The United Nations and 18 countries meet with the Iraqi banking sector to discuss banking relations at the headquarters of the Association of Private Banks.
Under the auspices of the United Nations Assistance Mission for Iraq (UNAMI), the Iraqi Private Banks Association organized a meeting that included Arab and foreign ambassadors, representatives of international organizations operating in Iraq, and Iraqi banks, with the attendance of the Central Bank of Iraq.
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The meeting was attended by the Special Representative of the Secretary-General of the United Nations for Iraq and Head of UNAMI, Mohammed Al-Hassan; the Deputy Governor of the Central Bank of Iraq, Dr. Ammar Hamad; the Regional Director of the World Bank, Jean-Christophe Carré; the Head of the European Union Delegation to Iraq, Thomas Seiler; and the Representative of the United Nations Office on Drugs and Crime, Ali Al-Barir; in addition to the ambassadors of the United Kingdom, Germany, France, Japan, Switzerland, Hungary, the Netherlands, Italy, Greece, Denmark, the Czech Republic, the United States, Saudi Arabia, the Sultanate of Oman, Qatar, Kuwait, and the United Arab Emirates.
In his speech, Al-Hassan emphasized that the meeting precedes the "Arab wedding" represented by the upcoming Arab Summit, and represents the beginning of strengthening communication between the Iraqi banking sector and the international community. He noted that no country's economy can thrive without a strong banking sector. He also expressed his gratitude to the Iraqi Private Banks Association for organizing the meeting, appreciating the ambassadors' positive interaction.
For his part, Wadih Al-Handhal, Chairman of the Iraqi Private Banks Association, explained that the meeting comes at a crucial moment in Iraq's financial and economic transformation. It aims to strengthen the banking sector's relations with international and diplomatic partners, creating an integrated banking environment based on transparency and compliance with international standards, capable of supporting sustainable development, stimulating investment, and serving those underserved by banking services.
Al-Handhal added, "We believe that building bridges of trust with the international community begins with constructive dialogue and mutual cooperation. From this perspective, the Iraqi banking sector continues its solid partnerships with your prestigious financial institutions, seeking to open broader horizons for investment and enhance stability and shared prosperity." He also expressed his sincere thanks and appreciation to Dr. Mohammed Al-Hassan for his significant efforts in mobilizing international support to enhance stability within Iraq, support reform processes, and consolidate the principles of human rights and good governance.
Al-Handhal explained that Iraqi banks look forward to direct dialogue with your countries' banks, under the auspices of the United Nations, to open new partnerships that serve the Iraqi and your economies. This can be achieved by expanding correspondent accounts, financing development projects, promoting digital transformation, issuing green bonds, and attracting promising investments to deepen sustainable stability.
Ali Tariq, Executive Director of the Iraqi Private Banks Association, presented a review of banking developments in the country, explaining that deposits reached 120 trillion dinars, while credit reached 73 trillion dinars. Electronic payments also increased from approximately $1 billion annually to approximately $17 billion by 2024.
The National Bank of Iraq: A leadership based on governance and transparency
The Ministry of Finance signs two agreements with the French Development Agency in the field of infrastructure.
The Ministry of Finance stated in a statement received by {Euphrates News} that “the first agreement relates to signing a supplementary loan for the Al-Khalidiya District Sewerage Project in Anbar Governorate, worth 30 million euros, bringing the total financing for the project to 110 million euros. The second agreement was allocated to finance the Al-Hamza District Sewerage Project in Diwaniyah Governorate, with a loan amounting to 100 million euros.”
During the signing ceremony, Sami explained that "through this step, the government seeks to transfer the technology and expertise used in France in the field of wastewater treatment to Iraq, which will contribute to improving service delivery and enhancing the health environment in the beneficiary cities."
These agreements are part of a financing package provided by the French government aimed at supporting infrastructure projects across various governorates. They are in implementation of the provisions of the Federal General Budget Law for the years 2023, 2024, and 2025, and in line with the directives of the ministerial program, which emphasized directing borrowing towards feasible investment projects.
Baghdad has submitted a new request for an exemption from importing Iranian gas, and Washington is studying it.
"They might negotiate with us to agree to 6 month
Hisham Al-Alawi, the Undersecretary of the Ministry of Foreign Affairs for Strategic Planning, confirmed that Iraq has submitted a request to the United States to extend the waiver for Iranian gas imports for an additional six months. He noted that the Iraqi government does not expect the request to be approved easily, especially with US President Trump's attempts to increase pressure on Iran. However, he noted that Washington has begun seriously considering the request.
Al-Alawi in an interview with journalist Muqdad Al-Hamidan:
The United States is an important country for us in Iraq, and our relations are diverse, encompassing political, economic, security, educational, and cultural aspects. We also have a large community in the United States, so it is only natural for the State Department and Iraqi government officials to be open to the new administration, especially in the current circumstances.
Iraq has a more stable political and security situation than in previous years, and it offers countries in the region and the world significant economic opportunities in terms of business and investment projects. We believe it is in our best interest to leverage this political and security stability and the significant economic opportunities to strengthen our relations with important countries.
For us in Iraq, the continued exemption to import gas from Iran, which we need to operate our gas plants, is very important. It was discussed, and the Iraqi viewpoint was presented. Iraq needs time to achieve self-sufficiency, find an alternative, process associated gas, increase its electricity imports from neighboring countries, whether Arab countries or Turkey, or find an alternative to the Iranian gas we import. There is a special feature in the summer, when demand usually increases, and we have an electoral season. Therefore, for all these reasons, the Iraqi government asked the current US administration to take these circumstances into consideration and grant an exemption for at least six months. The US side promised to consider this request. Decisions on such issues are usually made at a high level, not just at the US Treasury level, and in the current circumstances, given the nature of the new US president, his style of work, and his desire to exert greater pressure on Iran. He is not expected to respond easily, and he may try to use this as a bargaining chip with us to secure some of the issues he needs if he wants to agree to our request.
Iraq is in the grip of an oil storm, and the budget is on the verge of collapse.
Amidst the volatility of global markets and the turbulent nature of oil politics, Iraq today stands at a critical economic crossroads, threatening to undermine its financial and social stability. While some oil-producing countries are racing to increase production in pursuit of immediate gains, Iraq is paying a heavy price, as it relies almost entirely on oil revenues to finance its budget and pay the salaries of millions of employees.
The sharp drop in oil prices to below $60 per barrel, their lowest level since the COVID-19 pandemic, is no longer just a number on energy exchanges. It's a warning bell ringing at the door of every Iraqi household. The state budget, more than 93% of which is based on oil exports, is struggling to survive, while fears are growing that the government will be unable to meet its basic obligations, most notably securing the monthly salaries of more than 4.6 million public sector employees.
Amid this bleak landscape, experts warn of a looming economic crisis that could be the most serious in years unless the government takes realistic and bold steps to reduce dependence on oil and diversify sources of income. Will decision-makers wake up before it's too late?
Economic and financial affairs expert Haider Al-Sheikh warned, on Tuesday (May 6, 2025), of the danger of continued decline in oil prices for Iraq in the coming period.
Al-Sheikh told Baghdad Today, "Iraq is the second-largest exporter of crude oil in the Middle East and the fifth-largest in the world, exporting more than 1.2 billion barrels annually, at a rate of 100 million barrels per month. Financial revenues from oil revenues exceed $100 billion annually, at a rate of $8.5 billion per month."
He explained that "a number of OPEC+ countries, including Saudi Arabia, agreed to increase oil production in June, which led to oil prices falling below $60 per barrel, the lowest level since the COVID-19 pandemic."
He added, "Iraq relies primarily on oil revenues, which account for 93% of the state's general budget revenues, and the drop in the price of oil to below $70 per barrel has directly impacted the preparation and approval of the 2025 budget schedules."
Al-Sheikh emphasized that "the continued decline in oil prices will cause an economic crisis in Iraq, especially since the government relies primarily on oil revenues. If the price of a barrel falls below $50, the government will face difficulty securing salaries for its 4.6 million employees, as it needs $5 billion per month to cover public sector salaries."
These warnings come at a time when the Iraqi government has yet to submit its 2025 budget schedules to Parliament, more than four months after the start of the fiscal year, sparking widespread political controversy.
Government sources have justified the delay by citing a revenue shortfall due to the decline in oil prices. Meanwhile, members of the Finance Committee, including Jamal Kocher, revealed that Prime Minister Mohammed Shia al-Sudani is deliberately withholding the lists to avoid their electoral exploitation by his opponents.
The lack of allocations is expected to impact governorate service campaigns and election preparations, potentially leading to widespread abstention from voting in the local elections scheduled for November 11, 2025, particularly in poor cities and areas reliant on stalled projects.
Saleh ends the controversy: The 2025 budget will remain close to 156 trillion dinars, with domestic borrowing.
Saleh explained, in a statement to {Euphrates News}, that: “The average oil price in the first quarter of 2025 reached about $75 per barrel before the impact of the oil asset cycle began to drop prices to $63. This decline in prices coincided with the cancellation of OPEC+ quotas, in addition to the impact of the US trade war and a temporary contraction in the global economy.”
With the decline in oil prices, Saleh expected that “the relative increase in exported oil quantities will compensate for this decline,” stressing that “operating expenses will be subject to greater control within a flexible financial space, which will provide greater opportunities to manage financial resources prepared for spending.”
Saleh praised “the accelerating success in the field of fiscal and monetary policy,” explaining that “the government seeks to achieve economic stability in both its financial and monetary aspects.”
The advisor concluded by saying that “with this coordination, high guarantees are provided to achieve sustainable economic development, as the world is witnessing rapid progress in Iraq’s economic stability.”
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“Very Important” visit: Iraqi PM heads to Turkiye over PKK, Israeli attacks
Iraqi Prime Minister Mohammed Shia al-Sudani’s upcoming visit to Turkiye is “very important,” as it will address Israel’s military operations in Syria and the ongoing presence of the Kurdistan Workers’ Party (PKK), an Iraqi lawmaker said Tuesday.
“The continued Israeli aggression and deep incursions into Syria will certainly top the agenda,” Mukhtar Al-Moussawi of Iraq’s Parliamentary Foreign Relations Committee told Shafaq News. “These attacks pose a threat to the stability of the entire region.”
The PM will also press Turkish officials over the PKK’s operations and the Turkish military presence inside Iraqi territory. “This conflict threatens Iraq’s national security,” Al-Moussawi noted, adding that Al-Sudani is expected to push for ending Turkiye’s deployment through legal and diplomatic means.
Al-Sudani’s talks will also cover economic ties, particularly the $17B Development Road project linking the Gulf to Europe via Turkiye. He will renew demands for Iraq's full share of water, as climate pressures worsen and summer approaches.
Following his trip, the Prime Minister will be invited to Parliament to provide details about his visit.
On Monday, the Iraqi embassy in Ankara announced the arrival of a government delegation to prepare for this week’s visit. The two sides are expected to sign memoranda of understanding in several fields, including security, transport, planning, education, telecommunications, and industry.
The countdown to the Baghdad Summit has begun. Will Trump's attendance disrupt Arab leaders?
The government hands the leaders invitations to attend, and the "framework" remains unaffected.
The government continues to deliver invitations to Arab leaders to attend the "Baghdad Summit," while the "Framework" has so far remained silent regarding the upcoming diplomatic event.
Except for statements from MPs and analysts affiliated with Shiite parties, the Shiite coalition has not yet issued a statement regarding the "summit."
Yesterday, Foreign Minister Fuad Hussein delivered an official invitation to the Emir of Qatar to attend the Arab Summit, which is scheduled to be held in Baghdad this month.
According to an Iraqi statement, the invitation was delivered by the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani.
In return, Faisal bin Farhan, the Saudi Foreign Minister, received the invitation to attend the summit.
The Iraqi Foreign Minister arrived in Riyadh earlier on Sunday.
The Iraqi government also said in a statement that Fuad Hussein delivered the day before yesterday to Rashad Mohammed Al-Alimi, Chairman of the Presidential Leadership Council of the Republic of Yemen, an invitation to attend the Arab Summit in Baghdad.
In an important development regarding the "summit," Abdel Fattah al-Sisi affirmed Egypt's commitment to the success of the upcoming Arab Summit in Baghdad.
The Egyptian presidency announced on Sunday that President Abdel Fattah el-Sisi had received an official invitation from the Iraqi government to attend the Arab Summit.
The Egyptian presidency said in a statement that el-Sisi received Iraqi Deputy Prime Minister and Foreign Minister Fuad Hussein.
According to the statement, el-Sisi affirmed Egypt's keenness on the success of the upcoming Arab Summit in Baghdad and its full support for the upcoming Iraqi presidency of the Arab Summit, especially in light of the circumstances facing the Arab region.
An electoral summit!
The "Baghdad Summit" had created a problem within the Shiite Coordination Framework, resulting in a feud between most of its members over the "Syrian president."
During the last meeting of the Shiite alliance two weeks ago, which was supposed to issue a statement about the "summit," news leaked that Nouri al-Maliki (leader of the State of Law Coalition) had not completed the meeting and that Qais Khazali (leader of Asa'ib Ahl al-Haq) was absent.
During that session, Hadi al-Amiri, leader of the Badr Organization, decided to run in the elections "alone," according to Moeen al-Kazemi, a leader in the organization, after an imminent alliance between al-Amiri and al-Sudani.
This came after the "Framework" refused to allow the new Syrian president, Ahmed al-Sharaa, to attend the Arab Summit.
According to leaders in the Shiite coalition who spoke to Al-Mada, a proposal was made to "postpone the summit for a year or more and move it to another country, with Baghdad retaining the hosting role at a later date."
Despite this, al-Sudani said after the last meeting that Syrian President Ahmed al-Sharaa's presence at the Arab Summit was "important to clarify his vision for a new Syria to the Arab countries."
He added in an earlier television interview that "most Arab countries are keen for Syria to overcome its decades-long ordeal."
Al-Sudani asserted that Iraq would spare no effort in supporting Syria and respecting its choices.
The Prime Minister also emphasized that Iraq cannot be subordinate to any country and "is not an arena for conflict."
Four Shiite leaders, including al-Maliki, al-Amiri, and Khazali, publicly opposed al-Sharaa's attendance at the Baghdad Summit.
Some factions within the "Framework" interpret the Prime Minister's insistence on inviting al-Sharaa as an "electoral desire" and the creation of a "Qatari-Turkish axis."
These factions believe that Al-Sudani "harms Iraq's interests" if he becomes part of an axis against "Saudi Arabia, the UAE, and Jordan."
These parties also believe that "Al-Sudani's insistence" will push the leaders of these countries to boycott the summit, in addition to expectations that the Emir of Kuwait will boycott the conference due to the escalating events in Khor Abdullah.
It is also likely that an upcoming visit by US President Donald Trump to the Gulf and the region next week will affect the level of Arab leaders' attendance at the summit.
Exceptional Circumstances
Regarding the summit, former diplomat Ghazi Faisal comments on the specificity of the upcoming event in Iraq, which comes amidst the unusual circumstances facing Arab countries and the region.
Faisal tells Al-Mada, "This summit is not an Iraq summit, but an Arab summit in Baghdad, whose goal is to address major problems and challenges."
He adds, "The Arab summit in Baghdad is being held amid dangerous circumstances and challenges plaguing the region, especially after the October 2023 war, as the geopolitical situation has changed in Lebanon, Syria, and Gaza, and military and political power relations have changed in the region."
Faisal continued, "In addition to the large-scale military confrontation taking place in Yemen between the US and the Houthis, the bloody war in Sudan that has isolated Sudan from its regional environment, internal problems in Algeria, the serious security issues arising from the wars in the region, and the potential for war and peace in Iran, which will impact the security situation in the region."
These challenges, according to the former diplomat, are leading to sharp divisions among Arab regimes regarding their vision for resolving these crises, especially after what happened on October 7. However, he points out that "this summit, under these complex circumstances, can seek solutions, even within a general framework, to the problems facing Arab countries."
Faisal asserts that all of this could "be an incentive for Arab leaders, including leaders, kings, and experts at the League, to develop a strategy to confront and address security, environmental, desertification, food security, cultural security, industrial security, and inter-Arab trade challenges, which still account for 4% of Arab-Arab economic relations, and the lack of joint Arab economic and political action at the strategic level."
Regarding the history of Arab summits and the level of attendance of leaders, Faisal, who heads the Iraqi Center for Strategic Studies, says, "There is no consensus on the participation of Arab kings and leaders in all previous summits. There are sometimes internal obstacles and some diplomatic engagements among the leaders."
He adds, "During the summit in Baghdad, Trump is likely to visit the Gulf and the Middle East, and possibly Egypt. This visit could overlap with the presence of Arab leaders at the summit."
At the same time, Faisal explains, "The Arab summit is an institution comprised of experts under the supervision and oversight of the Arab League. Consequently, decisions and policies are prepared, and the meeting and convening of the summit are protocols for announcing statements agreed upon by the experts within the Arab League, which then become policy for the Arab countries and signal various efforts and transformations to confront challenges."
Faisal points out that the large turnout at the upcoming summit in Baghdad "demonstrates interest in the summit topics, and some leaders may attend the opening and leave, or attend one or two sessions."
The Sultanate of Oman announces reaching an agreement to stop the naval war in Yemen.
The Omani Foreign Ministry announced its success in reaching a ceasefire agreement between the United States and the relevant authorities in Sana'a, Yemen, with the aim of de-escalating the situation.
A Foreign Ministry spokesperson stated that following recent discussions and contacts between the Sultanate of Oman and the United States and relevant authorities in Sana'a, Yemen, aimed at de-escalating the situation, efforts have resulted in a ceasefire agreement between the two sides.
The Omani Foreign Ministry affirmed that neither country would target the other in the future, including US vessels in the Red Sea and Bab al-Mandab Strait, ensuring freedom of navigation and the smooth flow of international commercial shipping.
The Sultanate of Oman expressed its gratitude to both parties for their constructive approach that led to this welcome outcome, expressing its hope that this would lead to further progress on many regional issues towards achieving justice, peace, and prosperity for all.
Oman's successful mediation to reach a ceasefire agreement between the United States and the authorities in Sanaa (the Houthis) comes amid escalating tensions in the Red Sea and Bab al-Mandab region in recent years.
The region has witnessed repeated attacks by the Houthis on commercial and military vessels in the Red Sea, a vital area for global trade, with approximately 12 percent of global maritime trade and 8 percent of liquefied natural gas trade passing through it, according to the US Energy Information Agency.
Since the beginning of these attacks, the Houthis have targeted commercial vessels with drones, ballistic missiles, and explosive boats, disrupting international shipping traffic. Major shipping companies such as Maersk and Hapag-Lloyd have been forced to reroute via the Cape of Good Hope, increasing shipping costs and impacting global supply chains.
In response, the United States led Operation Prosperity Guardian, with the participation of countries such as the United Kingdom, France, and Bahrain, to secure navigation in the Red Sea. It also carried out airstrikes against Houthi targets in Yemen, escalating the conflict.
US newspapers: Israel has decided to fully occupy Gaza militarily after Trump backed down from striking the Houthis.
Foreign newspapers and media outlets revealed, on Tuesday (May 6, 2025), that the Israeli occupation government has decided to implement a "comprehensive ground occupation" of the Gaza Strip, in a move described as escalation, which came after US President Donald Trump announced a halt to military strikes against the Ansar Allah group (Houthis) in Yemen.
The New York Times reported, in a report translated by Baghdad Today, that "the Israeli war cabinet, headed by Benjamin Netanyahu, has decided to launch a large-scale ground operation to occupy Gaza, after announcing its inability to dismantle Hamas without holding territory," as the report put it.
The newspaper noted that this Israeli decision came after reports of the "failure of the American strategy" to deter the Houthis from attacking Israeli targets, explaining that "the recent missile attack on Ben Gurion Airport in Tel Aviv was among the reasons that prompted Trump's decision to halt the strikes."
According to the report, the new occupation plan includes—for the first time—what Israel has described as a "humanitarian initiative," including the delivery of food and medical aid to the residents of the Gaza Strip, who have been living under siege for more than two months, amid UN warnings of the threat of famine.
However, the United Nations and international relief organizations were quick to condemn the plan, considering it "an attempt to transform humanitarian aid into a military tool in Israel's hands." These organizations described it as "a violation of the neutrality of humanitarian action and a threat to undermine confidence in the international relief system."
The Israeli military decision coincides with an escalation in demonstrations within the entity, with thousands of protesters taking to the streets against the policies of the Netanyahu government, accusing it of "risking the lives of hostages held in Gaza and prolonging the war, which has entered its second year with no clear political horizon."
From telegram
#Urgent_i_News Member of the Political Council of the Ansar Allah group, Mohammed Al-Bukhaiti: Our firm position is that stopping the targeting of American ships does not include stopping support for Gaza.
After failing to hold sessions, Parliament announces the end of its legislative session.
The House of Representatives announced on Tuesday evening, May 6, 2025, the end of its legislative session, following the failure to convene sessions for two months.
The Parliament's media department said in a statement received by Al-Jabal, a copy of which said, "Based on Article (57) of the Constitution of the Republic of Iraq - and Article (22) of the internal regulations of the Council of Representatives, the Council Presidency decided to end the first legislative session of the fourth legislative year - the fifth electoral cycle, on Friday, May 9, 2025."
The House of Representatives was scheduled to hold its seventh session of its current legislative term on Monday, May 5, 2025. Another session was also scheduled for Tuesday. However, the House of Representatives failed to convene both sessions, and both times, the session was adjourned due to a lack of quorum.
The Iraqi Parliament failed to hold its regular sessions, having failed to hold its scheduled session on Tuesday, May 6, 2025. Parliamentarians asserted that political leaders were deliberately disrupting the sessions, some of whom disclosed the reasons for this. Calls are mounting for the dismissal of MPs who fail to attend.
Mohsen Al-Mandalawi, First Deputy Speaker of Parliament, announced earlier today that he had "directed the media and parliamentary departments to publish the names of the parliament members who were absent from today's session and to deduct the prescribed financial percentage from their salaries."
Meanwhile, the House of Representatives announced the names of the members present at its failed seventh session, held on Tuesday, May 6, 2025, following the renewed failure to hold it.
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