Al-Sudani: We will not let the projects stop in any governorate, and their completion will change the economic and social reality
The video for this Blogpost is below here:
Al-Sudani: Raisi’s departure is a loss for the region.. and Mr. Khamenei confirms Iran’s continued cooperation and interests with Iraq
Al-Sudani expressed, according to a statement by the Prime Minister’s Office, a copy of which {Al-Furat News} received, his sincere condolences to Mr. Khamenei and to the Iranian government and people on this painful incident, stressing Iraq’s solidarity and its standing, as a government and a people, with Iran in these difficult times. He also pointed to the depth of bilateral relations between the two countries, Praising the personality of Mr. Ibrahim Raisi, whose departure was a loss for the region and not just Iran; Being a person who worked efficiently and responsibly for peace and cooperation among all countries of the region.
Al-Sudani renewed his praise for the late president’s biography, noting his stature and the tangible services he provided to the Iranian people, his regional and international peace and stability efforts, and his work to strengthen fruitful partnerships with Iraq and the rest of the countries of the region.
For his part, Mr. Khamenei affirmed the strength of relations between the Islamic Republic and Iraq, noting that Iran continues with the same approach in cooperation and caring for bilateral interests, and stated that the Islamic Republic, with the departure of Raisi, has lost a prominent figure, as he was a competent and dedicated official in his work, and he also expressed his appreciation To the Sudanese, and through him to the Iraqi people, for His Excellency’s presence to offer condolences, emotional participation and sympathy.
After a series of ambiguities...the 2024 budget reaches its final episode
After many months of stagnation within the Council of Ministers, the 2024 budget schedules arrived in Parliament, beginning a new journey before completing its study and reaching approval.
Yesterday, the Secretary of the House of Representatives, Safwan Bashir Al-Jarjari, received the budget schedules for the year 2024 from the federal government, and in turn handed them over to the Presidency of the House of Representatives.
Today, Wednesday, Acting Speaker of the House of Representatives, Mohsen Al-Mandalawi, referred the schedules of the Federal General Budget Law 2024 to the Parliamentary Finance Committee.
In this regard, a member of the Finance Committee in the Iraqi Parliament, Representative Jamal Kujar, confirmed that his committee will study the schedules carefully, revealing the effects of their delay of about 5 months.
Cougar said, in an interview with (Al-Mada), “The Finance Committee will study the budget schedules received from the Iraqi government and then submit a detailed report to the Presidency of the Iraqi Council of Representatives.”
He added, "If the schedules are alone, then according to Article 67, they will be approved only after taking into account the views of the Finance Committee, but if they include texts, they need a first and second reading, then a vote."
He stated, "The past five months that preceded the arrival of the budget schedules left several impacts, including the investment aspect, which witnessed a halt."
Last Monday, a member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, confirmed that the 2024 budget schedules need at least a month to be decided in the House of Representatives.
Al-Kadhimi said in an interview with Al-Mada, “The schedules were delayed by the government for five months despite the availability of data from the Ministries of Finance and Planning, and numbers of what was spent during the year 2023 in addition to the requirements.”
Al-Kadhimi pointed out, “The Finance Committee has begun working on the budget schedules, and they do not include items or texts that need to be reformulated, but rather their numbers are clear,” noting that “the total budget exceeded 210 trillion dinars.”
The 2024 budget, according to what Prime Minister Muhammad Shiaa Al-Sudani announced last Sunday, amounts to 211 trillion dinars, and employee salaries for the year 2024 amount to 62 trillion dinars, while the 2023 budget amounted to 199 trillion dinars and employee salaries amounted to 59 trillion dinars.
According to Al-Sudani, the revenues of the 2024 budget are estimated at “144 trillion and 336 billion dinars, while expenditures amount to 210 trillion and 936 billion dinars, while the deficit is 63 trillion and 599 billion dinars.”
Al-Sudani said, “The governorates’ allocations to local government programs with an investment allocation amounted to 10.633 trillion dinars in 2023, and we financed 3.333 trillion dinars, based on fundamental requests from the governorates,” adding, “The remainder of the allocation is 7.333 trillion dinars in a trust account, at the disposal of the governorate governments.”
Earlier, Acting Speaker of the House of Representatives, Mohsen Al-Mandalawi, agreed with the Prime Minister, Muhammad Shiaa Al-Sudani, on the necessity of completing the schedules of the budget law for the year 2024, and expediting their sending to the House of Representatives for the purpose of discussing and voting on them, due to their connection to the lives of citizens and their focus on investment spending for new projects.
Iraq will soon enter the sixth month of 2024 without passing its general budget for this year, and although the government had presented a tripartite budget last year that included the years 2023-2024-2025, each year has schedules that must be prepared and approved by the government and sent to House of Representatives for the purpose of voting.
On March 13, the Ministry of Finance announced the completion of data related to the 2024 budget tables, the inclusion of texts, and sending them to the Council of Ministers.
Biden's decision to extend the emergency in Iraq protects Baghdad's money - Iraqi expert
It is neither military nor security
The expert in American affairs, Professor Aqeel Abbas, confirmed that the White House’s decision, which was issued yesterday, to extend the state of emergency in Iraq, stems from economic and financial reasons, and has no military or security aspect. He said that the United States protects Iraqi funds from seizure in accordance with this decision, as There is an unknown number of companies and entities around the world that have sued Iraq over the invasion of Kuwait, and if this protection decision is cancelled, Iraqi funds outside the country will be subject to seizure.
Aqeel Abbas, in a statement:
Extending this decision is economic and financial, not military or security. It protects Iraq from judicial rulings issued by courts in several countries against Iraq, some of which we do not know yet, because the Iraqi state did not inventory the cases filed against the backdrop of the invasion of Kuwait. Many companies were harmed at that time and lawsuits were filed in different countries.
If the US decision is not extended, many Iraqi funds will be seized, and it will be difficult for Iraq to transfer oil money to the Central Bank.
Today, the United States is the protector of Iraqi funds. The funds go to an American bank in New York and then are transferred to Iraq.
Biden stated in a letter addressed to the US Congress:
Obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security, and the development of Iraq's political, administrative, and economic institutions continue to pose an extraordinary threat to the national security and foreign policy of Iraq and to the United States.
The national emergency declared in Executive Order 13303 relating to Iraq will remain in effect after May 22, 2024 for another additional year.
Political: Biden's decision to extend the state of emergency has two economic and security dimensions
Political analyst Sabah Al-Akili confirmed, on Wednesday, US President Joe Biden’s decision to extend the state of emergency for an additional year, which carries two economic and security dimensions and contradicts what Al-Sudani proposed by changing the relationship with Washington to a sustainable partnership.
Al-Ugaili told Al-Maalouma, “Biden’s renewal of the state of emergency that President W. Bush began in 2003 for another year was based on the continued existence of obstacles to reconstruction and security, but in reality they are just lies,” indicating that “Biden’s decision contradicts what Al-Sudani proposed.” By changing relations with Washington to sustainable partnership relations, it also violates the coordination framework agreement, and Iraq is going through a state of security and political stability.”
He added, "The decision to extend the state of emergency for an additional year has two goals. The first is security and aims to continue consolidating the American military presence in Iraq, and the second is economic and aims to maintain the dominance of the US Federal Bank over Iraqi funds as a result of its sale of oil and control of its economy and to neutralize the government from establishing large and gigantic projects that require large funds." ".
Al-Ugaili was surprised by “the government’s silence so far and the failure to respond to the decision that Biden took yesterday, Tuesday.”
Yesterday, Tuesday, US President Joe Biden announced the extension of the state of emergency in Iraq for an additional year.
Iraq.. Budget schedule 2024: expectations and next steps
The 2024 budget schedule sent by the government to the House of Representatives has arrived, and it is expected to be passed no later than next June 9.
details:
- Extending the legislative term:
- The House of Representatives was scheduled to enter its legislative recess starting May 10.
- The Presidency of Parliament decided to extend the first legislative term of the third legislative year and the fifth electoral session for a period of 30 days.
- This came based on Article 58 of the Constitution, due to the continuing disagreements to choose a new president of the Council, and the delay in passing the 2024 budget schedules.
- Budget table submission:
- As soon as the Secretary-General of the House of Representatives, Safwan Bashir Al-Jarjari, received the budget tables from the government, they were referred to the Presidency of Parliament.
- Voting on the budget table:
- The head of the Parliamentary Finance Committee, Atwan Al-Atwani, confirmed that voting on the budget tables within the Council will not exceed the ninth of next June.
- He pointed out that there is a ruling legislative holiday, and that the specified date takes this into account.
- Budget components:
- The budget amounts to approximately 210 trillion Iraqi dinars.
- It includes an operating budget of 155 trillion dinars and an investment budget of 55 trillion dinars.
- It suffers from a deficit of about 66 trillion dinars.
- Stages of budget discussion:
- The contents of the budget tables are reviewed and studied in detail.
- The presence of the relevant ministers to discuss the budget, starting with the Minister of Finance and then the Minister of Planning.
- Analysis of current and investment budget data.
- Writing a report on the budget and submitting it to the House of Representatives.
- Presenting the budget schedules and the report to the Council for a vote.
- The committee’s keenness to achieve:
- The committee stresses its keenness to complete the task as soon as possible.
- A three-year budget was voted on so that the government could work comfortably.
- Avoid disrupting tables.
Iraqi soldier killed, others injured in Saladin bombing: source
One Iraqi soldier was killed, and others were injured in a roadside bomb attack in Saladin Governorate on Wednesday, according to a security source.
The source informed Shafaq News Agency that the improvised explosive device (IED) detonated near an Iraqi military patrol traveling between Diyala and Saladin governorates. The blast resulted in the death of one soldier and injuries to at least four others, whose conditions were described as critical.
The source confirmed that the attack occurred within Saladin's jurisdiction and that authorities had secured the area. An investigation has been launched to determine the perpetrators and the full details of the incident.
Located in northern Iraq, Saladin has witnessed increased activity by armed groups, particularly the Islamic State of Iraq and Syria (ISIS) terrorist organization, which occasionally carries out attacks against security forces and civilians. The attack constitutes the latest example of ISIS activity in Iraq.
Iraqi forces, backed by a US-led coalition, defeated ISIS territorially in 2017. Since then, the group has carried out lower-scale attacks, particularly in remote areas of Diyala, Saladin, Nineveh, and Kirkuk, including in disputed areas between the federal and Kurdistan Region governments.
Iraqi operations against ISIS are ongoing. In March, Iraqi forces announced the death of a prominent ISIS leader. On Tuesday, seven "terrorists" with undisclosed affiliations were arrested in Nineveh.
A day earlier, authorities seized a money exchange that allegedly received funds on behalf of ISIS in Kirkuk, the official Iraqi News Agency reported.
In this regard, security expert Abbas al-Samarrai told Shafaq News Agency that the recent increase in terrorist attacks is a dangerous indicator of the resurgence of terrorist cell activities.
"There is a need to review existing security and intelligence plans, which remain vigilant against ISIS remnants."
Al-Samarrai noted that the areas between Tikrit and Diyala and Tikrit and Kirkuk are considered security vacuums requiring military deployment and changes to security plans.
The recent ISIS activity comes as the Iraqi government seeks the withdrawal of US forces from the country. There are around 2,500 US military personnel in Iraq as part of the anti-ISIS coalition.
Iraqi Prime Minister Mohammed Shia al-Sudani has repeatedly said the coalition is no longer necessary and that it is time to implement a withdrawal. The two countries began a dialogue on the issue late last year.
American officials maintain that ISIS remains a threat in Iraq, albeit less so than in years past. In its report on ISIS for the fourth quarter of 2023, the US Defense Department's Office of Inspector General described ISIS as "largely contained."
Supporting projects and organizing financial resources.. The Prime Minister’s advisor identifies 3 advantages of bank credit
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Today, Wednesday, Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Saleh, identified three benefits and advantages of bank credit, while noting that the increase in bank lending activity increases growth rates and economic well-being.
Saleh said to the Iraqi News Agency (INA): “The function of credit in its monetary and pledged forms is one of the most important aspects of banking activity in spreading a sound financial system, so bank credit or granting bank loans specifically is the vital financial tool that banks use to provide the required cash liquidity.” And financing the economic activity of individuals and companies.
He added, "The feasibility of bank credit lies in several main economic and social aspects, including: First: supporting small and medium enterprises, as bank credit plays an important role in financing small and medium enterprises, and at the same time helps in generating new job opportunities, stimulating innovation, promoting economic and social growth, and raising Growth rates in the incomes of individuals and projects.
He pointed out that "stimulating economic growth can only be achieved by mobilizing the necessary funds for economic activities to expand the businesses of individuals and projects," noting that "bank credit enhances economic activity and increases the level of productivity and investment rates, whether in the industrial, real estate, commercial, agricultural, or other fields."
He continued: “Secondly: granting loans helps encourage saving, as bank credit activity is linked to increasing bank savings rates for the public through higher bank deposit rates, as banks provide distinct savings or savings accounts to customers who will use their borrowing or credit products.”
He continued: “Thirdly: Bank loans have an effective role in organizing financial resources among real activities within the overall economy and meeting the needs of productive sectors for financing in order to create capital accumulation by investing in real assets. However, bank credit, or granting bank loans, also meets the needs of individuals to generate benefit. Bank credit allows them to access financing to purchase residential real estate, transportation, or to cover educational or medical expenses, which improves the standard of living.”
He pointed out that “the greater the activity of lending or bank credit, the greater the economic activity and the higher the rates of growth and economic well-being, provided that these activities do not conflict with the overall objectives of monetary policy in achieving stability in the general level of prices and combating monetary inflation, and that they do not conflict with the policy of high use of power.” work and enhancing economic growth rates.”
US Extends State of Emergency in Iraq
United States President Joe Biden has extended the state of emergency in Iraq for another year, citing the ongoing instability in Iraq as a threat to US national security.
On Monday, the White House released the letter of President Biden’s notification to Congress regarding the extension of the state of emergency in Iraq for another year.
According to Biden’s letter to Congress, “to address the unusual and extreme threats to US national security and foreign policy posed by obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in the country, and the development of political administration and economic institutions,” the US president has extended the 2003 national emergency in Iraq for another year.
Resolution 13303 was issued by former US president George W. Bush after the Iraq war on May 22, 2003, to protect the Iraqi Development Fund for the reconstruction of Iraq, as well as to protect Iraqi oil products, US interests, and to lift sanctions on Iraq.
“It will allow the US president to take more steps in Iraq, including the use of emergency forces, the deployment of more troops, the imposition of economic sanctions, the suspension of certain laws and measures, or any other step to protect US national security and foreign policy in Iraq.”
The US president must notify Congress of the extension in a special letter 90 days before the expiration date.
In recent years, Iranian-backed Iraqi militia groups have called for US withdrawal from the country.
For future US and international coalition forces in Iraq, the US and Iraq have established a joint Higher Military Commission, which is a military-to-military dialogue between Iraqi and U.S. defense leaders and professionals.
Since its launch in January 2024, the three subcommittees established by the Higher Military Commission have conducted meetings in Baghdad supported by coalition members to discuss the threat of IS, the operational environment, and the capabilities of the Iraqi Security Forces.
Finance ministry works with S&P on sovereign credit rating
Deputy Minister of Finance Nguyễn Đức Chi said that despite global uncertainties, Việt Nam’s macroeconomy remains stable with robust recovery of production, exports and foreign direct investment.
The Ministry of Finance on Tuesday worked with credit rating agency S&P Global Ratings to assess the creditworthiness of Việt Nam in 2024.
Deputy Minister of Finance Nguyễn Đức Chi said that despite global uncertainties, Việt Nam’s macroeconomy remains stable, with robust recovery of production, export and foreign direct investment.
Việt Nam registered a total trade value of US$238.88 billion in the first four months of this year, up 15.2 per cent over the same period last year. The country also ran a trade surplus of $8.4 billion in the same period.
The FDI influx rose 4.5 per cent to more than $9.27 billion.
Meanwhile, GDP growth reached 5.66 per cent in the first quarter of this year and is poised to fulfill the target set for the full year at 6-6.5 per cent.
Budget collection to date is estimated to reach up to 48 per cent of the plan for the full year with a healthy increase in domestic collection, showing a strong recovery in domestic production and business.
The information from the Ministry of Finance will help S&P to assess the creditworthiness of Việt Nam accurately.
S&P Global Ratings will continue to work with other Government agencies on the rating this year.
In mid-2022, S&P Global Ratings upgraded Việt Nam’s sovereign credit ratings to ‘BB+’ with a stable outlook on improvements in the government's administrative processes and robust economic prospects after the pandemic.
A member of Parliamentary Finance believes that the budget will not be passed in Parliament: It is unfair to the people
Today, Wednesday, member of the Parliamentary Finance Committee, Haitham Al-Zarkani, revealed problems in the general budget for the year 2024 that may cause it to be rejected by the House of Representatives, stressing that many ministers, as well as governorates, are dissatisfied with the budget items and consider them unfair.
Haitham Al-Zarkani told the “Ishan” platform, “The Presidency of the Council of Ministers during the last session sent the budget to Parliament and it entered the Parliamentary Finance Committee,” noting that “the budget arrived in an unsatisfactory manner in terms of schedules and financial allocations to the ministries.”
Al-Zarkani added, “Many ministers considered the budget unfair to the governorates as well, and a budget in this form faces rejection in Parliament because it is unfair to the people, the ministries, and the governorates.”
He pointed out, “Parliament extended its work for a month for the sake of the budget, and as long as the budget enters the corridors of Parliament, there will be no legislative recess until the budget is approved. We will remain in Parliament and not enjoy the recess until the budget is approved.”
He explained that “the election of the Presidency of the House of Representatives will not affect the approval of the budget, because this is another matter that is completely different. Whether or not the president is elected will not affect that, and the powers were given to the Vice President to dispose of the laws and legislate them.”
Last Sunday, in an extraordinary session, the Iraqi Council of Ministers voted on the federal general budget schedules for 2024.
A brief statement from Al-Sudani’s office stated, “The Council of Ministers voted on the schedules of the federal general budget for the year 2024, and referred them to the House of Representatives for approval.”
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THURSDAY MAY 23 24
Fair competition, where are we?
In the midst of events and news spread between rumors and events that are incorrectly transmitted, people circulate this information among themselves without (filtering) or fully understanding it. This applies to all events, of which the easy part is understood and most of it is left behind, which carries the true interpretation.
When we shed light on news related to the development of the sector Economic: We will find many institutions of all kinds, governmental and private, that have joined forces for years to support the banking sector in an attempt to regain confidence and fight hoarding, which in the end will benefit everyone, or as experts call it a win-win situation, as the countries neighboring Iraq have mostly begun to diminish their cash transactions and have turned to using cards. Electronic payment is the majority of their transactions, and it is a civilizational indicator that Iraqi banking institutions aspired to adopt. But now, instead of witnessing fair competition between these banks and their diligence to provide banking services and products that attract the largest possible base of customers, we notice their tendency towards a bad competition method, which is an attempt to undermine and undermine confidence in the banks that have emerged in this regard. The scene did not take into account that any negative indicators, even if they were inaccurate, would have a negative impact on the sector as a whole and would destroy or, at the very least, delay the tireless efforts made in this regard. Instead of criticizing banks, why don't we see competition with applications on mobile phones with new features?
Why don't we see electronic payment cards with many services and options? Why don't we see ATMs, branches spread across all regions, and responsive customer services?
There are many questions that those who trade the news need to answer
Economist: We are experiencing a good financial year and the rise in salary expenses must be reconsidered
The economic expert, Safwan Qusay, considered Iraq’s fiscal year “good,” while stressing the need to reconsider the rise in salary expenses.
Qusay said, during his hosting of the program {Free Speech} broadcast by Al-Furat satellite channel this evening, that: “
The process of implementing the program of the government of Muhammad Shiaa Al-Sudani requires {operational and investment} spending, and there are priorities voted on by Parliament, and it is held accountable for achieving these goals, so the process of allocating financial allocations To achieve these goals, it requires scientific foundations and program costs. So far, the issue is items, not programs, costs, accounting, and the establishment of a unified treasury in order not to wait for schedules, and in order for it not to be repeated in 2025.
The government is required to set estimates by establishing a unified treasury and spending and collection units on a daily basis
Parliament is one case, as they both seek to achieve their goals.
- We are facing a good year, considering that oil prices are above $70, and zero oil and other imports will contribute to reducing expenses and increasing revenues.
- The government is seeking to establish investment projects parallel to oil revenues, and the increase in salary spending needs to be restored Consider
-The timetable determines the mechanism for disbursing expenditures as it tries to move from items to programs -
Government achievements for the year 2024 can raise cash revenues
- Federal ministries must be coherent and complementary to one another, as increasing non-oil revenues enhances the value of the dinar. Iraqi, and the need to reconsider the nature of contracts with foreign companies.
-International prices change, so if the financial foundations are understood by the government, it can certainly change them.
The Ministry of Finance is required to assume that the project that it cannot finance is a source of income that is subject to investment.
A member of Parliamentary Finance believes that the budget will not be passed in Parliament: It is unfair to the people
Today, Wednesday, member of the Parliamentary Finance Committee, Haitham Al-Zarkani, revealed problems in the general budget for the year 2024 that may cause it to be rejected by the House of Representatives, stressing that many ministers, as well as governorates, are dissatisfied with the budget items and consider them unfair.
Haitham Al-Zarkani told the “Ishan” platform, “The Presidency of the Council of Ministers during the last session sent the budget to Parliament and it entered the Parliamentary Finance Committee,” noting that “the budget arrived in an unsatisfactory manner in terms of schedules and financial allocations to the ministries.”
Al-Zarkani added, “Many ministers considered the budget unfair to the governorates as well, and a budget in this form faces rejection in Parliament because it is unfair to the people, the ministries, and the governorates.”
He pointed out, “Parliament extended its work for a month for the sake of the budget, and as long as the budget enters the corridors of Parliament, there will be no legislative recess until the budget is approved. We will remain in Parliament and not enjoy the recess until the budget is approved.”
He explained that “the election of the Presidency of the House of Representatives will not affect the approval of the budget, because this is another matter that is completely different. Whether or not the president is elected will not affect that, and the powers were given to the Vice President to dispose of the laws and legislate them.”
Last Sunday, in an extraordinary session, the Iraqi Council of Ministers voted on the federal general budget schedules for 2024.
A brief statement from Al-Sudani’s office stated, “The Council of Ministers voted on the schedules of the federal general budget for the year 2024, and referred them to the House of Representatives for approval.”
Iraq Britain Business Council (IBBC) welcomes New Member
The Iraq Britain Business Council (IBBC) has announced the addition of MHDInternational to its network.
According to a statement from IBBC:
"MHDInternational, an engineering consultancy with operations throughout UK and the Middle East, joins IBBC in our mission to promote sustainable development and economic growth in Iraq ...
"MHDInternational is also introducing the MENA Engineering Design Centre, that is based in Baghdad and can provide engineering design support for all international companies that face challenges with the availability of competent engineering resources. This service is a milestone in utilising the rich Iraqi engineering resources market and providing solutions for international consultancies for any project around the world, with excellent proximity to the European time zone and the Middle East."
Christophe Michels, Managing Director of IBBC, commented:
"We are delighted to welcome MHDInternational to the IBBC family. Their extensive experience in engineering and project management will be invaluable as we continue to support Iraq's redevelopment efforts. This partnership underscores our commitment to enriching Iraq's sector capabilities and enhancing the business environment."
Montadhar Najem chairman of MHDInternational stated:
"Joining IBBC is a pivotal step for us as we expand our engagement in the Middle East, especially in Iraq where the opportunities for development and collaboration are extensive. We look forward to working alongside IBBC and its members to contribute to the nation's thriving future."
Government promises regarding the salaries of Kurdistan retirees.. Will unifying them with Baghdad end the crisis? - urgent
A member of the Kurdistan Justice Group, Rebwar Muhammad Amin, confirmed today, Thursday (May 23, 2024), that there is seriousness on the part of the Federal Court to unify the salaries of retirees in Kurdistan with the rest of the retirees in Iraq.
Muhammad Amin said in an interview with “Baghdad Today” that “salaries should be unified under one law, since retirees in Kurdistan have been greatly wronged.”
He added that "retirees in Kurdistan receive salaries between 300 thousand and 400 thousand dinars," stressing that "these amounts are not enough to meet their needs and obligations, and there are promises from the Federal Court to unify salaries and the law during the coming period."
An informed source revealed, on Thursday (May 16, 2024), the latest details regarding the localization of the salaries of Kurdistan Region employees, amid continuing controversy and debate over an accounting project.
The source said in an interview with "Baghdad Today", "A delegation from the regional government will visit Baghdad to discuss the latest resettlement procedures, and will begin opening branches of the Iraqi Trade Bank within the region."
He added, "According to the information, the Trade Bank of Iraq will localize 75% of employee salaries, while other banks in Kurdistan and the government exclusively bear the other percentage, provided that the Iraqi Trade Bank begins localization in the coming days."
Recently, the Kurdistan government announced that the Iraqi Trade Bank had joined the “Hasabe” project, which includes 6 various banks so far, while the number of citizens receiving salaries in the “Hasabe” banks reached 300,000 employees out of more than a million employees in Kurdistan.
However, the Iraqi Trade Bank confirmed in a statement that its participation will be among the government banks based on the decision of the Federal Supreme Court to localize the salaries of Kurdistan region employees, without mentioning an accounting project, indicating that it is still waiting for the Kurdistan Regional Government to send lists of the names of employees whose salaries will be localized. It has attached supporting documents, so that the process can be initiated and implemented.
The Federal Ministry of Finance began sending salaries to employees and retirees of the Kurdistan Region since last week, and the regional government began gradually distributing salaries.
A Sudanese advisor expects Parliament to approve the budget schedules before Eid... and warns against delay
Mazhar Muhammad Saleh, financial advisor to Prime Minister Muhammad Shiaa al-Sudani, expects the House of Representatives to approve the financial budget schedules for 2024 before the Eid al-Adha holiday, which falls in the middle of next June
Saleh told {Al-Furat News} agency, “It is noted that the level of coordination and harmony between the legislative and executive authorities will accelerate the House of Representatives’ approval of the financial schedules for the year 2024, in implementation of the provisions of Article 77/second of the Federal General Budget Law (Tripartite) No. 13 of 2023.”
He added, "What we expect is that the House of Representatives will approve the aforementioned financial schedules before the Eid Al-Adha holiday at the latest, and according to what some members of the House of Representatives noted."
Saleh noted that "the delay affects the movement of investment spending for new projects that the government planned to promote and in accordance with its ministerial program to serve the achievement of the goals of sustainable economic development in our country."
The Council of Ministers approved, in an extraordinary session last Sunday, the 2024 budget schedules, while the House of Representatives secretariat announced yesterday that it had received the schedules.
The Parliamentary Finance Committee began discussing the budget schedules, with expectations that it will be voted on before June 9.
A member of the Parliamentary Finance Committee, Alaa Al-Haidari, stated in a press statement that “Parliament has the powers to pressure spending and transfer funds, and this is linked to opinions regarding the schedules of service allocations to the governorates,” indicating that “the Council extended its legislative recess while awaiting the budget schedules, and the remaining time period of the month that Parliament extended.” Sufficient, and we expect that the budget will be voted on before the ninth of next June.”
The head of the Finance Committee, Atwan Al-Atwani, explained in a press statement that the committee “held continuous meetings to discuss the 2024 budget schedules and study financial policy,” explaining that it “will host the Ministers of Finance and Planning to discuss current and investment expenditures and budget paragraphs related to securing the necessary needs of the citizen, contracts, and appointments.”
A politician calls for confronting Biden's decision on Iraq
Today, Thursday, political observer Kazem Al-Hajj called on the legislative and executive authorities to confront US President Joe Biden’s decision to extend the state of emergency for an additional year in Iraq.
Al-Hajj told Al-Maalouma, “This decision expresses the American desire to maintain control over Iraq’s money and oil resources and the continued military presence.”
He stressed the need to "move towards international institutions and confirm that Iraq is an independent state and does not pose a threat to the international community."
The day before yesterday, Tuesday, US President Joe Biden announced the extension of the state of emergency in Iraq for an additional year.
Al-Handal: The development road project will shorten time, reduce costs, and provide thousands of job opportunities
The head of the Iraqi Private Banks Association, Wadih Al-Handal, announced today, Thursday, that Iraq is committed to combating money laundering, while noting that the development road project will shorten time, reduce costs, and provide thousands of job opportunities.
Al-Handal said during a speech he delivered at the Arab-Turkish summit in Istanbul, which discussed the Iraqi development path, and was received by the Iraqi News Agency (INA): “Iraq’s policy is focused on economic openness to all countries, to build a network of strong economic relations, and attract foreign investments in infrastructure development.” ".
He added, "Bilateral relations between Iraq and Turkey are going through their golden age, as trade exchange reached $20 billion last year, in addition to the great cooperation between Iraqi and Turkish companies in implementing strategic projects inside Iraq," noting that "the visit of Turkish President Recep Tayyip Erdogan, Last month to Iraq, it will reflect positively on the Arab region, starting with the development road project.”
The head of the Association of Iraqi Private Banks stated, “The Iraqi Development Road Project is one of the projects that will transform the form of transporting goods between the countries of East Asia and Europe, because it will contribute to shortening the time on the ship departing from the port of Al-Faw to Europe by fifteen days compared to other transport lines.” As well as reducing the cost in terms of insurance and transportation fees, which will reflect positively on the final price of the goods, in addition to the project providing more than 100,000 direct job opportunities with the establishment of large factories inside the country.”
He pointed out, "The development road will link the countries of China, India, the Emirates, Qatar, Iraq, and Turkey, all the way to Britain, through railways and land roads to transport goods and people. It is the leading project in the region currently, as it will contribute to transporting fifteen million passengers annually and more than 22 million tons." Of goods, it will cost seventeen billion dollars, with revenues for Iraq amounting to about 5 billion dollars annually.”
Al-Handal called on
He stated, “The Central Bank of Iraq worked with its Turkish counterpart, during the previous stage, to adopt the Turkish lira and the euro to finance trade exchange between the two countries,” stressing that the banking sector is taking rapid steps in growth, despite the great challenges surrounding it, and that some banks Which faced difficulties in dealing in the dollar, continues to work in other currencies, in implementing the aspirations of its customers, in addition to increasing the types of banking services, which reflects positively on the sector’s work in increasing the percentage of financial inclusion.”
He explained, "The monetary policy, led by the Central Bank of Iraq, during the current stage, worked very successfully, and contributed to reducing inflation from 7.5 percent to 3.8 percent," noting, "Iraq's foreign currency reserves reached more than 111 billion." Dollar, and gold 145.6 tons, which makes it ranked fifth in the Arab world.
Al -Handal thanked the Union of Arab Banks, praising “this two-day Arab-Turkish summit,” expressing his hope to “come up with urgent decisions that contribute to changing the face of the region economically and give hope to our people, who are suffering from the effects of inflation, rising prices, and the migration of foreign investors.” ".
He stated that "Iraq is one of the countries committed to combating money laundering and the financing of terrorism, according to what was announced by the Financial Action Task Force for the Middle East and North Africa (mini-FATF), which is an indicator that all countries rely on," praising "the role of the Central Bank and the Iraqi judiciary in maintaining... Iraq is classified globally as one of the countries committed to combating money laundering and terrorist financing.
Al-Handal stresses Iraq's commitment to combating money laundering.. What about inflation?
The head of the Iraqi Private Banks Association, Wadih Al-Handal, confirmed today, Thursday, that Iraq is committed to combating money laundering, pointing to the role of the Central Bank of Iraq in reducing inflation to 3.8%.
Al-Handal said during a speech he delivered at the Arab-Turkish summit in Istanbul, followed by Al-Iqtisad News, that “Iraq’s policy is focused on economic openness to all countries, to build a network of strong economic relations, and to attract foreign investments in infrastructure development.”
He added, "Bilateral relations between Iraq and Turkey are going through their golden age. Trade exchange reached 20 billion dollars last year, and cooperation is great between Iraqi and Turkish companies in implementing strategic projects inside Iraq," noting that "the visit of Turkish President Recep Tayyip Erdogan last month To Iraq, it will reflect positively on the Arab region, starting with the development road project.”
The head of the Association of Iraqi Private Banks stated, “The Iraqi Development Road Project is one of the projects that will transform the form of transporting goods between East Asian countries and Europe, because it will contribute to shortening the time on the ship departing from the port of Al-Faw to Europe by fifteen days compared to other transport lines.” As well as reducing the cost in terms of insurance and transportation fees, which will be reflected positively on the final price of the goods, in addition to the fact that the project will provide more than 100,000 direct job opportunities with the establishment of large factories inside the country.”
He pointed out, "The development road will link the countries of China, India, the Emirates, Qatar, Iraq, and Turkey, all the way to Britain, through rail and land lines to transport goods and people. It is the leading project in the region currently, as it will contribute to transporting fifteen million passengers annually and more than 22 million tons of food." Goods, and will cost seventeen billion dollars, with revenues for Iraq amounting to about 5 billion dollars annually.”
Al-Handal called on Arab and foreign banks to “contribute to financing investments while continuing to work on providing sovereign guarantees, in a way that contributes to accelerating work and achieving development for all.”
He stated, "The Central Bank of Iraq worked with its Turkish counterpart, during the previous stage, to adopt the Turkish lira and the euro to finance trade exchange between the two countries."
He stressed that "the private banking sector is progressing rapidly in growth, despite the great challenges surrounding it, and that some banks that have faced difficulties in dealing in the dollar continue to work in other currencies, in implementing the aspirations of their customers, in addition to increasing the types of banking services, which... “It reflects positively on the sector’s work in increasing the rate of financial inclusion.”
He explained, "The monetary policy, led by the Central Bank of Iraq, during the current stage, has worked very successfully, contributing to reducing inflation from 7.5 percent to 3.8 percent," noting, "Iraq's foreign currency reserves have reached more than 111 billion." $, and gold 145.6 tons, which makes it ranked fifth in the Arab world.”
Al-Handal thanked the Union of Arab Banks, praising this two-day Arab-Turkish summit, wishing to come up with urgent decisions that contribute to changing the face of the region economically and give hope to our people, who are suffering from the effects of inflation, high prices, and the migration of foreign investors.
He concluded by saying: “Iraq is one of the countries committed to combating money laundering and terrorist financing, according to what was announced by the Financial Action Task Force for the Middle East and North Africa (MINFATF), which is an indicator that all countries rely on,” praising “the role of the Central Bank and the Iraqi judiciary in preserving To classify Iraq globally as one of the countries committed to combating money laundering and terrorist financing.
Parliamentary Finance: We are determined to complete the budget schedules before the start of the legislative recess
Today, Thursday, the Finance Committee in the House of Representatives held its second meeting regarding the 2024 budget, confirming its intention to complete the budget schedules before the start of the legislative recess.
The head of the committee, Atwan Al-Atwani, said during the meeting, which was attended by the correspondent of the Iraqi News Agency (INA): “We held the second meeting to discuss the 2024 budget schedules,” pointing out, “We are analyzing the data of the budget schedules and discussing their contents and details in order to complete them in an optimal manner and in record time. We are also working on To establish a correct financial path that everyone agrees on.”
Al-Atwani explained, “The meeting compared the numbers and tables for the financial allocations for the years 2023-2024, and the meeting also included reviewing a detailed report of the actual expenditure for the year 2023 with regard to current and investment expenditures,” stressing “the determination to complete the budget schedules before the start of the legislative recess.”
Yesterday, Wednesday, the Finance Committee in the House of Representatives held its first meeting to review the contents of the 2024 budget tables, while the Chairman of the Committee, Atwan Al-Atwani, confirmed that continuous meetings would be held to discuss the tables.
Talabani: The regional government has no objection to sending non-oil revenues to Baghdad
Qubad Talabani, Deputy Prime Minister of the Kurdistan Region, stated on Thursday that the regional government has no objection to sending non-oil revenues to the federal government.
Talabani said in a statement to reporters today, “The Kurdistan Regional Government has no objection to sending non-oil revenues, and we will agree with Iraq on the mechanism for the revenue issue.”
Regarding the Kurdistan Parliament elections, Talabani expected that “the regional government will hold parliamentary elections this year.”
An economic expert depends on the speed of approval of the budget schedules on the number of its articles
Salah Nouri, the former director of the Financial Supervision Bureau, told Al-Furat News Agency, “The speed of approving the budget schedules is subject to several things, most notably what depends on the number of budget articles that have been amended by the government, and the adequacy of the accompanying analytical tables.”
He pointed out that "in any case, there was a delay, as in previous years. We are on the verge of June, and if its approval occurs in the aforementioned month, which is most likely, then half of the fiscal year has passed."
The Council of Ministers voted in an extraordinary session last Sunday on the budget schedules and referred them to the House of Representatives.
In a press conference after the session, Prime Minister Muhammad Shiaa Al-Sudani revealed the details of the budget schedules and the most prominent contents of them, and said:
- Table (A) includes revenues totaling (144.336) trillion dinars, and Table (B) concerns total planned expenditures totaling (210.936) trillion dinars.
- The planned budget deficit amounted to (63.599) trillion dinars, and Table (C) is the centrally funded workforce table, amounting to (4,079,906) employees, and governing expenditures amounted to (10.042) trillion dinars.
- The investment budget for 2024 is (54.298) trillion dinars, and may reach 55 trillion dinars.
- Governorate allocations to local government programs with an investment allocation amounted to (10.633) trillion dinars in 2023, and we financed (3.333) trillion, based on fundamental requests from the governorates.
- The remainder of the allocation (7.333) trillion dinars is in a trust account, at the disposal of the provincial governments.
- Allocating approximately (8) trillion dinars to ongoing projects, including allocations in 2024.
- For the first time in the history of budgets, we exceeded spending by 50%.
The increase in debt repayment amounted to 3.9 trillion dinars. In 2023, the debt repayment was 12,751, and in 2024, we repaid 16.725 trillion.
The day before yesterday, Tuesday, the House of Representatives received the budget schedules, while the Parliamentary Finance Committee began discussing the budget schedules, amid expectations of voting on them before the ninth of next June, that is, before the end of the current legislative term.
Al-Sudani: We will not let the projects stop in any governorate, and their completion will change the economic and social reality
Prime Minister Muhammad Shiaa Al-Sudani stressed today, Thursday, that we will not let the projects stop in any governorate, indicating that their completion will change the economic and social reality of the governorate.
The media office of the Prime Minister stated, in a statement received by {Al-Furat News}, that “Al-Sudani chaired, in the Najaf Governorate building, a meeting of directors and officials of service departments and formations, during which the reality of services in the governorate was reviewed, and the most prominent problems and obstacles facing the progress of implementation of service projects.” ".
He stressed that "the government kept in mind the citizen's entitlements when preparing the government program, and made the necessary basic services among the most important priorities, especially the lagging and stalled infrastructure projects related to the health, education, and other sectors, due to the conditions of war, terrorism, and instability."
He explained that "there is pressure on services and infrastructure in all sectors in the governorate, for various reasons, the most important of which is the delegations of visitors to Najaf Al-Ashraf."
The Prime Minister said during the meeting: “We look at services starting from the perspective of lagging projects, some of which date back to 2008, such as the treatment plant project,” pointing out that “the continuation of lagging projects causes collapses and changes in prices that burden the state.”
He added, "The federal government and local governments form one team," noting that "the voter for local governments is awaiting the results of his participation in the elections."
He continued: “Our visit aims to develop solutions to the problems, and we do not want to repeat the same excuses after a month or two,” adding: “We are following up on the smallest details and developing solutions, and we have allocated financial allocations, but we are governed by a budget and allocations, and the ability to spend these allocations.”
He added: "We will not let the projects stop in any governorate, and the completion of the projects will change the economic and social reality of the governorate," adding: "Visitors to the Old City come from all over the world, and the level of services in the governorate is measured in light of what is available in this area of the city."
He pointed out that "investing in Najaf Governorate is necessary to develop the industrial city and complete it in various aspects," calling on businessmen to "invest sovereign guarantees to establish agricultural and industrial projects."
He stated that "the indicators of the agricultural season confirm the growth in production, and 5 trillion dinars have been allocated to pay the dues of farmers and farmers, and Iraq is on the path to achieving self-sufficiency in basic crops."
Parliamentary Finance reveals the Kurdistan region’s share of the budget
The Parliamentary Finance Committee confirmed that the Kurdistan Region’s share of the federal budget for the year 2024 has not changed from what was approved in last year’s budget.
Committee member Nermin Maarouf said in a press interview, “The Parliamentary Finance Committee has begun holding its meetings to discuss and study the schedules of the general budget law, and there will be intensive daily meetings until the final report is completed and the budget schedules are approved.”
She indicated that "the percentage of the Kurdistan region in the 2024 budget is the same as that approved in the 2023 budget, which amounts to 12.67%, or about 20 trillion dinars."
The President of the Republic to the American Ambassador: Security stability has been established through the efforts of the security forces
The President of the Republic, Abdul Latif Jamal Rashid, confirmed today, Thursday, that security stability is being consolidated thanks to the efforts of the Iraqi security forces in their various formations.
The Presidency's Media Department stated, in a statement received by {Al-Furat News}, that "President of the Republic, Abdul Latif Jamal Rashid, received in Baghdad, the Ambassador of the United States of America to Iraq, Elena Romanski."
During the meeting, the President stressed "the importance of working to strengthen and develop relations in various fields, especially economic, commercial, cultural and environmental, in a way that achieves the common interests of the two countries and peoples."
He pointed to "the positive developments the country is witnessing at various levels," noting that "security stability is being consolidated thanks to the efforts of the Iraqi security forces in their various formations."
For her part, Elena Romanski expressed her country's "commitment to supporting the security and stability of Iraq and strengthening relations of cooperation and friendship in various fields."
More than 64 trillion... An economist indicates the risks of the 2024 budget deficit - urgent
Today, Thursday (May 23, 2024), economic expert Nabil Al-Marsoumi pointed out the risks of the budget deficit for the year 2024, amounting to more than 64 trillion dinars.
Al-Marsoumi said in a blog post followed by “Baghdad Today” that “the budget deficit amounted to 64.025 trillion dinars, as the revolving balance in the Ministry of Finance’s account reached 1.571 trillion dinars.”
He added, "The increase in the selling prices of exported crude oil amounts to 16.607 trillion dinars," noting that "remittances deducted from the legal reserve of government banks are equal to 5 trillion dinars."
He explained, "Loans from government banks amounted to 3 trillion dinars," noting that "the discount on treasury transfers at the Central Bank of Iraq amounted to 20.041 trillion dinars."
He pointed out, "National bonds are worth 5 trillion dinars, and total internal borrowing reached 33.041 trillion dinars, and external loans amounted to 12.806 trillion."
Al-Marsoumi pointed out that “many observations were made regarding the budget deficit, including a decrease in the Ministry of Finance’s revolving balance from 23 trillion dinars in the 2023 budget to 1.571 trillion dinars in the 2024 budget.”
Al-Marsoumi stated, “It has been observed that there is a heavy reliance on internal and external borrowing to finance the budget deficit, which exacerbates the size of internal debt, especially which currently stands at 79 trillion dinars, in addition to its negative impact on the cash reserves of the Central Bank of Iraq and other Iraqi banks.”
He explained, “There are three sources in financing the budget deficit, which are deficit financing, internal and external borrowing, and the revolving balance of government accounts,” noting that “using the expected increase in oil revenues amounting to 16.607 trillion dinars to finance the budget deficit is something new because these are supposed to be added.” The expected increase in oil revenues. In this case, the budget will have been built on the assumption of exporting 3.5 million barrels per day at a price of $83 per barrel instead of $70, which is a non-conservative price and full of risks for two reasons. The first is that Iraq’s oil exports are less than 3.5 million barrels per day due to OPEC+ restrictions and the second. The high price of oil adopted by the budget is unrealistic and very optimistic, which may expose the budget to other imbalances as a result of these two assumptions not being met.”
Acting Speaker of the House of Representatives, Mohsen Al-Mandalawi, had referred the schedules of the Federal General Budget Law 2024 to the Parliamentary Finance Committee.
According to a document issued by the Council on the twenty-first of this month and obtained by “Baghdad Today”, “the Acting Speaker of the House of Representatives, Mohs Al-Mandalawi, announced the referral of the schedules of the Federal General Budget Law 2024 to the Parliamentary Finance Committee.”
Al-Sudani confirms the government’s support for the private sector and the provision of guarantees for all projects
Today, Thursday, Prime Minister, Muhammad Shia Al-Sudani, called on the private industrial sector to invest in the raw materials available in Iraq.
The Prime Minister’s Media Office stated in a statement received by Al-Youm Al-Akhbariya that “Al-Sudani launched, today, in the Al-Najaf Governorate, the executive work on the Al-Diyar Al-Iraqiyya Glass Production Factory project,” pointing out that “the project is the first to be implemented in accordance with the sovereign guarantees approved.” In the budget, and in cooperation between the Trade Bank of Iraq (TBI) and the German Export Bank, it also represents the most important forms of cooperation between Iraq and Germany, the foundations of which were laid during His Excellency’s visit to the German capital, Berlin.
He added that Al-Sudani “congratulated the launch of work on this important project, and appreciated the efforts of the Industrial Estates Authority, the Ministry of Industry, and other supporting parties, and confirmed that this factory is being implemented in an industrial city by an investor who has undertaken to provide all services. The industrial city is also preparing to embrace industrialists and provide land and services, which is “A feature that we aspire to be implemented in all governorates.”
Al-Sudani pointed out, according to the statement, “the new project, which is the first to produce glass, with a capacity of 800 tons per day, which means 25% of the local market’s need, and the factory will rely on silica available in Iraq,” stressing “the availability of many raw materials that have not been invested in.” He also directed the necessity of implementation according to the plan and timetable.
The Prime Minister affirmed "the government's support for the private sector, and providing guarantees for all priority projects, especially the housing and construction sector, which represents a large demand for construction materials," indicating "the country's need for three times the existing factories for coverage."
He called on the serious private sector to "invest in this important opportunity, as the government continues to remove obstacles and bureaucracy, as this path will provide real job opportunities, and larger industries will settle in this city and other industrial cities."
The head of the National Investment Commission meets with the Syrian and Lebanese ambassadors and confirms Iraq’s keenness to develop its economic and commercial relations with countries of the world
The head of the National Investment Authority, Haider Muhammad Makkiya, met with the Syrian Ambassador Sattam Jadaan and the Lebanese Ambassador Ali Al-Habhab in Baghdad.
The Chairman of the Authority said in a statement: Iraq is keen to develop its economic and trade relations with various countries, including neighboring geographical countries and the region, indicating that the Authority is proceeding with mechanisms to consolidate joint economic cooperation, towards promising strategic investment projects in the sectors of housing, oil, industry, agriculture and energy.
Makiya added, "The Iraqi government has put in place plans to expand the rules of commercial dealings and international economic openness, given Iraq's great investment opportunities, pointing to the importance of the development road project and its positive indicators on the national economy."
For their part, the Syrian and Lebanese ambassadors expressed their gratitude for the interest of the Chairman of the National Investment Commission in developing partnership paths with Syrian and Lebanese investors, while providing the facilities, benefits and guarantees stipulated in the articles of Law No. (13) of 2006 as amended.
Parliament shows the date for voting on the general budget
Today, Thursday, Member of the House of Representatives, Zahra Al-Bajari, suggested that voting on the general budget law be completed before the end of the current legislative term, while she confirmed that next week will be the beginning of the voting sessions on all the schedules sent by the government.
Al-Bajari said in an interview with the Maalouma Agency, “Delaying the budget for a longer period will lose its effectiveness with regard to sending the current year’s allocations and implementing projects,” noting that “the House of Representatives is determined to pass the budget after reviewing all its financial schedules.”
She continued, "Failure to pass it during the current extension will postpone it until the next legislative term," noting that "the reasons for delaying sending the general budget to the House of Representatives are still absent until now."
Al-Bajari concluded her speech, "We hope that voting on the budget will not enter into the circle of disagreements that occurred in previous years," indicating that "next week will be the beginning of the voting sessions on all the schedules that were sent by the government."
The Council of Ministers had announced that all the general federal budget schedules would be sent to the Finance Committee in the House of Representatives in order to formally vote on them during the upcoming sessions.
Many popular and political circles criticized the paragraphs included in the budget by increasing the region’s share and reducing allocations to the southern governorates, even though they represent the main economic resource for Iraq.
Arab newspaper: Washington is trying to obstruct Iraq's oil rapprochement with China
The London-based Al-Arab newspaper published a report, today, Thursday, in which it confirmed that at a time when the Iraqi government is opening the door wide for Chinese companies to extend their dominance over the oil and gas industry in Iraq, the United States is moving to neutralize the Kurdistan region’s oil and ensure its continued flow, thus preserving On the interests of American companies that have lost favor in the fields controlled by the Iraqi government.
The US State Department announced that it is in constant contact with officials in Baghdad, Ankara, Erbil, and American companies affected by the halting process to resume the export of oil from the Kurdistan region of Iraq via the Turkish port of Ceyhan pipeline.
Deputy spokesman for the US State Department, Vedant Patel, said in a press conference held in Washington, “Developing different ways to deliver Iraqi energy to global markets is in the interest of Iraq and the United States.” Patel's statements came in conjunction with the visit of US Assistant Secretary of State for Energy Resources Jeffrey Payette to Erbil, urging him to increase production in the region.
While Byte's move comes within the context of supporting opportunities for American companies, the region is seeking Washington's support in the face of Baghdad's pressure and its desire to control oil in Iraqi Kurdistan.
The newspaper stated, “The slowdown in exporting the region’s oil represents a loss for American companies that have lost favor in the rest of Iraq to the benefit of China and Russia. A few days ago, Iraq granted the Chinese Chungman Petroleum and Natural Gas Group the investment to develop the “East Baghdad - Northern Extensions” field.
United Energy Group won. The Chinese company won the investment in the Al-Faw field in Basra in the south of the country. The Chinese company Geo Jed also won the development of the Zurbatiya oil and gas field in the Wasit Governorate in the east of the country. The following days witnessed the victory of Chungman in the Middle Euphrates (Al-Kifl, West Al-Kifl and Marjan) oil and gas fields, and the Chinese Zhenhua Company won the investment in the Abu Khaimah field Within the Muthanna Governorate, according to the newspaper,
it was announced that Geo-Jed Company won the investment in the Jabal Sanam oil patch, which is located within the Basra Governorate on the Iraqi-Kuwaiti border, while the Chinese company Sinopec won the investment in developing Block 7.
It was Sinopec that won the investment in the development of the Sumer field. In Muthanna Governorate, the Chinese Anton Oil Company was the winner of the development of the Al-Dhafriya field, and a few concessions were granted to Iraqi companies, making this an almost complete success for Beijing.
This is exactly what China has been trying to achieve since the start of its maneuver to fill the void left by the United States’ subsequent reduction in its presence in the Middle East On May 8, 2018, it unilaterally withdrew from the Joint Comprehensive Plan of Action concluded with Iran.
It is noteworthy that the first reason why Iraq is important to China is that it possesses (along with Iran) one of the largest global oil and gas reserves that are still relatively undeveloped. Writer Simon Watkins believes in his report on the American Oil Price website that Iraq represents for China a huge oil and gas bottling station that supports it in enhancing its economic growth.
Beijing can achieve this by significantly reducing global market prices for oil and gas, thanks to the terms of the 2019 “Oil for Reconstruction and Investment” agreement that allows Chinese companies to invest in infrastructure projects in Iraq in exchange for oil, before later expanding and deepening them in the comprehensive framework agreement between Iraq. And China concluded in 2021. Part of these deals included granting China a reduction of between 10 and 30 percent (depending on the field), for a period of at least five years, in the value of the oil and gas it extracts from Iraq.
Expanding the original oil and gas contracts into a network to support infrastructure projects has been central to all Chinese oil and gas investments in Iraq; Shortly after the 2019 “oil for reconstruction and investment” agreement, Baghdad agreed to several new, potentially far-reaching infrastructure deals that put China at the heart of Iraq.
Among these projects is the construction of a civilian airport to replace the military base in the capital of the oil-rich southern province of Dhi Qar. There are two of the largest potential Iraqi oil fields in the Dhi Qar region (Al-Gharraf and Nasiriyah). It is worth noting that oil and gas developments in a foreign country legally allow companies that make investments to protect them by any means they deem necessary, including deploying dozens, hundreds, or thousands of armed security personnel around the sites.
Parliamentary Finance sets the beginning of next week as a date to host the Minister of Finance
The Finance Committee, headed by Atwan Al-Atwani and attended by its members, held its second meeting today, Thursday, on the 2024 budget schedules.
Al-Atwani said, in a statement, a copy of which was received by {Al-Furat News}, "We are analyzing the data of the budget schedules and discussing their contents in detail to complete them in an optimal manner and in record time. We are also working to establish a correct financial path that everyone agrees upon."
He explained, "The meeting reviewed the numbers and tables for the financial allocations for the years 2023-2024, and also included reviewing a detailed report of the actual expenditure for the year 2023 with regard to current and investment expenditures."
Al-Atwani stressed, "the necessity of not expanding spending in a way that adds financial burdens to the government, while emphasizing the Ministry of Finance's commitment to complete financing for 2023 projects so that state institutions can fulfill their contractual obligations."
He pointed out that "the Finance Committee agreed to host the Minister of Finance at the beginning of next week, to study the reasons for the increase in operating expenses, as well as the financing file, and will then host the Minister of Planning," stressing "the determination to complete the budget schedules before the start of the legislative recess."
Al-Atwani stated, “It was agreed to complete discussions on the Owners Amendment Law at the next meeting of the Finance Committee in order to present it to the House of Representatives for the purpose of voting on it.”
Iraqi Parliament hosts Federal Minister of Finance on 2024 budget tables
link from Kurdish news
The Chairman of the Finance Committee in the Iraqi Council of Representatives, Atwan Al-Atwani, confirmed on Thursday that the Federal Minister of Finance will host early next week on the 2024 budget tables.
The media office of the Chairman of the Finance Committee quoted in a statement seen by Kurdistan 24, saying: "The Minister of Finance will be hosted early next week regarding the 2024 budget tables."
"The finance minister will discuss the reasons for the increase in operating expenses as well as the financing file," he said.
He added: "We agreed to complete the discussions of the law amending the owners in the next meeting, in order to submit it to the House of Representatives for a vote."
Delayed salaries.. “Liquidity” embarrasses the government and the treatments do not rise to the scale of the crisis - urgent
Today, Thursday (May 23, 2024), expert in financial and economic affairs, Nabil Jabbar Al-Tamimi, commented on the government’s mechanism for dealing with the financial liquidity crisis, which caused a delay in the payment of employee salaries.
Al-Tamimi told “Baghdad Today” that “the existence of a liquidity crisis is usually the result of one of two reasons, as for a defect in preparing the budget, which is usually an estimate (realistic) of revenues and designing expenditures based on revenues,” explaining, “as for the other reason, it is the occurrence of something.” "It disrupted the flow of money to the state treasury and caused a change in the size of the state's revenues."
Al-Tamimi added, “It cannot be said that the second reason exists, as the main flaw is in designing the budget and managing it during the year. The government’s budget set large spending estimates that far exceed the size of its revenues,” adding that “this is the direct reason with which the government embarrassed itself through this volume of spending.” Spending in light of the weak internal circulation of funds, including oil funds, which require recycling and converting them from dollars to dinars, the presence of larger transfers issued by the Central Bank, dynamic recycling of non-oil revenues, and the activation of the unified treasury account.”
The expert in financial and economic affairs stated that “there are many steps through which the government can provide liquidity,” stressing that “it has not reached the point of a major crisis, but rather has become a continuing challenge to it.”
Professor of International Economics, Nawar Al-Saadi, revealed on Saturday (April 6, 2024) the reasons for the failure of monetary policy in Iraq, indicating who bears responsibility for this failure.
Al-Saadi told "Baghdad Today", "There are several reasons for the failure of monetary policy, including large inflation in government spending, as government spending exceeds available revenues, so monetary policy was affected by increased spending on infrastructure and public services without the availability of sufficient funding sources."
He stated, “The second reason is the heavy reliance on oil revenues, which makes the Iraqi economy vulnerable to fluctuations in oil prices, which negatively affects the government’s ability to implement effective monetary policies. In addition to the weak financial infrastructure, the banking and financial system in Iraq suffers from a traditional system that lacks Modernity in providing advanced financial services, which makes it difficult for the central bank to implement effective monetary policies to ensure economic stability.”
He added, "In the case of Iraq, the country's central bank is the body responsible for setting and implementing monetary policy, including setting the interest rate and managing the money supply. However, the government also has a role in determining general economic policies that may affect monetary policy." Such as government spending, foreign trade policies, etc.
He continued, "The most prominent negatives, errors, and problems of monetary policy in Iraq is that Iraq is now suffering from hyperinflation. There is a large increase in monetary supply and demand in hyperinflation, which negatively affects the purchasing power of citizens and weakens economic stability, not to mention the budget deficit occurring as a result of the disparity." Spending and revenues, Iraq faces a budget deficit that requires additional funding from the central bank or external borrowing, as happened in previous years, especially the periods of low oil and the wars with ISIS, and of course also the exchange rate fluctuations in the last two years played a major role in instability in the financial markets and a negative impact on Investment and foreign trade.
The professor of international economics concluded by saying, “I think it is difficult to accurately determine the losses due to the multiplicity of factors, the discrepancy in estimates, and also the conflicting numbers from the concerned parties, but the losses could include a loss of confidence in the currency, unstable trading, a slowdown in economic growth, and an increase in public debt as a result of the budget deficit.” "Inflation will increase, and these losses could reach billions of dollars annually, which makes the need for serious reforms in monetary policy urgent in Iraq."
Kurdistan guarantees 20 trillion from the budget.. Will it get it “smoothly” for the first time in years? - Urgent
link
Today, Thursday (May 23, 2024), former member of the Kurdistan Regional Parliament, Jihad Hassan, detailed the Kurdistan Region’s share in the 2024 budget according to the tables sent by the Council of Ministers.
Hassan told "Baghdad Today", "The region's share will be around 20 trillion and 900 billion dinars."
He added, "14 trillion and 840 billion dinars will be allocated to operational expenses, most notably the salaries of employees, Peshmerga, retirees, and social care."
Hassan stated, “The region handed over its non-oil revenues to Baghdad, and its oil is also subject to SOMO, and therefore the region’s full share of the budget must be sent and the problems between Baghdad and Erbil must be solved radically.”
It is noteworthy that the Federal Council of Ministers, in an extraordinary session last Sunday, approved the 2024 budget tables and referred them to the House of Representatives, which received them last Monday.
The day before yesterday, Tuesday, the Parliamentary Finance Committee held its first meeting on the budget schedules, “with the aim of developing a comprehensive plan to review and analyze the budget schedules and their items after they arrive from the Prime Minister’s Office,” according to the committee’s statement.
The 2024 budget, according to what Prime Minister Muhammad Shiaa Al-Sudani announced last Sunday, amounts to 211 trillion dinars, and employee salaries for the year 2024 amount to 62 trillion dinars, while the 2023 budget amounted to 199 trillion dinars and employee salaries amounted to 59 trillion dinars.
The revenues of the 2024 budget are estimated at “144 trillion and 336 billion dinars, while expenditures amount to 210 trillion and 936 billion dinars, while the deficit is 63 trillion and 599 billion dinars,” according to Al-Sudani.
Politician: The Federal Reserve is required to set a time limit for sending Iraqi funds
Political analyst Sabah Al-Ukaili stressed today, Thursday, the need for the government to move towards setting time limits with the American administration regarding sending oil money to Iraq, while stressing that this move will end the pressure exerted by Washington.
Al-Ugaili said in an interview with the Maalouma Agency, “At the current stage, Iraq is unable to exit the policies of the US Federal Reserve,” noting that “agreements must be in treaties so that they are not violated by Washington.”
He continued, "The United States of America is required to end the sanctions that were imposed on domestic banks for no reason," pointing out that "lifting the sanctions will contribute to offering the dollar in the local markets to a greater extent."
Al-Ugaili concluded his speech: “Ending America’s influence and manipulation of the Iraqi economy represents a priority to be discussed,” adding that “this move will end the pressure exerted by Washington on many issues.”
In an interview with the Al-Ma’louma Agency, a member of the Al-Fath Alliance, Ali Al-Zubaidi, criticized the Central Bank’s controls for granting licenses to foreign and Arab banks to operate in the Iraqi banking sector, while stressing that continuing to grant the dollar at reduced prices to these banks is tantamount to wasting the country’s share of the dollar.
Parliamentary Finance is confused by the large difference between the 2023 and 2024 budgets... and warns against stopping provincial projects
Member of the Parliamentary Finance Committee, Mustafa Al-Karawi, revealed today, Thursday (May 23, 2024), that service and urban projects, some of which are ministerial, have been halted due to the reduction in governorate allocations in the financial budget tables for the year 2024.
The Council of Ministers voted in an extraordinary session last Sunday on the budget schedules and referred them to the House of Representatives, which received them the day before yesterday, Tuesday.
Al-Karaawi said in a televised statement, followed by “Baghdad Today,” “We noticed in the budget tables that there was a reduction in allocations to the governorates, some of which reached 80% compared to what was allocated to them in last year’s budget, and this may cause projects to stop and not lead to covering their expenses and contractors’ dues, and this may be what may happen.” "It causes a problem and a gap in the issue of financing."
He stressed, "Projects, including ministerial ones, have been halted due to lack of funding," pointing out that "there is a turbulent indicator between the 2024 budget and last year in terms of project financing, and we will host the Ministers of Finance and Planning next week."
Al-Karaawi pointed out, “Preparing a list of clarifications and sending them to the Ministry of Finance about the reasons for the increase in expenditures, the mechanism for collecting oil and non-oil revenues, and the inflation of the financial deficit in the budget.”
He added, "The government has committed itself to collecting 27 trillion dinars in non-oil revenues during the year 2024, and we requested clarification from the Ministry of Finance about the mechanism for achieving this goal," noting that "there is an increase in the operating budget that reached 156 trillion dinars."
The parliamentary finance member expected that “the maximum time limit for approving the budget schedules will be before the end of the current legislative term on next June 9, so there will be an intensive program for the Finance Committee to discuss these schedules and find solutions to the problems in them.”
It is noteworthy that Prime Minister Muhammad Shiaa Al-Sudani revealed in a press conference following the cabinet session last Sunday the details of the budget schedules and said in the most prominent contents:
- Table (A) includes revenues totaling (144.336) trillion dinars, and Table (B) concerns total planned expenditures totaling (210.936) trillion dinars.
- The planned budget deficit amounted to (63.599) trillion dinars, and Table (C) is the centrally funded workforce table, amounting to (4,079,906) employees, and governing expenditures amounted to (10.042) trillion dinars.
- The investment budget for 2024 is (54.298) trillion dinars, and may reach 55 trillion dinars.
- Governorate allocations to local government programs with an investment allocation amounted to (10.633) trillion dinars in 2023, and we financed (3.333) trillion, based on fundamental requests from the governorates.
- The remainder of the allocation (7.333) trillion dinars is in a trust account, at the disposal of the provincial governments.
- Allocating approximately (8) trillion dinars to ongoing projects, including allocations in 2024.
- For the first time in the history of budgets, we exceeded spending by 50%.
The increase in debt repayment amounted to 3.9 trillion dinars. In 2023, the debt repayment was 12,751, and in 2024, we repaid 16.725 trillion.
Bloomberg: Sudanese cabin obstructed the resumption of the region’s oil
Bloomberg reported that Iraqi Prime Minister Muhammad Shia al-Sudani is not ready to amend the contracts of oil companies in the Kurdistan Region.
The agency revealed that Sudanese was not ready to amend the contracts of oil companies in the region, which led to the cessation of negotiations to resume the export of the region's oil.
She pointed out that Al-Sudani described oil production companies as an obstacle to the export of Kurdistan Region oil, and insisted that oil production expenses in the region be consistent with the instructions of the Iraqi Ministry of Oil.
According to oil contracts in the Kurdistan Region, companies receive $23 per barrel, while in Iraq the amount reaches six dollars, and this is one of the reasons for the high cost of oil investment in the Kurdistan Region compared to Iraqi oil.
Channel 8 revealed earlier that there are legal obstacles preventing the resumption of the export of Kurdistan Region oil to the Turkish port of Ceyhan again.
The resumption of oil exports from the Kurdistan Region to the port of Ceyhan, which has been suspended for more than a year, depends on negotiations between the Iraqi Ministry of Oil and oil companies regarding oil contracts.
A source in the Ministry of Natural Resources of the Kurdistan Regional Government told Channel 8 that, despite their desire to continue working with Baghdad without any problems, there are legal obstacles to the Iraqi Oil Ministry’s agreement with these companies, and there is no progress in this regard.
The source added that the Kurdistan Regional Government's contracts with oil companies are rejected and unacceptable by the Iraqi Financial Supervision Bureau, and accordingly, the Iraqi Ministry of Oil does not have the authority to agree with these companies on the nature of these contracts, and the issue must be resolved by amending the budget in the House of Representatives.
Sabah Sobhi, a member of the Oil and Gas Committee in the Iraqi Parliament, told Channel 8 that, in addition to Turkey’s conditions, disputes over oil contracts prevent the export of oil from the region and that the issue of exporting the region’s oil again requires a political agreement between the parties.
On the other hand, Iraqi Oil Minister Hayan Abdul Ghani said, during his visit to the United States of America, that despite the Americans’ intervention to activate oil contracts, the point that Baghdad and the Kurdistan Region did not agree on was the cost of oil production in the region, as the expenses required under the contracts do not correspond to The Constitution and the Budget Law.
All of these matters led to the failure to resume the export of the region’s oil, and according to Epicor, the loss due to the suspension of oil exports in the region is estimated at more than 14 billion dollars.
An economic expert calls on the government to extinguish private sector debt
Today, Thursday, the economic expert and former advisor to the Council of Ministers, Bassem Antoine, called on the government to extinguish or postpone the debts owed by the private sector to activate its activity.
Antoine told Al-Maalouma, “Activating the private sector will create great job opportunities for the unemployed and will contribute to revitalizing the economic movement in the country, indicating that what the government has allocated to the private sector in the current year’s budget is a good consideration, but it will not meet the ambition.”
He added, "Activating the private sector is one of the government's duties by taking measures and steps that contribute to reviving industrial, economic, agricultural and other projects that will contribute to revitalizing the country's economic movement and not spending hard currencies abroad to meet the requirements of the local market."
He added, "The most important steps that will contribute to revitalizing and activating this important sector are making decisions to extinguish debts or postpone them for long periods. This measure will create great job opportunities and stimulate the economic movement in the country in particular."
| Iraqi Fintech ZainCash goes live with Temenos core banking and payments to scale digital |
Temenos platform will enable leading Iraqi digital payment provider to scale rapidly, launch new products faster and drive financial inclusion
Temenos (SIX: TEMN) today announced that ZainCash, a subsidiary of March Holding and a leading payment service provider in Iraq, has gone live with Temenos core banking and payments to power the rapid growth and innovation of its digital payment services.
The successful implementation aligns with the strategic goals of the Iraqi government and the central bank to boost financial inclusion and expedite the digital transformation of the national economy. It positions ZainCash to expand its operations more effectively, elevate the customer experience, and swiftly introduce new products. As it progresses, ZainCash remains committed to delivering cutting-edge digital payment solutions to a broader spectrum of Iraqi customers, merchants, and SMEs.
Established in 2015, ZainCash has rapidly expanded, achieving over 1.2 million app downloads and securing the sixth position in the Forbes Middle East Fintech Top 50 for 2024. ZainCash enables users to make quick and easy local and international transfers, pay local merchants and government services, manage funds with a convenient multicurrency card (physical or virtual), as well as enjoy a variety of bonus features like digital vouchers. ZainCash’s vast network of 10,000 agents ensures these financial services are available everywhere in Iraq.
With Temenos, ZainCash has brought together its core banking and payments capabilities on Temenos’ flexible, composable banking platform, which enables easy integration with existing internal systems, as well as with the Central Bank of Iraq. The robust, agile platform will enable the company to scale quickly to meet growing consumer demand as it seeks to reach 3 million users by the end of the year.
ZainCash will use Temenos’ modern technology architecture with open APIs, to quickly launch a range of new services, including instant lending, and provide customized products for specific groups, such as families and students. It will also offer a digital and seamless onboarding process resulting in an improved user experience.
The increased capacity and flexibility of the Temenos platform will help ZainCash to continue widening financial inclusion by extending convenient digital financial services to more communities, including Iraq’s large unbanked population. The system will also play a key role in the company’s humanitarian support for the United Nations by allowing ZainCash to deliver larger volumes of funds to refugees with increased speed, stability, and greater customization of services.
With its core banking and payments running on Temenos’ single platform, ZainCash will benefit from a higher, sustained level of investment in R&D, as well as faster and lower-cost updating and maintenance, which means a lower total cost of ownership.
Yazen Altimimi, CEO, ZainCash, commented:
“Temenos’ open and agile banking platform allows us to innovate and scale at speed, delivering a world-class payment experience that meets our customers’ growing needs and expectations. With Temenos, we can more easily expand our product range and provide more personalized services as we continue to lead the way in making payments safer, simpler and more convenient for all Iraqis.”
Lee Allcorn, Managing Director, Middle East & Africa, Temenos, said:
“Congratulations to ZainCash on this successful go-live. We’re delighted to support this pioneering fintech company in bringing innovative and convenient digital services to more Iraqis and continuing to widen financial inclusion in the country. We continue to invest in our single code base across core banking and payments, which is helping everyone from established banks to nimble fintechs to increase efficiency and improve customer experience.”
Temenos is the global market leader in banking software, ranked #1 by IBS Intelligence in eight categories, including core banking and payments, in the IBSi Sales League Table 2023.
Parliamentary Finance is confused by the large difference between the 2023 and 2024 budgets... and warns against stopping provincial projects
Member of the Parliamentary Finance Committee, Mustafa Al-Karawi, revealed today, Thursday (May 23, 2024), that service and urban projects, some of which are ministerial, have been halted due to the reduction in governorate allocations in the financial budget tables for the year 2024.
The Council of Ministers voted in an extraordinary session last Sunday on the budget schedules and referred them to the House of Representatives, which received them the day before yesterday, Tuesday.
Al-Karaawi said in a televised statement, followed by “Baghdad Today,” “We noticed in the budget tables that there was a reduction in allocations to the governorates, some of which reached 80% compared to what was allocated to them in last year’s budget, and this may cause projects to stop and not lead to covering their expenses and contractors’ dues, and this may be what may happen.” "It causes a problem and a gap in the issue of financing."
He stressed, "Projects, including ministerial ones, have been halted due to lack of funding," pointing out that "there is a turbulent indicator between the 2024 budget and last year in terms of project financing, and we will host the Ministers of Finance and Planning next week."
Al-Karaawi pointed out, “Preparing a list of clarifications and sending them to the Ministry of Finance about the reasons for the increase in expenditures, the mechanism for collecting oil and non-oil revenues, and the inflation of the financial deficit in the budget.”
He added, "The government has committed itself to collecting 27 trillion dinars in non-oil revenues during the year 2024, and we requested clarification from the Ministry of Finance about the mechanism for achieving this goal," noting that "there is an increase in the operating budget that reached 156 trillion dinars."
The parliamentary finance member expected that “the maximum time limit for approving the budget schedules will be before the end of the current legislative term on next June 9, so there will be an intensive program for the Finance Committee to discuss these schedules and find solutions to the problems in them.”
It is noteworthy that Prime Minister Muhammad Shiaa Al-Sudani revealed in a press conference following the cabinet session last Sunday the details of the budget schedules and said in the most prominent contents:
- Table (A) includes revenues totaling (144.336) trillion dinars, and Table (B) concerns total planned expenditures totaling (210.936) trillion dinars.
- The planned budget deficit amounted to (63.599) trillion dinars, and Table (C) is the centrally funded workforce table, amounting to (4,079,906) employees, and governing expenditures amounted to (10.042) trillion dinars.
- The investment budget for 2024 is (54.298) trillion dinars, and may reach 55 trillion dinars.
- Governorate allocations to local government programs with an investment allocation amounted to (10.633) trillion dinars in 2023, and we financed (3.333) trillion, based on fundamental requests from the governorates.
- The remainder of the allocation (7.333) trillion dinars is in a trust account, at the disposal of the provincial governments.
- Allocating approximately (8) trillion dinars to ongoing projects, including allocations in 2024.
- For the first time in the history of budgets, we exceeded spending by 50%.
The increase in debt repayment amounted to 3.9 trillion dinars. In 2023, the debt repayment was 12,751, and in 2024, we repaid 16.725 trillion.
The Foreign Minister arrives in Switzerland to hold a series of bilateral meetings and meetings
Deputy Prime Minister and Minister of Foreign Affairs, Fouad Hussein, arrived today, Thursday, in the city of Bern in Switzerland on an official visit.
According to a Foreign Ministry statement, a copy of which was received by Al-Furat News, Fouad Hussein will hold a series of political meetings with Swiss officials.
The Foreign Ministry statement added, Fouad Hussein also participates in other meetings to discuss many issues related to strengthening bilateral relations between the two friendly countries and ways to develop them
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