April 16th, 2014, 12:03 pm
Thursday Morning News Summaries
Ministry of Finance began to lend to the government to pay the salaries of staff
The Finance Committee is warning of a cash flow issue without the budget being passed as they attempt to pay employee salaries....now the lack of the 2014 budget is being blamed for higher costs of good, higher inflation, higher cost of the dollar against the dinar....so the Finance Committee is lending money now to the government to make salaries and the like....wonder how long that can last.
World Bank reports show significant progress in the development of the Iraqi economy
From last week's meetings in Washington with the IMF and World Bank....the WB expressed satisfaction in the manner in which Iraq has performed economically in recent years.....this is largely in part to how Iraq is exploiting its natural resources and its investment operations.....they also warned Iraq of concerns over their budget from abnormally high expenses.
U.S. Bank is expected to significantly increase revenues Zain Group when you ask the third-generation technologies in Iraq
The price per share of the Zain Group saw an increase of 16% in Iraq in 2013....to 780 fils in the ISX....they achieved over $4 billion dollars in revenues...with a net profit of $764 million dollars for 2013.....much of the 2013 success is attributed to launching of third generation technologies and IPO launches as well.
Federal identify the 27 of this month to consider the legitimacy of the first session of the Baghdad Provincial Council
The Federal Court has chosen April 27 as the date to determine the legitimacy of the Baghdad Provincial Council.
Central defends the procedures followed in the auction currency
Hmmmm.....a short but interesting article coming from Turki the CBI governor.....when the World Bank asked questions about parts of the auction procedures....he was quick to defend the CBI actions as successful and economically acceptable....meanwhile there are continued talks between the CBI and the US Treasury.....about the "activation of financial relations between Washington and Baghdad.....that last little bit really hit my radar screen hard....."ACTIVATION OF FINANCIAL RELATIONS"......is this a subtle hint......of good things to come.
Araji of Basmajh: 2019 will see the end of all business in the residential project Basmajh
This residential housing project, Basmajh, is expected to reach a completion date of 2019 when all work will be completed....the work is being undertaken by a Korean company....initially in 2015 thru 2017 10,000 housing units will be constructed and then each year after that there will be 20,000/year constructed.
Deputy for the Liberals: the budget will be approved after one day of elections Agreement "secret" between Baghdad and Erbil
Now a MP from the Liberal bloc is stating that the budget is expected to pass one day after the elections are conducted....that there have been or are being secret agreements between Baghdad and Erbil regarding the budget but these will not be released until the election is complete....it is claimed that this is a means of distracting the Iraqi people....regardless the budget remains unresolved....and the election process seems to be up in the air.....will Maliki manage to stay in control?
Political blocs are preparing to rebuild Iraq in the post-Maliki
Hmmm....the governor of Nineveh and the leader of the Coalition United are making plans to build Iraq post Maliki.....wonder what they think they know....it seems that many irons are currently in the fire and heating up....the election could prove to be the most fiercely fought yet for the Iraqis.
Planning: In cooperation with the International Monetary Fund to reduce corruption
The Ministry of Planning is adopting documents that will reduce the amount of corruption currently found in many contracts....this is being done in cooperation with the IMF.....it is action that should have come before now, but at least it is finally being addressed....although some existing contracts may have immunity to any newly drafted requirements.
Does Iraq have to borrow from the IMF?
The CBI is saying that the Iraqis do not need to borrow from the IMF at this point to deal with the 2014 budget deficit....that they should wait at this point.....it is said that the government could take care of the deficit through the excess funds going into the DFI account as they are selling oil currently in excess of $100/barrel and they are budgeting oil prices at $90/barrel.....that could be a risky hedge to take....prices of oil could drop tomorrow.....if they do borrow from the IMF they will be faced with harsh repayment conditions.
Iraq approves S.Korea's Daewoo $588.8 million oilfield contract
The Iraqi COM approved a $588.8 million dollar contract with South Korea's Daewoo Engineering and Construction for the development of the Zubair field....Daewoo will be responsible for a gas separation plant in the Zubair field in southern Iraq....eventually it will have the capacity of 850,000 barrels of oil per day....this is one heck of a facility.
House of Representatives held a special session to pass the budget
If this can be trusted.....the budget will be passed during a special session of Parliament after the upcoming election.....however I urge some caution on this issue at this point due to this announcement coming from a single MP of the State of Law coalition....let's see if this is picked up by anyone else.
Talabani would not run for a third term
Talabani is watching the upcoming elections....but is committing that he will not seek a 3rd term as President of Iraq....leaving the new Parliament to nominate the PM and President positions....Talabani's doctor does confirm that T's health is improving.
Erbil's $2.7 billion Empire World real estate development now 70% complete, on track for 2017 completion
Yes indeed there is economic growth in Erbil....the $2.7 billion dollar Empire World real estate development tells us so...they are at 70% complete and are expecting to be 100% in 2017....this is the largest of such development in all of Iraq.....a sprawling complex that will include a luxury hotel, residential villa's, as well as turnkey office space.....about 60% of the project is already sold.....a solid indicator of coming growth.
Water as a bargaining chip for Kurdish independence
The Kurds control a vast water supply that feeds much of Iraq......between all their rivers they provide 113 billion cubic meters of water and only use 12 billion of it for their own use....in the future water could become just as viable a bargaining chip for the Kurds as oil currently is today...their landscape is ripe for new dams to be built to hold water back from the rest of Iraq.
Sumaisem warns of World Bank loans: further evidence on the mismanagement of economic resources in Iraq
Another economic advisor warning that a loan with the World Bank would be bad news for the Iraqi economy......somehow they need to learn what it means to stay within a budget.....you just can't keep spending money hand over fist.....but then again....who are they emulating.....oh never mind.
Thursday morning News Summaries Randy