aggiedad77 » June 7th, 2015, 11:38 am
Sunday News Summaries and Commentaries
Good Morning Family, today we see more news about the IMF loan to Iraq...the $833 million dollars....a drop in their bucket of budget things....apparently to be used to "bridge the deficit" and "aid in the fight against DAASH".....in either case it will soon disappear.
We've seen articles that say the CBI will be the watchdog over the proceeds from this loan.....but today we see that the Finance Committee will be that watchdog....
I'm just wondering how far the Fin Comm can be trusted....IMO...this talk of "bridging deficits" and "fighting DAASH" with this paltry amount is smoke for something else...just can't figure out what yet.
Government calls for the adoption of Islamic banking law experts and they see .. factor to attract money
PM Abadi's office, Dr. Saleh, is asking Parliament to get off its duff and speed up the process to get some banking laws passed....claiming that such action will be able to attract more money to the banks of Iraq.
He says that Iraq is sorely in need of improved and modernized banking laws that will tend to draw more to the banks....however some economic experts claim Islamic Banking Laws will work in a negative sense for those banks that need to operate with higher interest rates (8% or so) where they rely mores on the interest rates.
From the sounds of things some banks are already looking at ways to bring the Islamic form of banking into their entity and business....Rafadain and Rasheed Banks....variety and forward thinking.
Parliamentary Economy: amendment of the Investment Law will help to solve the economic crisis
The Economy and Investment Committee says that amendments to be made to the Investment Law will go far in resolving problems associated with the current Iraqi crisis......these amendments will make way for incentives for investors and companies attempting to move into Iraq in the near term....reduction of taxes for many investors is one of the prominent features of what is coming down the amendment pike.
Parliamentary Energy calls for the formation of a ministerial committee to draft new legislation for oil and gas law
Ok, I feel the need to call "uncle" here.....how frustrating this has to appear to Iraqi citizens...watching their government on all fronts totally failing in this regard....oil and gas law that is.....first attempt in 2007 then again in 2011....now here we sit in 2015 and all bets seem to sudden be off the table and the Oil Ministry is going to create a new committee to come up with a draft law...what the heck has been going on in the ministry for the past 10 months? This seems just crazy....they were allegedly drafting a new law last Fall, so what happened there....did it completely fall on its face....why.....well put a time frame on this new committee to get something written.
Conscious / Parliamentary Finance: banking environment in Iraq is not encouraging to attract investment
Once again the Finance Committee chooses to voice the opinion of one of its members...this time talking about the Iraqi Banking environment....not too healthy right now.....pointing to a need for the Fin Comm and the CBI to work collectively in creating a more harmonious environment for investors, providing greater opportunity for loans to investors and companies....whatever is done it needs to move Iraq beyond the point of austerity and into a better market place for all.
Parliamentary Finance: Central Bank and the banks are trying to recover the confidence of the citizen
More political mumbo-jumbo coming from the Finance Committee....saying the CBI and the Fin Comm are working together to recreate a level of confidence of the Iraqi people with the banking system in the country.....much work is in place to bring people back to the banks, easier loan applications, modernized aspects of the banks....and the support of the CBI in all areas but especially so in the private sector.
A member of the parliamentary Finance: IMF loan would be placed under financial supervision under the supervision of the ministry
So here is where we see the Finance Committee claiming the IMF loan will be placed under their committee for supervision....saying this loan would be used to bridge the budget deficit....this money and from what other sources I say.....this spokesperson is claiming that this kind of borrowing is "normal"....but why such a low amount.....why not go for the full monty that is needed to wipe out the budget deficit.....winner take all....this $833 million is like an ante to a high stakes poker game....what will come from the move....oh and on a final note....keep in mind this loan must be approved by "member states" who get together in July.
Parliamentary Finance: tax will raise the price card Shipping "mobile" category 10 000 to 13 000 dinars
Finance Committee confirmed the imposition of a tax increase on mobile phone cards from 10,000 to 13,000 dinars starting in August.....and there is to be no impact on the Iraqi citizen.....so who absorbs this increase...the company....let me know in September how this works for you.
Abadi's adviser (dinars): taxation came to be consolidated in all outlets
Once again we hear from Dr. Abadi speaking this time on taxation across Iraq regarding customs taxation....he says there are big problems at all border points...especially so in the Kurdistan...that is an understatement....there is talk here of deducting taxes from employee salaries....hmmm.....so there will be impacts to the citizenship of Iraq with this new taxation on imports...this still sounds very complicated in my opinion and they think they will be ready for this come August 1.....maybe...maybe not.
Ministry of Finance: 250 billion dinars annually and deputy ministers' salaries should be reduced
Salary deductions....not a very positive sign....we've seen these problems in the US and they don't usually get a very positive response from anyone, especially those being impacted.....so the three presidencies are being pressured today to fulfill campaign promises to go after corruption in people and departments, to make cuts that may be tied to what is found with regard to corruption....salary deductions....still leaves a sour taste in the mouths of some.
High amount of the deficit during the past five months by more than $ 6 billion
First 5 months of the year sees the deficit standing at $6 billion dollars....as the government attempts to plug this gap with a variety of loans.
Needing to grab a break here Family....stick around let's see what the rest of the day offers to us. Aloha Randy