Update: Iraqi Economic Situation
I included this article today to reveal its significance to you . There are a few golden nuggets in this article , as is in most articles if you read them carefully. First - the article below is telling us Iraq is trying to get loans once again from the IMF to make up the upcoming deficit. We have heard they want to complete this 2016 budget no later than December. It has already gone to the parliament for discussion. I have told you also not to put any weight on this budget as it will NOT force the RV. Again I say it will not force the RV. If this was the case they would certainly not be going to the World Bank for a loan.
Secondly – we are beginning to see how politics is already raising is ugly head in this matter of the budget. We wonder all the time how it takes so long to get anything done. So here we see parliamentary member Ahmed al-Badri saying “that he will not pass the federal budget for the next year in 2016 unless it includes the application of the petro-dollar law and give the oil-producing provinces right for every barrel of oil produced, as likely rebalancing to the Cabinet, as the government called for the application without delay”
So I have told you before this new oil law is all about giving oil producing regions full rights to sell their oil above and beyond meeting the government quotas as needed to fulfill the budget. As we know oil produced for the government only get the provinces 17% oil revenue kickbacks and this too is usually delayed now due to the economy and the cost of fighting ISIS. So through this new oil bill, the provinces want to produce and sell oil and be able to keep all the proceeds, just as long as they also meet government quotas for the budget. The article just confirmed what I have been saying. We will see there is now becoming pressure to get this done.
The next article in this section is also telling us much. We now know that nearly half of the oil revenues produced over the last 8 years of the Maliki administration was either waisted or stolen. Anyway it did not go towards the intended reconstruction efforts. So now Iraq must increase its oil production and negotiate sales of oil around the world to make up this difference.
So for the economy of Iraq this is what we do know. Have you ever heard the term the middle eastern countries are “swimming in oil”? Well soon Iraq will be swimming in money. We have heard about their new program with emphasis on DIVERSIFACTION into agriculture, minerals and other products. So this is a top priority for Iraq as it is said these efforts can generate equal amounts of revenue as from the oil.
Oh- did I mention the projected Tariff revenues (if they can get the currency back online) can also reval that of oil production?
Oh – did I mention the recovery of 60+ billion dollars (not dinars) from stolen funds from Iraq (and more to come)?
So why all the loans then?
What everyone does not know and these articles about these loans do not tell us is this money obtained is ear marked for certain projects. It must go directly to the projects. These are “pet” projects in Iraq agreed to by Iraq long time ago. They now included them in their budget and so want these organizations to pay for them.
PARLIAMENTARY FINANCE REVEAL MEETINGS BETWEEN IRAQ AND THE WORLD BANK EARLY NEXT MONTH
Economy and Tenders Since 10/29/2015 17:06 pm (Baghdad time)
Special - scales News
Detection of the parliamentary finance committee member Abdul Qader Mohammed, on Thursday, the existence of meetings between the Iraqi government and the World Bank will be held early next month in Jordan in order to obtain financial loans.
He said Mohammed's / scales News /, that "the federal government in coordination with the Ministry of Finance meetings with the World Bank early next month will be held in the State of Jordan in order to obtain financial loans and assistance in the shortfall in the fiscal budget for next year after a drop in oil prices."
The member of the parliamentary finance committee, said that "some political blocs demanded installed the rights represented by the provinces in the federal budget for next year, and despite the lack of budget, but claims that this is the natural right of the citizens."
It is said that "the Committee of the Regions and the provinces parliamentary member Ahmed al-Badri confirmed L / scales News /, earlier, that he will not pass the federal budget for the next year in 2016 unless it includes the application of the petro-dollar law and give the oil-producing provinces right for every barrel of oil produced, as likely rebalancing to the Cabinet, as the government called for the application of paragraph petro-dollar order not to delay the adoption of Almoisnh.anthy 29/28
IRAQ TO REPLACE SAUDI ARABIA AS THE LARGEST OIL SUPPLIER TO INDIA .. AND THE PRICES GO UP WITH THE DECLINE IN INVENTOR
Delhi - London / Reuters
Iraq replaced Saudi Arabia as the largest exporter of crude oil to India in September for the third time this year, according to data Shipping obtained by Reuters in the framework of the competition between the two members of the OPEC, the major Asian markets, while oil prices rose on Wednesday, a day after a report showed the decline Oil inventories in the delivery in Cushing, Oklahoma, the US point.
Saudi Arabia has lost its position as the largest exporter of crude oil to China last month, as Russia has replaced the largest exporter of crude oil in the world as the largest supplier to China for the second time this year. Traders attributed to an increase in Saudi Arabia's official selling price.
Showed data obtained by Reuters Thomson Reuters service oil analysis and collected that India imported 640 thousand and 300 barrels per day from Saudi Arabia last month, down about 30 percent from August but the figure remains high 12.8 percent from the previous year.
In While Saudi Arabia's share in the Indian market over Iraq's share in one of the world's fastest-growing markets are shrinking and by offering attractive prices.
He said Ihsan big right analyst at KBC Energy Aikenomks Consulting London-based "sell Saudi oil official price under specific agreements term while Iraqi oil is sold in the spot market. In a market experiencing tremendous oversupplied usually find that the Iraqi barrels are sold at a discount from the official price.
"India and bought about 20 percent of its imports from Iraq in September, while Saudi Arabia's share fell to 17 percent from about 22 percent in August.
He said Ihsan right "when Iran back to the market will be a heated battle between Iran, Iraq and Saudi Arabia."
In a related context Oil prices rose on Wednesday, a day after a report showed a decline in oil inventories at the delivery point in Cushing, United States, Oklahoma, but gains It was limited as investors awaited official data on oil stocks in the United States.
It is expected that crude oil and oil products data announced by the Energy Information Administration at 1430 GMT increase in US inventories at a time when the largest exporters of crude produced at record rates to maintain market shares appear.
rose Brent crude for December 49 cents delivery to $ 47.30 a barrel 1118 GMT, and had fallen to the lowest level since mid-September yesterday Tuesday and ended a series of highs and reached the crude price to $ 54 this month.
US crude price of December 45 cents delivered to the to $ 43.65 a barrel. The contract touched the level of 42.58 Althelathaoualvait at the lowest level since late August.
And reached southern Iraq's oil exports volume since the beginning of the month so far 3.1 million barrels, which gives the signal to continued high production of major countries members of the Organization of the Petroleum Exporting Countries (OPEC).
Update: On IMF Global Reforms
Now I want to shake off the dust from everyone’s memories. Do you remember the IMF reforms that the USA refused to even vote on to support the IMF in strategy for global reforms? These reforms go back as far as 2010. These reforms were agreed to by the USA in 2010 at the G20 summit although never even brought up for vote since then.
Now the article below is telling us the USA senate supports these reforms and Congress may soon vote on them.
What impact will this have on Iraq? Well the USA will certainly be giving up voting rights and this could move many decisions away from consensus in USA terms. It could also be a bargaining chip for the USA in terms of getting what it wants for Iraq out of the IMF.
US congress push to implement IMF reforms
Friday 30 October 2015 - 2:34am
File: International Monetary Fund managing director Christine Lagarde during an IMF summit. The IMF executive board has approved a $932 million loan program for Jamaica.
WASHINGTON - Senior U.S. officials said on Thursday they hoped to see the U.S. Congress approve reforms to the International Monetary Fund (IMF) which will give emerging markets a bigger say at the global lender.
Reforms agreed in 2010 would put Brazil, China, India and Russia among the fund's top 10 shareholders but have been held up in Congress, which must back them. (BRIC if they would put it in the correct order)
A source familiar with IMF discussions said there appeared to be a chance of a deal to pass the reforms before Group of 20 leaders meet in Turkey on November 15-16.
U.S. Treasury Under Secretary for International Affairs, Nathan Sheets, said the Obama administration was focused on getting the deal done, although he did not specify a timeframe.
"The case has been effectively made on the Hill. Senior legislators from both parties recognize the importance and I remain hopeful that we will see it," he said at the Center for Strategic and International Studies.
White House G20 adviser Caroline Atkinson said the IMF reform was very important and she continued to press for it.
The Senate appropriations committee has approved a funding bill that would also implement the IMF reforms, although the House version of the bill excludes them.
News agency Bloomberg reported on Thursday that Republican lawmaker Kay Granger, who is responsible for shepherding the House bill, said she was optimistic the two chambers could work out a compromise.
Till next time…. Auf Wiedersehen!
Peace and Luv To Ya All,