"I TOLD YOU SO FAMILY... THE MEDIA IS NOT TELLING US THE WHOLE TRUTH" BY FRANK26, 30 MAY

KTFA

FRANK26:"I TOLD YOU SO FAMILY... THE MEDIA IS NOT TELLING US THE WHOLE TRUTH"....F26

In 11 important points.. What the official Iraqi media did not tell you about the latest International Monetary Fund report

 

5/29/2024

 

Economic researcher Ziyad Al-Hashimi said today, Tuesday, that the latest International Monetary Fund report No. 2024/128 on Iraq included observations about the problems, negatives, and challenges facing the Iraqi economy that the official Iraqi media did not tell you about.

In a blog post on the “X” platform followed by “Jarida” , Al-Hashemi mentioned 11 observations contained in the report as follows:

First: The public finance balance witnessed a decline from a surplus of 10.8% in 2022 to a deficit of 1.3% in 2023 due to a decrease in oil revenues and a 5% increase in spending due to the expansion of government appointments and the increase in salaries.

Second: There could be declines in oil prices and Iraq’s export quotas during 2024, which will lead to pressure on Iraqi public finance accounts, which consume the largest share of oil funds, which will cause a clear financial deficit!

Third: Iraq needs the price of a barrel of oil to rise by $14 to reach the price of ($94) so ​​that it can cover the expenses required in the three-year expansionary budget. Otherwise, there will be an realized deficit that may force the government to borrow or search for other sources of financing!

Fourth: It is expected that the public finance deficit will reach 7.6% and that (public debt) will double from 44% in 2023 to 86% by 2029 if the Iraqi government continues on the same path and oil prices remain below the $90 level.

Fifth: Obstacles are still great in developing the private sector and non-oil sectors in the absence of effective economic measures and policies that push the economy towards real diversification in sources of financing and reducing high dependence on oil!

Sixth: The Iraqi government is required to reduce spending, not expand appointments and salaries, establish buffers to protect state finances, focus on necessary investment spending, and expand taxes, collections, customs, and other non-oil sources of financing.

Seventh: The impact of the central bank’s monetary policies is still weak in withdrawing excess liquidity, due to the huge amount of cash available in the markets, weak confidence in the banking system, and the weak performance of local banks!

Eighth: Iraq needs to stimulate the private sector, absorb employment through it, stimulate non-oil exports, and implement programs to protect the economy from the shocks of fluctuations in the price of a barrel of oil!

Ninth: Accelerating the pace of reform in the financial sector by structuring and modernizing Iraqi banks, supporting banks’ relationships with correspondent banks, structuring government banks, and enhancing corporate governance applications. (KTFA FAMILY... TAKE NOTE WORLD BANKS ARE HEAVILY INVOLVED & SUPPORTING IRAQI BANKS IN THE SECOND PHASE OF THE MONETARY REFORM"...........F26

Tenth: Implementing comprehensive reforms that regulate exchange rates,combat corruption, prevent money smuggling and laundering, and close outlets for wasting public money by enhancing the independence and role of financial oversight and integrity institutions, judicial institutions, and public governance.

Eleventh: Removing obstacles that prevent the implementation of real reforms in the electricity sector to improve its efficiency, recover its costs, develop its infrastructure, and ensure continuous and stable access to electricity for citizens.

Economist Ziyad Al-Hashimi commented in conclusion, “This report re-examined serious structural problems and presented important and necessary recommendations to the Iraqi government, but we do not know whether they will be taken into consideration, adhered to and implemented, or will they be ignored like the rest of the previous international recommendations?” We wait and see.”

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