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A road map for solving the financial crisis

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A road map for solving the financial crisis Empty A road map for solving the financial crisis

Post by claud39 Wed Jul 15, 2020 12:40 pm


[size=36][rtl]A road map for solving the financial crisis[/rtl][/size]

Wednesday 15 July 2020

A road map for solving the financial crisis Alsabaah-39753

Muhammad Sahib al-Darraji, member of the House of Representatives

Given that the economic and financial situation in Iraq has reached the bottleneck stage, there must be solutions applicable to the near and far ranges, and through some professional experiences gained in the areas of executive and legislative governmental work, with accumulated experience of working in the private sector and touching the economic and service situation of the Iraqis at its various levels Here I would like to present a short-term roadmap to contribute to solving the financial crisis and protecting the economy of the country must be followed by medium and long-term measures to reform the Iraqi economy and find a clear economic doctrine for Iraq that changes the form of spending and financial resources for the country in a manner commensurate with the societal nature and global ruling conditions for energy prices and the diversity of means Production.

This plan is summarized as follows: -

First: The general budget

1 - A simple budget for construction and installation must be submitted and approved for the remainder of the year 2020 that clarifies the ruling real revenues and expenses and what relates to these two items only and the ways of filling the resulting deficit and without touching on any other items.

2 - Building a budget for the year 2021 on a sectoral basis and on a fixed oil price for the operational budget and a mobile for the investment budget, directing the budget for salaries, purchasing the ration and medicines, sterilizing water and the educational process only and listing items that encourage dependence on investment and the private sector to address other sectors so that these provisions govern the budget law All other laws and restrict them in favor of financing the unfunded sectors.

3 - Providing the final accounts for the past years and validating them to know the deficiencies in financing certain sectors in exchange for wasting other sectors in order to create an economic balance between the service and productive sectors. 


Second: - The cash block 

Withdrawing the mass stored in the society and trying to invest it in an investment through the following: -
1 - Raising the interest rate for cash deposits in banks even if the monetary authority is forced to support banks.

2 - Establishing projects in which the state contributes a certain percentage, and the rest is offered for subscription, especially in projects of city centers (dawn town) and major industrial projects such as petrochemicals (Nebras).

3 - Offering some of the winning companies (or that could win by changing the management tactic) for subscription like air navigation company, airlines, cement, fertilizers, and others.

4- Selling oil coupons locally. At the prevailing price now and buying it a year later at the prevailing price then.

5 - Building confidence between the state and the citizen by committing to pay interest and profits.

Third: - Oil licenses 

1 - Negotiating to postpone the dues of oil companies or pay them in kind outside OPEC's share.

2 - Evaluating company spending and reducing it to a minimum.

3 - Re-negotiation in consensual ways with oil companies to improve contract terms for the state when the oil prices drop.

Fourth: - Legislative procedures 

1 - Revoking the Coalition Provisional Authority's decision to ban the export of raw materials and the export of some materials, such as gravel, sand, and others.

2- Requiring the government to start licensing rounds to invest some mineral resources, such as phosphates, and others.

3 - Preparing a new salary scale that takes into account the economic situation and achieves social justice and encourages the employee to leave the job with a set of privileges outside the framework of the job.

4- Prepare a special bill to reduce all allocations granted under previous laws by a certain percentage.

5 - Amending some transitional justice laws and laws that have concessions that are no longer needed.

Fifth: - Governance and automation 

1 - The Ministry of Finance issues the e-dinar for the purpose of collecting government revenues and fees and what distinguishes them from being non-negotiable in the market as cash and thus we have reduced corruption in this aspect as well as the state's knowledge of the value of those imports quickly, provided that it is issued by a government bank and not through companies Eligibility.

2 - Encouraging and organizing electronic payment, obligating banks and institutions to electronic payment, and encouraging sales outlets in the private sector to use electronic payment devices without commissions and ensuring that their accounts are fed by the national exchange in the central bank daily.

3 - The necessity of automating the ports and customs and linking them to any process of transferring the dollar or opening bank credits for the purposes of import and controlling the border outlets and preventing militias and gangs from controlling them.

Sixth: - Monetary policy 

A- The exchange rate

1 - Begin to gradually reduce the price of the Iraqi dinar to reach 1500 dinars against the dollar until the end of the year 2020 and review the economic situation.

2 - And then start another reduction up to 1,800 within 6 months.

3 - Then we study the possibility of deleting the zeros, so we end with a fixed price of 2 Iraqi dinars per dollar. 


B - Methods to address potential inflation and the effects of the devaluation of the Iraqi dinar, so that this procedure is accompanied by the following steps: -

1 - Increase the nominal salaries for grades five to nine and increase the salaries of the social protection network by 12% to reduce the impact of potential inflation on the classes

2 - Amending the currency selling mechanism to maintain the hard currency inside the country and that the dollar and other foreign currencies are sold and traded directly in the currency markets or through the stock market in order to get a real price of the Iraqi dinar against the US dollar and that the guarantor of the prices is the value of the available reserve The Central Bank of Iraq has hard currency.

3- Government projects pricing in the investment budget in dollars and financing the exchange units budget for the investment budget in dollars.

4- Setting an import platform, stopping some imports, controlling customs outlets, supporting the tax system, and exempting the local product from income tax for a period of two years.

5 - The state imports commercial foodstuffs into the market and injects it into the ration program in the event of high prices.

6 - Supporting fuel for public transport, factories and irrigation projects, and giving high relative importance to the food industries.

7 - Pumping a hard currency to the exchange markets to maintain the price level of the Iraqi dinar, which prevents price fluctuation due to possible speculation.

8 - Activating the role of economic security and entering the relevant government agencies to control the cash rhythm in the currency market and the food market.

Seventh: State property 

1 - Optimize unexploited government assets from real estate, buildings, vehicles, furniture, etc. by selling them or entering into investment partnerships. 

2 - Sale of lands that were overlooked for those overruns at the same rate to give an excuse for recovery from those who do not pay (and vice versa it cannot be recovered and the outposts returned)

Eighth: The private sector 

1- Raise the credit limit of government banks to give loans.

2 - Activating the central bank loan initiative and easing guarantees for industrial, construction and agricultural projects, while controlling payments and linking them to completion rates and opening credits to move the private sector.

3- Finding ways through joint financing or external borrowing to finance government-funded projects and completing projects with proportions

4- Reducing the restrictions of letters of guarantee and their expenses for ongoing unpaid advances due.

5 - Displaying productive projects for the purpose of investing them by the implementing agencies in exchange for completing them and entering the service.

6 - Moving the housing fund and real estate bank loans to move the construction sector, which withdraws unemployment, being the largest operator 
For employment.

7 - Increasing taxes on imported commercial products and reducing them from imported raw materials to encourage the national product.

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A road map for solving the financial crisis Empty The relationship: the devaluation of the dinar should not be the first line of defense to confront the financial crisis

Post by claud39 Wed Jul 15, 2020 1:19 pm

The relationship: the devaluation of the dinar should not be the first line of defense to confront the financial crisis


A road map for solving the financial crisis 4248

Economy News - Baghdad:

The Governor of the Central Bank of Iraq, Ali Al-Alaq, stressed that the devaluation of the dinar against foreign currencies should not be the first line of defense to confront the financial crisis and bridge the budget deficit.

In a letter addressed to the former Assistant Secretary-General of the League of Arab States, Legal Adviser to the Prime Minister, Dr. Fadel Mohamed Jawad, and obtained by Al-Iqtisad News, Al-Alaq said that "by virtue of the responsibility of the central bank for monetary policy, the study and review of the exchange rate is an ongoing matter from Before formations of the bank and its board of directors based on in-depth studies that take into consideration all factors and variables, "indicating that" the exchange rate is not a sacred matter so that it cannot be compromised. "

He added that "the devaluation of the dinar against foreign currencies should not be the first line of defense, nor should it be a means to bridge deficits, shortcomings and failures in the performance of other financial, commercial, investment, tax and customs policies", explaining, "easy solutions that achieve a financial value must not be used Limited at the expense of damage to all segments of society caused by inflation, especially the fragile and poor segments. "

He stressed that "we note the inaccuracy of the (some) account of the reduction achieved by the dinar from resources to the public budget, as the correct calculation is to subtract from the total dollar revenues the share of oil companies, which amounts to 14 billion dollars annually and the payment of debts, interest and external liabilities amounting to more than 5 billion Dollars, in addition to the equipment and materials imported by the government, such as oil derivatives, ration materials, etc., the net of this amount strikes at the new price of the dinar, ”noting that if the dinar’s value is reduced to 1500 dinars per dollar, the difference that the Ministry of Finance obtains from the difference is 5 trillion dinars.  

He noted that "the devaluation of the dinar against the dollar will lead to protection and stimulation of the local product is something that many notes suffer because this measure is used by some countries to encourage exports and in the case of Iraq the goal is to provide ingredients to stimulate domestic production and protect it from dumping policy practiced by exporting countries, especially neighboring countries, This goal will not be achieved by reducing the value of the dinar because the price difference is because of the dumping policy or because of the depreciation of the currency of these countries in a very large way. "

Al-Alaq called for controlling random imports and stopping the dumping policy by controlling the border outlets, as the number of unofficial border outlets is more than official and strict application of customs duties is an effective application of the laws of protecting the product and the consumer and combating dumping.  

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A road map for solving the financial crisis Empty Al-Nusairi: proposes a road map to overcome the economic crisis and activate and stimulate the private sector

Post by claud39 Sun Jul 19, 2020 9:45 am

Al-Nusairi: proposes a road map to overcome the economic crisis and activate and stimulate the private sector


A road map for solving the financial crisis 22000

Economy News _ Baghdad

The economic and banking advisor to the Association of Iraqi Private Banks, Samir Al-Nassery, proposed a road map to overcome the economic crisis that the country suffers from, activate and stimulate the private sector, and participate in the management of the economy and economic decision-making.

Al-Nusairi, in a televised interview followed by “Economy Us,” identified urgent and strategic solutions to address the current complex economic situation and overcome the accumulated challenges due to the accumulations of the past seventeen and current years due to the drop in oil prices by more than 60% of its prices before the outbreak of the Corona virus, suggesting the following: -

Urgent treatments Immediate:

 Preparing an emergency budget based on the expected revenues from the marketed oil for the year 2020 at the minimum price expectations. A monthly balance is approved from which to spend according to the specified priorities and reducing government expenditures by 50%, special, salaries, allocations and benefits, and from the rank of general manager up and put in place a new salaries salary.

And excluding the salaries of employees in the lower and middle levels, retirees and social welfare from the reduction and securing the sums for facing the Corona epidemic of the Ministry of Health, and securing the sums allocated to the reform decisions that the resigned government committed to implement the demands of the demonstrators.

And coordination between the financial and monetary policies to maintain the stability of the exchange rate and maintain the standard adequacy of the foreign monetary reserves of the Central Bank and determine the rates of internal borrowing and external borrowing.

Stopping the import of semi-essential and luxury items, and restricting the import of ration card materials, medicine, and medical supplies, while increasing the food basket for the Iraqi family. And excluding the cadres and economic and health career experiences and higher education from the law referring them to the retirement implemented as of 1/1/2020. 

Al-Nusairi also drew a road map for strategic economic remedies as follows: - The
need for a systematic movement to draw a road map for economic reform by the Iraqi elites and economic, financial and banking efficiencies and for economic mobility to be based on several important economic pillars that adopt a new methodology for managing the economy and achieving the central goal of creating Sustainable development, achieving diversification of resources, developing economic and human structures in order to properly build the national economy and build the introductions to the transition to a social market economy.

And drawing a realistic and ambitious road map that depends mainly on managing and distributing public money in a transparent and fair manner, provided that the beneficiaries in the results and outputs of the people and that the citizen feel that his national economy, resources and goods are dedicated to ensuring decent living as mentioned in the articles of the permanent Iraqi constitution.

And the formation of the Supreme Council for Economic Reform to be enacted by a law binding on ministries to implement its decisions and has the power to monitor, monitor, and evaluate, and to be chaired and headed by an elite group of government experts and the private sector. Its first task is to develop policies and mechanisms to diversify the sources of financing the public budget and not to rely on oil only.

And the transition to the central administration of the economy so that the principle of (centralization of planning and implementation decentralization) is implemented, and this means that the Supreme Council for Economic Reform takes charge of drawing plans and policies centrally and distributes their implementation to specialized councils for reconstruction and investment and the implementation of development projects in the economic and human field and these councils are: -

* Private Sector Council 

* Construction Council  

* Small and Medium Enterprises Development Authority  
* Public Service 

Council * Local Product Support and Protection Council

 Creating and creating the investment climate for local and foreign investors, motivating and encouraging them and ensuring their contractual rights to attract their capital and protect them from the spoilers ’pressures, providing soft loans to finance small, medium and large projects, establishing a legal and institutional system to manage, develop, and develop them, as well as issuing and amending the legal environment laws to regulate the economic process, and here means issuing new laws instead One of the laws that was passed in 2004 due to the changes that occurred in the national economy during the past 17 years.

And activating investment in the agricultural and industrial sectors, energy, tourism, services and housing, as well as working to reform, develop and develop the banking sector through monetary policy applications and regulating the relationship and restrictions that govern financial and monetary policies, as well as a serious approach to reforming the tax, financial and customs system. And to address cases of failure to achieve the required growth rates in national income and exceed the rise in unemployment and poverty rates.

With regard to the private sector, Al-Nassery affirmed the support, development and motivation of the private sector and benefiting from its capabilities, capabilities, capital and investment capitals in building the national economy and involving it in the management of the economy through its representation in the Council of Ministers and the Economic Affairs Committee and opinion bodies in the economic ministries and governmental follow-up committees to follow up on the decisions of the Economic Cabinet .

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