aggiedad77 » December 15th, 2014, 11:07
Monday News Summaries and Commentaries
Well let's get Monday kickstarted with a few articles about the dinar and the budget....what's on your mind?
Sources: dinar will not be affected unless the decrease in oil prices are borrowing from the central bank
A leading member of the National Alliance coalition is stating that even if the price of oil drops further the dinar exchange rate will remain stable.....unless of course someone is successful in obtaining a loan from the CBI...right now it is being estimated that the shortfall or deficit in the 2015 budget stands around $40 billion dollars.
The IMF stands ready to provide advice and financial assistance to Iraq
The IMF stands ready to lend assistance to Iraq and Syria should they identify the need.....they are prepared to provide advice in the areas of economic policy and in raising the government capacity, as well as in the form of loans and financial aid to help those being displaced.
A ministerial committee to end a five-year review of the budget in 2015
The five member committee that was formed by the COM at the end of November to study the 2015 budget is completing its work....they had been charged to study areas of excessive spending and seek ways to maximize financial resources using the current state of affairs being seen within both Iraq and the global community....the falling price of oil to something below $65 per barrel.
This committee comprised of ministers from oil, transportation, finance, planning, and higher education and scientific research basically was asked to rewrite the budget based on what they believed would be an effective price for oil for 2015.
Dr. Saleh jumps in the fray and is quoted as saying that the committee needs to focus identified gaps within the budget and large expenditures versus low financial revenues and should be working smart and fast in their efforts to identify working field solutions....
they still see a goal of having this budget in the laps of Parliament by the end of the year.....at least one other expert sees the need to ignite the private sector in working towards filling any shortfall of government resources....this being of course a serious challenge to anyone associated with the budget process.
Jubouri underlines the willingness of Parliament to convene an extraordinary session in the event of the arrival of the budget
Meanwhile over at Parliament, Speaker al-Jubouri underscores the willingness of Parliament to be called into action the moment the budget for 2015 is given to them.....he stated that Parliament recognizes the importance of the responsibility being placed upon them with this budget and how it will impact all Iraqis and needs to be addressed immediately.....he states also that Iraq is in need of international support, especially so from their neighbors and their Arab neighbors most importantly....recognizing that a number of political projects are imbedded within the budget that have international implications.
The appearance of Mohammed Saleh: the government in the future will depend on the private sector
Big news from Dr. Saleh....he believes that if Iraq takes a proper look at the 2015 budget in comparison to show money was spent in previous budget years they will identify ways that can streamline much corruption and frivolous spending so as to allow this current budget to be passed in a very smooth fashion....he points to PM Abadi first cutting his own salary in half and then doing the same with the remainder of his cabinet and many of their key players who stand behind them to show the people they are serious about making appropriate and necessary cuts....in addition to cutting salaries they are cutting privileges to state employees as well.....Saleh further believes that with this new budget will be seen a new Industrial Revolution within Iraq, the building of the private sector...a growth from agriculture and the righting of the Iraqi economic model onto the right path. Again, PM Abadi's engineering approach to things stands to bring a great deal of needed organization to this mixed up country.
DANA GAS STILL WAITING FOR $100 MILLION PAYMENT FROM KURDISTAN REGIONAL GOVERNMENT
The largest producer of oil and gas within the Kurdistan Region is wanting to get paid and is looking to English courts to force that payment, about $100 million USD....this has been accumulating since contracts were signed in 2007 with the Kurds....The Kurds have defaulted on a court ordered request to make the payment to Dana back in November of this year and now a court date in April 2015 has been established to determine how this liability issue will play out between the Kurds and Dana Gas and its consortium partners.
Parliamentary Economic postpone debt to Kuwait in 2017
A member of the Parliamentary Economic Committee has announced the deferral of the final debt payment to Kuwait until 2017...the amount owed remains at 4.7 trillion dinars....it is believed this action was sought to give Iraq time to get on its feet after suffering a significant setback with the issues associated with lack of approval for the 2014 budget....no word yet that the Kuwaiti's have agreed to this deferral.
Finance Committee exclude the adoption of the budget in 2015 before the end of this year
From the mouth of one Parliament member, a member of the Finance Committee comes one opinion....that the budget will not be adopted by the end of 2014.....I caution you in taking up this man's banner.....he is but one...and apparently does not carry forth the same resolve that we see coming from PM Abadi and Speaker al-Jubouri.....it will certainly be interesting to watch and see how things evolve once the budget is given to Parliament.
Economic boom in Iraqi Kurdistan turns bleak on refugee flood, oil decline
As would be expected the sudden downturn in oil prices, falling in the neighborhood of 40% in just a matter of weeks.....has seen the economic demise of the Kurdistan boom that had been enjoyed by many, especially those refugees living in the Kurdistan Region...many projects have been completely halted and people have ceased to even visit the local bazaars due to lack of funds...the impact is being felt throughout the region and the mounting numbers of displaced people due to terrorist activities is compounding the problems....the terrorists have interrupted previous trade and managed to scare away many foreign investors to the area.
Abadi looking in the UAE finance the reconstruction of cities and pledges Brussels meeting
Again...follow-through...follow-through...follow-through....we see PM Abadi moving to talk further with the UAE after having talks with them in Brussels in recent days....talks that would provide support to Iraqis in their serious fight against DAASH and other terrorist groups.....Abadi seeks funds from their neighbors to aid in the Iraqi fight against terrorist groups but he also seeks aid in the format of drying up support from the UAE and Kuwait that is being funneled to the terrorist bank accounts.....his cry for support is real and should not be seen as previous white-wash of the past.
Zebari is likely to provide the budget for the government this week and calculated on the basis of $ 70 per barrel of oil
The Iraqi Finance Minister Zebari has been quoted as saying that the new 2015 budget will have a price for oil at $70 per barrel....and he believes it will be presented to Parliament this week.....the Finance Committee is reporting that the government's efforts to combat the deficit issues associated with this budget have included internal loans from banks within Iraq as well as significant cuts in "luxury expenses" that will equate to 10% of the countries budget.
Parliamentary Finance suggests deducting a percentage 15-25 percent of employees' salaries
The Parliament Finance Committee is proposing a cut of 15-25% in employee salaries depending on how much they earn per month...this would be returned to them at a later date in the form of securities to help aid in savings for the same employees....it is good the Iraqis are seeing this as a serious issue and are taking appropriate measures across the board to ensure they stay as solvent as possible.
Parliamentary Finance is discussing with a number of industrial ways to support local industry
A joint session between the Parliamentary Finance Committee and members of the industrial private sector will meet beginning on Saturday to investigate ways for Iraqi industry outside of oil and gas to build upon a solid foundation leading to high quality industrial support for all of Iraq....Boxman.....Boxman....it is time to "jump out of your covering" so to speak and begin to think outside the box.....time for other industries to stop being satisfied with the status quo and do things that will promote their work and their respective industries and help Iraq through this current crisis that is saddling the oil and gas sector.
Economic parliamentary: the government tends to activate the private sector and the collection of taxes
Talking heads continue to rehash news that is days old....the government is seeking to bring the private sector of industry into the picture in a bigger way that will offset losses being experienced by the oil and gas arena......they are also investigating the potential for additional taxes to be collected in certain sectors....the key to all this is keeping an open mind and being receptive to new ideas.
Conscious / adviser to Prime Minister: Iraq's economy is facing a real crisis as a result of lower oil prices
This is a retake on an earlier article from this morning interviewing Dr. Saleh who points out that the Iraqi economy is undergoing a real time crisis crunch due to the sudden fall in global oil prices.....he still believes though the government from PM Abadi down is taking the right approach to things....not panicking but instead seeking measures to offset the decline in oil,
sometimes the measures appear extreme...but then these are extreme times they face....the 50% salary reduction that Abadi led is a great start.....but it is only a start.....he has the Finance Committee and the newly formed Budget Committee looking for any forms of graft, corruption, or frivolous spending of budget monies and that is getting carved out of the future picture in a hurry.....
Abadi is man who stands on principles and quickly recognizes the right thing to do and forges ahead. I look for Iraq to move through this crisis and come out stronger than ever before.
Some quick summaries from this morning.....crisis is definitely a current buzz word in Iraq....but the horizon does not truly look so bleak....they are working methodically to turn past problems into opportunities....and in doing so they strengthen their own worldly stance.....can they do the same for currency issues....we shall see.