Morning News & Comments
Baghdad-Erbil deal silent on KRG’s surplus oil
[tlm724] BondLady has been posting some very informative pieces from the Economist site over the last several days, they are a very detailed look into the Erbil agreement. Lets look at some of the details of today's post.
[tlm724] appears to have left some room for confusion as to what the Kurds should do with the significant amount of oil that they do not export under Baghdad’s supervision
[tlm724] (KRG) pledges to export under Baghdad’s supervision 300,000 barrels of oil per day from oil fields it controls in Kirkuk province in addition to 250,000 barrels per day produced from the three provinces
[tlm724] The deal will take effect from the beginning of the coming year.
[tlm724] KRG produces more oil than the 250,000 barrels mentioned in the agreement.
[tlm724] currently produces 500,000 barrels per day, of which 150,000 is for domestic consumption and the rest used for export
[tlm724] the key question is what the KRG will do with the remaining 100,000 barrels
[tlm724] Iraqi Oil Ministry and government was unchanged with regard to “the illegality of any oil dealings outside the numbers and frameworks
[tlm724] Kurds are saying no you can't control all our oil, we may need that revenue if you fail to keep your end of the bargain
[tlm724] The Iraqi government has not paid the KRG its share of the national budget since February, amounting to 16 trillion Iraqi dinars, approximately $13 billion, according to Kurdish sources.
[tlm724] The current deal appears to have resulted from a dire need for cash by both the KRG and Iraqi government.
[tlm724] they are all hurting “Both sides needed that agreement.
[tlm724] For Kurdistan, it was difficult to be able to provide for its budget through internal revenues and [independent] oil sales,” said Shaban, the Kurdish MP. “As long as we live within Iraq, such an agreement is the best.
[tlm724] this deal will keep both sides afloat
[tlm724] kurds had to borrow money to the tune of 4 billion dollars just to pay their bills
[tlm724] thats billion !
[tlm724] the KRG has so far received a payment of $500 million and is due to get a similar amount this week or next,
[tlm724] An important fact often overlooked in media debates regarding the deal is that it is not envisioned as a comprehensive long-term pact, but rather as a one-year deal meant to facilitate the ratification of Iraq’s 2015 budget law
[tlm724] so this deal is being done to get the 2015 budget done quickly
[tlm724] “Without this agreement. Iraq’s 2015 budget balance would have suffered a major deficit. This will be a return of sovereignty and trust to Iraq that did not exist under Maliki,” said Shaban.
[tlm724] this could have never been accomplished under Maliki's watch
[tlm724] “If it is not going to be a principled agreement then it won’t hold, which means both sides will lose
[tlm724] while they are at this point they should make this a long term deal once and for all , don;t leave it unfinished ,what happens a year from now ?
[tlm724] Under the current deal, the Iraqi government will also pay the Kurdish peshmerga forces nearly $1 billion in due payments.
[tlm724] so without the clarification on the how kurds are to export the overage oil this deal isn't quite finalized, this point leaves too much in the air
[tlm724] you can't blame the kurds for their mistrust, everything was taken from them, they were robbed of their land and almost wiped out by Saddam and Lord only knows what Maliki had up his sleeve
[tlm724] Kurds had everything lined up with Turkey to help them with exports but Turkey basically left them high and dry when ISIS attacked
[tlm724] But Ankara’s failure to assist the Kurds in substantive ways in the face of an all-out invasion in August by the IS on Kurdish territory seems to have prompted Kurdish leaders to reconsider their relations with Ankara to some extent
[tlm724] kinda left a bad taste in the Kurds mouths
[tlm724] It is possible that disappointment with Turkey might have had some impact in changing the direction [of KRG from Ankara] toward Baghdad,”
[tlm724] this incident with Turkey just pushed the Kurds back to Baghdad and was probably the straw that broke the camels back so to speak
[tlm724] we see by this that the deal is being finalized and that there are many strategic details being worked out, we are talking about billions of dollars and if it is not done right the first time then they may as well go back to the drawing board.
The great thing is this, they never did 2014 budget so the urgency is there to get the 2015 budget done and passed before they are completely broke and they are right on the edge of this agreement, few details and it should be done !
[tlm724] that was a really in-depth look into the details tyvm Bondlady
[RCS1947] thank you Bondlady and timmy !
[poopsie] ty tlm724 bondlady
Zebari: the budget deficit after the adjustment of $ 30 billion and a request to postpone the payment of compensation to Kuwait for two years
[tlm724] "After the refusal of Prime Minister Haider al-Abadi to the original draft budget, the Ministry of Finance has reduced spending by about ten billion dollars but still expected the deficit to about $ 30 billion."
[tlm724] " Zebari and hoped that "the government agree to a revised budget for 2015 at a meeting next Sunday
Iraq to reduce customs duties on Jordanian trucks than $ 2200 to $ 700
[tlm724] keeping Jordan happy is a good thing and not only that but these goods will be fresh !
[tlm724] this will reflect positively on farmers Jordanians and motivate them to increase exports to the Iraqi market.
[tlm724] one hand washing the other
Finance reveal the government's determination to resort to impose taxes on mobile phone sales
[tlm724] Finance reveal the government's determination to resort to impose taxes on mobile phone sales
[tlm724] the Iraqi government will resort for the first time to impose taxes on mobile phone sales to bridge the shortfall in the budget,
[tlm724] in addition to a host of other taxes to cover the deficit.
[tlm724] here comes the tax man !
[tlm724] the bulk of the budget goes to military effort and defensive effort for the country," pointing out
[tlm724] it was more than 800 million disbursed salaries of the popular crowd, but that the money did not reach all concerned where there is a complaint that large numbers of the crowd People did not receive their salaries
[tlm724] all these new taxes on people that are below the poverty level ! Going to have in crease their purchase power, just sayin... in addition to a host of other taxes to cover the deficit.
Iraq launches a project implemented by the Korean company worth $ 18 billion to export oil through Jordan
[tlm724] Iraq launches a project implemented by the Korean company worth $ 18 billion to export oil through Jordan
[tlm724] 18 billion *wolfwhistle* dayum
[tlm724] that is why they have to keep Jordan happy as well as Jordan helping with security
[tlm724] The Central Bank of Jordan calls for Iraq billion dollars
[tlm724] demanding the Baghdad-Amman to transfer his funds frozen in Jordanian banks since the overthrow of Saddam's regime, and the issuance of an international decision to freeze the funds.
[tlm724] oh now that will help 1 billion dollars ! No wonder they are giving the Jordanians a tax break
Central Bank: compensation citizens of Daash attacks amounted to $ 5 billion
[tlm724] we have concluded contracts worth billions of dollars arming, due to the continuation of the war on Daash, and the damage was greatest juniors share our cities, and our citizens, and we are determined to avoid the damage
[tlm724] International Monetary Fund, expect the biggest economic decline due to lower oil prices by about 30%, is added to the Daash control of the trade routes with the Kurdistan region
[tlm724] is added to the Daash control of the trade routes with the Kurdistan region
[tlm724] "We can increase our production, unlike the rest of the members of OPEC [Organization of Petroleum Exporting Countries], where we have not reached yet the maximum allowed us in this context
[tlm724]they haven't reached the max of oil yet, good pump it !
[tlm724] adding that" Iraq's oil production will reach 4 million daily barrels by 2016 *wolfwhistle*
The working Council of Ministers on the study of the preparation of the draft budget law, which was scheduled to be approved in its meeting on 29 of last month but postponed that the sharp drop in global oil prices, which fell below $ 63 what is causing the rise in disability rates,
with the formation of a ministerial committee shall conduct a comprehensive review of public expenditure of the State; to come up with recommendations to address and reduce the projected deficit in the budget. "
[tlm724] yep we saw Zebari say the budget should be ready Sunday
Weights taxes on water, fuel and imports
[tlm724] Parliamentary Finance Committee suggested, the imposition of taxes on certain public services such as electricity, water, fuel and high customs fees on imports
[tlm724] again with the taxes !
[tlm724] This measure will be temporary until the resumption of oil prices to rise and fill the budget deficit," likely that "the tax rate will be low so as not to affect the citizens.
[tlm724] oh okay
[tlm724] they will tax everything until the oil goes up in price and things level back out. I think they like getting that money, going to be hard to stop it once it starts
[tlm724] 2015 budget will be passed without Barriers *wolfwhistle* now thats hot !
[tlm724] next year's budget will be easily passed because there are a number of reasons the most important of the correct reading and advisement by the prime minister in addition to that there is consensus and agreement of Parliament to pass, as a result of the awareness that there is no winner of the delay in the budget.
[tlm724] oh that is soooo sweet, no apparent issues !!
[tlm724] "convergence of views between the political blocs in the moment as well the country's need urgently to all money matters speed up the approval of the budget next year.
[tlm724] working together for the betterment of ALL !
[tlm724] recent agreement reached between the governments in Baghdad and Erbil, will impact on the course of approving the budget and avoid Almarqlat that occurred in the previous period,
[tlm724] thats right this goes right along with the Economist piece BondLady posted this morning ... just amazing
[tlm724] " It was an economic advisor to the Prime Minister the appearance of Mohammed Saleh announced on Saturday, for the budget presentation in the Cabinet meeting to be held next Tuesday after agreeing to increase oil exports to offset the decline Alosar.anthy / 25 K
[tlm724] there you go, coming right form Saleh !
[tlm724] for the budget presentation in the Cabinet meeting to be held next Tuesday
[tlm724] *hallelujah* *hallelujah* *kickA* *m16*
[tlm724] love it Wink