March 13th, 2014, 12:14 pm
Thursday Morning News Summaries
Central Bank announces the arrival of a notice of completion of transfer of funds the salaries of the staff of the provincial
This is an interesting article, Turki announced the arrival of the notice from the Ministry of Finance to pay the Kurdistan employees....upon CONVERSION of assignments that have been ID'ed by the Ministry of Finance.....what is he referring to here....a CONVERSION of a list of employees.....
or...perhaps a CONVERSION of currency.....I've also had a thought that the Iraqi's are moving very slowly on this payment which was announced within the Ministry of Finance several days ago....
just how long does it take a notice to get from them to the CBI...even if it were a runner....it would or should only take a couple of hours at most....why drag your feet on this....
unless the budget was about to be approved....unless ahead of the budget a new rate would be announced....many if's raised by this article....IMO.
Barzani meets with the House of Representatives in Baghdad next Saturday before the public budget hearing
Barzani will be meeting with the Kurdish MP's from Parliament on Saturday, ahead of the Sunday session where the budget is scheduled to be read for the first time.
He will be bringing them up to date on the latest situation between Erbil and Baghdad on the budget issues.....this is the coach telling the players the next play and who has what responsibility.
In State Banks We Trust
State owned banks within Iraq garner 60% of private sector deposits as of 2012 ..
they hold about 85% of deposits despite having only a fifth of banking sector capital and fewer branches than private banks....
this sends the message that Iraqi's are more trusting of these state owned institutions....which stands to reason....the likelihood of them going bankrupt is minimal.
Calls for the economic advancement of the private banking sector
To advance the Iraqi economy the private banking sector needs to restructure and assure its role in the Iraqi market for securities.....the private banking sector is a vital part of any economic growth for Iraq....but it will take a series of laws and resolutions in support of the banking structure to ensure freedom within the banking sector.....
the government needs to identify ways it can show support for private banks as well....there needs to be developed guarantees from the CBI for private banks like they do for state owned banks that would help to expand their business growth within Iraq.
Financial Supervision expects to pay compensation Kuwait remaining seven billion dollars the first half of 2015
According to CBI Governor Turki, Iraq expects to pay the remaining $7 billion dollars of war reparations to Kuwait sometime in the first half of 2015....per the terms of the Paris Club agreement.....this should complete the debt owed to Kuwait from Saddam's invasion and destruction in 1990.
Sale of treasury transfers and central to control the levels of liquidity
So the GOI has issued for sale a group of treasury bonds within Iraq....but notice they do not talk about the value of the treasuries only that they represent a risk-free investment...
but they do mention the maturity being the end of the year....rather short term....without interest, "and are" sold at a discount. They also talk of government auctions where the CBI is raising 100-150 billion dinar per week at an interest of 5%.
Barzani announces the distribution of salaries of employees of the province for the months of February and March
Now Barzani is claiming that the Kurds have come up with money in which to pay employee salaries for February and will also pay March......this is an interesting coincidence that the government is also purportedly paying the employee's salaries for February....I smell something in the wood pile....
follow the money.....Barzani claims that all of Iraq has suffered due to the absence of Talabani, suffering at the hands of Maliki....Barzani continues to speak of differences in oil related issues as well.
Kurdistan region: the region's oil export to Turkey for the purpose of storage is not selling any barrel so far
It is reported that yes the Kurds are pumping oil into Turkey but it is only going into storage at Ceyhan thus far.....none has been sold.
Maliki provocations reveal the robustness of the UAE-Saudi relations
The Iraqi Ambassadors to the UAE and to Saudi Arabia have been busy of late retrieving memo's from the two governments who are basically denouncing any claims that Maliki has made toward them regarding their participation in any terrorist activities....
they say that Maliki needs to cease blindly accusing others and should pay more attention to internal problems that he cannot seem to resolve...blame shifting will not get him anywhere.....
of late I have noticed...that Maliki seems like the barking dog next door....he makes a lot of noise but can only get as far as the end of his leash.
Iraqi Foreign Minister Meets EU Official Join our daily free Newsletter
Iraqi FM Zebari met with EU officials and discussed the displaced Syrians in Iraq, speaking of aid to them that has reached $15 million dollars.....they also discussed issues associated with reaching a peaceful settlement regarding the current Syrian crisis.
It is not possible to postpone the general budget bill to the next parliamentary session
A legal expert has expressed his opinion that the budget cannot be postponed to the next parliamentary session....which I take to mean the seating of the new parliament after the elections.....
this needs to happen and happen now.....he says it could be done in 10 days time if Parliament would get serious about its work.
Oil: Abu west fields in Missan supply the system output by four thousand barrels per day
The Maysan Abu West oil field will be adding slightly over 4,000 barrels per day output after connecting two new wells to their pipeline system....this work has been done by Chinese oil companies working in the area.
Awarded the tender to "clean up" in Iraq, valued at 49.5 million Kuwaiti dinars
Kuwait has been awarded a three year contract to pick up trash and clean up Basra for just over 200 billion Iraqi dinar.
Next Sunday .. start the IPO capital increase "Economy Bank for Investment"
The United Bank for Investment will begin their IPO on 80 billion shares on Sunday....this is part of their process to raise their reserves to 250 billion dinars.....20 billion dinar comes from capitalization of profits and the remaining 80 billion dinar coming from the IPO.
Next Sunday .. inclusion of shares to increase capital, "Iraqi Islamic Bank"
The Islamic Bank of Iraq has declared shares increase of 48 billion shares....this will allow them to raise their capital from 202 billion dinar to 250 billion dinar as required by the CBI.
Iraqi Planning: 0.9% decline in the inflation index in February
The Ministry of Planning reports a decline in inflation rate of 0.9% for February, but an annual overall increase of 3%....the rise is attributed to an increase in materials and food.
Law is likely to pass the budget after reading next Sunday
The State Law coalition is predicting that the budget will get through its first reading on Sunday....it is also predicted that the Coalition United will show up for the first time in 2014, if so Parliament will have a quorum to get thru the budget with or without the Kurds.
House of Representatives faced difficulty exempt investment companies from taxes
Can you say that we are in a pickle here....there is a law before Parliament that would exempt foreign companies and Iraqi forces from paying taxes if they are working on investment projects.....
this goes contrary to a paragraph in the 2014 where apparently these same entities would be taxed and this money has been calculated into part of the budget's revenues for 2014.....
so if it isn't there, the budget deficit continues to widen....good old left hand right hand theory working here it seems.
United Nations searching problems exporting oil from Kurdistan
So the Finance Committee head and the UN representative in Iraq met to discuss the oil issue of the Kurds, the 2014 budget....but no idea of the outcome of their discussion.
Federation of Chambers of Commerce in Iraq calls for the establishment of free zones with neighboring countries
Iraq currently has three free trade zones established.....Basra, Nineveh, and Anbar....and are looking to establish more with neighboring countries where trade has been on the rise over the past four years....especially with Turkey, Jordan, and Iran.
Fears of increased inflation and the devaluation of the purchasing power
Someone is predicting that the Iraqi economy is weakened due to a lack of economic vision....give me a break....what happened to record GDP growth.....so quickly things want to turn sour.....
what this appears to be saying...is they "fear" inflation not that it has happened....and inflation is something the CBI has managed to do a pretty good job of staying on top in recent years....
this person talks about the fact that Iraq imports everything....and only exports oil....well that in and of it self is not a true statement, they export many other items as well....oil just happens to be king at the moment....
but this is nothing new at least in the immediate past few years.....the prices of some goods are going up due to the tariff law....but IMO the currency is not fluctuating all that much to be a concern at this point in time.
90% of the investment allocations for the previous year's budget was restored to the state
This is old news, reported a couple of days ago.....a member of the Ministry of Planning claims that 90% of investment allocations in 2013 were returned to the state because the provinces just did not have time to spend the money....so it was recycled into the 2014 budget....
the problem being the amount of time it takes to launch the budget and monies associated with it, often a June or July time frame.....not giving the provinces time to get investment projects completed.
Here ends the morning News Summaries ** Randy