Iraq’s credit rating lifts with final reparations payment to Kuwait

Iraq paid Kuwait a final installment of war reparations more than 31 years after the invasion of Kuwait, which may free up funds for new domestic projects. 

Ahmad Al-Rubaye-Pool/Getty ImagesAdnan Abu Zeed 

January 12, 2022

Iraq’s economic situation in 2022 should benefit from Baghdad’s paying the final installmentof compensation to Kuwait for the invasion of 1990.

On Dec. 22, the Central Bank of Iraq announced the final payment to Kuwait, amounting to $52.4 billion, more than 31 years after the invasion of Kuwait [THE $54 BILLION IS THE FINAL PAYMENT, OR CUMULATIVE PAYMENT?]

Mazhar Muhammad Salih, a financial adviser to Iraqi Prime Minister Mustafa al-Kadhimi, told Al-Monitor that the payment has boosted Iraq’s credit rating, and added, “Accredited international rating agencies placed Iraq within the B zone and developed to the international financial community a positive outlook on Iraq’s financial capabilities.”

Despite the payment, Salih pointed out that Iraq is still carrying a debt on the books with international creditors, although that could be resolved soon. “This debt is nominally owed to about 12 countries, including four Gulf countries, and belongs to the pre-1990 period,” he said. Under the Paris Club agreement signed between Iraq and its international creditors, the amount should be written off by 80 percent, or $41 billion, so “then it would be equivalent to only $8-9 billion as a result of the Iran-Iraq war, and I expect it to be completely written off.”

Salih believes added, “The annual cumulative amount of these compensations provides at least $2 billion on an annual basis, which benefits Iraq’s budget, be it in settling the upcoming annual foreign debt dues or in providing sums that go to productive investment projects.”

“Settling compensation debts improves the country’s financial capabilities so long as these are employed in development and investment projects,” Salam Sumaisem, a former economic expert at the General Secretariat of the Iraqi Council of Ministers, told Al-Monitor. “The upcoming financial abundance should not be wasted like many opportunities were wasted over the past years.”

Abbas Abboud, an academic and editor-in-chief of the Iraqi newspaper Al-Sabah, told Al-Monitor that “the final payment will reduce the psychological impact on Iraqis and will push toward balanced political relations with the Gulf countries in general and with Kuwait in particular.”

Qassem al-Gharawi, a political analyst from the Iraq Institute for Strategic Studies, told Al-Monitor that “there are government parties trying to redirect the funds that were intended for the settlement of compensation toward establishing sovereign funds for generations to come.”

However, he said that the money formerly earmarked for Kuwait would be better placed in a program for profitable and sustainable development projects  outside the government authority.

Manar al-Obaidi, an economic analyst and official spokesperson for the Extension Movement, told Al-Monitor that the settlement will increase Iraq’s income, “especially considering that 5 percent was deducted from oil sales to pay such compensation.” Iraq’s foreign debt has fallen to $20 billion or about 15 percent of GDP, which he called “a low percentage compared to other countries.”

But, he added, “the fact remains that growth in infrastructure facilities and services is still low.”

Hussein Thagheb, an economic media specialist and economic editor for the Iraqi Assabah newspaper, told Al-Monitor that the former compensation money could be used to support “small and medium-sized enterprises, provided such enterprises are subject to monitoring and appraisal.”

Thagheb believes that “the financial policy needs reforms and clarity as far as performance is concerned. Financial experts and international consultations should help formulate financial policies. Also, the budget law needs reform so that public revenues support economic advancement.”

Most of Iraq’s debts resulted from the uncalculated military adventures of the former Iraqi regime. The final payment to Kuwait could lead to a financial abundance, if the economic decision-making process is reformed away from the routine administrative mentality.

Read more: https://www.al-monitor.com/originals/2022/01/iraqs-credit-rating-lifts-final-reparations-payment-kuwait#ixzz7Hj55Ofrl

https://www.al-monitor.com/originals/2022/01/iraqs-credit-rating-lifts-final-reparations-payment-kuwait

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The World Bank warns of the repercussions of the mutation: it may be worse than the slowdown in the economy

 ahad739 minutes ago

Today, Tuesday, the World Bank warned of the impact of the Omicron mutation on the global economy, noting that the repercussions of the Omicron mutation may be worse than the slowdown in the economy.
The International Foundation said that global growth will slow this year and did not rule out a worse scenario after the impact of the mutation that continues to spread in all continents of the world, exacerbating the shortage of labor and supply chain problems, according to “AFP.”
The World Bank revised its forecast for global GDP growth for 2022 by reducing it by 0.2 percentage points, to 4.1 percent, after reaching 5.5 percent last year.
According to various assumptions, the simultaneous economic disruptions caused by Omicron could reduce global growth this year by 0.2 to 0.7 percentage points,” according to the World Bank, which will lead to a decline in growth to 3.9 or even 3.4 percent.
In its World Economic Outlook report, the bank stated that if the worst-case scenario materializes, “the shock will be felt, especially in the first quarter of 2022, followed by a noticeable recovery in the second quarter.”

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Al-Halbousi receives UN congratulations on his re-election as Speaker of Parliament

political| 06:32 – 11/01/2022

Baghdad – Mawazine News

On Tuesday, Parliament Speaker Muhammad al-Halbousi received a congratulatory letter from the Special Representative of the Secretary-General of the United Nations in Iraq, Jeanine Hennis-Plasschaert; On the occasion of his re-election as Speaker of the House of Representatives in its fifth session, the
text of the telegram, which was received by Mawazine News, stated, “On behalf of the United Nations Assistance Mission for Iraq, I would like to extend my congratulations to you for your re-election to the position of Speaker of the Iraqi Council of Representatives.”
She added, “The United Nations has long enjoyed a positive and constructive relationship with your office, and I look forward to continued cooperation between us on many of the pressing issues facing Iraq at this delicate stage.”
And she added, “With my best wishes on the occasion of the New Year and a fruitful legislative mandate in the service of all Iraqis.” Ended 29/R77

https://www.mawazin.net/Details.aspx?jimare=181340

The Democratic Party rejects the renewal of Barham Salih and nominates Hoshyar Zebari for the presidency

01/11/2022 16:20

• number of readings 209
• Section : Iraq

Baghdad / Obelisk: The Kurdistan Democratic Party confirmed, on Tuesday, January 11, 2022, its refusal to renew Barham Salih’s post of the presidency of the Iraqi Republic, while referring to the candidacy of Hoshyar Zebari on one condition.

Party member Mahdi Abdul-Karim said in an interview that the obelisk followed that the candidate for the presidency of the republic, if there is no consensus between the two Kurdish parties, and the approval of the Kurdistan Democratic Party on a basis, will not pass.

He pointed out that there is an agreement between the Kurdistan Democratic Party and the Patriotic Union to nominate a figure acceptable to both parties, bring him to Baghdad and pass it in the parliament. 

He added that Barham Salih is only acceptable to the Union Party, and if it is insisted on, the Democrat will nominate Hoshyar Zebari for the presidency.

On Monday, the Patriotic Union of Kurdistan announced its unanimous nomination of Barham Salih to the post of President of the Republic for a second term.

The Presidency of the House of Representatives announced the opening of the nomination for the position of the Presidency of the Republic, noting that the election of the president will take place no later than the end of February 8th.

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The Iraqi parliament refers al-Mashhadani to the Parliamentary Conduct Committee

politicsbreakingIraqi parliamentMahmoud Al-Mashhadani 2022-01-11 06:59A-AA+

Shafaq News/ The presidency of the Iraqi parliament decided, on Tuesday, to refer the “eldest” speaker of the parliament, Mahmoud al-Mashhadani, to the Parliamentary Conduct Committee.

The Presidency of the House of Representatives said in a brief statement, received by Shafak News Agency, that it was decided to refer Representative Mahmoud al-Mashhadani to the Parliamentary Conduct Committee for violating the constitution and the parliament’s internal system.

And earlier today, Tuesday, the second deputy speaker of the Iraqi parliament, Shakhwan Abdullah, confirmed that the election session for the presidency of the Iraqi parliament is “legal and constitutional,” and indicated that Mahmoud al-Mashhadani had been replaced for his impartiality, according to an audio recording in parliament confirming that he is a candidate for the presidency of the parliament, and this does not qualify him to run. The session is to be entrusted with the management of the session to the second largest reserve, Khaled Al-Daraji. 

The coordinating framework, which includes prominent Shiite forces, rejects the outcomes of the last parliament session and the election of the Presidency, and considers them constitutionally invalid procedures. The framework stressed that it would appeal to the session and what it called the imposition of wills and exclusivity.

The parliament’s first session, from its fifth session, witnessed the election of Muhammad al-Halbousi to the presidency of the parliament for a second term, the leader of the Sadrist movement, Hakim al-Zamili, and the representative of the Kurdistan Democratic Party, Shakhwan Abdullah, as his two deputies. to the hospital.

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The Presidency of the House of Representatives decides to refer al-Mashhadani to the Parliamentary Conduct Committee

•  Time: 01/11/2022 15:48:05 
•  Reading: 520 times 

{Political: Al Furat News} The Presidency of the House of Representatives decided to refer Representative Mahmoud al-Mashhadani to the Parliamentary Conduct Committee for “violating the constitution and the internal system of the parliament.” 

Yesterday, Sunday, the House of Representatives held its first session in its fifth legislative session, in which the Presidency of the Council was elected from Muhammad al-Halbousi as president and Hakim al-Zamili and Shakhwan Abdullah as first and second vice presidents.

The head of the age, Mahmoud al-Mashhadani, fell ill, as a result of a stampede and attacks between members of various parliamentary blocs in the parliament session yesterday.

Al-Mashhadani decided, before the incident, to adjourn the session for deliberation after verbal altercations between members of the “Coordination Framework” and “the Sadrist Movement”, against the background of each party submitting a request to consider it the largest bloc in number, which is responsible for forming the government.

Al-Mashhadani won parliament membership in the recent elections for the “Azm” coalition, where he previously headed parliament between 2006 and 2009.

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Al-Rasheed directs his branches to sell “construction” bonds to citizens with interest to be paid every six months

•  Time: 01/11/2022 13:03:14 
•  Reading: 1,040 times 

{Economic: Al Furat News} Al-Rasheed Bank announced the resumption of work by receiving the purchase of {building bonds / second issue} from the public. 

And the media office of the bank called on the agency {Euphrates News} received a copy of it, “those wishing to purchase should review the bank’s branches in Baghdad and the provinces.”

He added, “The instructions set the value of the bond at 500 thousand at 6% interest paid to the customer every six months for a period of two years, and a bond in the amount of one million dinars with an interest of 7% paid every six months for a period of four years.”

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