Saturday, January 11, 2025

MNT GOAT: THERE ARE MANY ARTICLES THAT SAY THAT IRAQ HAVE A RESTORED SECURITY & STABILITY!! #IQD

Reveals details of the restructuring plan for Rafidain and Rashid Banks, 11 JAN

Reveals details of the restructuring plan for Rafidain and Rashid Banks

An economic expert revealed the government’s plan to restructure its two banks, Rafidain and Rashid.

Salah Nouri told Al Furat News Agency, "The reasons for restructuring Rafidain and Rashid banks are the presence of bad financial assets, most of which are loans granted that were impossible to obtain before 2003, which led to a decline in the credit rating by international financial institutions and the refusal to deal with them."

He explained that "in order to restore international confidence in the two banks, it is necessary to restructure the two banks by excluding bad financial assets from the financial center of the two banks and using modern technology and establishing two parallel banks, one for Rafidain and the other for Rashid, to which the bad financial assets will be transferred."

He explained, "After separating Rafidain Bank into a bank that owns sound financial assets and another parallel Rafidain Bank that owns bad financial assets, as well as Rashid Bank into Rashid Bank that owns sound financial assets and Rashid Bank that owns bad financial assets, Rafidain and Rashid banks, which own sound financial assets, will be merged into one bank, as well as merging Rafidain Bank with bad financial assets with Rashid Bank with bad financial assets into one bank."

Nouri said that "the new bank after the merger with sound financial assets will practice cash and contractual credit activities and dealings with international financial institutions, but the new bank after the merger with sound financial assets needs capital support with not small amounts, and this must be determined by the party that supports the capital, according to the government decision."

He noted that "among the financial activities of the new bank is the use of artificial intelligence in addition to bank employees with high technical skills."

He continued that "the process of restructuring the two banks financially and organizationally since 2011 with the membership of the Federal Board of Financial Supervision, the Central Bank of Iraq, the international auditing firm EY, the Ministry of Finance and the two banks concerned, has stopped, and currently the process of restructuring the financial and organizational structure has been resumed by assigning the international auditing firm according to the methodology referred to above."

Prime Minister Mohammed Shia al-Sudani chaired a special meeting yesterday, Thursday, to discuss the development of the work of government banks, in the presence of representatives of Ernst & Young for Auditing and Financial Consulting.

The Prime Minister explained that "the completion rate of the project to restructure Rafidain Bank has reached its final stages, stressing that it will enter into force in the coming few days, within the framework of a plan that has been studied and implemented according to the established standards and specifications."

Meanwhile, the Prime Minister's financial advisor, Mazhar Mohammed Salih, revealed to {Al Furat News} that a new banking entity is about to be born in Iraq.

Salih said that "the study aims to establish a new banking entity specializing in government banking operations, to meet the needs of the government exclusively. This entity will contribute to achieving the goals of the unified treasury account, which is a crucial tool for regulating cash flows for public finances."

He pointed out that "the study focuses on evaluating the legal status of the two banks, including property rights, evaluating assets and liabilities, and studying the requirements of a strategic partner if necessary, with a focus on developing the two entities to operate according to advanced financial technology that meets the requirements of the national banking market."

He stressed that "the structural reform also aims to enhance the integration of the two banks into the national banking market and enable them to expand into global financial markets, especially in the areas of trade and investment financing for the private sector," indicating that "the two potential entities will rely on modern systems in compliance, governance and risk management, with a focus on digital payments." link

CHELLA CC HIGHLIGHTS NOTES, 11 JAN

CHELLA CC HIGHLIGHTS NOTES

Highlights

📊 Banking Restructuring: Prime Minister Muhammad Shia Sudani revealed a study aimed at restructuring Iraq’s dominant banks, Rafidain and Al Rashed, to enhance their financial stability.
💰 Legislative Progress: The Iraqi Council of Representatives is set to discuss important draft laws, including amendments to the retirement law and budget laws.
📈 Stock Market Growth: The Iraqi Stock Exchange has reported significant growth, reflecting increased investor confidence and robust trading volumes.
⛽ Oil Sector Developments: Iraq’s oil production has seen extensive distribution, with new operational centers inaugurated to enhance efficiency in the oil sector.
📶 Telecommunications Enhancement: Iraq’s Ministry of Communication is partnering with UK-based companies to establish a new 5G network, aiming to improve service quality and create job opportunities.
🚨 Unified Emergency Number: The introduction of a unified emergency number (911) marks a significant step towards improving security services and citizen communication in Iraq.
🌍 Kurdistan Regional Contributions: The budget allocation for the Kurdistan Region has seen an increase, indicating a shift in relations between regional and federal governments in Iraq.

Key Insights

📊 Bank Restructuring as a Catalyst for Growth: The restructuring of Rafidain and Al Rashed banks is a vital step towards modernizing Iraq’s banking sector, which has suffered from outdated practices and poor financial health. By integrating advanced technologies and potentially forming strategic partnerships, these reforms could enhance trust among international financial institutions, thereby attracting foreign investment and fostering economic growth.
💰 Legislative Framework for Economic Stability: The discussions in the Iraqi Council of Representatives highlight the government’s commitment to reforming existing laws that govern pensions and budgets. This legislative activity is crucial for ensuring financial stability and addressing the needs of various demographics, particularly retirees and minority groups, thereby promoting social equity and economic inclusion.
📈 Investor Confidence in the Stock Market: The reported growth in the Iraqi Stock Exchange is significant as it reflects a positive shift in investor sentiment. Increased trading volumes and values indicate that investors are beginning to view Iraq as a viable investment destination, which could lead to greater economic development and diversification away from oil dependency.
⛽ Strategic Development in the Oil Sector: The inauguration of new operational centers in Iraq’s oil sector not only enhances production efficiency but also demonstrates the government’s focus on modernizing its energy infrastructure. This is crucial for sustaining oil revenues, which are integral to the national economy, especially in light of fluctuating global oil prices.
📶 Technological Advancement in Telecommunications: The partnership with UK firms to create a 5G network represents a significant leap towards modernizing Iraq’s telecommunications infrastructure. This initiative is expected to improve service quality, reduce costs, and spur economic activity by fostering connectivity and technological integration across various sectors.
🚨 Improving Public Safety Services: The establishment of a unified emergency number (911) signals a commitment to enhancing public safety and emergency response services in Iraq. This initiative is essential for building trust between citizens and government institutions, ensuring that residents feel secure and supported in times of crisis.
🌍 Strengthening Regional Relations: The increased budget allocation for the Kurdistan Region indicates a potential shift towards more cooperative relations between regional and federal governments. By addressing the financial needs of the Kurdistan Region, the Iraqi government may be laying the groundwork for more stable governance and promoting national unity amidst ongoing political challenges.

Through these initiatives and developments, Iraq is positioning itself for a transformative period that could lead to greater economic stability, improved public services, and enhanced investor confidence. However, the effectiveness of these reforms will depend on the successful implementation of strategies that address the underlying challenges faced by the country’s financial and governmental institutions. As such, continuous monitoring and adaptation to both domestic and international economic conditions will be critical for Iraq’s path forward.

JULIAN ASSANGE: GLOBAL FINANCIAL CRISIS

Iraq awaits "financial challenges".. Dollar scarcity, liquidity declines, and salary reserves are sufficient for 6 months, 11 JAN

Iraq awaits "financial challenges".. Dollar scarcity, liquidity declines, and salary reserves are sufficient for 6 months

International economics expert Nawar Al-Saadi confirmed today, Friday (January 10, 2025), that Iraq is facing major and dangerous financial challenges, and these challenges must be avoided through real reforms.

Al-Saadi said in an interview with Baghdad Today that “the financial challenges in Iraq are ongoing, but recently they have begun to threaten its monetary stability and raise concerns about their impact on the government’s ability to pay salaries in the coming months.

I do not believe that they will lead to an inability to pay salaries, as the Ministry of Finance has a reserve that may reach at least 6 months, but this concern stems from several data and indicators that have emerged recently, including that the Iraqi economy depends almost entirely on oil revenues, which represent the main source of government revenues, and any decline in global oil prices leads to a reduction in these revenues, which puts additional pressure on the general budget and increases the possibility of a financial deficit.”

He pointed out that "there are problems related to foreign currency management, as dollar smuggling operations have worsened through some unofficial outlets and weak supervision of banks, which has led to a shortage of dollars in the local market and a decrease in general liquidity. This affects monetary stability and puts the government in difficulty in financing salaries, especially with the increasing reliance on cash reserves to cover this deficit."

He added, "The banking sector suffers from a lack of confidence among citizens, as many prefer to keep their money outside the banking system, and this behavior contributes to reducing the cash flow available in the market, which adds further complexity to the financial situation."

The international economics expert concluded by saying, "In short, Iraq's financial situation requires urgent reform steps that include diversifying sources of income, improving revenue management, and enhancing citizens' confidence in the banking system, to avoid a liquidity crisis that could have broad repercussions on the economy and society." link

FIREFLY: If they truly do anything with the budge it will be exposing the new exchange rate, 11 JAN

Frank26

[Iraq boots-on-the-ground report]

FIREFLY: Parliament just announced the next session will include amending the budget. It's on TV now...Sudani wanted this done by the 6th, no later than the 7th and now they're come out 3 days later saying okay, okay okay we're going to do it. TV keeps going over the parliament plans on amending the investment budget in the next two sessions that are coming...

FRANK: If they truly do anything with the budge it will be exposing the new exchange rate.

DINAR REVALUATION