AN OVERVIEW OF THE IRAQ'S ROADMAP FOR FINANCIAL SUSTAINABILITY IN THE IRAQI BANKING SECTOR 2024

DINAR REVALUATION REPORT: THE IMPORTANCE OF REGULATE IRAQ'S GOVERNMENT BANKING SECTOR, 28 AUGUST

 Minister of Finance Stresses Importance of Regulating Iraq's Government Banking Sector in 2024

In August 2024, Iraq's Minister of Finance, Taif Sami Mohammed, emphasized the critical need to complete plans aimed at regulating the work of the government banking sector. 2 This move is part of a broader strategy to strengthen the private sector and attract foreign direct investment, which has been a recurring theme in Iraq's development strategies since 2006. 1

Background on Banking Reforms

The Iraqi government has intensified its efforts to reform the banking sector, recognizing the importance of addressing exchange rates and enhancing the overall efficiency of financial institutions.  3 These reforms are not only crucial for stabilizing the national economy but also for improving Iraq's international standing and investment climate.

Digital Banking Regulations

In line with global trends, the Central Bank of Iraq launched regulations governing the licensing of digital banks on March 28, 2024. 4 These regulations are designed to foster innovation while ensuring a robust regulatory framework that protects consumers and maintains financial stability. Digital banking is viewed as a key component of modernizing Iraq's financial sector.

Partnership with European Bank

The Minister of Finance also highlighted the importance of partnering with international institutions, such as the European Bank for Reconstruction and Development (EBRD), to support the government's economic diversification plans. 5 By leveraging foreign expertise and capital, Iraq aims to strengthen its private sector and accelerate digital transformation in the financial infrastructure.

Challenges and Opportunities

Despite these positive steps, Iraq continues to face significant challenges, including institutional weaknesses, fiscal constraints, corruption, and governance issues. 6These factors have historically impeded development efforts. However, the government's renewed focus on banking sector reforms and international partnerships represents an opportunity to overcome these barriers and pave the way for a more prosperous and diversified economy.

In summary, Iraq's Minister of Finance is driving forward comprehensive plans to regulate the government banking sector, recognizing the critical role of financial stability in national development. By addressing regulatory frameworks, embracing digital banking, and forging strategic partnerships, Iraq aims to create a more resilient and dynamic economy.

Minister of Finance stresses the importance of completing plans to regulate the work of the government banking sector, 28 AUGUST

 Money and business   Economy News – Baghdad  Finance Minister Taif Sami stressed, on Tuesday, the importance of completing plans to regulate the work of the government banking sector.

A statement by the ministry, seen by Al-Eqtisad News, said that "Minister of Finance Taif Sami chaired a coordination meeting with the international auditing and oversight firm Ernst & Young to follow up on the ongoing technical plans to merge and organize the work of Rafidain and Rasheed banks and insurance companies."

It added, "During the meeting, which was attended by a number of the ministry's general managers and formations, a report was presented by the auditing firm on the final stages of its work regarding organizing the work of the government banking sector, in addition to discussing the proposed plans and final implementation stages in line with the priorities of reform and development."

The Minister of Finance stressed - according to the statement - "the importance of implementing these procedures to contribute to enhancing confidence in the banking system and providing a stable financial environment that supports economic growth, which is positively reflected on the national economy in general and achieving sustainable development and stimulating growth in various sectors."

Sami explained, "The importance of benefiting from the expertise of solid international companies such as Ernst & Young in the field of regulating and restructuring financial institutions, as the ministry aims to make Iraqi banks internationally and locally acceptable to provide better services to citizens.

The auditing company's expertise will also contribute to improving the efficiency and effectiveness of financial institutions, as it is expected that merging and regulating financial institutions will improve the quality of banking services provided and enhance investor confidence in the Iraqi economy."

The statement continued, "Iraq is witnessing transformations in the government banking sector through the adoption of ambitious work programs to restructure government banks, aiming to enhance the efficiency of these banks and improve their services provided to citizens and companies and strengthen financial suitability by increasing capital and diversifying sources of income,

 in addition to improving governance by applying high standards of transparency and accountability and adopting the latest banking technologies to provide more efficient services, as well as increasing confidence in the banking sector and thus attracting foreign investments." 32 views 08/27/2024 -    https://economy-news.net/content.php?id=46822

INFORMATIVE MESSAGE FROM GINGER, PART. 1, 28 AUGUST

 INFORMATIVE MESSAGE FROM GINGER

So, my friend, who is a member of the Liberty Lounge family, she loves the channel and it's her go-to spot for the news of the day and to stay in tune with all of the “Camper News”, that's what we like to call the RV around here, and she's a lovely lady and just happens to be from my home state, Virginia. She is in government. She's asked me to keep her name and role anonymous, but she does rub shoulders with folks in government. She's a true patriot, a true conservative, and a lover of freedom.

APRIL MEETING WITH AL-ALAQ

Well, she had the privilege of meeting Al Alaq back in April when the

delegation was last here. And they absolutely hit it off. As soon as she met

them, she said, “Now when you go home to Baghdad, you need to drop those

zeros,” and they laughed. And she also mentioned, you know, the rate,

knowing what the rate was going to be, and they were like,

 “What? How did you know that?”, they were so intrigued by her awareness and

understanding of the financial reforms with Iraq. 

They were super impressed, so they had a really beautiful and genuine connection. They even were talking about the new notes that were to come out, etc., and had a very

pleasant conversation. To which Al Alaq said to her, “Wow, if I wasn't hopping on a plane right now, we would love to take you out to dinner to discuss this some more.”

AL-ALAQ IS IN NEW YORK

They had a really nice conversation. She sent me a picture taken with Al Alaq and this was in D.C. and she was wearing a beautiful green dress and he had on a dark, dark gray suit with a sky blue tie and a beautiful warm smile. And she sent me some helpful information. Our friend listens to the same news that you and I listen to, so she wanted, you know, to just reach out to me just to correct some misinformation that has been going on. It seems that TNT, Militiaman, were saying that there's a delegation in D.C. going on right now. 

Much love to everybody who's sharing information, I know we're all just trying to do the best we can to have the most reliable info, so you know, no slam on these gentlemen at all, I love and respect all of these folks, what they're doing, but just wanted to let you know that they're not in D.C. at all. She actually sent a message to Al Alaq, and they are in New York. 

So, she said, “I spoke with Al Alaq, the CBI Director, he goes by Ali, he's not in D.C. this time, but he will be back in October and hopefully I'll be able to have dinner with him then if I'm not out of the country. Sending some Virginia love,” and she signed her name.

So, they did confirm that they are in New York though, so she went on to say yeah, “TNT is saying that he's in D.C., I don't know where he's getting his information from,” but she said his source is full of it or they're not letting anyone know the truth about, you know, the developments this week.”

She went on to say she met Al Sudani, she met the military attaché’ that travels with them, she also met the personal advisor to Al Sudani, and the ambassador.

She reached out to the ambassador today and sent me a screenshot of his response to her just a confirmation that there is not a delegation in D.C. at all. The ambassador is reaffirming that they are in New York.

And the cool news is when he, Al Sudani, or sorry Al Alaq comes back to the U.S. to D.C., more specifically, in October, he's invited her to connect for dinner and she's invited me to join them for a special dinner with the Iraq delegation since I'm in Virginia and not too terribly far away and I thought that was just super-duper exciting..............TO BE CONTINUED

IRAQI DINAR/ DONG plus RATES/DATES MUST WATCH #iraqidinar #dinar #dong #...

DINAR REVALUATION REPORT: THE NEW TAX REFORM PACKAGES 2024 , SHAPING IRAQ'S FISCAL LANDSCAPE, 28 AUGUST

Iraq's Imminent Launch of New Tax Reform Packages in 2024

In a significant development for Iraq's fiscal policy, the Prime Minister's Advisor has announced the upcoming implementation of new tax reform packages in August 2024. 1 These reforms are anticipated to address critical issues within the tax system and align with Iraq's broader economic goals.

Addressing Complexities and Ensuring Compliance

The tax system in Iraq has historically faced challenges, including complex legislation, tax evasion, and a lack of tax awareness among taxpayers. 4 The reforms aim to simplify tax laws, enhance transparency, and improve the overall efficiency of tax collection. By addressing these issues, the government hopes to increase tax compliance and reduce the instances of tax evasion.

Enhancing Tax Administration

Iraq's General Commission for Taxes is undergoing a significant modernization process.  6 The reforms focus on expanding the revenue base, which had experienced a decline in recent years. By prioritizing reforms and implementing an integrated capacity development plan, the government is committed to enhancing the effectiveness of tax administration.

Impact on Economic Recovery

These reforms come at a critical juncture for Iraq's economy, which is recovering from the dual shocks of the oil price slump and the COVID-19 pandemic. 2 With real GDP estimated to have edged up by 1.3% in 2021, following a sharp contraction of 11.3% in 2020, the reforms are expected to support economic growth by promoting a stable and predictable tax environment.

Legislative Amendments and Reporting Requirements

The proposed amendments also address the enhanced trust reporting requirements for express trusts, which have been deemed cumbersome by many trustees. 5 By expanding and clarifying relieving exceptions to the requirements, the reforms aim to reduce the administrative burden on trusts and improve the overall tax compliance experience.

Conclusion

The new tax reform packages in Iraq 2024 represent a comprehensive effort to modernize the tax system, enhance compliance, and support economic recovery. By addressing the complexities of tax legislation, improving tax administration, and streamlining reporting requirements, these reforms are poised to play a critical role in shaping Iraq's fiscal landscape in the coming years.

The Prime Minister's Advisor announces the imminent launch of new tax reform packages, 28 AUGUST

  Balsam Hameed   Today, Monday, Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Saleh, announced the most prominent government steps in maximizing non-oil revenues, while indicating the imminent launch of new tax reform packages.

 
Saleh said, to the official agency followed by (Al-Oula News):
 
“One of the basic principles that came in the government’s approach to financial reform and which was approved by the House of Representatives in October 2022 is to maximize non-oil resources in the general budgets of the Republic of Iraq, for which goals were set.”

An amount in order for its contribution to the total revenues generated by  non-oil economic activity to increase to 20 percent instead of its historical rates, which do not exceed 10 percent in the best cases.” 

 He added,  “Diversifying sources of non-oil revenues and maximizing them in public budgets is one of the biggest reform challenges in the financial and economic fields in the country.” 

He pointed out,  “These challenges come from two main factors:
 
The first is the degree to which diversification of budget resources is linked to the success of diversification in the country’s gross domestic product, especially the three agricultural, industrial, and  service sectors.”  

He stated,   “The oil production sector still dominates a percentage of the components of that gross domestic product, which sometimes reaches 60 percent, which gives the national economy a rentier character and direct coexistence on the financial flows provided by the oil resource mostly alone.”

He added,  “The second factor among these challenges is related to non-governmental activity in generating gross domestic product, and we specifically mean market activity or the private sector.” 

He continued,  “The majority of the economic forces that generate income and wealth within market activity carry out their economic activities within the framework of the so-called (shadow economy), which are (gray) markets that are irregular and not known to the regulatory, tax and banking bodies as is known, and their percentage amounts to about 70 percent.” Of the total private sector activity in the country. 

He stressed that   “gray or shadow markets are one of the most important basic factors causing the decline in non-oil revenues in the country’s general budget.”  

He pointed out that   “the first step taken by the current government in maximizing non-oil revenues began by adopting a new approach to tax reform,” noting that
 
“the Council of Ministers approved earlier this year 8 new packages to reform the tax system in the country, led by the principle of expanding tax bases.”

HHe stressed by saying:  “Two tax reform packages have been launched, and the

 
rest of the packages will be launched sequentially and gradually
 
within the government’s reform policy in the financial field and maximizing the state’s resources from sources of income and wealth from outside the oil sector, as this is accompanied by
 
 administrative and legislative reform and high-precision digital governance of tax institutions in areas of appreciation and collection with high transparency and efficiency.”  https://www.awla.news/مستشار-رئيس-الوزراء-يعلن-قرب-إطلاق-حزم/