Thread: Archive - Latest News Think Tank - 15/01/09 - 04/05/09

Beginning of the parliamentary session to vote on 2009 budget

Iraq's parliament held its usual, on Thursday, led by First Deputy of the Parliament Sheikh Khaled al-Attiya to vote on Iraq, the Federal budget in 2009.

According to the agenda of the meeting and received the agency (Voices of Iraq) a copy of which will be made during today's meeting to vote on the budget of 2009.

The House of Representatives completed the second reading of the draft federal budget law for 2009 at its regular meeting on (2-24), which completed the first reading of the budget at its regular meeting on (2-18).

It is noted that the federal budget for Iraq for 2009 has not been approved so far, amounting to 62 billion dollars (the dollar equivalent of 1170 dinars) was calculated on the basis of $ 50 per barrel price of oil.

The fiscal balance returned to the Council of Ministers (15/1/2009) to the demands of the presidency and the Ministry of Finance to increase the budget because it is not the prerogative of the House of Representatives to increase the budget.

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A conference in Basra to discuss the economic future

The Committee of support for the reconstruction of Basra, on Thursday, an expanded conference to discuss the economic future of the province, attended by new members of the Board of Directors of Basra and some government departments and civil society organizations and the working men and companies, the cultural center on the oil as a spokesman for the Commission on the age of Basra.

He said Fahd al-Rasheed told (Voices of Iraq) said that the expanded meeting of the Committee support for the reconstruction of Basra, "aims to develop ideas and visions about the economic future of Basra after the local elections and verify the security of the marked, allowing the launching of development projects and investment for all economic sectors."

"The conference was attended by most of the economic activities of Basra managers, businessmen, companies and civil society organizations as well as new members of the Council of Basra."

He explained, "has provided many of the research on the economic future of Basra by the University of Basra, and the Union of Businessmen, the Preparatory Committee of the Conference, as well as research by Mr. Tariq al-Musawi, the Committee for support for the reconstruction of Basra."

The-Fahd, "the conferees recommended that the new members of the Provincial Council, to give up the red-tape and bureaucratic behavior, which was one of the most important constraints in the previous period, also recommended the need to activate the private sector and seek to make it an inherent and Mhaitha for foreign investment, which seeks to invest in the province."

"The participants also commended the Commission on support for the reconstruction of Basra and its role in the implementation of many of the important projects of the province."

And the Commission services and support for the reconstruction of Basra was formed, headed by the Minister of State for Parliamentary Affairs Safa net debt, to coincide with the start of the process (outreach Knights) and the amount charged, regardless of U.S. $ 100 million to launch various services projects in Basra.

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Araji calls on the presidents and ministers to make a decision to dissolve the Parliament

Bahaa al-Araji called on Thursday to dissolve the House of Representatives for failing to discharge his duties.

Araji said in a press conference held today in Baghdad, said some of those who did not win the election of provincial councils (unnamed) is the reason behind the obstruction of the budget of 2009.

Araji Conference which was held for two minutes called the Presidency of the Republic and the Prime Minister to make a decision to dissolve the House of Representatives for failing to accomplish his work (as he put it).

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Government recognizes ongoing operations of administrative & financial corruption in Iraq

Iraqi government has admitted that Iraq is still in the administrative and financial corruption, despite efforts to eradicate it.

He said government spokesman Ali al-Dabbagh said "the fight against corruption has not ended in 2008 and will expire in 2009, stressing at the same time continuing to work to eradicate this cancerous tumor, which grew in the body of Iraq."

He said the effort by the government and Aptdoth since its inception it was clear in 2008 that reduced many of the big corruption, but he did not admit there is corruption in the Iraqi state.

Dabbagh said that the theme of this effort needs to be organized and tightly controlled as needed to control the House and the press and media censorship and control of Iraqi citizens and this is done by the Iraqi government already.

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Sinan Al-Shabibi - Iraq undecided on new IMF standby arrangement

* Oil price slump starves Iraq of funds
* Inflation slips to 9.2 percent
* 7.5 pct GDP growth in 2009 optimistic but attainable
* Iraq undecided on new IMF standby arrangement

BAGHDAD, March 5 (Reuters) - The slump in oil prices will force Iraqi officials to make more sober budget decisions at a time the country is seeking to rebuild from years of war and fuel broad-based growth, the central bank governor said.

Iraq relies on oil for more than 95 percent of revenue and Prime Minister Nuri al-Maliki's government is already grappling with tough decisions as it looks for ways to reconcile today's oil price outlook with spending priorities crafted last year.

"There will be a difficult transitional period, but it should give us an idea of how to take a more realistic attitude toward allocations and demands from the various sectors," Sinan al-Shibibi said in an interview late on Wednesday. "Of course, this occurs at the wrong moment because of the fact that Iraq actually needs to embark on huge projects and it will affect that. There will have to be reshuffling of the budget, and between investment and consumption."

An original plan to spend $80 billion in 2009 has already been shaved to $62 billion, but further cuts are likely needed. Lawmakers have been sparring for weeks on ways to cut costs without jeopardizing plans to undertake urgently needed reconstruction projects and provide basic services -- all while avoiding stoking instability by cutting public sector pay.

INFLATION DROPS

As Iraq emerges from the worst of the sectarian and insurgent violence unleashed by the 2003 U.S. - led invasion to oust Saddam Hussein, it is now focusing on creating jobs and plans to rebuild a shattered economy.

Shibibi said core inflation, which shot as high as 35 percent in the chaos after 2003, had dropped to 9.2 percent now. The bank has pursued a strong dinar policy, Shibibi said, in order to curb core inflation, which excludes fuel and transport. Iraq holds currency auctions through which it sets the exchange rate.

Iraq is also striving to reverse the dollarization of its economy since 2003. Today, the dinar is "very much in demand, and we think this is good for the economy and good for combating inflation," he said.

As inflation subsides, the bank has cut its policy interest rate to 11 percent from 14 percent in January, Shibibi said. But with retail lending still scarce, the bank's policy rate is seen mainly as a signal to banks in setting their own rates rather than the transactional tool it is elsewhere.

"We want now to encourage investment and lending in general but (the policy rate) will depend - I don't want to give an idea of the direction - on the results of inflation every month."

Shibibi said lending in Iraq's banking sector, still largely isolated from the rest of the world, was picking up, mostly in financing trade and some personal loans excluding mortgages. Increasing the availability of credit will be one key element for creating growth outside the oil sector, by far the biggest in dollar terms but which generates relatively few jobs.

Shibibi said the International Monetary Fund's December forecast for 2009 gross domestic product growth of around 7.5 percent was "probably optimistic" due to the global oil trend. "On the other hand, it will be attainable because there will be a big endeavour ... to increase (oil) production," he said.

Iraq has been courting major investment in its oil fields, which contain the world's third largest proven reserves, but short-term help is urgently needed to update aging facilities and boost output that remains below pre-invasion levels.

NO IMF DECISION YET

Shibibi said growth outside the oil sector, which the IMF expects will be 6 percent in 2009, "needs a lot of work".

Iraq has been spared much of the impact of the financial crisis due to its relative financial isolation, but it may be hurt by a slowdown in oil demand. Shibibi said that the growth of money supply in Iraq had probably slowed more recently.

Iraq has yet to decide whether it will seek another stand-by arrangement from the IMF, Shibibi said, but said such a decision could come when Iraqi officials meet shortly with the IMF.

Iraq is also due to begin repaying its remaining stock of Paris Club debt in 2011. Shibibi said he didn't expect that new obligation would pose a major problem.

"I really don't think it is very dangerous ... Of course the amount at the beginning will be relatively big, but we will have to manage that unless we restructure again," Shibibi said.

"The Paris Club debt was cancelled 80 percent, so we're talking about 20 percent. A few countries cancelled 100 percent, but the remaining debt from other creditors, we have to deal with that and probably there will be another restructuring."

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Ratification of budget & postpone discussion of the issue of Speaker to the next legislative term

House of Representatives approved the federal budget for 2009, a majority.

The MP said Adnan al-Jubouri Alhawwaalotunai Council: "The House of Representatives approved the budget after the reduction Bmkdarh 5 trillion dinars from the general budget of more than 4,2 billion dollars, with 7% of the amount of the budget.

He Juburi told the independent press (Iba) today, Thursday: "The Assembly of the budgetary sphere in 2009 is now after this reduction (58.6) billion dollars, excluding the discussion of a new speaker of parliament.

He said: "The matter will be deferred to the speaker the next legislative term.

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Central sales rise to 168 million dollars in the canteen

the U.S. dollar sales were recorded in the Central Bank of the auction sale and purchase of foreign currency, on Thursday, rose to 168 million and 535 thousand versus $ 97 million and 765 thousand dollars at the previous meeting.

The bulletin issued by the Central Bank and the Agency has received (Voices of Iraq) a copy of which was that "the total volume of demand for the dollar stood at 168 million and 535 thousand dollars at the exchange rate was stable compared to 1170 dinars per dollar."

The figure is up from the previous meeting, which recorded a total volume of demand for the dollar stood at 97 million and 765 thousand dollars at the exchange rate was 1170 dinars per dollar.

The Bulletin that "the distribution of demand for the dollar by 47 million and 300 thousand dollars in cash, covered by the bank at the exchange rate was 1176 dinars per dollar, including the central bank and a commission of six dinars per dollar."

With the value of remittances outside the country of 121 million and 235 thousand dollars, "covered by the central exchange rate was 1173 dinars, including the central bank and a commission of three dinars per dollar," did not make any of the 17 banks participating in the auction, offers to sell the dollar.

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IMF and World Bank review the financial situation in Amman for Iraq

World Bank and the International Monetary Fund with an Iraqi ministerial delegation on Saturday in the Jordanian capital Amman, an audit of the financial situation of Iraq and to improve the measurement of the level in the past three months in accordance with the Paris Club agreements.

According to the Jordanian Constitution newspaper published on Friday morning, the Iraqi delegation, which includes Finance Minister Bayan Jabr, Minister of Oil, Dr. Hassan al-Shahristani, and Central Bank Governor Sinan al-Shabibi, will present at the meeting "dealing with the files of a comprehensive financial status of the Central Bank of Iraq and the proportion of liquidity which, in addition the level of inflation rates. "

These meetings are every three months as part of the audit conducted by the World Bank and International Monetary Fund to finance the Iraqi files to measure the level of improvement in the performance of the Iraqi economy.

The International Monetary Fund decided at its meeting held on December 17 last December Madewenp write off the remaining belongings of Foreign Affairs of Iraq to reach the proportion of total debt write-offs in Iraq to 80%, marking the success of Iraq's economic program in the light of the final results of the review support arrangements for the Convention signed between Iraq and the IMF.

The Paris Club to reduce the rate of 60% of Iraq's foreign debts according to the first support (SPA), which ended in December 2007, and was scheduled to expire at the end of the second agreement, December 2008, Iraq required a tight monetary policies to reduce the other 20% external indebtedness, to be 80% of the total debt write-offs.

The Finance Minister Bayan Jabr said in the month of October last October that the Director-General of the International Monetary Fund, told him that the Fund will hand over the Paris Club, the end of the year report for the deletion of Iraq's foreign debt and the remainder, which represents 20% (30 billion dollars) from the reduction rate of 80%.

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Attorney-Yacoubi: ration card no more than a monthly income of those who are a million and a half million dinars

Deputy parliamentary bloc Fadhila Karim Yaqoubi transactions carried out in several sections of the budget, mainly to increase the share of the Ministry of Displacement and Migration estimated at (113) billion dinars to support the return of refugees and displaced persons inside Iraq and outside it, and increase the allocation of the amount of the Ministry of the Interior (35) billion dinars to accommodate the elements in the police Asahoat communities.

Yaqoubi He told the independent press (Iba) today, Friday, that "was to confirm a census in all parts of Iraq that did not exceed the duration of 31/12/2009 for the purpose of determining the budget in the future on the basis of the hearts of every province and territory, taking into consideration Mahromep suffered."

"It also abolished the validity of the competent Minister to refer an employee who has a service and at least 15 years of age (50) years of retirement in order to avoid arbitrariness in the use of this power, and decides that the law is being re-Alvsolin political (5) for the year 2006 and not subject to the approval of the Committee investigation of the Secretariat of the Council of Ministers. "

He pointed out that "the repeal of article relating to cessation of appointments in the federal ministries and non-related to the Ministry and the provinces, as well as stop was canceled appointments."

He stressed that the council "agreed on the distribution of the social safety net allocations to the provinces according to population ratios for each province and to move that the budget allocations of the Ministry of Labor and Social Affairs to the provincial budget, as approved on the share of each of the allocations and direct the ration card ration card to the layers needed and not given to citizens who have a monthly income of more than half a million dinars, both to employees of the State or the private sector. "

Attorney-Yacoubi said the Council "and also agreed to stop the exchange and all the tables Oighae civilian administrative structures and military are not based on legal cover in its composition, and the reduction of the salaries and emoluments of the four members of the governing body (the House of Representatives, the President of the Republic, the Prime Minister and Council of the Judiciary) by 20%, and reducing the salaries of members of the House of Representatives and the Minister and the Minister Badrjtahm, agents, consultants and general managers and owners of private grades Badrjtahm is 10%. "

He emphasized that "the balance of work is effective as of 1/1/2009."

The House of Representatives yesterday approved the federal budget for 2009 on Thursday (finally) ..

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Iraq and Jordan discuss the files of their outstanding Financial

start in the Jordanian capital Amman on Saturday, an Iraqi-Jordanian talks on the issue of financial standing between the two countries, especially the files of the debt and the remaining Iraqi assets frozen in Jordan, a Jordanian newspaper reported on Friday.

The newspaper said "the Iraqi-Jordanian talks will take place after the conclusion of talks by other Iraqi delegation headed by the Minister of Finance Bayan Jabr, Minister of Oil, Hussain al-Shahristani and Iraqi Central Bank Governor Sinan al-Shabibi, the Jordanian side will be represented by the Minister of Finance on behalf of Salem and the Central Bank Governor Touqan illiterate."

According to the Constitution, according to the newspaper, the talks will discuss the issue of financial standing between Amman and Baghdad for several years, and the two sides would seek to settle all the items on it and hold a dialogue on economic relations between the two countries.

The newspaper added that the financial issue between the two countries, the "benefits the Central Bank of Jordan and his Iraqi counterpart on the benefits of the private sector in the Kingdom of the Iraqi government, as well as what remains of Iraqi assets frozen in Jordan."

The Iraq and Jordan had agreed earlier in the importance of setting a specific timetable for the settlement of all outstanding issues and submit proposals to facilitate the settlement procedures.

It is estimated that the volume of Jordanian debts to Iraq by about 1,3 billion dollars, a commercial debt of the Central Bank was due to his coverage of the Jordanian merchants in return for benefits that have been exported goods to Iraq, while Iraq has said most of these debts are debts of the former and not the Iraqi state, which known as "odious debt."

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