The Dinar Daily, Friday December 19, 2014
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  1. #1

    The Dinar Daily, Friday December 19, 2014

    The Exchange Rate of Foreign Currency in Economic Feasibility Studies

    Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

    Estimate the shadow price of foreign currency:

    1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

    The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

    * What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.In particular the following outputs and inputs of foreign currency were distinguished:

    • Export-outputs.
    • Outputs marketed locally that substitute imports.
    • Imported inputs.
    • Inputs produced locally that usually go to exports.
    • Foreign labor.

    According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

    In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency …. etc.).

    In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

    2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports… etc.

    The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

    • The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.
    • The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.
    • The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.
    • The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.
    • This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

    And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

    3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

    The Republic of Iraq – Ministry of Planning


    A "flashback recap" of a Live Q and A Call from about a year ago - on THE DAILY DINAR NEWS BLOG...

    In general terms – there were three main focal points of interest I wanted to cover and then allow listeners to ask whatever questions they liked.

    1) the SIGR report…

    2) the Gold Article…

    3) the IIER report…

    I started the conversation out last night by highlighting how crazy this campaign being fielded to contact our lawmakers and bank CEO’s and tell them how unfair it is they are getting to exchange (exchange is the right terminology BTW – NOT “CASH-IN”) at 32.00 per Dinar and we are not – is. It is nuts.

    Firstly, “they” are NOT being allowed to exchange “early” – or at 32.00 per Dinar. It makes you sound “stark raving MAD” to be caught saying such things. You would be better off barking at the moon. It is demeaning to the validity of a true currency play.

    Secondly, this is entirely the wrong way to approach them. I pointed out on the call that Poppy and I fielded a very successful such campaign a couple of years ago. However, we sat down and came up with a much different approach. It was designed to get answers and to approach our lawmakers with respect and as their constituents. Not like a bunch of lunatics. We had extraordinary participation (because it made sense) and we received a good response from lawmakers. It started the conversation in a reasonable manner.

    I asked one caller – “when was the last time you asked a banker for money and told him how unfair it was if he didn’t give it to you”??? Obviously – we chuckled…

    Another caller asked me if (as DC had relayed) – the “zero’s were raised” and the lower denominations were in circulation??

    I said plainly “no”…lower denominations being in circulation would (at the very least) imply there had been a value change. If there were no value change the lower denoms would not only be of little value, they would be such a hinderance – people might even throw them away just to get rid of them. So no – no lower denoms. I told the caller to check the website for “real” info on rate change.

    The “zero’s being raised” or “deleted” – as explained by any reasonable researcher, economist or authority – is simply the process removing the large (3 zero notes) from circulation.

    Referring to an Enorrste post from today on
    THE DINAR OBSERVER DAILY(you may want to put this on your favorites and check in several times a day – we to it often )

    “…I have never found a single article from the CBI or the IMF that equates “delete the zeros” to the idea of “move the decimal point.” Instead, the statements overwhelmingly come out to mean “remove the large notes from circulation.”

    Also – this recent internal memo put out by Wells Fargo is likely “push back” from this recent campaign. I pointed out that Pinnacle Bank published an article by an “affiliate” in their internal publication and then “highlighted it” in a similar internal memo a couple of years ago. It is just a defense mechanism. I’m sure Wells is tired of having their name dragged through the “internet rumor mill”. This is highly likely the reason for their vigorous denials about handling it in the future. They get so many useless calls – it isn’t worth the headache. Can you blame them??

    Further, for any bank, lawmaker, adviser or official to state the “Dinar is a scam” is nearly as foolish as some of the internet “Gurus”. It is the official currency of a COUNTRY. I pointed out (below) the post from yesterday’s
    – highlights page 94 of the quarterly SIGR report to THE US CONGRESS in April of 2012…
    __________________________________________________ _____________


    We are seeing and hearing that the inflation rate is still climbing and they are pushing to get us our money?? This report is from page 84 of the massive SIGR report.

    BGG ~
    This is a screen shot from the “Special Inspector General for Iraq Reconstruction” – Apr 2012, quarterly report to Congress. For members of our Government to say they have no idea what is going on here – means they haven’t read some very basic documents presented them.
    __________________________________________________ ______________

    I pointed out (last night) this is a highly speculative investment. We are, in no way, guaranteed anything. However, this SIGR report gives us some valuable insights…

    1) This is information given to the US CONGRESS on a quarterly basis… I find it hard to believe such an information source would intentionally mislead Congress. They tend to frown on such behavior. Which goes directly to the validity of this adventure – against all advice from Wells Fargo or other such naysayers.

    2) It points out there having been a legitimate “plan” – or time frame in motion…having been projected to be done in 2013. We are obviously in “over time” now.

    3) It gives us an idea as to who is in charge…the CoM – or Council of Ministers. Who do they answer to?? Maliki. Period. When is he likely to push this forward?? Historically – he has been a “weak Dinar” policy advocate. However, rumor from his own inner circle admits he can’t win a third term in office without some currency reform.

    I fully expect him to use every tool in his “wheel house” to win – his recent moves in Anbar and the disputed territories prove as much. Currency reform has to be a “biggie”. Though this WAS their thinking a couple of months ago – there is no promise it is still part of their political calculus. We shall see.

    4) Though no guarantee of the actual future plan they wind up engaging – this report points out an increase in value that would have taken the Dinar from “one-tenth of a cent” to a value “of slightly less than $1″..

    __________________________________________________ ______________


    Coins put on the market !!

    Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

    She said in her statement Albjara "The project will take between four and five years, and which will be the launch of the categories of small coins gradually."

    He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

    The economic expert on behalf of Jamil Anton, noted that he may not find metal coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century


    CBI is preparing to issue a monetary metal parts

    Metal coins from the category of 25 fils were in circulation until the nineties of the last century

    Nora Albjara member of the committee of economy and investment in the House of Representatives revealed that the central bank completed its preparations for the issuance of metal coins of seven small groups, in conjunction with the implementation of the project to delete the three zeroes from the paper currency is currently in circulation.

    She said in her statement Albjara Radio Free Iraq, "said the project will take between four and five years, and which will be the launch of the categories of small coins gradually."

    He predicted the financial expert Hilal Taan inflation rate declines, with the issuance of metal coins of small denominations in the daily financial transactions, remarkable that 3% of the value of inflation in Iraq due to the presence of large cash block.

    The economic expert on behalf of Jamil Anton, noted that he may not find coins accepted by a lot of Iraqis, especially young people, due to the existence of an entire generation of Iraqis had not trading coins due to stop use since the early nineties of the twentieth century.


    Another "FLASHBACK"...

    Economists Divided Over Deletion Of Zeros

    By Amina al-Dahabi for Al-Monitor.

    The Central Bank of Iraq (CBI) has been attempting to delete three zeros from the Iraqi currency since 2003. This project has raised many concerns among the Iraqi public and within the business community, and Iraqi economists are divided…

    …Haider al-Abadi, the head of the Iraqi parliamentary Finance Committee, told Al-Monitor that while deleting zeros from the current currency is possible, this has been postponed until after parliamentary elections. He noted that studies are being carried out to ensure that, following the currency change, counterfeiting is limited and that Iraqis don’t go back to trading in the old currency.

    The step to delete zeros from the currency has been postponed several times, leading the parliamentary Economic Committee to demand that the CBI accelerate this project, as Al-Sharqiya reported. In a news conference held July 6, the Economic Committee confirmed that the deletion of zeros will lead to an increase in the value of the Iraqi dinar and will have positive repercussions, including a reduction in unemployment and poverty rates in the country.


  2. #2

    Re: The Dinar Daily, Friday December 19, 2014

    Religious authority demanding politicians serious pause to resolve the budget crisis

    BAGHDAD - ((eighth day)) Asked the religious authority pause to all politicians to solve the problematic of the budget, and must be that there will be one look at the pressure and limiting expenditure on essential items without prejudice to the needs of the people ". (AA)


  3. #3

    Re: The Dinar Daily, Friday December 19, 2014

    Barzani: Abadi committed to resolving dilemmas and share our opinion on economic stability
    Friday, 19 December / 1 December 2014 11:09

    [Erbil where]

    Kurdistan Regional Government said today that the federal government headed by Prime Minister Haider al-Abadi serious in resolving the dilemmas and the organization of re-establishing ties with Arbil.

    He said Prime Minister Barzani in a press statement today, seen by [where], "We are moving now in a new way with Baghdad, and I am happy that the new Iraqi government headed by Prime Minister Haider al-Abadi, expressed a desire to resolve the dilemmas and reorganize relations with the region Kurdistan, hoping to witness the coming year further developments in this area, and we hope to see a new system of government in Iraq, and share with the participation of all the components in this country in the power and revenue. "

    He pointed to the recent agreement between Erbil and Baghdad, saying that he "sent us a positive message, and showed us that Abadi committed to resolving dilemmas in Iraq now, and I see that Abadi shared with me in the opinion that the people of Kurdistan deserve a better future, deserve freedom and economic stability, and deserves democracy the largest and Oqoy ".anthy


  4. #4

    Re: The Dinar Daily, Friday December 19, 2014

    Central Bank building one independent bodies in accordance with the Iraqi constitution .. Photographed by Mahmoud Raouf
    Central Bank: We support the private sector and continue to provide foreign exchange requirements

    Author: AHF, ASJ, BS
    Editor: AHF, BS
    18/12/2014 19:53
    Number of Views: 276

    Long-Presse / Baghdad
    The Central Bank of Iraq, Thursday, his interest in maintaining the fiscal and monetary policy of the country, and among it is locked with the support of the private sector serve the public interest, stressed continuity cover all external conversion kits has no intention to stop it.
    The bank said in a statement received (range Press) copy of it, "the central bank is interested in maintaining the fiscal and monetary policy of the country and draw plans that allow banks and corporate banking and financial conversion advancement of the Iraqi sector of the economy."
    The statement added that "the Governor of the Central Bank and the Agency on the Keywords discussed during a meeting on Thursday, with a number of companies and remittance banks departments ways and work requirements in the next phase and means of cooperation for the advancement of banking and financial sector and supporting the state at the current stage.
    The statement noted that "the relationship assured the audience that the central bank's ongoing coverage of all foreign exchange requirements for the purposes of import and various legitimate transactions," adding that "the Central Bank of the development of new facilities for foreign remittances in addition to cash sales."
    He stressed: "It no intention at the bank restrictions to be placed on the activity of foreign remittances despite the conditions experienced by the country, as well as the faith of the Central Bank of the importance of the private sector and its role in the reconstruction of Iraq."
    The study estimated that the local government banks' capital reached until October of 2012, the last end, a total of 754 billion dinars, compared with more than four billion dinars for private banks, and investment balances in banks operating in Iraq recorded up to 10/31/2012, a sum nearly six billion dinars (5.947), the share of government banks which amounted to 4.929 billion, compared to 1.018 billion for private banks.
    Iraqi banking system consists of forty-three banks as well as the Central Bank and distributed according to property between (7) state banks and 30 regional banks, including Islamic seven in addition to six foreign banks.
    The International Monetary Fund said in a report issued in (21 March 2013) after the end of the consultations held in Amman, Jordan, between a delegation from the Fund and an Iraqi delegation headed by Minister of Planning Ali Shukri) that the improvement in the financial sector, but stressed that it still needs to be greater efforts by the central bank in the revision of monetary policy and strengthen banking supervision and to accelerate the restructuring of the banking system tools.
    He called on the International Monetary Fund and the Central Bank of Iraq to take measures towards the gradual liberalization of foreign exchange offer through auctions held by the Bank in order to ensure non-recurrence of turmoil experienced by the financial market in the past year.
    Fund stressed that the establishment of a national banking system requires abandoning the current model which controls state-owned banks that are weak preferential treatment that distinguish them from private banks calling on Iraq to do to strengthen public financial institutions to ensure efficiency and transparency in the use of oil revenues.
    It is noteworthy that the private sector has seen a significant deterioration after 2003 due to the lifting of government support for and allocated for the industrial sector of it, which led to most of the laboratories and factories stopped working because of their inability to compete with imported subsidized goods in the countries where they come from, which are not subject to import operations large fees, as well as local problems caused by energy crises and fuel and lawlessness, and aging equipment.


  5. #5

    Re: The Dinar Daily, Friday December 19, 2014

    Parliament calls on the government to accelerate to send the budget to parliament

    Agency eighth day
    December 19, 2014, 12:12
    No comments
    48 Reading

    BAGHDAD - ((eighth day))

    National Alliance MP Fadel Kanani called on the government to expedite the dispatch of the budget to the parliament for discussion and approval as soon as possible.

    Kinani said in a statement reported for ((eighth day)) announced today that the government could overcome the causes of delay in the completion of the draft federal budget law and not be linked to delay the difficult circumstances experienced by the country and the most important of the collapse of oil prices and said the government can and committees in charge of the adoption of the minimum expected for the price of oil is then formulate the draft budget and submit it to the parliament to discuss and approve before 2014 ends. "

    Kanani and called on all parties to put their differences and disputes and side interests and personal attention to the serious subject of the budget because the people waiting impatiently for him to achieve something which aspires to.

    He promised the prime minister to the people's representatives to send the draft budget to the parliament within a maximum period of ten days, and during the legislative recess of the first quarter and said the government were not successful in that, where ago ten days and Tllha days and the budget is still under study does not know when to see the light. (AA)


  6. #6

    Re: The Dinar Daily, Friday December 19, 2014



    Sistani calls for the government to rely on non-oil imports Iraq
    DECEMBER 19, 2014

    BAGHDAD - Anatolia - called top Shiite cleric in Iraq, Ali al-Sistani, his country's government to rely on non-oil sources of income as imports, and the adoption of a deliberate accounts in the process of reduction in the budget items on lower oil prices.

    Sistani said, in his Friday sermon, delivered on his behalf by his representative, Ahmed Safi, in the shrine of Al-Hussein Bin Ali in Karbala (central Iraq), that "Iraq is entirely dependent on its budget on oil prices dropped dramatically, causing a lack of financial resources for the budget." .

    He added: "Because of the lack of financial revenues, the government began a set of cuts in the budget for fiscal 2015 to delete some paragraphs and other postponement", calling for "the adoption of a deliberate accounts in the reduction process and should not be more improvisational and is well thought out, and checking in drawing up financial policy of the country."

    He stressed the need to search for "alternatives to support the non-oil budget," explaining that "this matter needs to be daring and improvisation because of oil depends on many things are expected from lower prices."

    The Cabinet last month decided to form a special committee of the Council of Ministers holds the process of reducing the budget because of lower oil prices.

    He was scheduled to hold a cabinet meeting on Thursday for the purpose of adoption of the budget in the Council of Ministers and then converted to the House of Representatives before being postponed to next week.

    Iraq relies 95% on oil in the annual general budget, while still the industrial sector projects are not eligible because constitute a major source of Iraqi imports because of its exposure to the neglect over the past ten years.

    Last edited by sczin11; 12-19-2014 at 01:14 PM.

  7. #7

    Re: The Dinar Daily, Friday December 19, 2014

    Economic Activity Up Following Agreement

    Posted on 18 December 2014 . Tags: Kurdistan

    Economic Activity Up Following Agreement
    After easing almost a year of financial crisis and terrorism threat, the Kurdistan Region last week hosted the 10th Erbil International Fair attended by 250 companies from 16 countries.

    In the wake of initial agreement between Erbil and Baghdad to resolve oil export and budgetary issues, and of security advances to halt the ISIS threat, market confidence begins to regain and business continues to progress.

    Kurdistan Regional Government Minister of Trade and Industry, Samal Sardar, highlighted the importance of hosting the fair amid current circumstances.

    He said, “The participation of companies from foreign countries might not be at the level of previous years, but hosting the fair shows that business activities have not stopped and the Kurdistan Region’s security situation is very stable for business.” Minister Samal Sardar stressed that the Region’s economy continues to improve.

    The breakthrough agreement between Erbil and Baghdad on resolving outstanding issues has helped to resume and revive business activities in the Region.

    Mr. Abdulla Ahmed Abdul-Rahim, supervisor of Erbil International Exhibition told, “Hosting the fair amid the current situation, especially after the initial agreement between Erbil and Baghdad, shows that Kurdistan can preserve its economic position and successfully manage crises.”

    He added, “Erbil International Fair managed to build trust during the last ten years and the KRG has played a key role in developing the venue. The fairground has so far hosted more than 60 exhibitions on various sectors and has greatly benefited the people of Kurdistan.”

    Representatives of private sector companies said the economic crisis and terrorist threats adversely affected their plans and caused suspension of some planed activities. However, the situation did not last long, as demonstrated by participation of international companies in various exhibitions.

    Mr. Saman Brifkani, Supervisor of Magic Art Advertising Agency told, “Despite some concerns by some companies there have been various exhibitions by big brands and companies in the Kurdistan Region including Land Rover, Range Rover and BMW in which they showcased their latest products. In addition, various French, American and British franchises in Erbil’s markets and malls have recently launched.

    “The breakthrough agreement between Erbil and Baghdad will strengthen trust and support increasing business activities”, he added.

    On the sidelines at the fair the Czech Republic Consul General to Erbil, Jaroslav Reif, and a delegation from his country’s ministry of trade and industry discussed their activities in the Region.

    The Czech Republic Consul General told, “Czech companies together with Czech banks implemented major projects in the Kurdistan Region especially in the electricity sector. We want to introduce the Kurdistan Region’s investment market to the Czech Republic and invite European investors to support investment activities in the Region.”

    The Czech Republic is among the active investors in the Kurdistan Region’s investment market and has long reiterated its interest to invest in the Region.

    Lebanon is among the countries that have not suspended their investment and business activities in the Kurdistan Region.

    Mr. Jacques Jean Sarraf, Chairman of the Malia Group which owns various investments in the Region especially in the tourism sector told “The Lebanese private sector is keen on the Kurdistan Region and they did not suspend their activities in the Region.”

    He added that his group is one of the main exporters to the Kurdistan Region and they are working on finding an alternative route for bringing their goods to the Region through air cargo as most of the Syrian and Lebanon border is under the control of the Islamic State terrorist organisation, known as ISIS.

    Mr. Sarraf said, “Lebanon has played a significant role in developing the Region’s banking, construction and tourism sectors, and has contributed to the investment in the Kurdistan Region, including in basic and higher education.”

    In another development, Britain Business Group Kurdistan was launched on 10 December, 2014 to further collaboration between British companies and companies based in the Kurdistan Region.

    During the inaugural ceremony, Mr. Frank Baker, British Ambassador to Iraq, highlighted the Kurdistan Region as a stable and suitable environment for economic and trade activities.

    During the ceremony, KRG Spokesperson Minister Safeen Dizayee reaffirmed, “The KRG supports the free market and facilitates foreign investment in the Kurdistan Region.”

  8. #8

    Re: The Dinar Daily, Friday December 19, 2014

    EU representative in Baghdad Monday to confirm Europe "solidarity" with Iraq

    Author: AHF, HAA
    Editor: AHF, RS 12/19/2014 17:48

    Long-Presse / Baghdad

    European Union announced on Friday, the determination of the Supreme her representative Vderica Mgrena visit Baghdad next Monday, to meet with leaders of the country, and among the Mgrena would send a message showing the solidarity of the Union and is ready to deepen its relations with Iraq, said she would visit Arbil, the next day to discuss the "great challenges" facing the province and its people.

    EU said in a statement seen by the (long-Presse), a copy of "supreme representative of the EU Vderica Mgrena preparing to visit Baghdad, next Monday, where she will meet with Iraqi President Fuad Masum, Prime Minister Haider al-Abadi and Iraqi parliament speaker Salim al-Jubouri and Foreign Minister Ibrahim al-Jaafari."

    The statement added that "Mgrena will send a message of solidarity and the willingness of the EU sure to deepen its relations with Iraq."

    The statement continued that "Mgrena visit Arbil Tuesday next Tuesday, where he will discuss with the President of the Kurdistan region Massoud Barzani and Prime Minister of the province Barzani big challenges facing the region area and people related to military operations against al-Daash as well as in the face of humanitarian disasters created by the organization Daash."

    The statement noted that "Mgrena visit before leaving for Iraq Christians refugee center where she will meet uprooted and children there."

    It is noteworthy that the organization (Daash) may impose its control over the city of Mosul, Nineveh province, (405 km north of Baghdad), in (the tenth of June 2014), also extended its activities beyond, to the provinces of Salahuddin, Kirkuk and Diyala, which led to a wave of displacement New in Iraq.

    And resulted in the control of the militant group on these areas inhabited by religious minorities of Christians and Yazidis, Shabak, Alcakaúah to the displacement of hundreds of thousands of them, and the occurrence of a major humanitarian disaster caused by trapping thousands of Yazidis in Sinjar Mountains, where hundreds of women, children and elderly people died because of hunger, thirst and heat the air.

  9. #9

    Re: The Dinar Daily, Friday December 19, 2014

    Disagreement on external borrowing by $ 5 billion and the central insist on spending cuts before heading to the World Bank

    Editor: 19/12/2014 18:03

    Long-Presse / Baghdad

    Parliamentary Finance Committee revealed on Friday that the dispute over the direction of foreign borrowing continues to fall in oil prices was behind the postponement of a special meeting was scheduled for Thursday evening to discuss the budget.

    He said members of the Committee on the government's intention to borrow $ 5 billion from the International Monetary Fund, but the central bank pressed further "retrenchment" before heading for external borrowing.

    The Minister of State Saman Abdullah revealed the "long", last Wednesday, the intention of the Council of Ministers a special meeting Thursday evening to discuss the federal budget, and talked about the government directed to send the budget to Parliament before the end of this month.

    In this context, Ahmed Rashid flesh, Rapporteur of the Parliamentary Finance Committee, says that "the Council of Ministers has postponed its planned special session Thursday to Monday and will be devoted to the discussion of the budget in 2015," attributing it to "the continued volatility in global oil prices and the rise in the deficit ratio to 36 trillion dinars."

    He MP Rashid, in an interview for the "long", that "the government has conducted four amendments to the draft general budget," pointing out that "public expenditures amounted to in the last draft of 148.274 trillion dinars."

    Explains parliamentary member of the Finance that "the overall size of the operational expenses amounted to 103.370 trillion while capital expenditures amounted to 44.904 trillion while the budget deficit reached 36.428 trillion dinars."

    Reveals Kurdish MP for "government's intentions to address the large proportion of the deficit, due to lower oil prices, through the use of internal and external borrowing, as well as increased oil production associated with reduced overhead."

    Attention MP Ahmed Rashid that "oil revenues in the budget of 2015 is estimated B98.311 trillion dinars, while non-oil revenues are estimated B13.535 trillion dinars and come this revenue of currencies, selling and renting real estate state and religious tourism administration tax, profits of public companies Kalmsafa and some laboratories and companies Winning self-financing. "

    He said a member of the Finance Committee in the House of Representatives that "Iraqi oil is sold, during the last few hours, dollars with 53 per barrel," stressing that this level of prices, "one of the real reasons that prompted the government to not to discuss the budget on Thursday, adding to the pressures of the Central Bank Iraq's need to address the deficit before resorting to external borrowing. "

    Explains MP Rashid that "the International Monetary Fund, which the federal government intends to borrow from him, he has the conditions for lending to states not to exceed the budget deficit in the country ceiling of 15 trillion dinars," pointing out that "the Iraqi government plans to borrow $ 5 billion from the International Monetary Fund."

    On the final accounts for the financial year 2014, says MP "on the Ministry of Finance to prepare the accounts on the expenditure, government expenditure and submitted to the House of Representatives after the adoption of the general budget," MP strongly denied "Parliament received the final accounts for the years 2012, 2013 and 2014".

    In the same context, Jabbar Abdul Khaliq, the other member of the Parliamentary Finance Committee asserts, that "the government is moving toward retrenchment to address the projected deficit that accompanied the decline in world oil prices."

    The Committee on Parliamentary Energy confirmed the "long", earlier this month, and the presence of multiple government measures to avoid any potential drop in oil prices to under $ 50.

    The Commission did not rule out, then, asylum cash reserves at the central bank or borrow from private banks. She described a decline in prices to around $ 40 as a "global catastrophe."

    MP says Jabbar Abdul Khaliq, "long", "The draft budget, which was discussed by the government a month before the project was containing a hundred thousand degrees and careers of 50% to the Ministry of Defence exclusively, and the remainder to the Ministry of Health, Interior, and the rest of the provinces," and believed that "the cut grades or increase depends on the government amendments. "

    He added that "it is expected to fill the budget is to increase oil exports to overcome the drop in oil prices deficit processors," likely to "export capacity up oil at about 3.3 million barrels a day."

  10. #10

    Re: The Dinar Daily, Friday December 19, 2014

    Economist sees reduce costs and increase Erdat contributes to the advancement of the economy


    Saw economic expert on behalf of Jamil Antoine, the need to reduce costs and increase Erdat and reliance on the private sector to promote economic reality.

    Jamil told all of Iraq [where] he "has to be relying on several essential for the advancement of economic reality and face in the 2015 budget deficit, which all economic development agencies work on a commitment to reduce expenses, which begins graduate degrees and deputations and travel allowances and the purchase of furniture and cars, because all it is a financial burden on the budget. "

    "It can also work to increase the revenue which has shrunk because of the high and low oil prices and the alternative to this process is to increase oil production from local governments," noting that "it will work on the provisions of part of the decline occurred in the financial budget."

    He said, "The other point is the reduction in the budget and the search for investment and rely heavily on the private sector deficit through the provision of facilities of its capital and others, as well as it has to be that there will be economic growth commensurate with the population growth."

    The Deputy Prime Minister Bahaa al-Araji detect the arrival of the special protections of the expenses of the officials' salaries and equipment to one billion dollars.

    They said in an interview with [where] published earlier: "We have an idea of ​​the project to reduce the number of protections for all officials, and the formation of a special brigade of them will be at the disposal of officials, when you need them."

    He said, "The idea is to allocate 80 element for the protection of the three presidents [the President and the Prime Minister and the President of the House of Representatives] and 50 element to protect their deputies and 30 element to protect the minister."

    He is scheduled to hold a Cabinet meeting in which the financial budget for 2015 discussed.

    He said Finance Minister Hoshyar Zebari said after his ministry to reduce spending by about ten billion dollars, it is still expected to arrive deficit, which was more than 47 trillion dinars [$ 40 billion] to about $ 30 billion. "

    Despite the decline in the price of oil from $ 70 a barrel, the finance minister said that "the government is still adopting its spending plans for next year based on the approach of the price of this level as the International Monetary Fund expects the arrival of the average crude price to that level over the whole year," .anthy 2.

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