: Employees withdraw 8 trillion dinars from banks in two hours.. The Ministry of Finance seeks a solution.
Crisis of confidence despite the electronic system
Member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, called for stopping the provision of subsidized dollars at an exchange rate of 1,320 dinars for non-essential luxury imports, and instead providing them for the import of necessities such as production lines and agricultural equipment, to reduce the volume of imports later.
He pointed out that many private banks were not established according to the needs of economic sectors and that they profit from transfer operations despite being inactive due to their inability to deal with foreign correspondent banks. He also confirmed that the government deposits about 8 trillion dinars monthly as salaries for employees and retirees, but they are withdrawn within only two hours, calling for the matter to be addressed.
oeen Al-Kadhimi, in an interview with journalist Saadoun Mohsen Damd, followed by 964 Network :
The banking system is linked to the Central Bank, the body responsible for regulating banking operations. Numerous workshops have been held recently to develop the banking system. However, there are external factors that influence banks attempting to link up with foreign banks, which also impact the development process.
From our perspective as a parliamentary committee, we believe the Iraqi banking system is still in its early stages of adapting to global regulations. The Central Bank and the Ministry of Finance are required to support the work of banks so they can fulfill their role beyond limited tasks, such as supporting the agricultural and industrial sectors, and other diverse economic sectors.
Some banks are trying to profit solely from dollar transfers, without contributing to other developmental aspects. One of our most important observations is the increasing number of banks being established without feasibility studies.
This is despite the fact that they are practically at a standstill because most of them have been unable to link up with international banks to conduct financial transfers, thus preventing them from accessing the currency window.
The Central Bank sometimes justifies some of the violations of its instructions by private banks. It must then address the missing relationship between the public and the banks. Some citizens lost their money after certain banks declared bankruptcy, and the Central Bank must also address this issue.
Improving banking performance is key, and we have approached the Central Bank about addressing the issue of depositing funds and the difficulty depositors face in withdrawing them later, while improving interest rates to ensure depositors feel valued. Most importantly, we are increasing automation, moving away from cash transactions.
The internet is no obstacle to the electronic transformation of financial transactions. Banks must improve their digital applications and technologies to benefit from the country's internet services and quality. Employee and retiree salaries, which amount to approximately 8 trillion dinars, are now paid electronically, but they are withdrawn within two hours, immediately emptying all banks. This must be addressed.
The Ministry of Finance's monthly priority is to convert its dollar balances into dinars to boost remittances and foreign imports, which are often for luxury goods, as traders benefit from the exchange rate difference. This must stop, and subsidized dollars must be allocated to essential needs, such as importing production lines, to reduce imports later. link
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Tishwash: Iraq Implements Global Transit System TIR from April
Iraq will implement the global transit system TIR from 1 April 2025, marking a significant step in enhancing logistics and international trade.
According to state-run Iraqi News Agency (INA), the Border Ports Commission announced that the system will streamline cross-border transport, strengthening Iraq's position as a key trade hub in the Middle East.
The TIR system is expected to play a crucial role in the Development Road project, linking southern and northern Iraq while providing an efficient trade corridor connecting Asia, the Gulf Cooperation Council (GCC), Turkey, and Europe.
Logistics firms are prepared to launch TIR operations from locations such as Mersin, Turkey, to Gulf countries via Umm Qasr Port. Initial trials indicate that the journey could be completed in under a week-compared to 14 days via the Red Sea or 26 days if ships reroute around Africa.
Transport Minister Razzaq Muhibis Al-Saadawi highlighted that TIR implementation, supported by Prime Minister Mohammed Shia Al-Sudani and facilitated by the International Road Transport Union (IRU), will reduce transport times by 80% and costs by 38%, offering substantial economic benefits and job creation. Over the past two years, Iraq has developed its transport infrastructure to maximise TIR's impact on trade and the national economy.
IRU Secretary-General Umberto de Pretto welcomed the initiative, stating that TIR has facilitated secure trade for nearly eight decades. He anticipates that Iraq's integration into the system will enhance regional economic connectivity and streamline freight movement. The system's electronic pre-declaration (TIR-EPD) will integrate with Iraq's Uruk platform, enabling cargo monitoring via GPS and enhancing security through regular checkpoints.
TIR, governed by a United Nations convention and managed by IRU, is designed to ensure smooth, cost-effective, and secure international trade.
In 2023, Iraq became the 78th country to accede to the United Nations TIR Convention. link
Mot: Yeppers! - becoming More Seasoned.. Gives Sooo Much!!!
Mot: If!! -- You Have the Power to ~~
