PM Abadi and Kurdistan Region Representative to Meet US President
Mar 15, 2017 8:01 pm
Erbil (BasNews) The US President Donald Trump will meet with the Iraqi delegation consisting of Prime Minister Haidar al-Abadi and Kurdistan Region representative next week.
A senior official source in Kurdistan Region confirmed to BasNews that PM Abadi and a representative of Kurdistan Region, who are set to take part in the global coalition’s meeting, will also meet the US President in Washington.
Minister Falah Mustafa, head of the Kurdistan Regional Government (KRG) Department of Foreign Relations told BasNews on Monday that Kurdistan Region will officially take part in the meeting of the coalition members after it complained about its exclusion from the previous sessions.
He revealed that Fuad Hussein, Chief of Staff to the Kurdistan Region presidency, will represent the Kurdistan Region in the meeting and he is also expected to address the meeting about the war on IS and the post-IS era.
On March 22, the United States of America will host a major meeting of the 68 member states of the coalition against IS and the US Secretary of State, Rex Tillerson, will chair the talks, the State Department said on Thursday.
America and Saudi Arabia discuss a new agreement
The White House announced on Wednesday that "the US president Donald Trump and the Crown Saudi Crown Prince Mohammed bin Salman discussed the opportunities to develop new economic programs and investments between the two countries during a meeting on Tuesday. (Is this not what we wanted to see. New economic growth for the USA. What has taken Washington so long to see these opportunities in the middle east. It’s literally wide open for the taking….lol….Go for it Donald! I am still waiting to see the USA investments in Iraq come to the news media. Could this be the meeting with Abadi and the KRG next week? Of course it is! Go Donald!
I have to add something now – it is refreshing finally to see a president in the USA Whitehouse knowing what he is actually doing as to benefit the American people and boost their economy.)
The White House said in a statement, seen by "Sky Press", "The Trump expressed during his meeting with Prince Mohammed support for the development of a new Saudi-American Program focuses on the energy, industry, infrastructure, technology and involves investments worth may exceed $ 200 billion over the next four years.
The two leaders also agreed to continue consultations in the field of energy to support global economic growth and the reduction of "supply disruptions and volatility."
The US president made earlier in a phone call with Saudi King Salman bin Abdul Aziz, the White House said then that the talks dealt with, in particular, what he described as Iranian threats and militancy in the Iranian nuclear deal, as well as the establishment of safe areas in Yemen and Saudi Arabia.
The Saudi foreign minister, Adel al-Jubeir expressed a few days ago expressed optimism towards the relations with the United States under the new administration. (Oh- I thought president Trump was going to destroy all foreign relations around the world? Really? I wish everyone would just give this guy a chance and see what he can do. It can’t hurt. Just look at the mess left from the former presidents that he has to clean up to even begin to make any real progress.)
Liberated connector re-life economic relations between Mosul and Erbil
It has always been between Erbil and Mosul business relationship active for many reasons, perhaps the most notable near the two cities from each other geographically and relations historical between residents of the two cities, and this business relationship has reached its peak by the year 2003 and lasted until 2014 and after control Daesh Mosul and areas of its relations fell to the degree of absence because of the security situation, which have fallen to the region, currently with the liberalization of large parts of the city and the approaching liberation operations end, signs of positive economic activities between Erbil and Mosul show again in preparation for the post-liberation, as signs to the economic recovery expected by economists for the region in the future, of by participating in the reconstruction of the province of Nineveh.
In this regard, the media department official in the Chamber of Erbil Trade, Abdul Wahid Taha said, for (Basenyoz) that " the conductor of economic and trade relationship eternal with the region, especially with the capital Arbil , " noting that, this relationship arose given because the two cities location from each other geographically.
He added that "investment companies in Erbil , fully prepared to participate in the reconstruction of Mosul , " noting that it depends on the provincial council and the administration of Nineveh and the extent of their awareness to benefit from the experiences of Kurdish investment companies to participate in the reconstruction of the city.
He said Abdul Wahid, saying , "It is known that there is a foreign and international companies based in Arbil , the capital of the region , " adding that these companies will have an important role in the reconstruction of the city and thus revive the economic movement in the region.
For his part, said economic expert, Dr. Sinan Al-Assaf, for (Basenyoz) that "the Kurdistan region will witness the remarkable economic growth in the post-liberation Mosul stage," adding, editing the city step towards the return of international companies that have withdrawn from the labor market in the region after the control of the organization of the province Nineveh and other areas of the border with the province.
Says Dr. Sinan, he said that "foreign investors on the awareness and understanding of the issue of the need for Iraq to rebuild after getting rid of Daesh , " adding that, it will revive the country 's economic through the introduction of foreign currency and rotation in the market and provide job opportunities for the unemployed.
The province of Kurdistan since 2014 is going through a financial and economic crisis as a result of cutting its share of lower global oil prices the federal budget, and the reception of the region for nearly two million refugees and displaced people.
The President of the Kurdistan Regional Government, Nechirvan Barzani, announced earlier that the restoration of the city of Mosul from the control of the organization Daesh, will reflect positively on the Kurdistan Region, especially economically.
(I presented his recent article to you today because it describes the situation as to why it is important to liberate Mosul region prior to any RV. To say “prior to any RV” what am I really saying, what is the CBI really saying? What I believe is being said is to correct the situation back to normalcy as to allow the region to return to the same, if not better, economy prior to the ISIS occupation.
The article is telling us it will grow beyond where it was. So when the CBI says they need SECURITY and STABILITY and that ISIS must be removed as part of this effort, by reading this article today you can get a get a better understanding of just what the CBI means when they say this. It is not just all about getting rid of ISIS, although this will bring SECURITY but it is also about the loss of the economy and the breakdown of the economy in that region. Remember the CBI is concerned about the $$$$.
So combine the ISIS security mess with the drop in the oil prices in 2014 and you can begin to get a picture of the situation. So my point also is you can liberate Mosul and Anbar regions all you want but Iraq also needs the economies of these regions to start up again once liberated. This will come very quickly.
I can compare getting the economy going again like a very huge, old battleship ship at sea when the captain says “full speed ahead” and then the engine room cranks up the engines. At first there is a slight delay before the engines are perking along at a top speed again. This top cruising speed is what the economy of Iraq needs “prior to the RV”. Then once reached some catalysts (I believe it will be currency reform) will be like the order for “full speed ahead” and away they go….)
The meeting of the Iraqi government delegation with the IMF in Amman "important and successful."
(remember in my recent past news letter I talked about the 2nd meeting of the 2nd Stand-by agreement (Oct 2015) between IMF and Iraq. We know this review has taken place this week and is now over. This article tells us it was successful and the IMF was very happy with Iraq. This is all very good news.)
BAGHDAD - The Journal News
Considered the appearance of Mohammed Saleh Financial Advisor to the Prime Minister, on Friday, the meeting of the Iraqi government delegation with the IMF in Amman "important and successful."
Saleh said in a statement received "Journal News", that the meeting of the government delegation with the International Monetary Fund was a second revision of the standby credit agreement consultations with the International Monetary Fund and the results were very successful and the fund will issue a final statement in this regard soon. "
He added that "some of the statistical data and digital facts relating to public expenditure and income fund has a broader clarification request will be presented at the end of the next Nissan Fund praised the Iraqi government's ability to confront terrorism and impressive victories achieved under exceptional economic circumstances."
"The program with the IMF is progressing normally and typically very successful." (stay tuned for the public press release from the IMF on this event)
Statement at the End of an IMF Mission on Iraq
(then this article pops out later in the day 3/17 from the IMF)
March 17, 2017
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.
In 2016, real GDP growth was sustained at 11% supported by a large increase in oil output that benefitted from past oil investments. In 2017, economic activity is expected to remain muted due to a 1.5% contraction in oil production and only a tepid recovery of the non-oil sector.
Further reforms to create fiscal space for inclusive growth, strengthen the business environment, reduce corruption and repair the banking sector are needed to support private sector-led growth and diversification of the economy.(Needed to support any change in value of the currency too, like an RV?)
The Iraqi authorities and the staff of the International Monetary Fund (IMF) held discussions in Amman from March 5–17, 2017 on the 2017 Article IV Consultation and the second review of Iraq’s 36-month Stand-By Arrangement (SBA) approved by the IMF Executive Board on July 7, 2016 (See Press Release No. 16/321).
Here is the link to it:
The SBA aims to restore fiscal and external balance and to improve public financial management while protecting social spending. The first review under the SBA was completed on December 5, 2016 ( See Press Release No. 16/540).
Mr. Christian Josz, Mission Chief for Iraq, issued the following statement:
“Iraq has been hard hit by the conflict with ISIS and the plunge in global oil prices since 2014. The government has responded to the fiscal and balance of payments crisis with a large but necessary fiscal adjustment supported by financial assistance from the international community. In 2016, real GDP growth was sustained at 11 percent supported by a large increase in oil output that benefitted from past oil investments. Nevertheless, the non-oil economy experienced an 8 percent contraction due to the conflict and the fiscal consolidation. In 2017, economic activity is expected to remain muted due to a 1.5 percent contraction in oil production under the agreement reached by the Organization for Petroleum Exporting Countries, and only a tepid recovery of the non-oil sector.
“The plunge in oil prices has driven the decline of Iraq’s gross international reserves from $53.7 billion at end 2015 to the still comfortable level of $46.5 billion at the end of December, 2016. Fiscal pressures remain significant with the government deficit remaining at 12 percent of GDP in 2016, due to continuing weak oil prices and rising humanitarian and security spending. Total public debt increased from 32 to 64 percent of GDP during 2014-16. Credit growth decelerated and non-performing loans in state-owned and private banks increased significantly in 2016.(So what is a non-performing loan? It is loan that was not made good and the banks lost money. This is not the way they want the economy to go.)
“The authorities have maintained the exchange rate peg which remains a key nominal anchor. Medium term growth prospects remain modest driven by projected flat oil production and investments in the face of the revenue constraint and modest pickup in non-oil growth supported by the expected improvement in security and implementation of structural reform.
Further reforms to create fiscal space for inclusive growth, strengthen the business environment, reduce corruption and repair the banking sector are needed to support private sector-led growth and diversification of the economy once post- ISIS reconstruction is underway. (So the IMF is saying there is much work to do post – ISIS. So let’s get ISIS taken care of first and see where IRAQ goes from there. My opinion – they are not ready to RV anytime in the very near future….sorry! The recent news is they will continue fighting ISIS into EARLY April, there words not mine. Don’t shoot the messenger.)
Risks remain high, arising primarily from uncertainty in the oil price outlook,security and political uncertainties, and administrative weaknesses.(SECURITY and STABILITY are still not at the levels needed as of the review! This does not sound very good! There is still work to be done)
“The Iraqi authorities and IMF staff started discussions on the second review of the SBA. These discussions will continue during the upcoming IMF and World Bank Spring Meetings from April 21–23, 2017 in Washington, DC.
During the visit, the team met with the Acting Minister of Finance Prof. Abdulrazzaq A. Jaleel Essa, Acting Governor of the Central Bank of Iraq (CBI), Dr. Ali Mohsen Ismail Al-Allaq, (yes -Allaq is still there as proxy governor, No Dr. Shabibi mentioned!) the Financial Adviser to the Prime Minister Dr. Mudher Saleh, and officials from the ministries of finance, oil, planning, the State Oil Marketing Organization, the Central Statistical Office, the Central Bank of Iraq, and representatives from the Kurdistan Regional Government, and the Board of Supreme Audit.
The team would like to thank the Iraqi authorities for their cooperation and the open and productive discussions.”
Their words not mine…..No Rumors, No Hype, Just the FACTS!
Much love to ya all,
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