KTFA (MilitiaMan, Don961 & Clare)

Don961:  Parliamentary Finance issues a package of reforms that includes imposing a value-added tax and reviewing the dollar exchange rate

11/28/2020

Economy News – Baghdad:

The Parliamentary Finance Committee issued proposals to address the financial crisis in Iraq, which included reviewing the exchange rate of the dollar against the dinar, establishing a national telecommunications company and imposing a value-added tax.

The reforms presented by Parliamentary Finance included, from three axes, the first entitled Maximizing Revenues and Rationalizing Expenditures and included the immediate activation of compulsory collection of services provided to government, commercial, industrial, agricultural and household institutions, such as electricity, water, sewage, landlines and their deduction from grants and salaries, in addition to reviewing crude oil prices The provider of the refineries, and the unutilized government assets such as real estate and land flow through selling them by public auction, imposing a value-added tax of 12%, and obligating all institutions to send the Ministry of Finance’s share of the total revenues up to date.

It also included stopping the work of embassies and attachés in countries where Iraq does not have any diplomatic, commercial or cultural exchange, negotiating to postpone the dues of oil companies or paying them in kind outside the OPEC quota, and allowing the export of gravel and sand and the investment of mineral resources such as phosphates, sulfur and uranium.

On taxes, it included the formulation of the tax withholding ladder by supporting the low-income segments by raising the minimum tax level, adjusting the tax price of the people concerned to a price close to the price of neighboring countries, and imposing annual taxes on all cars according to their type.

As for the second axis related to reforming the financial and monetary policies, it included the imposition of comprehensive insurance on cars, expatriates, cars, fuel stations, imported materials, companies, crude oil, building permits, residential units, etc. Rationing, medicines, water stations, and the educational and educational process only.

The reform paper also focused on the Ministry of Finance, in coordination with the Central Bank, to issue an electronic dinar for the purpose of collecting government revenues and deserved tags, reviewing the exchange rate against the dollar, deleting zeros, freeing banks from the hands of the Ministry of Finance and forming an independent financial body that includes banks, money transfer companies and insurance companies, and reducing The interest rate on investment projects.

As for the third axis, it includes restructuring public and losing companies, establishing a national telecommunications company, and presenting disabled government factories and factories to the private sector. Click here to download the 12-page reforms launched by Parliament.   LINK

Clare:  WOOHOO!  …  THANKS DON!

MilitiaMan:  Surely they have presented the papers for the taxes at this time for a purpose. They will delete the zeros to be able to afford the 12% tax. Added value to the dinar will allow for the tax to be absorbed by even the poor..

Quite clear now they have full intentions of raising the three zeros and going to an international free market economy.

They are going to issue the electronic dinar. Just as their neighbors are doing,, too. They are effectively going to be more cashless in the end run.

In the mean time the automation of the ports and borders will be taxing them, too. They will automatically be able to adjust pricing when needed.

IF we recall the UN was in town this week. The UN wanted the correction to the White Papers.. Well that correction is the rate, imo..

The UN didn’t show up just for shiz and gigs, be sure.. imo I hope this one Don961 brings us sets well for everyone, as the reviewing of the exchange rate to the dollar and the deletion of zeros is some serious meat on the bone.. lol ! imo ~ ~ MM

Don961: The Central Bank launches the electronic collection project for the housing fund

11/28/2020

Economy News _ Baghdad The Central Bank of Iraq announced, on Saturday, the launch of the electronic collection project for the housing fund, indicating that the project will enable the fund to automate all lending operations.

The bank said in a statement, which Al-Eqtisad News received a copy of, that an electronic collection project for the Housing Fund has been launched, indicating that the project will enable the strengthening of government resources and their collection in a safe and transparent environment, depending on the infrastructure of payment systems and electronic payment platforms provided by the Central Bank and its suppliers. Payment services licensed by him, “indicating that” the project generally targets ministries and collection departments that collect their revenues through bills and fees, on top of which is the Iraqi Housing Fund.

The bank added, “The project will enable the Housing Fund to automate all lending processes, adopt electronic payment tools and cancel cash transactions, which in turn will help alleviate the burden of citizens borrowing by accelerating the completion of transactions and using payment platforms instead of coming to the headquarters of the Housing Fund. This plan included The Fund provides a timetable for the inclusion of all its branches in the governorates with the collection project until the end of 2021. ”  LINK

MilitiaMan:  AUTOMATION…. They already told us about the ELECTRONIC DINAR!! More evidence they are gearing for a whole new economy and way of doing business.. Going DIGITAL.. Going Global… Love it.. ~ MM

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Don961:  The housing fund adopts electronic collection in collecting money

Baghdad – Special

In an event that is the first in Iraq, the Iraqi Housing Fund of the Ministry of Construction, Housing and Municipalities signed a contract with the Arab Company for electronic payment licensed by the Central Bank of Iraq to launch the electronic collection system for Iraqi housing fund borrowers in implementation of Cabinet Resolution No. 378 of 2018 and the instructions and controls of the Central Bank of Iraq .

This trend enhances government sector revenues, reduces spending and cuts red tape, also provides citizens with the ability to pay their bills or installments 24 hours a day and through electronic payment cards and electronic channels such as the mobile phone application of the housing fund, the phone application of the Arab company, as well as through automated teller machines and dependent payroll outlets. For the Arab company without the need to go to the headquarters of the Iraqi Housing Fund to pay the installments

It is noteworthy that the Arab Company for Electronic Payment is an Iraqi company established in 2013 and licensed by the Central Bank of Iraq to work as a provider of electronic payment services in Iraq. The company has worked for 7 years to provide modern electronic payment methods approved in the year and obtained international certificates in safety standards .

It also obtained a major member license from the global MasterCard and Visa in the field of issuing and collecting electronic payment cards of all kinds, and has made significant investments at the level of sober infrastructure and investment in human resources. In the shift towards a culture of electronic payment and abandoning cash transactions .  LINK

MilitiaMan:  Fairly sure, the ATMs will have some new issues inside them.. Especially when we see them talking about the deletion of the zeros and the exchange rate to the Dollar.. Going to a market economy will require it.. imo ~ MM

au·to·mat·ed tell·er ma·chine/ˈôdəˌmādid ˈtelər məˈSHēn/

noun  plural noun: automated teller machines  a machine that dispenses cash or performs other banking services when an account holder inserts a bank card.

Ross:  It seems like most of the time the Cabinet and Parliament are at odds.  Now Parliament is urging the “full” implementation of the White Papers (including the adjustment requested by the BIS?) and “Parliamentary Finance issues a package of reforms that includes imposing a value-added tax and reviewing the dollar exchange rate” and further “the reform paper also focused on the Ministry of Finance, in coordination with the Central Bank, to issue an electronic dinar for the purpose of collecting government revenues and deserved tags, reviewing the exchange rate against the dollar, deleting zeros …”

IMO the cat is out of the bag and Parliamentary Finance wants to get in on the credit instead being the opposition. When the 2021 Budget is discussed next Tuesday surely the rate will be exposed to the Cabinet members in attendance.

Wondering how long all this can be kept a secret from the populace ?  Also, normally one would expect the RI/RV to not be disclosed until the last minute to avoid a rush in IQD acquisitions by whales but nothing seems normal re Iraq.  Hopefully this moves the goal post somewhat closer.

Don961:  Iraq’s stolen funds .. A report speaks about the tasks of an international coalition to recover $ 150 billion

2020/11/26 21:00  Baghdad Today – Follow-up

An American website published a report in which it talked about the tasks of the newly established International Financial Alliance to help Iraq financially, and it is expected that the coalition will help Iraq recover 150 billion dollars of money stolen from the country since 2003.

Al-Monitor stated, “Prime Minister Mustafa Al-Kazemi, while he was with a number of ministers on a visit to London, established the International Financial Alliance and named it the Economic Contact Group for Iraq on October 22,” noting that the alliance “consists of the Group of Seven countries and a fund The International Monetary Fund (IMF), the World Bank, the European Bank for Reconstruction and Development, the Iraqi Ministry of Finance, the Central Bank of Iraq, and the Financial Committee.

He explained, “The coalition meets every three months to monitor economic progress in Iraq, and will present a roadmap to support priorities in terms of reforms, mobilize international support and benefit from international experiences to enhance economic stability and add vital changes to achieve economic growth. The coalition is scheduled to work for three years.” .

The American site pointed out, “Parliament, after months of conflict with the government, approved on the twelfth of November the borrowing law that allows Iraq to borrow 12 trillion Iraqi dinars ($ 10 billion), which will enable Iraq to pay its obligations for three months only to pay Salaries of government employees. ”

And he continued that “Iraq is facing a severe financial crisis, after the drop in oil prices due to the Corona pandemic, and according to the 2020 budget, Iraq needs $ 62 billion, of which $ 45.8 billion is for government employee salaries, pensions and social care, while Iraq needs $ 6.6 billion to pay “The internal debts and European bonds. The remaining amount will be allocated to foreign oil companies, support programs also known as the ration card, electricity imports, and to cover the expenses of some ministries.”

The American website report quoted Finance Minister Ali Allawi as saying to Al-Iraqiya TV on November 4, that “the coalition will provide experts in managing economic sectors, and they will act as advisors to the government, with a focus mainly on reforming the economy and improving the administrative performance of the public and private sectors.” He pointed out that “Iraq is going through a difficult economic time; because the financial resources of the state have become out of control and reforms must be achieved.”

The Minister of Finance added, “In the event that the current situation continues, this will open the way for political and security unrest,” noting that “it is in the interest of many countries to help Iraq and put its economy on the right track, especially since the country is a promising market for Western investment, and the coalition will help Iraq to Recovering the money that was stolen before and after 2003, which amounted to more than $ 150 billion since the emergence of the current political establishment.

“Al-Monitor” quoted Ahmad Haji Rashid, a member of the Parliamentary Finance Committee, which is part of the newly formed financial alliance, as saying, “The International Financial Alliance agreed to a request to exempt Iraq from the obligations of the OPEC Plus agreement.”

Al-Hajj added that “consultations between countries will start within days,” noting that the International Financial Alliance “will provide consultations without loans because most countries of the world are suffering from a financial crisis due to the Coronavirus pandemic,” indicating that “Iraq’s credit rating is (B-) and it is It does not qualify it to obtain foreign loans, “noting at the same time that” the country has resorted to foreign expertise, because the solutions that Iraqi academics proposed to deal with the crisis were difficult to implement. “

The report pointed out that “Iraq’s debts amounted to $ 133.3 billion in September, and constitutes 80% of the gross domestic product, which exceeds the red line by 60% to the gross domestic product, while the Al-Kazemi government issued a white paper for economic reforms that includes a vision to solve problems in the non And reducing dependence on oil by 93% during the next three years, and activating the role of the private sector.

The report quoted Ahmed Al-Tabakjali, a professor at the American University in Sulaymaniyah, as saying, “The expenditures are large and cannot be covered from budget revenues,” and indicated that the white paper for economic reform shows the international community that Iraq is serious about reforming its economic and financial situation.

He stressed that “the international community does not want to see modest reforms as was the case in the past,” noting that “the new international alliance may push the International Monetary Fund to sign a new loan agreement with Iraq, including reforms and loans, and this would give the country the opportunity.” To obtain loans from foreign countries with a guarantee from the International Monetary Fund. ”

“The coalition will help Iraq in the areas of technology and governance, and help it implement measures to control non-oil revenues, such as tax revenues and border crossings,” al-Tabakjali indicated, explaining that “Iraq cannot bear additional debts without the new alliance.”

“The establishment of this alliance means that the advisory body in the Council of Ministers is ineffective, and that the economic staff in the Ministries of Finance and Planning have failed to find effective solutions to the current financial crisis,” Al-Monitor quoted Nabil Al-Marsoumi, a professor of economics at Basra University.

Al-Marsoumi added, “In the words of the government, it is obligated to contract with foreign parties to obtain effective solutions, despite the government’s issuance of the white paper, which is important to add changes to the economic path the country has taken.”

And it was announced in London, during last October, the establishment of an international financial alliance that includes 7 foreign and Iraqi financial institutions, to provide advice to the Iraqi government to confront the stifling financial crisis that led to the state’s inability to commit to paying employees’ salaries on time and resort to internal and external borrowing.

According to the British Foreign Office, the financial alliance will be called the “Economic Contact Group” and its goal is to stimulate international support for the urgent economic reform program, which will last for 3 years and cost 6 million pounds sterling.

According to a statement by the British Foreign Office, “the financial alliance provides global expertise to achieve economic growth and provide international expertise from the public and private sectors to enhance economic stability in Iraq and introduce vital economic changes in order to advance growth.”

LINK

DeepWoodz:  Imo…this may be the plan to replace the the reserves.

“the coalition will help Iraq to Recovering the money that was stolen“

“more than $ 150 billion“

Also, more oil exports coming. “exempt Iraq from the obligations of the OPEC Plus agreement.“

Also,“British Foreign Office, the financial alliance will be called the “Economic Contact Group” To the tune of 6 million pounds. How many dinars will that buy today?

Don961:  “Arab Monetary” directs central banks to support the economy after “Corona”

Saturday 28 November 2020  Abu Dhabi: Follow up

The Arab Monetary Fund has issued “Guiding Principles on Central Banks’ Strategies to Support Economic Recovery in the Post-Coronavirus Pandemic”.

The guiding principles included a set of recommendations related to strengthening the crisis management system, which emphasizes the importance of early preparation for the Crisis Management Committee or the Financial Stability Committee within the central bank, and early preparation for the post-crisis phase, through developing a strategy for the post-crisis phase.

 Current.

It was emphasized that the economic support measures will continue for an appropriate period in the recovery phase, to ensure the flow of liquidity into the economy, as the success of the measures is affected by the timing of their easing or withdrawal, as failure to withdraw support packages early may lead to a decline in the volume of credit required to support the corporate and household sectors. Whereas, late withdrawal may increase systemic risks in the financial sector.

She stressed the need for coordination and cooperation between the monetary and fiscal policies and the macroprudential policy, and the importance of the gradual application of macroprudential policy tools that have been eased or liberalized during the current crisis, and the continued adoption of an easing monetary policy to consolidate the economic recovery, which means delaying raising interest rates on monetary policy tools. For an appropriate period of time.

The principles indicated that central banks would continue to adopt government financing programs, led by these banks to support productive economic activities, with appropriate interest rates and terms, calling for setting appropriate frameworks for banks to deal with their good clients, whose cash flows were affected by the Corona pandemic, and to study solutions related to mitigating the impact. Negative in their creditworthiness, provided that this is taken into account in their credit reports.  LINK

DeepWoodz:  Imo…so this brings to mind a QUESTION I have asked previously on salaries and would be similar for loans.Wouldn’t there need to be financial “mechanisms” in place for both of these topics? Once they decide to change the rate, all manner of accounts will have to be re-calculated according to the new rate, especially since it is a RV/RI? I think easily done with electronic accounts.

In my mind, if this is true, someone who borrowed a million dinars(valued at 1000 dollars) would after the rate change only owe 1000 dinars. So the math would have to change internally at the same time as the rate.

Equally as important, and something Delta mentions frequently as a pattern, are salaries. Of which there are articles about changing the salary scale but aren’t really clear as to why.

Couple salaries with the fact they are paying them electronically and forcing everyone to have an account in order to receive them. (Or Ki cards I think in the case of retirees and martyrs) This in my mind, provides a means to instantly change amounts in accounts and salaries instantly as well.

I agree with Delta that they can’t simply pay people and then change the rate, or vice versa for that matter, unless there is something to control the financials.