aggiedad77 » March 19th, 2015, 12:57 pm
Thursday News Summaries and Commentaries
Zawawi: Iraq has fulfilled its obligations to Kuwait
Well as you can read the title says that "Iraq has fulfilled its obligations to Kuwait".....but the article tells us they have filled "a large part of its obligation to Kuwait".....quite the difference in words......we all know and should remember that Iraq got Kuwait to postpone the last $4-5 billion dollars in repayments for the 1991 invasion until 2017.....that was done earlier this year....so there remain a few lose ends to be tied up.
Experts: State actions reflect the confidence of banks
The CBI in conjunction with the Association of Private Banks, the General Administration of Customs, and the General Authority on Taxes have begun workshops around Iraq that are intended to help those involved in the new mechanisms of remittances coming from the CBI better understand what is expected of them and what they will be needing to do from their end of the business effort....primarily how they will be responsible for the operation of obtaining or deducing tax insurance or customs taxation in advance of goods being imported....
Each of the banking entities involved in this new operation will be greatly involved in the new economic reform process for Iraq and must stay in close cooperation with the CBI to ensure the maximization of budget resources.....there are time constraints assigned to various parts of the mechanism process that must be understood and adhered to....
The private banking sector will be required to understand and follow the various taxation rates that the CBI has developed....I hope these banks and their managers are taking copious notes as this does not sound like an easy process to follow....of course the aim for Iraq is to unify its customs taxation efforts at each and all border crossings...if they are successful in obtaining taxes for items to be imported ahead of time, it should help to stop border crossing bottlenecks....will be watching this process closely to see how it develops for them.
Iraq’s Zebari says Baghdad to make budget payment to Kurdistan within days
The quick and dirty here is that Finance Minister Zebari is saying a payment will be made to the Kurds in the coming day....he does not promise the amount or the exact time.....he does say the amount to be paid monthly to the Kurds....something just over $1 billion dollars has been a problem due to financial issues and not political problems....it just doesn't sound like Zebari has all the money the Kurds are expecting at this point in time.
Central: we will ensure troubled banks .. and we have new measures to boost liquidity
The CBI is telling banks that appear to be having trouble meeting demands of customers who are asking for their deposits back...the CBI can insure that money is available at each bank based on the legal reserve at each bank....the CBI is saying that the 2015 budget has a guarantee process written into it for safety of bank deposits....it is noted that some banks have experienced issues and problems administratively and are trying to work through such issues....
CBI points to Warka and the Bank of Economy as two examples where the CBI has stepped in during recent history to help guide them in administrative measures where they have created problems of their own.....
The CBI acts as a tutor for such banking entities until they can get their house back in order....some of the issues being faced with customers include various parts of the government as bank "customers" who are unable to pay loans back for one reason or another....large loans, not just what would be taken out for a car as an example....but the CBI seems confident in what they are doing will bring forth a new means to boost liquidity in Iraq....a needed shot in the arm.
IMF Staff Concludes the 2015 Article IV Mission for Iraq
The IMF announces the conclusion of the 2015 Article IV mission analysis for Iraq....these meetings were conducted during March 6-15......they recognize that Iraq is taking proactive steps to deal with DAASH and the collapse of oil prices....they were able to swiftly get a 2015 budget approved.....with encouraging work towards agreements between Baghdad and the Kurds....
They see oil exports rising from 2.5 million barrels per day to 3.1 during 2015.....CBI reserves have declined from $78 billion at the end of 2013 to $66 billion at the end of 2014....largely I suspect due to actions by the former government.....Iraq is in arrears to many companies and countries...despite problems that continue to exist the IMF stands ready to assist Iraq through stepped up policy engagement, technical assistance, and through loans if need be.
Parliamentary Finance: keep the citizens' deposits in banks from the central bank functions
I am amazed at just how little the Finance Committee is willing to take ownership of....responsibility.....but they are quick to point fingers at the likes of the CBI....saying things are their fault or their responsibility....yet the Committee is quick to try and regulate what the CBI can or cannot do.....which one has to question their authority in this area.....a committee member is saying that sure some banking customers are reluctant to want to put deposits in banks because of either past or current issues.....the CBI is trying to push for deposit guarantees by going to the COM for such laws to be written and taken to Parliament....I am beginning to lose trust and faith in the Finance Committee...or at least with a few of its members.
Central Bank reveals lagging banks names and attribute the reasons to "lack of liquidity"
The CBI has revealed a number of private banks who have expressed issues with of non-payment to customers...stating the problems revolve around lack of liquidity issues....some of these banks have found themselves under the guidance of the CBI such as the Bank of Economy most recently and in the past Warka Bank....also North Bank has been experiencing severe problems....the CBI says these banks will be protected through their legal reserves that the CBI holds for them...but the banks are required to be fiscally responsible in their management of their operations or they run the risk of the CBI stepping in to manage their operations....guardianship it is called.
Parliamentary Integrity reveal the involvement of 31 regional banks money laundering operations
The Integrity Commission has announced 31 regional banks are believed to have been involved with money laundering operations through the CBI daily currency auctions....each of these banks were referred to the judicial system for further action against their wrongdoings.
Economic Affairs directed the central bank to provide liquidity to banks and civil discreet
The Economic Affairs Committee, headed by Deputy PM Shaways, met again and is asking the CBI to provide liquidity options to banks where they suffer from liquidity issues....this is to help these institutions make bailouts to those who qualify....the committee also found that the Trade Bank of Iraq was innocent of charges against it of supplying loans to the Kurdistan without any guarantees....the TBI is sending accounts and financial statements to authorities for review....but in the meantime continues to maintain broad support from within the banking sector.
The tax system in Iraq .. enabled this international claims and local criticism of the timing of its application!
An article chock full of opinions from "experts" from all over the board...the one that hits home with me is from Dr. Saleh....just because of his reputation......Iraq is new to the taxation process but is quickly learning the ropes....the CBI is putting together the necessary components to build a customs tariff and taxation system that will help to stabilize the Iraqi economy and budget....he does say there are no accurate governmental models that would show sizes of taxes or what expected revenues may be....it would seem to vary from country to country and be largely dependent upon the kinds of items being offered for import plus the quantities....the positive aspect to all this is the unified efforts between the CBI and the various agencies and commissions responsible for tariffs and taxation.
Conference starting Chamber of Commerce to support the government program
Baghdad Chamber of Commerce is calling upon all businesses to attend an economic conference to show support for government programs....this conference is sponsored by PM Abadi.
Kurdish lawmaker: electronic screen delayed the approval of a number of laws
Blaming the lack of approval on a number of laws on issues with a Parliament electronic screen....so says one Kurd member of Parliament....saying that Speaker Jubouri had the screen shutdown due to public interest.....I find that interesting that Jubouri would be the cause of any delays....or that one screen could shut things down.....the demands of the electronic age.
Karbala impose taxes on services
The Karbala province is reworking their taxation system involved with the services provided to their citizens...meaning higher taxes....many citizens are not happy with the end results....pointing back to times before the fall of the former regime when taxation was not near as high as it is now.....pointing to unemployment rates higher now than before.....projects that now cannot be completed due to lack of funds....the natives are not happy.
Conscious / Commission announces the balance positions near the naming of independent bodies
Supposedly the Commission is near an announcement of independent bodies and which political entity they will fall with....a strange process it seems to me.....this comes in part from the COM.....it seems that 10 independent bodies will go to the Shiites, that includes the CBI, National Investment Commission, Office of Financial Supervision and others....Sunnis are winning 6 independent bodies, the Kurds will get 5 independents....this article seems like a preliminary announcement so look to see more on this later I would think.
Zebari: Delay payments to the province for financial reasons
Finance Minister Zebari plays down any issues with the oil and gas agreement between the Kurds and Baghdad, saying that the slow payments to the Kurds is not a political problem but a financial problem.....liquidity again...but he does say payment will be made in a matter of days...but does not say how much this time.
Prime Minister's Office : Abadi, will visit Washington around the middle of next month
PM Abadi will visit Washington sometime in mid-April....looking for ways to strengthen military support from the US.
Commission hosts the fall of Mosul, al-Maliki
The Commission of Inquiry looking into wrong-doing that involved the fall of Mosul will be calling Maliki as a witness....they are also looking for a couple of other high level officials of Maliki's government who happen to be traveling outside of Iraq at this time....delaying their testimony it would seem...bring on the former top dog.
Parliamentary Finance: the issuance of international bonds will contribute to Iraq by a small deficit in the treatment of
One thing that I have noticed lately with the Finance Committee.....its members who speak out seem to be downplaying anything and everything they choose to offer an opinion on.....this does not hold true with Finance Minister Zebari....but is something I've noticed with the peons of the committee...here we have another one talking about the potential issuance of international bonds......denominated in USD....
He says it will only cover a small portion of the deficit but is one way to address the deficit....but he does point out the law grants the Ministry of Finance the authority to issue such bonds.....however what he fails to say or support is that the CBI is the one who will actually handle the process.....these people are starting to appear to be very self-centered to me.....they want to be the ones to take credit for what is coming.
Zawawi: Iraq has fulfilled its obligations to Kuwait
Another article about Iraq fulfilling obligations with Kuwait.....things between the two nations are much better no doubt....but the obligations are far from fulfilled....there is a matter of $4 billion dollars left on Iraq's repayment schedule that was deferred to 2017 for final payment.
Erbil welcomes Newroz, despite ISIS threat
Will the Kurds celebrate the upcoming holiday....some say yes....some say no....some are cocky and say that the Peshmerga protects their cities and will prevent ISIS from re-entering.
Korea National Oil Corp deal gives Iraqi Kurdistan blank check
So were there bribes associated with efforts between the Korean oil company KNOC and the Kurds.....who knows....both sides point fingers....both sides have things that seem unclear at this point....one thing seems certain though....what money was paid to the Kurds did not go to help the citizens in any way....seems it must have fell into pockets of politicians.....you do the math and look for the bank accounts that would reflect these payments....where is the Integrity Commission.
Rubaie: The government has implemented most of the government program items
The watchdog committee responsible for keeping track of the government's record on promises is saying today that PM Abadi's government has indeed fulfilled and implemented most of what it said it would.
Cabinet : We seek to create a competitive market and government program will bring life to the private sector
The COM seeks a competitive market...for what....their government program....a program that will breathe life back into the private sector....an area that was long forgotten by those more interested in putting money in their own pockets....now the Integrity Commission focuses on pulling that money back out of those pockets and depositing it where it rightly belonged....in the pockets of the Iraqi citizens....silly greedy nuts....now pay the piper and do your time....the government so says Dr. Saleh is not trying to create a monopoly.....
They are trying to help people retire at age 63...unheard of before....in the end what is now seen as a crisis on the world level....will be seen as a blessing to Iraq for allowing them to put focused effort upon a part of their country and heritage that has all but been forgotten....that private sector that for years has taken a back seat to oil.....give credit to PM Abadi though for having the fortitude and courage to go against the corruption and graft that had become status quo in Iraq....to set things right for the citizens.
Parliamentary Economic announce the formation of a new committee to reduce the unemployment rate
Parliament is forming another committee one designed to help the young workers of Iraq to find jobs....jobs will be made available in the coming times through those who have expertise in economics and can strategize and make plans for projects that need to move forward....so says the Economic Commission.
North Bank: General liquidity crisis caused by the crisis (Daash) and the budget
Management with the North Bank is claiming their liquidity issues are caused by the DAASH crisis and issues with the 2015 budget.....they are having problems getting the government to make good on debts owed to the bank.....and even contractors who owe a total of 433 billion dinars to the bank are not making payments....the banks are in business to make money...to do that they must have money coming in....their borrowers be it the government or other big entities must be held responsible for what they have out in loans.
Finance Minister reviewed with a representative of [Citibank] a number of measures to address the liquidity crisis
Finance Minister Zebari met today with members of Citibank and Deutsche Bank to review possible actions that can be taken by Iraq to address their liquidity issues.....primarily focusing on the problems that have evolved with falling oil prices and the deficit faced in the 2015 budget....no other details yet from their meeting.
Break time....wow what a bunch of news to sift through.....where did the morning go.