April 24th, 2014
Thursday News Summaries
Basra threatens to take control of «South Oil» in the event of non-adoption of the budget
Showing some backbone against the federal government, the Basra province has threatened the Feds that if the budget isn't passed soon, they will seek to take control of the South Oil Company that serves the southern end of Iraq.....the province is out of money to pay contractors who are working on project and as a result the projects are now standing still.....there have also been shortages of supplies and medicines at hospitals.
Iraq Index in red with the decline in the shares of the semi-collective leadership
The ISX continued it's negative performance on Wednesday with another off day for its leading sector, banking....the market closed down 0.16% at 110.35.
884 million dinars, Jordan's exports to Iraq last year
Jordan's exports rose in 2013 to 884 million dinars compared to 716 million dinars in 2012....in a monthly comparison Iraq exported to Jordan goods totaling 456,000 dinars for January, whereas Jordan exported to Iraq products worth 61 million dinars.
Prime minister: 60 percent of Iraq's income comes from oil
A member of Maliki's staff noted that oil still accounts for 60% of the income of the state (Iraq).....attempts are being made to raise the level of income from agriculture and other industries....the Ministry of Planning noted that non-oil based revenue is expected to raise by 32% until 2017....that isn't that far away....better get a move on....this rise will move non-oil based revenues from 7 trillion dinars in 2013 to 9 trillion dinars in 2017....every little bit will help for sure.
Accountability and justice: $ 8 billion worth of property regime abroad
Properties of the former regime (Saddam) have had a value of $8 billion dollars placed on them, these are mostly buildings and villas of one sort or another....Iraq is actively working on retrieving these properties and bring them under ownership of the Federal government....according to domestic law from 2008 the Accountability and Justice Commission cannot allow for the Baath party ideology and management policies or practices to return in any form to Iraq....they also continue to focus on money that was in possession of the old regime both inside of and outside of Iraq.
Water resources carrying insurgents in Fallujah responsibility dumping Abu Ghraib and deputy accused the government of this to prevent people from elections
There is danger of flooding in many areas of Anbar around Fallujah even to the point where some are accusing the government of being some of the problem with the flooding to keep people from voting on the 30th.....there remains terrorists in the area who have some control of the flood gates and have flooded certain areas to keep the army from reaching them.....there is also an oil slick on some of the water leading to warnings of not using the water for drinking purposes.....this was a very difficult article to try and decipher.
Iraq expert confirms loss of 1.5 billion dollars to sabotage Ceyhan line and Nineveh expects to return next week
This is an interesting article.....it speaks of interruption of an oil pipeline to Ceyhan, Turkey....one might think that it is the Kurds new pipeline and I originally leaned that way....but they talk of sales from this pipeline and the losses to "Iraq" not to the Kurds of $1.5 billion dollars or $25 million/day.....IMO...this speaks of the older pipeline that Iraq has had in place for sometime and has been subject to a great deal of interruption by sabotage.....it still is it would appear.....regardless they are expecting this pipeline to be back in service sometime next week.
Karbala demanding financial assignments additional financial support after the Ministry of Planning
Talk about passing the buck.....where is Harry Truman's sign "The buck stops here"? The province of Karbala is asking for additional money from the Ministry of Planning....well it turns out it isn't a simple process.....send this request to Maliki who looks at it and decides he will have nothing to do with it....so he forwards it to the Ministry of Planning.....who want to have nothing to do with it....they say it needs to come from the Ministry of Finance.....who is going to grab this bull by the horns and say we can handle it? So now it seems that the COM and the Parliament will deal with this next week, presumably after the elections....but we all know what "next week" can evolve into in Iraqi terms, next month, next year....this money will be earmarked to aid Karbala in becoming more of a tourist attraction and a center of holiness.
Commission announces distribution of 88% of voters' cards
The Iraqi's have distributed 88% of voter cards as of 4/24 and have until 4/25 to get as many of the remainder out to the population....they have pulled more than 66,000 cards because of citizens dying or cases of duplicate names.....so it sounds like 10-12% may not get to vote in the election....I can hear the cries of the losing bloc now....if we had those voters registered we would have won.....will there be a fight over this....well as the old saying goes....."does a bear poop in the woods?"
Finance Committee: money laundering takes place in community banks
The Finance Committee has identified that a large portion of money laundering that takes place in Iraq stems from private banks...who still perform banking activities the old way and they need to be forced to improve technology which will make such illegal operations much more difficult to do....thus the need for the adoption of the Banking Act....this is expected to passed to the next Parliament session after the elections.
Deputy warns of the government to continue borrowing from the central bank: We do not know the amount
So is the government dipping into the CBI reserves to cover investment budget concerns....big question....especially after they have been warned by the IMF to not undertake such activities.....do they even know how much money has been "borrowed"....it doesn't seem likely....and of course they say there will be a repayment made when the 2014 budget is approved.....and the moon is made of cheese.
Divergent views about the central bank's intention to issue a new currency alongside the existing
So they talked to a number of economic experts and to no ones surprise they got several different opinions....after all almost everyone has one....some even more than one. The general consensus is that inflation will not be impacted by what the CBI is doing, especially so if they do take the older currency off the market....which they have been doing...there are very definite benefits from the new currency....less likely to be counterfeited.....easier to read for the blind....also note that these that are offering their "opinions" are economists....they are not members of the CBI, and may not be privy to all the decisions being made by the CBI. Most see this move by the CBI to be an overall good thing.
UN fund pays out $990 million compensation for Iraq's Kuwait invasion, total tops $45 billion
The UN panel that is responsible for making quarterly payments to Kuwait from the 5% tax on all Iraqi oil exported has made a payment totaling $990 million dollars in compensation. This puts the total compensation at $45.5 billion dollars with $6.5 billion dollars left to be paid.
Director General of the Rafidain Bank confirms the possibility of going back to the reserves of the state in its administrative stroll
People are starting to show real signs of restlessness over the issues with the budget and are seeing first hand that some of the problems are merely MP's who walk out on Parliament sessions causing the lack of a quorum to conduct business.....this article talks about "going back to the reserves available to the Treasury Department".....I hope..