Thread: Archive News - Iraqi Dinar Think Tank - 06/05/09 - 04/09/09

The Finance Ministry has accused the Ministry of Oil is responsible for the budget deficit

Led the Ministry of Finance and the Ministry of Oil for the state's budget, accusing it of not being able to increase the quantities of exports, although Iraq is excluded from production quotas, leaving a shortfall of ten percent.

The ministry said in a statement that the estimates of the Ministry of the quantities of oil-exporting two million barrels a day set, adding that the Oil Ministry is responsible for developing estimates of the quantities exported. "But the oil ministry had not been able so that the shortfall in the quantities exported in the cause of the budget deficit amounted to ten percent." The The Ministry of Oil has not been able to take advantage of all of Iraq is excluded from the oil production quotas of the Organization of Petroleum Exporting Countries. It considered that this figure does not commensurate with the small oil wells began to dry, Iraq floats on lakes of crude oil. The government had to reduce the size of the public budget for the current year for the third time within three months because of the decline in oil prices, which is the main revenue for Iraq.

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Everyone is responsible for the proliferation of administrative & financial corruption in Iraq

A member of the Iraqi Council of Representatives, Anwar Ahmed that everyone is responsible for the proliferation of administrative and financial corruption in Iraq, adding that the fight against this dangerous phenomenon requires time and effort and solidarity of all state institutions to eliminate them.

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Zebari: Commission on oil & gas & in the subject of interrogation of al-Shahristani

A member of the House of Representatives Abdul Bari Zebari said the Iraqi Commission on oil and gas and in the subject of interrogation of Iraqi Oil Minister Hussain al-Shahristani.

The industrial water to the doubts of many members of the House of Representatives and to the inability of citizens to benefit the ministry of higher oil prices that took place in the world market.

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Iraqi government rejects the province of Kurdistan, the supply of gas through the Nabucco pipeline

Government spokesman Ali al-Dabbagh said Iraq refuses to agreements signed by the Government of the Kurdistan region of Iraq with Crescent Petroleum Company and the UAE's Dana Gas, which may lead to supply gas to Europe via the Nabucco pipeline.

He said al-Dabbagh said Iraq plans to supply gas to Europe, but the plans will not include companies that have signed agreements with the Government of the province independent of the central government.

Dabbagh pointed to the need to apply the standards and the Oil Ministry and not the provincial government or other criteria, indicating that the central government to reject any agreement that does not include the Iraqi Oil Ministry.

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Royal Dutch Shell: gas deal with Iraq is moving forward

Vice President of the company (Royal Dutch Shell) Malcolm Prendd the deal amounting to billions of dollars between the company and the Iraqi government to develop a gas infrastructure in southern Iraq is moving forward.

Prendd said on the sidelines of the World Economic Forum in Jordan that the company will attend the meeting on Iraq to be held in Baghdad, the end of June, to submit offers for the oil and gas fields in Iraq, President.

The Shell and the South Gas Company in Iraq last September concluded a preliminary agreement for the production of gas in the oil fields in Basra province, the President said.

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Vote on the dismissal of Minister of Trade will be next week

Another member of the Kurdistan Alliance, Mahmoud Othman, to vote on the dismissal of Minister of Trade will be next week.

Osman said in a telephone conversation with "Radio Sawa" that the members of parliament will discuss the issue before voting on it:

Osman ruled out that the parliamentary blocs to take a "political" issue, Commerce Minister, pointing out that it "will be up to Congress to decide each and every one according to his conviction":

The deputy, Mahmoud Othman, who declined to give his position on the charges of corruption made by the Integrity Committee to the Minister stated:

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Ratified in the financial forecast ....Price of a barrel of crude oil exceeded the v (50) dollars,"

Is no secret to anyone that the main source of Iraq in achieving its financial resources in foreign currency is a form of crude oil has more than (90%) of the income of public budgets of the State in Iraq for the period 2003 2008.

The t of the global financial crisis on the repercussions of the Iraqi economy and was the first of those challenges is the impact on the price of crude oil This basic source of the budget, where a barrel of crude oil has lost nearly 60% of its value in the July 11, 2008 peak of $ ((147.5 Dollars per barrel compared to a decline of $ 40 a barrel in January 2009 which resulted in revision of total federal budget for 2009 for three times and the reduction of the total budget Initially of 79 billion dollars to 67.5 billion dollars and then to 62 billion dollars to 58.5 billion dollars, with the assumption that the export price of crude oil (50) states of the barrel rather than "the price previously supposed," of (80) dollars per barrel one.

This means that the deterioration of oil prices due to the global financial crisis to make the turns of thought in another direction in 2009 Vemoazinp designed several times with the decline in the prices of crude oil means that Iraq's budget fluctuate as the volatility of crude oil prices in the world. Note "that the track is the policy of the budget difficulties fluctuations in oil prices is known that the budget assigned to the fixed and variable cost. Falclv difficult to destabilize fixed for it contains the salaries and emoluments, pensions and wages with the ration card allocations and other expenditures of the ruling Movement therefore be variable costs.

Now, after we entered the second quarter of 2009 increased oil prices crude above 50 dollars "per barrel, which means that the Ministry of Finance was accurate in their estimates of the price of a barrel of crude oil to $ 50 at the 2009 budget estimate. It is known that inaccurate budgets have led to the national economy at risk if the estimates are incorrect. To be said that the estimates of the quantities of crude oil exporting approved b (2) million barrels per day, "by the Ministry of Oil It is the body responsible for developing estimates of the quantities of oil exported, however, the oil ministry had not been able to exceed the ceiling of export (1800 1825) million barrels per day, "this lack of quantity exported cause a deficit" in the amount of the budget (10%) were able to take advantage of the oil ministry, the final "Iraq is excluded from the quota of oil production in OPEC and Valumblyon HUNDRED barrels per day," or little more than "it has become Tootma" Oil "is not leaving Which is not commensurate with the oil until a small, but that the States entered the era of aging oil wells began to dry up to rates equal to the export by Iraq, a country that floats on the lake of crude oil, which Iraq has been deprived of the possibility of manipulation in the equation (the price and quantity), where offset by a lack of other components and if we have over the current price to (50) dollars a barrel and while it can be settled between the price (75 80) dollars per barrel, the rate of access to the export limits (2.5 3) million barrels per day, "at a minimum provide the margin of maneuver to be in Iraq and allow it access to a reasonable size of the resource Assembly for the tunnels without severe deficits authorized by the Ministry of Finance was accurate in their estimates of when the public budget was estimated price of a barrel of crude oil (50) dollars a barrel, noted "that many members of the House of Representatives and the Iraqi specialists in economic affairs Predicted that the price of a barrel of crude oil in 2009 between the (2530) dollars per barrel, despite the statements of many officials that there is exaggeration in estimating the price of a barrel of crude oil at The numbers of the general budget for 2009 note that "the Ministry of Finance has the resources of the public budget to maximize the non-oil taxes, fees and the banks.

Therefore, if the survival of the oil ministry has promised to produce the low access to energy for export, the major challenges to the Ministry of Finance in the development of federal and state budget will be a year of 2009 could be a result of transit and existing reserves, but would be a real problem in 2010 with more optimistic views, "the roof of the crisis between the time at least two years of concerted global efforts to overcome the crisis and will appear before the Iraq among other challenges including the following:

1 that the registration of the general budget of the State in Iraq deficit "of $ (10%) will show some issues of economic policy in Iraq, far-reaching with regard to the role of the State in the development of a rational economic policy and a prudent and based on scientific and logical, which need to be thinking carefully by the government," and developed a serious form of the right away " on the impacts of severe global financial crisis.

2 will be the basic source of income to the serious decline over the next two years is the period 2010 2011 is likely to recover after the global economy and this means that the relaxation that accompanied the oil revenue in recent years and which were not due to our activity in the extraction and export, but due to high prices is over completely, "is no longer possible to trust the presence of high oil prices.

3, the lack of public resources offset the possibility of high rates of public expenditure could be highlighted in terms of security commitment to withdraw forces under the coalition security agreement in mid-2011 and this means that the force security number "and armed" must be integrated during this period, when we know that the level of armament is still in the offing and that the conditions "are not many military so far, will be formed before the withdrawal so that the size of tunnels is required in addition to the expenditure sections of pressing Salaries, wages and support of the ration card and the network of social protection and compensation and the payment of debt and the other will be heavier, "the government.

4 it will be possible during the 2009 transit of the boat is available from the reserves but the real problem will arise later in the year 2010 the expenditure side, both in the operational or capital spending, especially" and that he can not be political and social action in sharp austerity budget Citizens pay the price under the difficult circumstances in which the citizen is not likely additional burdens and reduce the investment ceilings would decline "in the reconstruction process, especially" for the contingent of tunnels, which were able to achieve high rates of recent years.

That the development of the Iraqi economy and the lack of production system to provide the goods and services are never allowed "to pursue any method other than increase oil production at the present time there is no deficit financing and issuance of cash and borrowing the tools of internal and external positive adhaan all previous tools have devastating effects on the Iraqi economy, for example, the request Vhafz "will lead to an increase in import that we do not have a flexible production system that responds to the needs of the market and provide goods and thus increase the need for creating employment and other income thus create a flourishing economy is to have the opposite will happen with the rest of the flood our productivity because of unfair competition with imported goods and the money goes to import

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Government cannot use monetary reserves at CBI – expert

The Central Bank of Iraq (CBI) Law prevents lending the government from the monetary reserves, a director general from the CBI said on Tuesday.

“Article 24 of the CBI’s law prevents lending the government and its institutions inside and outside Iraq any amount of the CBI’s monetary reserves,” Waleed Edan told Aswat al-Iraq news agency.

“The CBI is an independent bank, and any authority cannot intervene in its policies or monetary reserves,” he added.

The Iraqi oil minister, Hussein al-Shahrestani, has recently announced that the cabinet might use its reserves of foreign currencies to support the budget if oil prices did not increase.

http://en.aswataliraq.info/?p=113370

Economic Commission describes the interrogation of the Minister of Trade as the first step forward

Deputy Chairman of the Economic Committee in the House of Representatives we Yonadam Kanna said the continuing oversight of his work in the follow-up questioning, and officials, calling the recent questioning of the Minister of Commerce as a first step forward.

He said in an interview we were told the independent press (Iba) today, Tuesday, that the work of the House of Representatives is to identify the shortcomings and the government is that the significance of ordinary citizens through the disclosure of financial and administrative corruption that drained large amounts of money.

House of Representatives called for activating the articles of the Constitution, such as freedoms and rights of citizens and the cooperation between the authorities and said that the coming days will host a number of officials. He said that legislative action to resolve the problems of citizens is a step in the work of the President of the Council during the current period in addition to activating the role of oversight.

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Originally Posted by Seaview

Iraqi government rejects the province of Kurdistan, the supply of gas through the Nabucco pipeline

Government spokesman Ali al-Dabbagh said Iraq refuses to agreements signed by the Government of the Kurdistan region of Iraq with Crescent Petroleum Company and the UAE's Dana Gas, which may lead to supply gas to Europe via the Nabucco pipeline.

He said al-Dabbagh said Iraq plans to supply gas to Europe, but the plans will not include companies that have signed agreements with the Government of the province independent of the central government.

Dabbagh pointed to the need to apply the standards and the Oil Ministry and not the provincial government or other criteria, indicating that the central government to reject any agreement that does not include the Iraqi Oil Ministry.

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Interesting,

We are starting to see the people behind the constant blockade of progress on the oil law issue. Dabbagh is mouthpiece for ali-Shahrestani
who is thorn in side of all progress with oil contracts bickering back and forth with Kurdistan for past couple years due to sectarian divide. Heads have to roll on this obvious threat to any progress drilling and exporting oil and gas in the near future.

Success to all, Mike