Details of the financial deficit financing law in Iraq

EconomybreakingThe Iraqi ParliamentBorrowing ActFiscal Deficit Act 2020-11-11 20:51A- A A+

Shafaq News Agency publishes the final version of the fiscal deficit financing law, which was voted by the House of Representatives in a late session on Thursday

Details of the law

On Thursday, the Iraqi parliament voted on the borrowing law that the government has been waiting for to secure employees’ delayed salaries for several weeks, as the country is going through one of the most difficult financial crises, due to the decline in oil prices.

The session was hindered after the Kurdish blocs boycotted the voting session after a disagreement  over a proposal submitted by Shiite parliamentary blocs that included “determining the Kurdistan Region’s share of the total actual spending – current expenditures and investment project expenditures – after excluding the sovereign expenditures specified in the federal budget law on the condition that the Kurdistan Region should pay The establishment of oil exported from the region and in quantities exclusively determined by SOMO and federal non-oil revenues. In the event of non-commitment of the region, its expenses may not be paid, and the violator of this provision bears the legal violation.

The session was held with the participation of most of the deputies, including the Kurds, after agreeing to postpone the vote on that controversial point, but Parliament proceeded to vote on the article, which caused a verbal altercation between Kurdish representatives and others from Shiite blocs that caused their withdrawal from the session.

The vote was also made to allocate an amount of 400 billion dinars to the port of Al-Faw, and to adopt fingerprints in salaries in order to ensure that there are no “aliens” – ghost employees -.

This amount will cover the government’s fiscal deficit for the months of October, November and December.

This is the second time that the government asked Parliament to grant it the authorization to borrow in order to secure operating expenses, on top of which are the salaries of employees.

On June 24, parliament approved a bill that allowed the government to borrow 15 trillion dinars internally and $ 5 billion abroad to cover the fiscal deficit.

According to the official authorities, these funds have run out during the past months.

Employees are still awaiting payment of their salaries last October, the second delay of its kind for the second month in a row.

The legislation of the fiscal deficit law comes to secure a legitimate cover for the government, given that Iraq has not approved the fiscal budget for 2020 due to the crisis of protests that toppled the previous government and was followed by the Corona pandemic crisis, which reduced the state’s revenues by nearly half.

And Iraq is one of the countries with a rentier economy, as it relies on revenues from selling oil to finance up to 95 percent of state expenditures.

The country is experiencing a suffocating financial crisis due to the decline in oil prices due to the Corona pandemic crisis, which has paralyzed large sectors of the world’s economies.

And before the Corona pandemic crisis, revenues from selling crude amounted to about $ 6 billion per month, but they have almost halved this year.

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Parliament passes the borrowing bill and gives a green light to pay salaries

Economy

breaking

The Iraqi Parliament

Borrowing Act

2020-11-11 20:52

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Shafaq News / The Iraqi parliament voted, on Thursday, on the borrowing law that the government has been waiting for to secure the delayed salaries of employees for several weeks, as the country is going through one of the most difficult financial crises, due to the decline in oil prices.

The session was hindered after the Kurdish blocs boycotted the voting session after a disagreement over a proposal submitted by Shiite parliamentary blocs that included “determining the Kurdistan Region’s share of the total actual spending – current expenditures and investment project expenditures – after excluding the sovereign expenditures specified in the federal budget law on the condition that the Kurdistan Region should pay The establishment of oil exported from the region and in quantities exclusively determined by SOMO and federal non-oil revenues. In the event of non-commitment of the region, its expenses may not be paid, and the violator of this provision bears the legal violation.

The session was held with the participation of most of the deputies, including the Kurds, after agreeing to postpone the vote on that controversial point, but Parliament proceeded to vote on the article, which caused a verbal altercation between Kurdish representatives and others from Shiite blocs that caused their withdrawal from the session.

The vote was also made to allocate an amount of 400 billion dinars to the port of Al-Faw, and to adopt fingerprints in salaries in order to ensure that there are no “aliens” – ghost employees -.

This amount will cover the government’s fiscal deficit for the months of October, November and December.

This is the second time that the government asked Parliament to grant it the authorization to borrow in order to secure operating expenses, on top of which are the salaries of employees.

On June 24, parliament approved a bill that allowed the government to borrow 15 trillion dinars internally and $ 5 billion abroad to cover the fiscal deficit.

According to the official authorities, these funds have run out during the past months.

Employees are still awaiting payment of their salaries last October, the second delay of its kind for the second month in a row.

The legislation of the fiscal deficit law comes to secure a legitimate cover for the government, given that Iraq has not approved the fiscal budget for 2020 due to the crisis of protests that toppled the previous government and was followed by the Corona pandemic crisis, which reduced the state’s revenues by nearly half.

And Iraq is one of the countries with a rentier economy, as it relies on revenues from selling oil to finance up to 95 percent of state expenditures.

The country is experiencing a suffocating financial crisis due to the decline in oil prices due to the Corona pandemic crisis, which has paralyzed large sectors of the world’s economies.

And before the Corona pandemic crisis, revenues from selling crude amounted to about $ 6 billion per month, but they have almost halved this year.

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Parliamentary Finance: The loan will enable the government to pay salaries for the remaining three months of 2020

Editing date: 11/11/2020 19:48

[Baghdad_Wine]

The Parliamentary Finance Committee headed by Haitham Al-Jubouri and the attendance of the committee members held a meeting today, Wednesday, in which it completed its discussions on the financing of the fiscal deficit law due to the delay of the government in sending the Federal Budget Law for 2020 and the continued decline in crude oil prices, in a manner that guarantees the continuation of financing the salaries of employees and retirees and the social welfare network.

During the meeting, which was held at the headquarters of the Finance Committee, and part of it was attended by the Deputy Speaker of Parliament, Bashir Haddad, the committee completed its discussions on the law after making amendments that oblige the government to make effective reforms to avoid the country such stifling economic crises, as well as not relying on the continuous borrowing policy and burdening the state with debts .

“The loan will enable the government to pay the salaries of employees for the remaining three months of the year 2020, as well as allocate part of the loan for investment projects and the development of regions and governorates, provided that they are distributed fairly among the governorates according to the population ratios and the degree of deprivation in them,” said Haytham Al-Jubouri, head of the Finance Committee.

The Parliamentary Finance Committee identified part of the loan to support the agricultural sector and provide the farmers with the fertilizers, seeds and pesticides that the farmer needs in order to reach self-sufficiency, in addition to requiring the government to automate customs, approve the biometric card for employees and cancel customs tax exemptions except those issued by the investment law and obligate mobile phone companies to pay what It has to pay sums, fines, and levies on services in order to maximize non-oil revenues and supplement the general budget with them.

In conclusion, the Finance Committee voted on the reform clauses added to the law and submitted it to a vote under the dome of the House of Representatives.

http://www.alliraqnews.com/modules/news/article.php?storyid=103751

Disputes dissipate over deficit financing: a consensual formula .. Kurdistan hands over oil to SOMO and the government pays extraction costs

11/2020 22:26

The number of readings 77

Section : monitor

Baghdad / Obelisk: Obelisk sources said close to the meeting held at the headquarters of the Al-Hikma block in Parliament building, Wednesday, November 11, 2020 that the meeting ended with an agreement that the Kurdistan region would deliver oil to the National SOMO for export, provided that the government pays Federal commissioned extraction.

The source said that the parties, including the Kurds, were keen to end the differences in the draft law on financing the fiscal deficit.

The Speaker of Parliament Muhammad al-Halbousi and the heads of the Shiite blocs held a meeting on Wednesday, November 11, 2020, to resolve the fiscal deficit law.

Sources told Al-Masalla that the meeting will be held at the headquarters of the Al-Hikma bloc to come out with a final decision on the fiscal deficit law in preparation for passing it in today’s session.

The Parliamentary Finance Committee concluded its discussions on the law on financing the fiscal deficit and went on to raise it to a vote in the House of Representatives session this evening.

The borrowing law has witnessed disagreements in the session held by Parliament at noon on Wednesday, due to the blocs’ demands to add paragraphs of the law, amid calls to pass it in preparation for solving the problem of late salaries of employees.

Obelisk

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IRAQI GOVERNMENT TO BORROW $12 BILLION IN EXTERNAL LOANS TO FINANCE ITS DEFICITS: MP

Member of the Council of Representatives’ Finance Committee Ahmad Haji Rashid speaks to NRT Tawtwe interview program from Baghdad, Iraq on November 11, 2020. (Photo Credit: NRT Digital Media/ Screengrab)

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SULAIMANI — Member of the Council of Representatives’ Finance Committee Ahmad Haji Rashid said on Wednesday (November 11) that the Iraqi Government will borrow $12 billion from foreign banks to finance its salary distributions to public sector workers for October, November and December.

In an interview with NRT Tawtwe interview program, Haji Rashid said that Iraq will face economic collapse if its external loans exceed by $31 billion.

Iraq faces a serious financial shortfall due decline in oil prices marred by the coronavirus pandemic and endemic mismanagement and corruption the country has faced since the fall of the former Ba’ath regime, as the country almost exclusively counts on oil exports to finance its salary payroll and other expenditures.

The federal government has been falling behind in paying civil servants on time since September.  

“If the federal legislature approves the Fiscal Deficit Financing Law, the federal government will start paying salary on Saturday,” he said, stating there is “A danger on the transfer of the [Kurdistan] Region’s 320 billion Iraqi dinars [monthly funding].”

In April, Baghdad lost patience with the Kurdistan Regional Government (KRG) refusal over the previous fifteen months to abide by the terms of the federal budget law and stopped all budget transfers to Erbil. Compounded by a precipitous drop in global oil prices, the KRG was unable to pay its hundreds of thousands of public sector workers and delayed disbursements repeatedly.

KRG Premier Masrour Barzani announced in August that his federal counterpart Kadhimi promised during a phone call that his cabinet would send salary for August, September and October.

Since then, the federal government has decided to send $320 billion Iraqi dinars to the Region for salary payments on condition that the KRG abides by its commitments to the federal government.

 “The Shias [caucuses] are against the transferring of the money to the [Kurdistan] Region and the Sunnis [caucuses] do not support us,” he said.  “Regarding the draft loan law The [Kurdistan] Regional Government [KRG] has shammed us and [Iraqi Prime Minister Mustafa Kadhimi against the Iraqi people and political parties.”

He also said that the Sunni and Shia blocs had said the KRG had not implemented any commitment to Baghdad. “That is why they do not show flexibility,” he said.

“Surely, if the Region does not abide by its commitments to Baghdad in 2021, the 320 billion Iraqi dinars will be cut off.”

(NRT Digital Media)

nrttv.com

Parliament sessions .. The House of Representatives sets the date for the voting session at 12:00 pm on the borrowing law

Baghdad / Obelisk:

Wednesday, November 11, 2020

The House of Representatives sets the date for the voting session at 12 pm on the borrowing law

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Kurdistan Alliance participates in the meeting of the Finance Committee on the financing of the fiscal deficit law

21:19 – 11/11/2020

0

Information / Baghdad

On Wednesday, the Kurdistan Alliance participated in the meeting of the Finance Committee and heads of the Shiite blocs regarding the vote on a law on financing the fiscal deficit.

“The delegation represents the Kurdistan Alliance, headed by Vian Sabri,” he said.

He added that “the Kurds stipulated that they would vote on the law by obtaining 320 billion dinars per month, which was rejected by most of the parliamentary blocs.” Ended 25 h

https://www.almaalomah.com/2020/11/11/504793/

Saudi analyst: The next stage will witness the implementation of a large number of projects in Iraq

140 Policy 11/2020 20:22

Baghdad Today – Follow-up 

The Saudi political analyst, Abdul Rahman Al-Melhem, said that the Republic of Iraq is a very important country for the Kingdom of Saudi Arabia, and they are linked to several joint files, while indicating that the next stage will witness the implementation of a large number of joint projects inside Iraq.

Abdul Rahman Al-Melhem said, in televised statements that were followed by (Baghdad Today), that “the meetings of the Iraqi-Saudi Coordinating Council Committee preceded the expected meeting between the Saudi Crown Prince Mohammed bin Salman and the Prime Minister, Mustafa Al-Kazemi, and the next stage will witness the implementation of a large number of projects inside Iraq. And the results of the recent meetings will have medical results for the Iraqi people. ”

The Saudi analyst pointed out that “Iraq is an important country for Saudi Arabia,” noting that “the kingdom is very interested in the neighboring countries with which it shares many files.”

On Tuesday, the Saudi Royal Court published the joint statement of the summit, which was held via closed circuit television, between Prime Minister Mustafa Al-Kazemi and the Saudi Crown Prince, Mohammed bin Salman.

According to the text of the joint statement issued by the meeting, “On the basis of the long-established and historical brotherly ties and ties between the Kingdom of Saudi Arabia and the Republic of Iraq, and between their brotherly peoples, and to strengthen the distinguished relations between them, a remote visual meeting was held between His Royal Highness Prince Muhammad bin Salman. Bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Minister of Defense in the Kingdom of Saudi Arabia, and Mr. Mustafa Al-Kazemi, Prime Minister of the Republic of Iraq.

The statement added, “The meeting was attended from the Saudi side by His Highness the Minister of Foreign Affairs Prince Faisal bin Farhan bin Abdullah, His Excellency the Minister of State, Member of the Council of Ministers, National Security Adviser Dr. Musaed bin Muhammad Al-Aiban, and His Excellency the Minister of Trade, Head of the Saudi side in the Saudi-Iraqi Coordination Council, Dr. Majid bin Abdullah Al-Qasabi, On the Iraqi side, it was attended by the Deputy Prime Minister and Minister of Finance, Dr. Ali Abdul Amir Allawi, head of the Iraqi side in the Saudi-Iraqi Coordination Council, the Minister of Foreign Affairs, Mr. Fuad Muhammad Hussein, and the Minister of Planning, Dr. Khaled Battal.

According to the statement, the Saudi Crown Prince, Mohammed bin Salman, and the Prime Minister, Mustafa Al-Kazemi, affirmed the two countries’ determination to strengthen relations between them in all fields, and they reviewed the work of the fourth session of the Saudi-Iraqi Coordination Council and the results of the previous three sessions of agreements and memoranda of understanding aimed at strengthening brotherly relations. Between the two brotherly countries, and they approved the results of the council’s work in its fourth session and the findings of the committees emerging from it (the Energy and Transformative Industries Committee, the Political, Security and Military Committee, the Cultural, Media and Islamic Affairs Committee, the Agriculture Committee, the Economic, Trade, Investment, Development and Relief Committee, the Education, Youth and Sports Committee, the Committee Transport, border crossings and ports, Financial and Banking Committee)

The statement concluded that the two sides affirmed “the importance of expanding and strengthening the horizons of bilateral cooperation in a way that serves the interests of the two countries and the two brotherly peoples in various fields, especially political, security, trade, investment and tourism, and building on what has been previously achieved positive results in the mutual visits between the two countries during the past period.”

The two sides also stressed “the importance of cooperation in the fields of energy, exchange of experiences and coordination of positions in the oil field within the scope of work of the Organization of Petroleum Exporting Countries (OPEC) (OPEC Plus) and full commitment to all decisions that have been agreed upon, in a manner that guarantees reaching fair and appropriate oil prices for exporters and consumers. In the global oil market, the Republic of Iraq also renewed its invitation to Saudi companies to invest in promising opportunities in Iraq and in various fields.

They affirmed the continuation of joint cooperation in confronting the threat of extremism and terrorism as an existential threat to the countries of the region and the world, and they agreed to continue supporting Iraq’s efforts in cooperation with the International Coalition to Counter Terrorism and Extremism. The two sides also stressed the importance of cooperation in securing the borders between the two brotherly countries.

The two sides agreed to “intensify cooperation and exchange views on issues and issues of concern to the two countries on the regional and international arenas, in a way that contributes to supporting and enhancing security and stability in the region and the world, and the need to keep the region away from tensions and seek to establish sustainable security. They agreed to continue communication and mutual visits to complete the bilateral consultations on the matter. The highest levels, to expand and pursue areas of joint cooperation in a way that serves the interests of the two brotherly countries.

The meeting included an emphasis on “strengthening coordination in the field of support and mutual support within the framework of multilateral diplomacy, especially for positions and positions in international organizations.”

According to the statement, “The Republic of Iraq appreciated the participation of the Kingdom of Saudi Arabia in the Kuwait Conference for the Reconstruction of Iraq, which was held during the period 12-14 February 2018, and its pledges and contribution to it, and it was agreed on ways to benefit from the outcomes of this conference regarding the promises and financial credit facilities launched by the Kingdom of Saudi Arabia. “.

The two parties agreed to “open a new port of Arar border, which will be inaugurated and operated after (7) days – God Almighty’s will – and the work of the Saudi Commercial Attaché in Baghdad will soon be inaugurated and started, as well as agreeing on a joint work plan to start work on it, and strive to start implementing The terms of the Greater Arab Free Trade Area agreement bilaterally between the two brotherly countries, and the formation of a joint business council between the two countries.

During the meeting, Iraq expressed its “thanks and appreciation to the sisterly Kingdom of Saudi Arabia for its initiative in the project (the gift of the Custodian of the Two Holy Mosques – may God protect him – to the Iraqi people) to build a sports stadium in Iraq, and an agreement is underway to lay the foundations for the start of the project, as Iraq appreciated the Kingdom’s response to cooperation between the two health ministries. In both countries, in the field of combating the Corona pandemic (COVID 19) and supporting Iraq by providing it with the necessary medical supplies to face this crisis. ”

At the conclusion of the meeting, the Saudi Crown Prince, Mohammed bin Salman, and the Prime Minister, Mustafa Al-Kazemi, stressed the importance of strengthening the relations that bind the two brotherly peoples in all fields and moving them forward to match the aspirations and visions of the leaderships of the two countries in a way that achieves common interests and enhances the security and stability of the region. And he will push the wheel of development for the benefit of the two brotherly peoples and achieve their prosperity. ”

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Parliament sessions .. Parliamentary Finance ends its discussions on the Deficit Financing Act and submits it to a vote

Baghdad / Obelisk:

Wednesday, November 11, 2020

Parliament Media Department: The Finance Committee ends its discussions on the Fiscal Deficit Financing Law and submits it to a vote in the House of Representatives session today

The Finance Committee holds a meeting chaired by Al-Halbousi to sift disputes over the fiscal deficit law

The House of Representatives completes the report and discussion of the Yazidi women survivors bill

The House of Representatives completes the report and discussion of the cabinet and ministries bill

The House of Representatives votes on the Air Force College bill

Parliament adds the draft law of Yazidi women survivors for the second reading on its agenda

Parliament holds its session chaired by Al-Halbousi

Al-Kaabi calls on the parliamentary blocs to vote on the borrowing law and to stay away from auctions

The House of Representatives postpones its meeting for half an hour

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