Tuesday Morning Iraq Economy News Highlights 3-14-23

Tuesday Morning Iraq Economy News Highlights 3-14-23

An Arab Country Announces That Its Banks Have Run Out Of Money

Mar 8 14:51  Information/follow up.  The head of the Association of Lebanese Banks stated that commercial banks in Lebanon do not have sufficient liquidity to pay depositors. The Secretary-General of the Assembly, Fadi Khalaf, according to Reuters, "These figures show beyond any doubt that the banks have no liquidity."

These statements reinforce the possibility that Lebanese banks will declare bankruptcy in the coming period, and thus depositors' money will evaporate, especially in light of the recent crises in the country's banking sector.

Starting this month, the decision to price food commodities and products in supermarkets in dollars entered into force at the beginning of this month in Lebanon, as supermarkets and small stores put commodity prices on shelves in dollars, provided that the consumer is given the choice between paying the value of the goods in foreign currency or in Lebanese pounds. According to the unofficial market exchange rate at the moment of purchase.

Since the beginning of the economic collapse in 2019, Lebanese banks have imposed strict restrictions on deposit withdrawals, which have increased gradually, until it has become almost impossible for depositors to dispose of their money, especially those deposited in US dollars, or transfer them abroad, due to the lack of liquidity in banks.

And due to the impact of the crisis, which the World Bank ranked among the worst in the world since 1850, the Lebanese pound lost about 95 percent of its value, as it is now being traded on the black market at levels of 80,000 pounds per dollar.

Since the start of the crisis, banks have witnessed repeated intrusions by citizens demanding their seized money. Over the past few weeks, dozens of protesters have smashed bank facades and burned tires in the capital, Beirut, to protest against their inability to withdraw their deposits with local banks.

Likewise, banks closed their doors several times, and the Association of Banks announced on the sixth of last month an open-ended strike, considering that the current crisis is not only a crisis of banks, but of the entire financial system.   LINK

Bank Panic" Is The Most Dangerous Thing In The Silicon Valley Crisis

Time: 03/13/2023 23:41:44  Read: 1,846 times  {International: Al Furat News} Experts have warned of a "banking panic" that may prevail in the United States, as one of the most prominent repercussions of the "Silicon Valley" bank collapse crisis, which could lead to a repeat of the 2008 scenario.

The useful summary.. On important news, you can find it on Al-Furat News channel on Telegram.. The collapse of the "SVB" had reverberations in America and all over the world, given that many huge companies depend on this bank, which is the largest banking institution that collapsed after the global financial crisis in 2008. Analysts said that without reaching a solution by On Monday, other banks are likely to come under pressure if depositors worry about their savings.

"Bank panic"

The New York Times reported that "bank panic" begins when people fear that their deposits are "at risk", leading to increasing withdrawals from banks.

She added that bank panic may affect even "healthy" banks, highlighting that the increasing withdrawals eventually lead to the bankruptcy of many banks and companies.

To preempt the banking panic, US officials at the Federal Reserve, the Treasury Department and other agencies tried to allay fears last night by stressing that all customers can get their money.

The "New York Times" stated that the urgent intervention of US officials aims to "reduce the possibility of a banking panic."

Informed sources reported that the US authorities are about to take "fundamental measures" to support deposits in SVB Bank and prevent the repercussions of its sudden collapse from spreading.

The sources said that President Joe Biden's administration officials worked, at the beginning of this week, to assess the repercussions of the bank's collapse on Friday, with a special focus on the emerging project financing sector and multi-branch banks.

The Washington Post quoted three well-informed sources as saying that the US authorities are considering protecting all uninsured deposits in SVB, as well as intervening to prevent what they fear will be panic in the US financial system.

Earlier today, US Treasury Secretary Janet Yellen said she is working with banking sector regulators to address this collapse.  It added that it was working to protect depositors, but ruled out a bailout plan.

Silicon Valley Bank, based in Santa Clara, California, is the 16th largest US bank with assets of $209 billion.   LINK

An Independent Deputy Clarifies His Vision Of The “Triple Budget”

Independent MP Mustafa Al-Karawi saw, on Monday, that the approval of the budget by the Council of Ministers for three consecutive years is a step in the right direction and one of the positives that are calculated for the current government, while he stressed that the government is able to make amendments to the draft budget annually.

Al-Karawi said in a press interview seen by “Takadum” that “following the approval of the budget for three years is a purely institutional work that will prevent actions at the individual, partisan or component level,” noting that “the government is able to make amendments to the draft budget annually.”

And he continued, "The approval of the budget for three consecutive years is a step in the right direction from the positives that are calculated for the current government," noting that "the government's plan is a program that represents the government's long-term thinking about achieving stability for the country at the level of the economic and financial sector."

And Al-Karawi concluded his speech: “This plan will make the next governments start from what the current government has finished, and not work on new planning that will cost time in approving it and delay in implementing its paragraphs on the ground.”   https://takadum-news.com/archives/154273

Al-Bajari Calls For Fairness To The Southern Governorates In The Budget And Granting Them Their Petrodollar Dues

Tuesday 14 March 2023 12:20 | Economical Number of readings: 230  Basra / NINA / - The Chairperson of the Parliamentary Transportation and Communications Committee, Zahra Al-Bajari, called today, Tuesday, for fairness to the southern governorates in the budget and granting them their dues from petrodollars.

And Al-Bajari said, according to a statement, that completing the budget is one of the most important steps for the continued success of the government, which has developed an ambitious government program to serve citizens, indicating that this success will certainly be a positive one. indicator of the success of the framework in the upcoming elections to continue serving our honorable Iraqi people.

And she added that, despite the observations that the budget is free from some essential points regarding the merit of the southern governorates, it will be an important step for service and success.

And she continued, that the budget neglected Basra's entitlement from the petro-dollars, as the government program stipulated for the Sudanese to return the dues of the oil-producing governorates at 5% of the production of crude and refined oil, which means allocating about 7 trillion dinars for it in the 2023 budget, but the budget has allocated only two trillion dinars for her only.

And it called for adding another 5 trillion dinars to the petro-dollar allocations in line with the government program and with Law No. 21 of 2013 of the governorates that are not organized in a region in order to do justice to the southern oil-producing governorates.

Al-Bajari stressed the importance of fairness to the southern governorates by making financial allocations to Article 140 of the constitution, explaining that there are 150,000 citizens of Basra who have been covered by compensation for years and have not received financial compensation, and the government must grant them their rights and fairness, similar to the northern governorates./

https://ninanews-com.translate.goog/Website/News/Details?key=1040323&_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

A Significant Decrease In The Dollar Price In The Local Market

Baghdad today – Baghdad Today, Monday, the exchange rates of the dollar against the dinar recorded a significant decrease in the stock exchange and exchange shops in the capital, Baghdad.

The (Baghdad Today) correspondent said, "The Al-Kifah and Al-Harithiya stock exchanges recorded an exchange rate of 154,000 dinars for every 100 dollars.

He added, "The buying and selling prices decreased in the exchange shops in the local markets in Baghdad, where the selling price reached 155,000 dinars per 100 dollars, while the purchase prices amounted to 1,530,500 dinars per 100 dollars."   LINK

Why Did The Iraqi Ministers Approve The Budget Law For Three Years.. Does The Constitution Allow That?

Baghdad / Obelisk: The Iraqi Council of Ministers approved, on Monday, the draft financial budget law and submitted it to Parliament for a vote on it, with high proposed expenditures and investments, driven by the increase in oil prices. While the legal expert Ali Al-Tamimi revealed, on Tuesday, the possibility of merging budgets for three years, after it was raised The confusion about the possibility of approving budgets for three years, in one go. The leader of the Sadrist movement, Safaa al-Asadi, spoke about the fact that the financial management law emphasizes the annual budget (year by year).

Al-Tamimi said in a statement to Al-Masalla, “The merging of budgets for the next three years is constitutionally and legally possible, as indicated by Article 78 of the Constitution and Article 4, Paragraph 2, of the Financial Management and Public Debt Law No. 6 of 2019, which authorized the merger, which is medium-term for the next three years, and the first year is obligatory.” The application is as is.

He added, "The two subsequent budgets are subject to amendment by Parliament and according to circumstances, which is appropriate to the philosophy of budget legislation, which is a future financial plan that prevents delays in legislation and can estimate the value of oil and the price of the dollar, and specify appointments and jobs with complete stability that guarantees their application and prevents changes."

And the government of Muhammad Shia’ al-Sudani approved the draft general federal budget law for the years 2023, 2024 and 2025, and referred it to the House of Representatives, while Prime Minister Muhammad al-Sudani said that the government is keen that the budget be a mirror reflecting the government program, indicating that this budget will be repeated for three years. According to Financial Management Law No. 6 of 2019, which authorized the Council of Ministers to present a budget for three years.

The probabilities indicate that the 2023 budget may enter into force next April, while Advisor to the Prime Minister Hisham Al-Rikabi said that the budget approved by the Council of Ministers paves the way towards broad development horizons, adding that it will deal with important files related to combating poverty, supporting the private sector and investment, and establishing Economic Development Fund.

The last budget approved in Iraq dates back to April 2021, while one was not approved in 2022 due to the political turmoil that paralyzed the country for a year after the last legislative elections.

In 2021, the value of the proposed investments in the budget amounted to $19.6 billion, and in 2019 it amounted to $27.8 billion.

The Iraqi Prime Minister repeatedly stresses that infrastructure projects such as roads, schools, hospitals and housing projects are a priority in a country wracked by decades of wars and where a third of its 42 million population lives in poverty.

Al-Sudani hoped, during a press conference on Monday, that the projects included in the budget would allow “to address cases of poverty,” speaking of paying financial aid to about 600,000 families and establishing a “special fund to support the poorest governorates.”

He pledged to rebuild some areas, especially Sinjar, the stronghold of the Yazidi minority.

The total revenues of the proposed budget for one year amount to 134 trillion and 5 billion dinars (103.4 billion dollars), based on the price of a barrel of oil of 70 dollars.

In 2021, revenues amounted to $69.9 billion, at a price of $45 per barrel of oil.

As for the proposed deficit in the new budget, it is 63 trillion and 75 billion dinars (about 48 billion dollars), compared to 19.8 billion in 2021 and 23.1 billion in 2019.

He allocated about 307 million dollars to the Kurdistan region in order to pay the salaries of its employees, in exchange for 400 thousand barrels of oil per day produced in the region.

In order to secure basic expenses, the Iraqi parliament voted in the summer of 2022 on the emergency support law, amounting to $17 billion, and allowing Iraq, in particular, to purchase gas, electricity and grain to ensure “food security.”    https://almasalah.com/archives/46584

The Full Story Of The Three-Year Budget

The Full Story Of The Three-Year Budget: A "Qualitative" Constitutional Step After A Long Wait And "Massive" Numbers.

Sumerian special  2023-03-14 |  2,933 views  Alsumaria News - A report

After a two-year wait for the last budget approved in Iraq, the Council of Ministers, headed by Muhammad Shia' al-Sudani, approved yesterday, Monday, March 13, 2023, the draft general budget law for the Next three years, in a step that is the first of its kind in Mesopotamia. Many official government agencies have their details, main clauses revealed, bases for their preparation and features.

The last budget approved in Iraq dates back to late March 2021, while one was not approved in 2022 due to the political turmoil that paralyzed the country for a year after the last legislative elections.

In order to secure basic expenses, the Iraqi parliament voted in the summer of 2022 on the emergency support law, amounting to $17 billion, and allowing Iraq, in particular, to purchase gas, electricity, and grains to ensure "food security."

* Approval

Yesterday, Monday, March 13, 2023, the Council of Ministers approved the draft general budget law, while it was referred to the House of Representatives.

The media office of the Prime Minister stated, in a statement received by Alsumaria News, that "the cabinet approved the draft federal budget law for the fiscal years 2023, 2024, and 2025, in its regular session, chaired by Prime Minister Muhammad Shia' al-Sudani.” He added, "The Council of Ministers decided to refer the general budget to the House of Representatives."

And the day before yesterday, Sunday, the Minister of Finance, Taif Sami, announced the completion of the draft federal budget law for the year 2023 and sent it to the Council of Ministers for the purpose of discussing and voting on it.

* Details Of The Budget Law

After its approval, Prime Minister Muhammad Shia' al-Sudani went out, in a press conference attended by the Alsumaria correspondent, to reveal its details and main clauses.

Al-Sudanese said at the conference, "The priorities of the government program will be present in the 2023 budget," pointing out that "the budget for three years supports financial stability, and we are facing the stability of that."

He pointed out that "entitlements for all contracts, lecturers, and higher certificates have been secured in the budget," adding: "We have put in the budget practical measures, including increasing the coverage area in the protection network, and with the approval of the budget, the social subsidy will be disbursed."

He continued, "For the first time, a fund has been established for the poorest governorates, and this fund will address the state of poverty in these governorates," noting that "in this budget, we have maintained support for the liberated governorates, and we have allocated an amount of 500 billion dinars to secure service projects and support for displaced families.” He pointed out that "a fund has been established to support the Sinjar district and the Nineveh Plain, and we have allocated 50 billion dinars."

Reasons For Delaying The Budget

As Al-Sudani revealed, “One of the reasons for delaying the approval of the budget was also the understanding with the Kurdistan region, where a comprehensive agreement was reached on the outstanding issues between Baghdad and Erbil,” noting that “for the first time , the total revenues of oil produced in the region are deposited in a bank account in which they are deposited.” It is subject to federal administration.

* Understandings Between Baghdad And Erbil

He explained that "the understandings between Baghdad and Erbil were on clear points and confirm the two parties' progress towards approving the oil and gas law," stressing that "if there are any differences between Baghdad and Erbil, there is a committee that submits its recommendations to the federal prime minister.”

* Budget numbers, and he added that "the share of the Kurdistan region in the budget amounts to 12.6, and the total amount budgeted to 197 trillion and 828 billion dinars, as follows: the operational budget amounts to more than 150 trillion dinars, the The investment budget is more than 47 trillion, and the budget deficit amounts to 63 trillion dinars.

"Total revenues amount to more than 134 trillion dinars," stressing that "oil revenues amount to more than 117 trillion dinars based on the price of oil at $70, and non-oil revenues amount to more than 17 trillion dinars."

* The total budget is more than 197 trillion dinars

* The operating budget is more than 150 trillion dinars

* The budget investment is more than 47 trillion

* The budget deficit is 63 trillion dinars

* Total revenues are more than 134 trillion dinars

* Oil revenues are More than 117 trillion dinars based on the price of oil at 70 dollars

* Non-oil revenues amount to more than 17 trillion dinars

* The share of the Kurdistan region in the budget is 12.6 percent

* More than 12 trillion dinars of indebtedness will be paid This year

* Petrodollars will be two trillion dinars distributed among the provinces

* Development of the regions In the budget, it will be 2.5 trillion dinars

* 400 billion dinars have been added to loans for small projects in the Ministry of Labor

* Increase the capital of the Industrial Bank by 400 billion dinars to support the private sector

* An increase in some allocations, including medicines, by an amount of 300 billion dinars, to become more than a trillion

* Allocating one trillion dinars for the Iraq Development Fund draft law

* Reasons For The Increase In The Budget

To that, the Prime Minister saw that “the increase in the budget It came due to the installation of lecturers and contracts in all ministries as well as indebtedness,” indicating that “this year more than 12 trillion dinars of indebtedness will be paid, and this indebtedness is internal and external and payable,” noting that “there is an increase in some allocations, including medicines, by 300 billion dinars to become more than a trillion.”

He added, "The petrodollar will be two trillion dinars distributed among the provinces," explaining that "the development of the region in the budget will be two and a half trillion dinars." This draft law of the Iraq Fund for Development is directed to the private sector,” pointing out that “in the project of the Iraq Fund for Development, the implementation of 8 thousand schools will be launched at once.” He continued, “

The government program has adopted coverage of special programs at an amount of one trillion and 865 billion dinars for medical services," stressing "the expenses of those whose contracts were terminated have been covered, and these allocations will be in the budget law," he added. , adding that "the amounts of electricity imports have been reduced," stressing that "the dues of farmers for the current agricultural season are secured."

And he stressed that "400 billion dinars have been added to the loans of small projects in the Ministry of Labor, in addition to increasing the capital of the Industrial Bank by 400 billion dinars to support the private sector.

The Budget That Enjoys A Political Agreement.

* Where does the financial abundance go? He pointed out that “the financial abundance from oil prices will be used to pay the dues of the governorates and cover the deficit,” noting that “the government cannot cover all the country's requirements without the private sector, and this sector will receive real support.”

In addition, the political advisor to Prime Minister Fadi Al-Shammari explained the most important items and features of the three-year budgets

Al-Shammari said in a statement received by Alsumaria News, "The most important items of the three-year budgets are as follows: -

For the first time, the budget comes in line with the provisions of the government program and the government's ministerial curriculum -

The budget has addressed chronic problems (the social welfare network, student grants for poor families.

- The budget will be A model for financial budgets (2025, 2024, 2023), and it is a bold step to implement the government's vision in implementing strategic and development projects.-

Establishing the Iraq Development Fund, which will deal with accumulated crises such as housing projects and schools.

- Establishing a fund to support the poorest governorates by implementing development projects in them.

- The budget witnessed a great understanding with the Kurdistan region and involved solving many problems.

Reducing the rates of energy import amounts by one third as a result of entering new stations into service.

Support for peasants and farmers.

Increasing capital for the industrial and housing banks.

- Developing the health sector and the pharmaceutical industry, as well as rehabilitating 10 hospitals that were built before 2003.

The budget included the implementation of the provisions of the reform package for the retirees segment.

For its part, the Ministry of Finance issued a statement related to the bases for preparing the federal budget for the year 2023, which includes budget challenges, response determinants, and government program priorities.

Below is the text of the statement:

[url=file:///C:/Users/news9/Downloads/%D8%A7%D9%84%D8%A8%D9%8A%D8%A7%D9%86 %D8%AA%D8%B9%D8%AF%D9%8A%D9%84 %D8%A7%D9%81%D8%A7%D9%82 (2).pdf?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=e]    Press here

[url=file:///C:/Users/news9/Downloads/%D8%A7%D9%84%D8%A8%D9%8A%D8%A7%D9%86 %D8%AA%D8%B9%D8%AF%D9%8A%D9%84 %d8%a7%d9%81%d8%a7%d9%82.pdf?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=e]

* The Constitutionality Of Merging Budgets For The Next Three Years.

Today, Tuesday, March 14, 2023, legal expert Ali Al-Tamimi confirmed the constitutionality of merging budgets for the next three years, while pointing out the possibility of amending the two subsequent budgets by the House of Representatives.

Al-Tamimi said in an interview with Al-Sumaria News, “The merger of budgets for the next three years is constitutionally and legally possible, as indicated by Article 78 of the Constitution and Article 4, Paragraph 2, of the Financial Management and Public Debt Law No. 6 of 2019, which authorized the merger, which is medium-term for the next three years, and the first year is obligatory.” app as is.

He added, “The two subsequent budgets are subject to amendment by the House of Representatives and according to circumstances, which is appropriate to the philosophy of budget legislation, which is a future financial plan that prevents delays in legislation and can estimate the value of oil And the price of the dollar, and determines appointments and jobs with complete stability that guarantees their application and prevents changes.”

* Exporting 3.5 Million Barrels Annually.

Iraq intends to export 3.5 million barrels annually during the current year, according to what was approved by the Sudanese government in its budget for the current year.

Iraq is the second largest oil producer in OPEC, and the country relies on revenues from selling crude to cover about 95% of its expenses.

The price of a barrel of oil is about $70 per barrel in the budget approved by the government on Monday, with a total proposed expenditure of 197.8 trillion dinars ($152.2 billion), according to Prime Minister Mohammed al-Sudani, who indicated that this budget will be repeated over the next two years as well.

The fiscal deficit amounts to 63 trillion dinars ($48.5 billion), according to the official government statement.

While Iraq is an oil exporter, it imports the main oil derivatives, such as gasoline, gas oil and white oil.According to the “SOMO” company, more than 5 million tons of oil derivatives were imported last year, at a value of $5.3 billion, compared to 4.7 million tons, at a value of $3.3 billion, in 2021. Gasoline was the most imported, at a value of $3.8 billion, followed by gas oil with more than $1.2 billion. LINK

Iraqi News Highlights Monday Evening 3-13-23

Iraqi News Highlights Monday Evening 3-13-23

Tlm724 Administrator Bondlady’s Corner

After Being Sent, The Budget Enters The Area Of Sharing The Spoils: Will It Be Passed Or Suspended?

Information / special   The new government took advantage of a legal clause that was ignored by all successive governments after the fall of the regime, which is to work on approving a budget for three consecutive years that it has the right to amend at the end of each fiscal year, which was welcomed by the political circles that hoped to implement it on the ground, and yet there is fear From entering the area of political conflicts in Parliament, given the demands made by some political blocs in return for voting on the draft budget.

* A qualitative leap in budgets

And speaking of the government’s step in approving the budget for three years, Hussein Al-Sabri, a member of the Parliamentary Investment and Development Committee, said in an interview with Al-Maalouma, that

“the government made a qualitative leap in budgets compared to all the years that were approved in the past,” noting that

“the government is able to add Appendix to the budget at the end of each fiscal year. And he continues,

"The Council of Ministers' decision to vote on the budget for a period of three years is a kind of financial stability for the state," pointing out that

"this decision will facilitate early elections in the event that funds are allocated for them in this budget."   And he added:

"The decision will work to avoid delaying the next budget in order to finance the elections or the amount of expenses that will be spent on them."

And the Council of Ministers had announced, earlier in the day, the approval of the draft budget law amounting to more than 197 trillion Iraqi dinars for the fiscal years 2023, 2024 and 2025 and its referral to the House of Representatives to pass it officially after making amendments to it.

* A step in the right direction

In addition, the independents welcomed the budget decision and counted it as a step in the right direction in reforming the economic sector in Iraq.

And independent MP Mustafa Al-Karawi stated in an interview with Al-Maalouma agency,

"Following the approval of the budget for three years is a purely institutional work that will prevent actions at the individual, partisan, or component level," noting that

"the government is able to make amendments to the draft budget annually."  And he continues,

"The approval of the budget for three consecutive years is a step in the right direction from the positives that are calculated for the current government," noting that

"the government's plan is a program that represents the government's long-term thinking about achieving stability for the country at the level of the economic and financial sector."  And Al-Karawi concluded his speech:

"This plan will make the next governments start from what the current government has finished, and not work on new planning that will cost time in approving it and delay in implementing its paragraphs on the ground."

* Legal move

In the meantime, legal expert Ali Al-Tamimi settled the controversy of voting on the budget for three consecutive years.

In an interview with Al-Maaloumah Agency, he mentioned that

"approving the general budget is possible constitutionally and legally according to Article 4, Paragraph 2 of the Financial Management and Public Debt Law No. 6 of 2019, which authorized the merger, which is medium-term for the next three years, and

the first year is obligatory for application as it is," pointing out That

"the two subsequent budgets are subject to amendment by Parliament and according to circumstances that arise in the future."  And he continued,

"The government's plan is a matter that fits the philosophy of budget legislation, which is a future financial plan that prevents the delay in legislation for the upcoming budgets," noting that

"it is possible to estimate the value of oil and the price of the dollar, and specify appointments and jobs in it with complete stability that guarantees their implementation."   

With the government seeking to approve the budget, the Iraqi street awaits its official approval in Parliament, and

there is fear of political differences controlling it and sharing the spoils from some parties that seek to raise the percentage of their share in the draft budget law, even if it is at the expense of other components. Ended 25 / y

https://almaalomah.me/news/politics/بعد-ارسالها-الموازنة-تدخل-منطقة-تقاسم-المغانم:-هل-ستمرر-ام-ت

Al-Sudani Details The Budget: Total Expenditures Are 197 Trillion Dinars, With A Deficit Of 63 Trillion

Money and business   Economy News – Baghdad Prime Minister Muhammad Shia al-Sudani confirmed today, Monday, that the priorities of the government program will be present in the 2023 budget, pointing out that the budget for three years supports financial stability.

Al-Sudani added, in a press conference, that "the ministries enter a stage of hibernation at the beginning and end of each year until the new budget is approved," noting: "We are facing stability in the budget for a period of three years."

He referred to "securing entitlements for all contracts, lecturers, and higher degrees in the budget," adding: "We put in the budget practical measures, including increasing the coverage area in the protection network, and with the approval of the budget, the social subsidy will be disbursed."

And he stated, "For the first time, a fund has been established for the poorest governorates. This fund will address the state of poverty in these governorates," noting that "in this budget, we have maintained support for the liberated governorates, and we have allocated an amount of 500 billion dinars to secure service projects and support for displaced families, and a fund has been established." To support the Sinjar district and the Nineveh Plain, we have allocated 50 billion dinars.

He explained, "One of the reasons for delaying the approval of the budget was also the understanding with the Kurdistan region, we reached a comprehensive agreement on the outstanding issues between Baghdad and Erbil, and for the first time the total revenues of the oil produced in the region are deposited in a bank account in which it is deposited and is subject to federal administration."

He stressed, "The understandings between Baghdad and Erbil were on clear points, and in the event of any differences between Baghdad and Erbil, there is a committee that submits its recommendations to the federal prime minister," considering that "these understandings between Baghdad and Erbil confirm the two parties' progress towards approving the oil and gas law," while pointing to That "the share of the Kurdistan region in the budget amounts to 12.6%."

He pointed out that "the total budget amounts to more than 197 trillion dinars," noting that "the operational budget amounts to more than 150 trillion dinars, the investment budget is more than 47 trillion, and the budget deficit amounts to 63 trillion dinars," adding that "total revenues amount to more than 134 trillion dinars (oil revenues amount to more than 117 trillion dinars based on the price of oil at $70, and non-oil revenues amount to more than 17 trillion dinars).

The Prime Minister noted that "the increase in the budget came due to the installation of lecturers and contracts in all ministries, in addition to the indebtedness," noting that "this year more than 12 trillion dinars of indebtedness will be paid, and that this indebtedness is internal and external and must be paid."

And he indicated, "There is an increase in some allocations, including medicines, by 300 billion dinars, to become more than a trillion," pointing out that "the petro-dollars will be two trillion dinars distributed among the governorates, and in this budget we gave the governorates the right to rotate the allocated amounts."

Al-Sudani added, "The Iraq Development Fund draft law has been included and one trillion has been allocated to it, and that the draft law is directed to the private sector, and in the Iraq Development Fund project, the implementation of 8 thousand schools will be launched at once."

Al-Sudani stressed, "We will preserve the funds by dealing with the private sector without any contracts or bonds," explaining that "for the first time, sovereign guarantees are given for projects implemented by the private sector."

And he added, "The expenses of those whose contracts have been terminated have been covered, and these allocations will be in the budget law, and farmers' dues for the current agricultural season are secured," noting that "the amounts of electricity imports have been reduced."

The budget included, according to Al-Sudani, "adding 400 billion dinars to loans for small projects in the Ministry of Labor, in addition to increasing the capital of the Industrial Bank by 400 billion dinars to support the private sector."

And he continued, "The financial abundance of oil prices will be through which the dues of the provinces will be paid and the deficit will be covered," noting that "the government cannot cover all the country's requirements without the private sector."

He pointed out that "the private sector will receive real support, and that addressing unemployment requires new paths, and the government has a vision in every sector," noting that "residential cities will be implemented and will provide adequate housing for citizens."

Al-Sudani stressed that "the draft budget law for three years enjoys a political agreement," adding: "I will ask Parliament to attend the second session to read the budget, and that the budget law is for all Iraqis."   https://economy-news.net/content.php?id=32906

Al-Moussawi Reveals That There Is A Political Consensus To Pass The Oil And Gas Law After Approving The Budget

Monday 13 March 2023 11:42 | political    Number of readings: 350  Baghdad / NINA / - The representative of the Sadiqoon Bloc, a member of the Parliamentary Oil, Gas and Natural Resources Committee, Zainab Jumaa Al-Mousawi, revealed today, Monday, the existence of a semi-political consensus, as well as Kurdish convictions to pass the oil and gas law after approving the 2023 budget. And Al-Moussawi said, according to the bloc's website,"

No There are no concessions by the government towards the region, but there are continuous understandings between Baghdad and Erbil on the oil and gas law.  And she continued,

"The law will join the oil relationship between Baghdad and Erbil, and

the Oil, Gas and Natural Resources Committee pays great attention in order to reach the passage of this law, which will be fair and just in its provisions and does not allow any province to deviate from its contents and provisions." / End 9    https://ninanews.net/Website/News/Details?key=1040130

The Central Bank Sells More Than $215 Million In An Auction Today

Economy News-Baghdad  The Central Bank announced, on Monday, the sale of more than 215 million dollars through the currency sale window.

The bank stated in statistics on its official website that "the total amounts of transfers abroad (remittances, credits) amounted to 147.1 million dollars."

He added, "The total amounts of cash sales amounted to 68.3 million dollars," noting that "the total sales amounted to 215.4 million dollars."

He pointed out that "the price of selling amounts of documentary credits and international settlements of electronic cards amounted to (1305) dinars per dollar, and the price of selling amounts of transfers abroad is (1310) dinars per dollar, and the price of cash sales is (1310) dinars per dollar."

https://economy-news.net/content.php?id=32899

The Decline In The Exchange Rates Of The Dollar In Baghdad With The Closing Of The Stock Market

Economy   Monday, March 13, 2023 4:22 PM   Baghdad / The National News Center  The exchange rates of the US dollar decreased against the Iraqi dinar, today, Monday, with the closure of the main stock exchange in Baghdad.

The correspondent of the National News Center said, “The central Kifah Stock Exchange in Baghdad closed at an exchange rate of 153,800 Iraqi dinars against 100 dollars, while the prices recorded this morning were 156,400 dinars against 100 dollars.”

He added, "The buying and selling prices in exchange shops in the local markets in Baghdad decreased, as the selling price reached 154,500 Iraqi dinars, while the purchase prices reached 153,000 dinars per 100 dollars."   https://nnciraq.com/192912/

To read more current and reliable Iraqi news please visit BondLady’s Corner:

  https://www.bondladyscorner.com/

Iraqi News Highlights Monday Afternoon 3-13-23

Iraqi News Highlights Monday Afternoon 3-13-23

Tlm724 Administrator Bondlady’s Corner

Al-Rafidain Launches The Second Package Of Measures And Opens Branches To Sell The Dollar

political | 05:30 - 03/13/2023   Baghdad - Mawazine News, Al-Rafidain Bank announced the implementation of the second phase of the package of procedures for expanding the outlets for depositing the Iraqi dinar in its branches and selling the dollar through the electronic platform of the Central Bank of Iraq.

And the media office of the bank stated, in a statement, that Mawazine News received a copy of it, that “new branches have been opened in Baghdad, which are the branches (Bab Al-Mu’azzam - Jerusalem - Eastern Gate - Al-Khadraa - Al-Amel District - General Secretariat of the Council of Ministers) and all arrangements have been completed and they have been included in deposit procedures.” The Iraqi dinar for travelers and receiving the dollar exclusively from the Baghdad International Airport outlet.

He referred to "the start of receiving travelers' requests in those branches. The statement pointed out that the total number of branches in Baghdad that entered service with regard to depositing the Iraqi dinar in them are the branches of (Palestine Street - Firdous Square - Al-Mashtal - Officers' House - Al-Muhet - Al-Rafi'i - Al-Maarifa - Al-Hayy) Al-Arabi - Bab Al-Moazem - Jerusalem - Eastern Gate - Al-Khadra - Al-Amel neighborhood - General Secretariat of the Council of Ministers). https://www.mawazin.net/Details.aspx?jimare=221809                                                                                                                                                                              

The Cabinet Approved The Draft Budget Law For The Fiscal Years 2023, 2024 And 2025

Political | 01:48 - 03/13/2023   Baghdad - Mawazine News  The Council of Ministers approved, on Monday, the draft federal budget law for the fiscal years 2023, 2024 and 2025, and referred it to the House of Representatives.

Al-Sudani's office said, in a statement received by Mawazine News, that "the Council of Ministers approved, in its regular session, chaired by Prime Minister Muhammad Shia' Al-Sudani, the draft federal budget law for the fiscal years 2023, 2024 and 2025, and referred it to the House of Representatives."

The Council of Ministers held, on Monday morning, a regular session, chaired by Prime Minister Muhammad Shia’a Al-Sudani, to discuss the 2023 budget. https://www.mawazin.net/Details.aspx?jimare=221782

Al-Sudani's Advisor: Iraqi Deposits With The Federal Reserve Are Invested According To Standard Evidence That Avoids Risks

Economy | 01:42 - 03/13/2023  Baghdad - Mawazine News, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Monday, that Iraq does not have financial deposits with the American Silicon Valley Bank, which declared bankruptcy recently.

Saleh said, "The issue of the collapse of the Bank (Silicon Valley) in America is due to two main reasons, the first: that the financial leverage consists of a ratio of debts in the form of securities to lenders in addition to the shareholders' capitals in the bank's ownership base, where the debts or loans reached a ratio that exceeded the barrier." The safe that equity should be configured is a high risk indicator.”

He explained, "These debts consist of securities whose value decreased with the rise in US interest, at a time when safety indicators began to show that the bank also needed additional capital to support its potential losses, which means that there is an accelerated capital depletion resulting from a loss, in addition to stopping Its investments in a portfolio of financial assets that it manages for its own benefit to achieve its profits, which made the capital adequacy ratio more than 16 percent instead of the required minimum of 10.5 percent, which is the ratio of regulatory capital to risk-weighted assets, which means that the bank is looking for liquidity without investing to face liquidity risks. or risk of bankruptcy.

He pointed out, "The bank began paying high interest on short-term deposits due to the strict monetary policy of the US Federal Reserve Bank, which today approached 5 percent, while the bank's portfolio is mostly from remittances and US Treasury bonds, with periods ranging from one year to 30 years."

That "investing in them has become very losing, as the value of financial investments as assets or assets began to deplete with the rise in interest rates, in addition to discounting them at high rates in order to liquidate them to face the withdrawals of the losing technological companies that resorted to withdrawing their current deposits with the Silicon Valley Bank itself to face its financial hardship due to the recession." inflation in the US economy.

And he added, “This matter led the bank to conduct discount operations with high discount rates or loss of its portfolio of government bond assets, and the reason for accelerating the discount is to provide sufficient liquidity to confront the public or companies withdrawing their deposits from the bank within a state called: (traditional bank panic).”

Noting that “the Silicon Valley Bank has no choice but to deduct more transfers and liquidate them at a loss, and this is what increased the cases of bond discounting syndrome at a loss on the one hand, in exchange for the continuous withdrawal of deposits by depositors on the other hand.”

He stated that "the Banking Supervision Authority of the United States placed guardianship over the aforementioned bank, which declared bankruptcy, in addition to the Federal Deposit Insurance Authority taking measures to protect the deposits of small depositors for ceilings that are said to not exceed 250,000 dollars at least."

And regarding the risks of the impact of the bankruptcy of the American bank on Iraq, Salih said, "Iraq does not have deposits in the aforementioned bank," explaining that "Iraq's sovereign dollar deposits are deposited with the Federal Reserve Bank (the American Bank)."

He continued, "Iraqi deposits are carefully invested within a tight short-term investment portfolio by the Central Bank of Iraq and in accordance with standard investment guides that avoid various risks," according to the official news agency. https://www.mawazin.net/Details.aspx?jimare=221780`

Economy| 08:57 - 03/13/2023  Follow-up - Mawazine News  Oil prices rose today, Monday, after a weak start, as the recovery of Chinese demand and the weakness of the dollar supported a market worried about a further increase in US interest rates.

By 0410 GMT, Brent crude futures rose 19 cents to $82.97 a barrel.

West Texas Intermediate crude futures rose 20 cents, or 0.26 percent, to $76.88 a barrel. Ended 29/N33

https://www.mawazin.net/Details.aspx?jimare=221748  

To read more current and reliable Iraqi news please visit BondLady’s Corner:

  https://www.bondladyscorner.com/

"Tidbits From TNT" Monday 3-13-2023

TNT:

CandyKisses:  Kurdistan’s share of which 25 trillion dinars. Iraq approves the largest budget in its history at 200 trillion dinars

Shafaq News / The deputy in the Iraqi Council of Representatives for the province of Sulaymaniyah in Pierre Rashid revealed today, Monday, the details of the federal general budget of the state for the three years approved by the Council of Ministers, describing it as the largest budget in the history of Iraq.

Rashid told Shafaq News that "the Iraqi Council of Ministers agreed on the draft budget law for the fiscal years 2023, 2024 and 2025, indicating that the draft Iraqi budget law is the largest in the history of the Iraqi state in 20 years, amounting to 200 trillion dinars total budget and reaches parliament shortly.

He stressed that the region's budget will be 25 trillion dinars, this budget can be used to plan and work very significantly.

CandyKisses:  Shafaq News / The deputy in the Iraqi Council of Representatives for the province of Sulaymaniyah in Pierre Rashid revealed today, Monday, the details of the federal general budget of the state for the three years approved by the Council of Ministers, describing it as the largest budget in the history of Iraq.

Kman: Just a wild guess, but since Iraq seems to be fast tracking the budget and banks in the U.S. needing a massive cash injection, what better way than to RI/RV the Dinar

VinterV:  Breaking News...the Silicon Valley Bnks will be covered... Contrary to what Yellen said earlier... Silicon Valley Bank collapse: Treasury, Fed and FDIC announce steps to ensure deposits will be paid in full

Bushog:  Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks" So they are going to charge the responsible banks and those costs will be extended to us. There is no such thing as no cost to taxpayers

Babysmom:  SVB had several non compete clauses with depositors. Another reason to diversify

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Tishwash:  The Council of Ministers approves the draft budget law and refers it to Parliament

 Today, Monday, the Council of Ministers announced its approval of the draft budget law for the fiscal years 2023, 2024 and 2025 and its referral to Parliament.

The media office of the Prime Minister stated, in a statement received by (Baghdad Today), that "the Council of Ministers approved the draft federal budget law for the fiscal years 2023, 2024 and 2025, in its regular session held under the chairmanship of Prime Minister Muhammad Shia' al-Sudani and refers it to the House of Representatives."

This morning, the Council of Ministers held its regular session, headed by Al-Sudani.

Al-Sudani's media office stated, in a statement received by (Baghdad Today), that "the cabinet held its regular session, headed by Prime Minister Muhammad Shia'a Al-Sudani, which includes discussing the draft federal budget law."

And the Minister of Finance, Taif Sami, announced yesterday, Sunday, the completion of the draft federal budget law for the year 2023 and sending it to the Council of Ministers for the purpose of discussing and voting on it. link

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Tishwash:  Kurdistan Finance announces the transfer of 400 billion dinars from Baghdad

 The Ministry of Finance and Economy in the Kurdistan Regional Government announced, on Monday, that Baghdad had transferred an amount of 400 billion dinars to its bank account.  

The ministry said in a brief statement, which "NAS" received a copy of, (March 13, 2023), that "within the framework of the agreement between the Kurdistan Regional Government and the federal government, an amount of 400 billion dinars has been transferred to the bank account of the Ministry of Finance and Economy of the Kurdistan Region today." link

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CandyKisses:  Suspension of official working hours in the Kurdistan region tomorrow, Tuesday

Baghdad - Nas  

On Monday, the Kurdistan Regional Government announced the suspension of official working hours in the region tomorrow, Tuesday.  

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Tishwash:  The Council of Ministers holds its session to discuss the 2023 budget law

On Monday, the Council of Ministers held its emergency session to discuss the 2023 budget.

Al-Sudani's office stated, in a statement received by Al-Iqtisad News, that "the cabinet held a regular session headed by Muhammad Shia'a Al-Sudani."

He pointed out that "the session includes a discussion of the federal budget law link

CandyKisses:  SOME DAYS...

Mot:  Bosses can be Soooo Unreasonable at times! - Ya Knows!! ~~~

Monday Morning Iraq Economic News Highlights 3-13-23

Monday Morning Iraq Economic News Highlights 3-13-23

When Does The Budget Enter Into Legislation And Implementation At The Same Time? The Economic Advisor Answers

2023.03.13 - 09:14   Baghdad - Nas    Mazhar Muhammad Salih, the economic advisor to the Prime Minister, suggested that the country's general budget would enter into legislation and implementation at the same time.  Saleh said in a statement to the official newspaper, followed by “Nass” (March 13, 2023), that “given that the country entered the end of the first quarter of the year 2023, and after the end of the fiscal year 2022, which was devoid of a public budget law, and contented itself with the financial management law and the emergency law for food security as an alternative.”

Therefore, it has become certain that the submission of the draft federal budget law for the year 2023 will be expedited by presenting it at a meeting of the Council of Ministers for approval in principle in the coming days and sending it for legislation to the House of Representatives.

And Saleh suggested that “next April will witness the entry of the country’s general budget into legislation and implementation at the same time.”

For his part, Adviser to the Prime Minister Diaa al-Nasseri said, "The budget for the current year will be approved and will see the light in a special session of the Council of Ministers to be held (today, Monday)," adding that "the budget for the current year is expected to be a smart budget and a project budget."

For his part, the former director of the Office of Financial Supervision, Salah Nuri, confirmed that “the features and data of the budget indicate that it will be more operational, due to the large number of appointments it included, the confirmation of contracts and other holders of higher degrees, and the confirmation of the first.” 

He pointed out that “even if an investment budget is issued in the country, implementation is always low, as over many years its investment implementation does not exceed 40 percent of the original allocations, and what matters to us is implementation even if the budget was issued with a deficit.”    

In addition, a member of the Parliamentary Finance Committee, Mueen Al-Kadhimi, said: “The government of Prime Minister Muhammad Shia’a Al-Sudani made appointments that represented the transfer of contractors to permanent staffing,” noting that “the draft federal budget law for the year 2023 will be devoid of new job grades, with the exception of the degrees of deletion and replacement that It will be available after retiring a large number of employees during the current year,” according to the newspaper.

Yesterday, Sunday, the Ministry of Finance completed the draft federal budget law for the current year 2023 and sent it to the Council of Ministers for the purpose of holding a special session to vote on it, at a time when Diaa Al-Nasseri, Advisor to the Prime Minister, announced that the Council will hold a special session to discuss the budget today, Monday, and send it after voting to the Council. deputies.

Finance Minister Taif Sami said, in a statement: “The draft federal budget law for the year 2023 was completed and sent to the Council of Ministers for the purpose of discussing and voting on it,” noting, “The completion of preparing the project comes under exceptional circumstances in the global economy, and it came to deal with With the effects of international, regional and local economic challenges. She added, "The next draft budget will focus on development priorities, support for the social protection network, and the most needy groups," noting that "providing a safe cover for strategic and sustainable development projects."

She emphasized, "We have worked throughout the past months of the new government's life to extract a budget that responds to the needs of the Iraqi economy and is consistent with the plans of the government curriculum and the package of financial and economic reforms that the ministry is working to achieve."     https://www.nasnews.com/view.php?cat=103708

The Council Of Ministers Approves The Draft Budget Law For Three Years

Time: 03/13/2023 13:48:42  Read: 1,066 times  {Economic: Al Furat News} The Council of Ministers approved the draft federal budget law for the fiscal years 2023, 2024 and 2025.

Today, Monday, the Council held its regular session on the budget, headed by Prime Minister Muhammad Shia'a Al-Sudani.

The Council of Ministers referred the draft budget law for the three consecutive years to the House of Representatives for discussion and approval.

Al-Sudani will head tomorrow to the Kurdistan region and will discuss a number of files, most notably the budget, the oil and gas law, and the rest of the contentious files and issues between Baghdad and Erbil.    LINK

The Council Of Ministers Approves The Budget And Transmits It To The House Of Representatives

Monday 13 March 2023 13:51 | politics Number of readings: 135  Baghdad / NINA / The Council of Ministers approved the draft federal budget law for the fiscal years 2023, 2024 and 2025, in its regular session held under the chairmanship of Prime Minister Muhammad Shia Al-Sudani, and refers it to the House of Representatives. / End 9 • To receive more news, subscribe to our channel on

https://ninanews-com.translate.goog/Website/News/Details?key=1040168&_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

Parliamentarian Reveals The Details Of The Budget, Both Operational And Investment

On Sunday, the representative of the State of Law coalition, Muhammad Hassan al-Qadri, revealed the latest details and figures of the general budget law after sending it to the Council of Ministers, while confirming that the investment part of the general budget will be more than 30% in line with the government’s previously prepared program.

Al-Qadri said in a press interview seen by “Takadum”, that “the operational percentage of the general budget will be around 60%, which includes many paragraphs that included all the important joints,” noting that “the law to amend the salary scale is far from the budget because it is a single program.” The government sends it to Parliament to vote on it after the amendments made by the parliamentary committees according to the specialization.

And he continued, “The budget has an important need for the people, because it contains many paragraphs that many citizens are waiting for,” pointing out that “the oil and gas law is still suspended until now, and we hope to complete the amendments from its approval with the public retirement law during the coming period.”

And on the investment side of the government, according to the program that was voted on inside the dome of Parliament, Al-Qadri explains: “The investment part of the general budget will be at a rate of more than 30%, in line with the government’s previously prepared program.”

https://takadum-news.com/archives/154093

A Parliamentarian Reveals To /Nina/ The Reasons For The Delay In Sending The General Budget From The Government To Parliament, Despite Its Readiness

Monday 13 March 2023 09:05 | politics Number of readings: 395  Baghdad /  NINA / - The representative of the State of Law Coalition, Thaer Makhaif, revealed the reasons for the delay in sending the state budget for 2023 from the government to Parliament, despite its readiness.

Makhaif said in a statement to the National Iraqi News Agency (  NINA ): “There are two main reasons for the delay in sending the budget from the government to parliament despite the completion of its paragraphs by the Ministry of Finance. The second is the region's share of the budget and the high ceilings in their demands from the federal government.

Makhaif explained, "Parliament needs a period of between four weeks or a little less to approve the budget as soon as it arrives from the Council of Ministers."

He stressed that the political consensus between the blocs will resolve the approval of the budget quickly./    https://ninanews-com.translate.goog/Website/News/Details?key=1040091&_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

An Economist For / Nina / The 2023 Budget Will Pass Without Checking Its Vocabulary

Monday 13 March 2023 07:47 | Economical Number of readings: 361  Baghdad / NINA / - The specialist in economic affairs, Dergham Muhammad Ali, confirmed that the delay in approving the budget will force Parliament to discuss it superficially without going through carefully its vocabulary.

Muhammad Ali said in a statement to the National Iraqi News Agency ( NINA ) that “the delay in the budget law so far does not give parliament enough time to discuss it and amend its items, especially if there is a financial side in those items that Returning it to the government requires amending its paragraphs and returning it again to Parliament, and this means the end of two seasons of the year without budget, which makes it difficult to benefit from the large investment segment specified in it.

He added, "Successive governments did not even present a budget for projects and were satisfied with balancing the classic items, which makes parliament's discussions superficial without passing through carefully its vocabulary."

The economist called for making allocations to complete the construction of electric power plants from simple cycle to full cycle to get the maximum benefit from gaseous fuel and reduce harmful emissions. The preparation of the draft budget is the responsibility of the Ministry of Finance, which in turn submits it to the Council of Ministers to enrich it and vote on it, before that it is referred to Parliament for legislation within a law,

And Iraq did not approve the draft budget for 2022 due to the political crisis that has gripped the country since the “early” elections were held on October 10, 2021.

https://ninanews-com.translate.goog/Website/News/Details?key=1040032&_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

The Decline In Dollar Prices In Baghdad And Erbil

2023-03-13 02:35  Shafaq News/ The exchange rates of the US dollar decreased against the Iraqi dinar, on Monday, in the main stock exchange in the capital, Baghdad, and in the Kurdistan Region.

Shafaq News agency reporter said that the central Al-Kifah Stock Exchange in Baghdad recorded an exchange rate this morning of 156,400 Iraqi dinars against 100 US dollars, while the prices on Sunday morning were 156,850 dinars against 100 dollars.

Our correspondent indicated that the buying and selling prices decreased in the exchange shops in the local markets in Baghdad, where the selling price reached 157,500 Iraqi dinars per 100 US dollars, while the purchase prices amounted to 155,500 Iraqi dinars per 100 US dollars.

As for Erbil, the capital of the Kurdistan Region, the dollar prices also recorded a decrease, as the selling price of the dollar reached 156,800 dinars per 100 US dollars, and the purchase price reached 155,800 dinars per 100 US dollars.   LINK

Erbil Receives 400 Billion Dinars From The Central Government

Money and business  Economy News-Baghdad  The Ministry of Finance and Economy of the Kurdistan Regional Government announced, on Monday, that it had received 400 billion dinars from the federal government.

The ministry said in a statement received by "Al-Iqtisad News" that "within the framework of the agreement between the regional government and the federal government, 400 billion dinars have been received to finance employee salaries." He added, "The amount sent by Baghdad was transferred to the bank account of the region's Ministry of Finance."   https://economy-news.net/content.php?id=32901

The 2023 Budget Is Awaiting A Government Vote

second and third  2023/03/13   Raghad Daham   Yesterday, Sunday, the Ministry of Finance completed the draft federal budget law for the current year 2023 and sent it to the Council of Ministers for the purpose of holding a special session to vote on it, at a time when Diaa Al-Nasseri, Advisor to the Prime Minister, announced that the Council will hold a special session to discuss the budget today, Monday, and send it after voting to the Council. deputies.

Finance Minister Taif Sami said, in a statement: “The draft federal budget law for the year 2023 was completed and sent to the Council of Ministers for the purpose of discussing and voting on it,” noting, “The completion of the preparation of the project comes under exceptional circumstances in the global economy, and it came to deal with With the effects of international, regional and local economic challenges. She added, "The next draft budget will focus on development priorities, support for the social protection network, and the most needy groups," noting that "providing a safe cover for strategic and sustainable development projects."

And she emphasized, "We have worked throughout the past months of the new government's life to extract a budget that responds to the needs of the Iraqi economy and is consistent with the government's curriculum plans and the package of financial and economic reforms that the ministry is working to achieve."

In addition, the economic advisor to the Prime Minister, Mazhar Muhammad Salih, stated in an interview with “Al-Sabah” that “given that the country entered the end of the first semester of the year 2023, and after the end of the fiscal year 2022 and it was devoid of a public budget law and was satisfied with the financial management law and the emergency law.”

For food security as an alternative to the general budget in the conduct of the country's financial affairs, so it has become certain that the submission of the draft federal budget law for the year 2023 will be expedited by presenting it to a meeting of the Council of Ministers for approval in principle in the coming days and sending it for legislation to the House of Representatives.   Edited by: Muhammad Al-Ansari    https://alsabaah.iq/73206-.html

Iraqi News Highlights Sunday Afternoon 3-12-23

Iraqi News Highlights Sunday Afternoon 3-12-23

Tlm724 Administrator Bondlady’s Corner

A List Of Dollar Exchange Rates On The Iraqi Stock Exchange For Today

Economy   Sunday, March 12, 2023 11:36 am  Baghdad / National News Center  The National News Center publishes the exchange rates of the dollar against the Iraqi dinar on a daily basis, according to the variables of the currency exchange market in the capital, Baghdad, and the country's provinces.

in Baghdad:  The selling price of the dollar is 157,500 per 100 dollars   The purchase price of the dollar is 156,500 per 100 dollars

in the north:  The selling price of the dollar is 157,750 per 100 dollars   The purchase price of the dollar is 156,750 per 100 dollars

in the south:  The selling price of the dollar is 157,750 per 100 dollars  The purchase price of the dollar is 156,750 per 100 dollars    https://nnciraq.com/192562/

Amer Al-Jawahiry To / NINA /: Opening New Outlets For Selling The Currency... A Step To Improve The Exchange Rate

Sunday 12 March 2023 12:12 | Economical Number of readings: 324   Baghdad / NINA / The consultant in industrial development and investment, Amer Al-Jawahiri, opened new outlets for selling the currency... a step to improve the exchange rate.

He told the National Iraqi News Agency ( NINA ) that the government's measure to open new outlets will not improve the exchange rate first, but rather it is a step followed by steps to improve the exchange rate in the parallel market, including remittances, the electronic platform, and the work of merchants so that it is fast without delay.

He explained: What is important in all of these steps is the government's ability to manage the file and increase sales outlets by following up and taking appropriate measures to improve the currency exchange rate./ End    https://ninanews.com/Website/News/Details?Key=1039910

Obstacles To Investment Projects On A Meeting Table In The Ministry Of Finance

Money and business  Economy News – Baghdad On Sunday, the Ministry of Finance discussed a number of topics on its agenda, and took the necessary decisions and recommendations in this regard.

And the ministry stated in a statement, “The Minister of Finance, Taif Sami, chaired the meeting of the opinion committee in the ministry to discuss a number of issues on its agenda and take the necessary decisions and recommendations regarding them, in the presence of the ministry’s advisor, the head of the National Retirement Authority, and the general directors of the legal, budget, accounting, administrative departments, public debt, the Insurance Bureau, and the two bodies.” Taxes and customs.

The statement added, "The meeting issued a set of decisions, including an emphasis on continuing to hold meetings of the opinion committee in the ministry on a regular monthly basis, in addition to discussing the most important problems and obstacles related to investment projects and ways to solve them, by preparing a summary of the problems and solutions necessary for the obstacles to implementing housing projects in accordance with the regulations and instructions issued." about it.”

He pointed out that "the meeting followed the stages of implementing the project to modernize the public financial management system (IFMIS), which will contribute to increasing the speed of electronic communication of the Ministry of Finance with other ministries and institutions, and improving the process of monitoring financial accounts and following up on financial appropriations within the budget."

And he continued, "The requirements for the implementation of the housing project for the Ministry's employees and departments were discussed, and the emphasis was on the need to complete all stages to ensure the completion of the project as quickly as possible, in addition to following up on the requirements for establishing the building of the General Administration of the Rafidain Bank and making the necessary recommendations in this regard." https://economy-news.net/content.php?id=32884

For The First Time In Iraq... A "Large And Exemplary" Project To Use Renewable Energy

Energy Economy News – Baghdad On Sunday, Oil Minister Hayan Abdel-Ghani revealed the contract for a solar energy project with a capacity of 1,000 megawatts, while indicating that the government has paid attention to focusing on gas investment and benefiting from this energy.

"The government has paid attention to focusing on investing in gas and benefiting from this energy," Abdel-Ghani told the official news agency.

He added, "The ministry worked to review the existing projects in gas investment in the southern, central and northern fields," noting that "the amount of gas used in generating electric power amounted to 56 percent."

He pointed out, "For the first time in Iraq, a contract will be made for a solar energy project with a capacity of 1,000 megawatts," noting that it is "a large and exemplary project and an example for the use of renewable energy."

He continued, "The ministry is working on many projects in the coming period, including a project to invest 200 million cubic feet of gas in Nasiriyah, as well as a project to invest 300 million cubic feet in Maysan, which is one of the promising projects, as power stations will be installed that depend on this gas."

He pointed out, "The fifth licensing round, mostly gas fields, provides about 750 to 1,000 million cubic feet of gas, and it will be implemented within 3 years as a first stage."

https://economy-news.net/content.php?id=32886

Sudanese advisor: Approval of the budget in a special session of the Council of Ministers tomorrow

Economy| 11:14 - 03/12/2023  Baghdad - Mawazine News,  Advisor to the Prime Minister, Diaa Al-Nasseri, confirmed, on Sunday, that the 2023 budget will be approved in a special session of the Council of Ministers tomorrow.

Al-Nasseri said, "The budget for the current year will be approved and will see the light in a special session of the Council of Ministers to be held tomorrow, Monday."

He added, "The current year's budget is expected to be a smart budget and project budget," according to the official news agency.

And the Minister of Finance, Taif Sami, announced, earlier today, Sunday, the completion of the preparation of the draft budget law, and sending it to the Council of Ministers for the purpose of discussing and voting on it. https://www.mawazin.net/Details.aspx?jimare=221680

Finance: Completing The Preparation Of The Budget Law And Sending It To The Council Of Ministers For A Vote

Economy| 10:55 - 03/12/2023  Baghdad - Mawazine News,  Minister of Finance, Taif Sami, announced, on Sunday, the completion of the draft federal budget law for the year 2023, and sending it to the Council of Ministers for the purpose of discussing and voting on it.

Sami added, in a statement received by Mawazine News, that "the completion of the preparation of the project comes in light of exceptional circumstances in the global economy, and it came to deal with the effects of international, regional and local economic challenges."

She explained, "The next draft budget will focus on development priorities, support for the social protection network, and the most needy groups, as well as providing a safe cover for strategic and sustainable development projects."

And she continued, "We have worked throughout the past months of the new government's life to extract a budget that responds to the needs of the Iraqi economy and is consistent with the plans of the government curriculum and the package of financial and economic reforms that the ministry is working to achieve."     https://www.mawazin.net/Details.aspx?jimare=221678

To read more current and reliable Iraqi news please visit BondLady’s Corner:

  https://www.bondladyscorner.com/

Two U.S. Banks Collapse in 48 Hours. Which One's Next?

Two U.S. Banks Collapse in 48 Hours. Which One's Next?

Luc Olingamar 10, 2023 1:34 Pm Est

Silvergate served the cryptocurrency industry, while SVB was the bank for Silicon Valley tech startups.

It's a black week for the American financial system: In just 48 hours, the banking sector has been shaken by the collapse of two major banks.  Most worrying is that these banks served two so-called growth economic sectors: the tech sector and the cryptocurrency industry.

SVB Financial Group,  (SIVB) - Get Free Report the lender to Silicon Valley startups, failed on March 10, falling into the hands of the FDIC. The federal agency has taken control of the banking company, reviving the ghosts of the 2008 financial crisis.

"Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation as receiver," the federal agency said in a news release.

"All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds."

It added that it may pay a dividend to uninsured depositors as it sells the assets of SVB   (SIVB) - Get Free Report.

The FDIC is a guarantor for bank depositors.

SVB: The To-Go Bank for Tech Startups

At the end of last year SVB had $209 billion in total assets and $175 billion in total deposits. SVB becomes the second biggest failure of a U.S. bank after Washington Mutual in 2008.

SVB was a central player in the innovation economy. It was the backbone of the tech industry in Silicon Valley. It played an important role in the startup ecosystem by providing specialized financial services, industry expertise, a valuable network, and a strong reputation.

It also offered a range of financial services tailored specifically to the needs of startups, such as venture debt, corporate banking, and asset management. These services are designed to help startups manage their finances, optimize their cash flow, and scale their businesses.

SVB suffered from the rise in interest rates from the Federal Reserve because it hurt the value of its investment assets, especially bonds. As a result, the bank had to resort to a capital raise as many startups withdrew their deposits from the bank since they were burning a lot of cash.

SVB had to sell bonds, primarily U.S. Treasury securities, at a discount to cover these withdrawals. The rise in interest rates has made existing bonds less valuable. In selling these bond positions, SVB had to take a significant loss.

But its attempt to raise $2.25 billion failed.

Crypto Bank Silvergate Collapsed

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"Tidbits From TNT" Sunday 3-12-2023

TNT:

Tishwash:  Taif Sami announces the completion of the "2023 budget" and sends it to the Council of Ministers for a vote

The Minister of Finance, Taif Sami, announced on Sunday, the completion of the draft federal budget law for the year 2023 and sending it to the Council of Ministers for the purpose of discussing and voting on it.

Sami mentioned in a statement received by Shafaq News agency; "The completion of the preparation of the project comes under exceptional circumstances in the global economy, which came to deal with the effects of international, regional and local economic challenges," he said.

And the Minister of Finance indicated; "The next draft budget will focus on development priorities, support for the social protection network, and the most needy groups, as well as providing a secure cover for strategic and sustainable development projects," he said.

Sami indicated, "During the past months of the new government's life, we worked to extract a budget that responds to the needs of the Iraqi economy and is consistent with the government's curriculum plans and the package of financial and economic reforms that the ministry is working to achieve."   link

CandyKisses:  High-level Kurdish delegation visits Baghdad today on oil and gas law

Shafaq News / The official spokesman for the Kurdistan Regional Government, Jotyar Adel, announced on Sunday that a delegation from the Kurdistan Regional Government will visit Baghdad to discuss the draft federal oil and gas law.

Adel said in a statement to the website of the regional government, seen by Shafaq News agency, that "the delegation consists of the Minister of Justice, the head of the Coordination and Follow-up Department, an agency in the Ministry of Natural Resources and specialists from the Ministry of Justice, and tomorrow meetings will begin on the draft oil and gas law, which is one of the important topics and a solution must be reached within a specific time."

He added that "this law will solve many problems in general and problems in the oil sector in Iraq in addition to the relations between Erbil and Baghdad and for the Kurdistan Region to be a key partner in decisions related to the oil industry effectively."

Adel continued; "The law will reorganize the work of this sector, whether at the level of Iraq or at the level of relations between the region and the federal government, and the details of this issue will be talked about. In the end, this project must be a reflection of a full agreement between the two parties and be in their interest, and this will be an important accomplishment not only for the Kurdistan Region but for all of Iraq."

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CandyKisses:  Iranian rial rebounds on resumption of ties with Saudi Arabia

Baghdad Today - Follow-up

The Iranian rial has managed to recover some of the losses it has suffered during the recent period, as it recorded a rise following the agreement between Tehran and Riyadh to restore diplomatic relations on Friday.

According to foreign exchange website Bonbast.com, the rial hit 439,477 to the dollar in the informal duty free market, compared with <>,<>.

The Iranian rial fell to a record low of 601500,<> per dollar in late February.

But Iran's currency rebounded in March after tensions over Iran's nuclear program appeared to ease, coinciding with the visit of the head of the United Nations International Atomic Energy Agency to Iran.

The Iranian rial has lost about 30 percent of its value since widespread protests erupted in the country in September. 

Riyadh and Tehran announced on Friday that they would reopen embassies and diplomatic representations within two months and implement security and economic cooperation agreements struck more than two decades ago.

 ************

Tishwash:  The Chinese dragon is scattering "Uncle Sam" cards... The Middle East is outside Washington's hegemony

In light of the government's endeavor to consolidate relations with all countries of the world in a balanced manner and to ensure that it is not drawn into the repercussions of the political disputes that America seeks, and in the midst of Iraq's endeavor to renounce Washington's hegemony and not rely on a single axis, China dealt a severe blow to "the United States of America and Israel." With its success in restoring political, economic and security relations between Saudi Arabia and Iran after a break that lasted for years, as this agreement will lead to the end of the continued Israeli advance to lure the Arab countries into normalization, as well as the positive repercussions on the Iraqi scene in many files, according to observers.

What will Iraq benefit from it?

And speaking of the return of relations between Saudi Arabia and Iran, mediated by China, the representative of the State of Law Coalition, Muhammad Al-Shammari, said in an interview with Al-Maalouma agency, that "this agreement will lead to many positive files on the Iraqi level in light of the balanced policy that China plays in the middle condition." He indicated that "Iraq has a role in mediating and preparing with China in order to restore the relationship between Saudi Arabia and Iran."

 And he continues, "Such relations and agreements mark the beginning of features of American weakness in the region," pointing out that "restoring foreign relations between Iran and Saudi Arabia through Chinese mediation is a painful blow to American hegemony."

Regarding Iraq's benefit from the Iran-Saudi Arabia agreement, Al-Shammari explains: "This agreement will reflect positively on the Iraqi political arena and its stability in the coming period," adding that "the agreement is a political victory calculated for Iran over the United States of America."

The end of America, the Middle East

In addition, political analyst Sabah Al-Aqili said in an interview with Al-Maalouma agency, "The agreement and the return of relations within two months will lead to many positive axes on the Iraqi and regional arenas," noting that "the agreement will face the challenges of thwarting it by the Zionist entity and the United States of America."

And he adds, "China's entry into the line in the Middle East is tantamount to the decline of Washington's role on the ground," pointing out that "the agreement suggests a change in Saudi Arabia's policy of not relying on America and announcing its orientation towards the eastern axis represented by Russia-China."

Regarding Saudi Arabia and Iran's direction towards China, Al-Aqili explains: "The agreement is due to the failure of US policy in the middle condition and the entry of China as a major player on the political, economic and social levels, as the latter will undertake re-planning of the region according to the priorities of the countries."

According to a tripartite statement issued by Iran, Saudi Arabia and China, which stipulated the resumption of diplomatic relations between the two countries and the reopening of their embassies and representations within a period not exceeding two months. The two countries will also work to activate the security cooperation agreement and hold talks on strengthening bilateral relations, while Saudi Arabia and Iran thanked Baghdad. And the Sultanate of Oman for their role in hosting tours.

Israel's policy failure 

In the same context, former Israeli Prime Minister Naftali Bennett says, "The renewal of relations between Saudi Arabia and Iran is a dangerous development for Israel and a political victory for Iran."

And he considered that the resumption of Iranian-Saudi relations constitutes "a fatal blow to efforts to build a regional alliance against Iran," and stressed that this is "a catastrophic failure of the Netanyahu government, resulting from a combination of political neglect, general weakness, and internal conflict in the country."

He said, "The countries of the world and the region are watching the conflict in Israel with a dysfunctional government that systematically works on self-destruction; then these countries choose a side (in the conflict - between Israel and Iran)."

He described the Netanyahu government as a resounding economic, political and security failure, and endangers the State of Israel on a daily basis, adding, "We need a broad national emergency government that works to repair the many damages that have occurred."

According to the majority opinion, China continues its effective policy by concluding international agreements and treaties that hit America, benefiting from the differences it creates in the Middle East and the world in general, and also ending the file of normalization with regard to Israel, which failed in its abhorrent policy in the Arab countries, and it is possible that there will be repercussions

The return of relations between Saudi Arabia and Iran is positive in the Iraqi arena, according to observers.  link

Mot sooooooooo Confusing it is... addeth or subtracteth????

Mot:  ...... Again!!! --- WHY!!!! ~~~~

Sunday Morning Iraq Economic News Highlights 3-12-23

Sunday Morning Iraq Economic News Highlights 3-12-23

Sudanese Advisor: Approval Of The Budget In A Special Session Of The Council Of Ministers Tomorrow

Economy| 11:14 - 03/12/2023  Baghdad - Mawazine News,  Advisor to the Prime Minister, Diaa Al-Nasseri, confirmed, on Sunday, that the 2023 budget will be approved in a special session of the Council of Ministers tomorrow.

Al-Nasseri said, "The budget for the current year will be approved and will see the light in a special session of the Council of Ministers to be held tomorrow, Monday."

He added, "The current year's budget is expected to be a smart budget and project budget," according to the official news agency.

And the Minister of Finance, Taif Sami, announced, earlier today, Sunday, the completion of the preparation of the draft budget law, and sending it to the Council of Ministers for the purpose of discussing and voting on it. Ended 29/N33   https://www.mawazin.net/Details.aspx?jimare=221680

The Minister Of Finance Announces The Completion Of The Draft Budget Law And Sending It To The Council Of Ministers

Iraq  11:47 - 2023-03-12  Today, Sunday, Finance Minister Taif Sami announced the completion of the draft federal budget law for the year 2023 and sending it to the Council of Ministers for the purpose of discussing and voting on it.

Sami said, in a statement, that "the completion of the preparation of the project comes in light of exceptional circumstances in the global economy, which came to deal with the effects of international, regional and local economic challenges."

And she continued, "The next draft budget will focus on development priorities, support for the social protection network, and the most needy groups, as well as providing a safe cover for strategic and sustainable development projects."

And the Minister of Finance stated, "We have worked throughout the past months of the new government's life to extract a budget that responds to the needs of the Iraqi economy and is consistent with the plans of the government curriculum and the package of financial and economic reforms that the ministry is working to achieve."   https://kirkuktv.net/AR/Details/13807

Spectrum Sami Announces The Completion Of The Draft Budget

2023.03.12 - 10:57  Baghdad - Nas   Finance Minister Taif Sami announced, on Sunday, the completion of the draft budget for the year 2023, and sending it to the Council of Ministers for the purpose of discussion and voting on it.

  "Nass" channel on Telegram.. our latest updates

  The Ministry of Finance said in a statement, which “NAS” received a copy of, (March 12, 2023), that “Finance Minister Taif Sami announced the completion of preparing the project in light of the exceptional circumstances witnessed by the global economy, and she came to deal with the effects of international, regional and local economic challenges.”

  Sami added, according to the statement, that "the next draft budget will focus on development priorities, support for the social protection network, and the most needy groups, as well as providing a safe cover for strategic and sustainable development projects."

And she continued, "We worked throughout the past months of the new government's life to extract a budget that meets the needs of the Iraqi economy and is consistent with the plans of the government curriculum and the package of financial and economic reforms that the ministry is working to achieve."

https://www.nasnews.com/view.php?cat=103670

Amer Al-Jawahiry To / NINA /: Opening New Outlets For Selling The Currency... A Step To Improve The Exchange Rate

Sunday 12 March 2023 12:12 | Economical Number of readings: 114  Amer Al-Jawahiry to / NINA /: Baghdad / NINA / The consultant in industrial development and investment, Amer Al-Jawahiri, opened new outlets for selling the currency... a step to improve the exchange rate.

He told the National Iraqi News Agency ( NINA ) that the government's measure to open new outlets will not improve the exchange rate first, but rather it is a step followed by steps to improve the exchange rate in the parallel market, including remittances, the electronic platform, and the work of merchants so that it is fast without delay.

He explained: What is important in all of these steps is the government's ability to manage the file and increase sales outlets by following up and taking appropriate measures to improve the currency exchange rate./ End 3 To receive more news, subscribe to our channel

https://ninanews-com.translate.goog/Website/News/Details?key=1039910&_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

A Deputy Sets Three Conditions For Voting On The 2023 Budget In Parliament - Urgent

Policy |Today, 16:35  Today, Sunday, Representative Nayef Al-Shammari set three conditions that must be included in the budget before voting on it, at a time when the Council of Ministers is preparing to approve it tomorrow and send it to Parliament.

Al-Shammari said, in a clarification followed by "Baghdad Today," that "tomorrow, Monday, at ten o'clock in the morning, the budget will be approved in a special emergency session of the Council of Ministers."

He added: "As for us, we confirm that we will vote on the budget when it reaches Parliament, in the event that there are those whose contracts have been terminated and those who have been formally dismissed. The budget includes risk allowances for Nineveh police personnel.

Earlier today, Finance Minister Taif Sami announced the completion of the draft federal budget law for the year 2023 and sending it to the Council of Ministers for the purpose of discussing and voting on it. LINK

Al-Kazemi: Attempts To Demonize My Government, And Corruption Devoured 600 Billion Dollars Of Iraqi Money

2023.03.12 - 08:05   Baghdad - people    In his first interview since the end of his duties at the head of the government, former Prime Minister Mustafa Al-Kazemi affirmed that "there are those who are trying to demonize me and blame my government for all the defects of the political system and previous governments in the past twenty years," while revealing that "corruption has devoured more than $ 600 billion from Iraq's money was used for the benefit of individuals, party and military entities, and regional roles.

"Nass" channel on Telegram.. our latest updates 

Al-Kazemi said in an interview with Asharq Al-Awsat, followed by “Nass” (March 12, 2023): “Unfortunately, there are those who want to clean up their bad history in governance, and for this they blame the Al-Kazemi government, which has no party, militia, or parliamentary bloc,” accusing those parties of obstructing his government work.

Al-Kazemi considered the return of Iraq to its Arab depth as natural, while respecting the interests of all its neighbors, stressing that the Shiite authority in Iraq supports this approach, pointing out that Iraq sought to build its relations "from state to state", and on the basis of respect for mutual interests.

Al-Kazemi acknowledged that his government had not succeeded in addressing the "problem of uncontrolled weapons," and talked about the killings that targeted political activists, which were sometimes carried out by elements who infiltrated the security services during the era of previous governments.    

He also talked about "3 assassination attempts that targeted him, one of which was a march that hit his house." He recounted that "Saddam Hussein's body was dumped after his execution near his house and the home of former Prime Minister Nuri al-Maliki in the Green Zone."

Al-Kazemi revealed that "the confessions of a detainee led to a paper buried in the desert, which was found by the Iraqi services and helped the Americans eliminate Abu Bakr al-Baghdadi, the leader of ISIS." He spoke of "operations carried out beyond the borders." https://www.nasnews.com/view.php?cat=103654

A Major Bank Failed. Here’s Why It’s Not 2008 Again

A Major Bank Failed. Here’s Why It’s Not 2008 Again

By Associated Press   March 10, 2023, at 5:05 p.m.

The financial institution best known for its relationships with high-flying world technology startups and venture capital, Silicon Valley Bank, experienced one of the oldest problems in banking — a bank run — which led to its failure on Friday

NEW YORK (AP) — The financial institution best known for its relationships with high-flying world technology startups and venture capital, Silicon Valley Bank, experienced one of the oldest problems in banking — a bank run — which led to its failure on Friday.

Its downfall is the largest failure of a financial institution since Washington Mutual collapsed at the height of the financial crisis more than a decade ago. And it had immediate effects. Some startups that had ties to the bank scrambled to pay their workers, and feared they might have to pause projects or lay off or furlough employees until they could access their funds.

How did this happen? Here's what to know about why the bank failed, who was affected most, and what to know about how it may, and may not affect, the wider banking system in the U.S.

WHY DID SILICON VALLEY BANK FAIL?

Silicon Valley Bank was hit hard by the downturn in technology stocks over the past year as well as the Federal Reserve's aggressive plan to increase interest rates to combat inflation.

The bank bought billions of dollars worth of bonds over the past couple of years, using customers' deposits as a typical bank would normally operate. These investments are typically safe, but the value of those investments fell because they paid lower interest rates than what a comparable bond would pay if issued in today's higher interest rate environment.

Typically that's not an issue, because banks hold onto those for a long time — unless they have to sell them in an emergency.

But Silicon Valley's customers were largely startups and other tech-centric companies that started becoming more needy for cash over the past year. Venture capital funding was drying up, companies were not able to get additional rounds of funding for unprofitable businesses, and therefore had to tap their existing funds — often deposited with Silicon Valley Bank, which sat in the center of the tech startup universe.

So Silicon Valley customers started withdrawing their deposits. Initially that wasn't a huge issue, but the withdrawals started requiring the bank to start selling its own assets to meet customer withdrawal requests. Because Silicon Valley customers were largely businesses and the wealthy, they likely were more fearful of a bank failure since their deposits were over $250,000, which is the government-imposed limit on deposit insurance.

That required selling typically safe bonds at a loss, and those losses added up to the point that Silicon Valley Bank became effectively insolvent. The bank tried to raise additional capital through outside investors, but was unable to find them.

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