FRANK26: "YES THEY AGREE WITH MORE DEMANDS... AND THIS IS THE MIDDLE EAST WAY."., 1 FEB

 KTFA

FRANK26: "YES THEY AGREE WITH MORE DEMANDS... AND THIS IS THE MIDDLE EAST WAY."....F26

Baghdad and Erbil agreed.. Parliamentary consensus to pass the budget law amendment soon

1/27/2025

 

 Baghdad

Today, Monday (January 27, 2025), the representative of the Al-Fatah Alliance, Mukhtar Al-Moussawi, confirmed that there is a parliamentary consensus to pass the amendment to the budget law during the upcoming legislative sessions.

Al-Moussawi told Baghdad Today that "there is a parliamentary agreement to pass the budget law during the upcoming sessions," noting that "there are political agreements as well as an agreement between Baghdad and Erbil on this amendment, and that the parliamentary finance committee's Meetings are continuing to agree on the final amendment formula.”

He explained that "the House of Representatives supports any agreement between Baghdad and Erbil, and we do not want the House to be a reason for obstructing negotiations and solutions."

On Thursday, January 23, 2025, the federal government denied what the Kurdistan Regional Government spokesman announced regarding submitting a proposal that differs from the Council of Ministers' amendment to the financial budget law to the House of Representatives.

Government spokesman Bassem Al-Awadi said in a statement received by Baghdad Today: “Based on the government's keenness on transparency and disclosure to citizens of the progress of its executive work, especially with regard to the budget issue, which is a fundamental pillar for implementation the obligations contained in the government program, we affirm the government's commitment to the amendments sent to the House of Representatives regarding the budget law, which takes into account the supreme national interest, and we stress that the government's representative in the House of Representatives “He stressed the necessity of not making any other amendments to the budget law that contradict the texts submitted by the Council of Ministers.”

He added, "At the same time, we deny what was stated in the statement of the spokesman for the Kurdistan Regional Government of Iraq, and we are surprised by what was stated in it regarding the claim that the representative of the federal government in the House of Representatives obstructed the amendment of the article related to the procedures for resuming oil exports from the region.”

Al-Awadi stressed "the importance of the Kurdistan Regional Government's commitment to the provisions of the Federal General Budget Law, including the delivery of financial revenues, whether oil or non-oil, to the federal government, in accordance with what is stipulated in the law and the decision of the Federal Court.”

He explained that "adherence to these procedures is a necessary step to resolve the problems related to this file and enhance cooperation between the two sides, and the federal government hopes that the House of Representatives will expedite the approval of the amendment in accordance with the text Approved by the Council of Ministers, for the benefit of Iraq, all of Iraq.”

The spokesman for the Kurdistan Regional Government said in a statement earlier today that “after a series of meetings and persistent efforts aimed at amending the federal general budget law by the Council of Representatives with the aim of resuming the export of the region’s oil, and after Completing the first and second readings, unfortunately, the draft law was not approved in the agreed-upon form at the last minute.”

He pointed out that, “What increased our surprise was that the representative of the federal government in the House of Representatives submitted a different proposal to the Council unilaterally, without prior consultation with the Kurdistan Regional Government, and without submitting it to the Federal Council of Ministers for a vote, which contradicts the previous decision of the Council of Ministers regarding the approval of the draft law amendment for the purpose of resuming the export of oil from the Kurdistan Region.”

The Kurdistan Regional Government spokesman stressed that "such attempts only serve to harm Iraq, and contribute to deepening crises instead of finding effective solutions to them. Accordingly, we declare our complete rejection of these measures and proposals, and we emphasize the necessity of presenting the agreed-upon draft law and its approval by the Federal Council of Ministers and voting on it.”

LINK

 

NEWSROOM FROM CHELLA HIGHLIGHTS CC NOTES, 1 FEB

 NEWSROOM FROM CHELLA HIGHLIGHTS CC NOTES

Highlights

Summary

In this week’s episode of “Newsroom,” host Charles Smith delves into significant developments in Iraq’s economic reforms and regulatory improvements, particularly focusing on the launch of financial integrity training programs for the National Bank of Iraq (NBI).

 Spearheaded by the Institute for Financial Integrity (IFI) in collaboration with the Central Bank of Iraq (CBI), this initiative aims to enhance compliance with international standards, particularly in anti-money laundering (AML) and counter-financing of terrorism (CFT).

 The training will utilize modern e-learning platforms to educate NBI employees and foster a community of financial integrity experts.

Moreover, discussions on Iraq’s digital payment systems, ongoing negotiations between the Kurdistan Regional Government (KRG) and the central government, and efforts to bolster economic ties with the United States are highlighted. Smith emphasizes the importance of international investment, stability in Iraq’s economic policies, and the critical role of gold reserves in strengthening Iraq’s financial position. The episode concludes with updates on legislative efforts aimed at improving oil revenue management and enhancing transparency within the oil sector.

• 📊 Launch of Financial Integrity Training: The IFI has initiated training programs for the NBI to improve compliance with international financial standards.
• 💻 Digital Payment System Initiatives: The Iraqi government is focusing on digital financial systems to modernize and improve regulatory frameworks.
• 🤝 US-Iraq Economic Ties: Meetings between Iraqi officials and US business leaders aim to strengthen economic cooperation and investment.
• 🏛️ KRG Budget Negotiations: Continued discussions between the KRG and Iraqi federal government regarding budget and salary issues show progress despite no financial agreements yet reached.
• 💰 Gold Reserves as Economic Stability : Iraq’s substantial gold reserves are seen as a safe haven amid global economic uncertainties, reinforcing confidence in the national currency.
• 🌍 World Bank Collaboration: Ongoing discussions with the World Bank focus on funding for critical infrastructure projects, including railways and electrical interconnections.
• 📈 Oil Resource Management Amendment: The Iraqi Parliament is preparing to vote on an amendment to improve transparency and management of oil resources, benefiting both the federal government and the KRG.

Key Insights

• 🏦 Strengthening Regulatory Framework: The training programs launched by the IFI represent a significant commitment to enhancing financial integrity in Iraq. By focusing on compliance with AML and CFT standards, these initiatives aim to integrate Iraq into the global financial system, facilitating international transactions and investments. This move is essential for building trust with foreign investors and ensuring that Iraq’s financial systems are robust against illicit activities.

• 📈 Digital Payment Transformation: The Iraqi government’s push for fintech innovation and digital payment systems reflects a broader trend towards modernization in emerging economies. By setting up regulatory frameworks for digital banks and partnering with fintech institutions, Iraq is positioning itself to compete in a digital-first global economy. However, the persistence of cash as the dominant payment method indicates that significant cultural and infrastructural shifts are required for successful implementation.

• 🤔 Impact of Political Stability on Economic Policy: The dismissal of concerns regarding potential US sanctions under the Trump Administration signals a degree of political stability in Iraq. This stability is critical for fostering a conducive environment for foreign investments. However, the changing political landscape in the US could still impact Iraq’s economic policies, emphasizing the need for Iraq to remain adaptable and proactive in its international relations.

• 🌐  Infrastructure and International Investment: Iraq’s focus on infrastructure development, particularly in partnership with the World Bank, illustrates a strategic approach to economic diversification. By improving transportation and energy infrastructure, Iraq aims to attract international investments that can spur economic growth and create jobs. This is particularly important given the country’s reliance on oil revenues and the need to reduce vulnerability to fluctuating oil prices.

• ⚖️ Transparency in Oil Revenue Management: The proposed amendment to the federal budget law aims to legitimize oil management and improve transparency in the sector. By setting a clear framework for oil production costs and revenue sharing between the federal government and the KRG, Iraq hopes to resolve longstanding disputes and enhance the efficiency of its oil resource management. This is a crucial step in stabilizing state revenues and fostering trust among regional stakeholders.

• 📊 Gold Reserves as a Buffer: Iraq’s impressive gold reserves, now valued at approximately $14 billion, serve as a financial buffer against economic volatility. Gold traditionally acts as a hedge during times of uncertainty, and its role in Iraq’s financial strategy is likely to grow as the country navigates external economic pressures. The management of these reserves will be vital in maintaining financial stability and confidence in the Iraqi dinar.

• 📅 Ongoing Reforms and Future Prospects: The ongoing economic reforms, coupled with international partnerships, signal a positive outlook for Iraq’s economic future. The commitment to boosting the non-oil economy and creating job opportunities indicates a strategic pivot that could lead to sustainable growth. As Iraq continues to engage with international financial institutions and strengthen its regulatory framework, the potential for economic diversification and stability increases, providing a glimmer of hope for the country’s long-term development.

In conclusion, the developments in Iraq’s economy outlined in this week’s Newsroom provide a comprehensive view of the challenges and opportunities facing the nation. The focus on financial integrity, digital innovation, and infrastructural improvements, alongside a commitment to transparency and international cooperation, sets a promising stage for Iraq’s future economic landscape.

MNT GOAT: The governor of the CBI knows the Dr Shabibi plan and it can not be stopped!! #iraqidinar

 

FRANK26: "A TEMPORARY SOLUTION... MAYBE?", FEB

 KTFA

FRANK26: "A TEMPORARY SOLUTION... MAYBE?".......F26

Budget Amendment Proposals Spark Disagreements Between Iraqi Government, Parliament

1/27/2025

Proposals to amend the budget law have sparked disagreements between the Finance Committee in the Iraqi parliament and the government, delaying the vote on the amendment related to the financial dues of the Kurdistan Region’s oil companies.

The Finance Committee proposed to restrict the difference from the revenues of the Kurdistan Region’s oil exports, after compensating the Kurdistan Regional Government from the sovereign expenses for production and transportation costs, as revenue for the state treasury, linking this process to the settlement of financial dues accumulated over 18 years between Erbil and Baghdad.

The government submitted its written comments on the amendments of the Finance Committee, stressing that these amendments conflict with the mechanism of SOMO’s work, and that all oil revenues must be transferred to the state treasury before disbursing financial dues. If no agreement is reached on these amendments to the budget law, the text will be reworded to include the delivery of all oil and gas to the Kurdistan Region.

The controversy over the vote on three draft laws related to the Kurds, Shiites and Sunnis, during the Iraqi parliament session held on January 21, 2025, caused the first paragraph of the session’s agenda, which was related to amending the general budget law, to be bypassed.

The amendment addresses Article 12 on the production, transportation and delivery of the Kurdistan Region’s oil, setting the cost of production and transportation per barrel at $16 temporarily, until an estimated price is determined by an international consultant, with the Kurdistan Region committing to delivering 400,000 barrels of oil per day.

Dara Sikani, a member of the Legal Committee in the Iraqi Council of Representatives, explained to Rudaw Media Network that “the vote on this amendment has not yet taken place, as the government has submitted a new version of the amendment to the parliament for a vote, and we, as Kurdish representatives, did not agree to this version.”

The new version was submitted in writing by the head of the Coordination Board between the provinces and the government’s representative, Ahmed Al-Fatlawi, to the presidency of the Iraqi parliament, and the letter included notes on the changes proposed by the Finance Committee to the draft amendment law.

"Settling financial dues for 18 years"

According to the proposal of the Finance Committee in the Iraqi Parliament, a copy of which was obtained by the Rudaw Media Network and added to the draft amendment, "the difference between production and transportation costs and the selling price is recorded as revenue for the state's public treasury", taking into account paragraph (a) of Article 12 of the General Budget Law.

This condition was not present in the wording of the draft budget amendment law sent by the Iraqi Council of Ministers to the parliament.

Paragraph (a) of Article 12 of the Iraqi General Budget Law refers to the importance of settling financial dues for the period from 2004 to 2022 between the Kurdistan Region and the federal government. This settlement is made after the dues are audited by the Federal Board of Financial Supervision in coordination with the Board of Financial Supervision in the Kurdistan Region, based on the rights and obligations stipulated in the budget laws for those years.

The government: Either an agreement or handing over all oil and gas revenues

According to the official letter obtained by the Rudaw Media Network, the government made comments on the proposed amendments submitted by the Finance Committee in the draft law.

The letter stated: "The government does not support the proposed amendment because it reduces the revenues of the public treasury compared to the government text, and contradicts what is being implemented in the rest of the regions of Iraq according to the current Financial Management Law, and is not consistent with the mechanisms of selling oil by SOMO, which receives the sales revenues in full as documentary credits and deposits them in the oil and gas revenues account of the Ministry of Finance."

The Iraqi Ministry of Oil works on service contracts to invest in the oil and gas sector, whereby sums of money are paid to companies instead of allocating shares to them, while the Kurdistan Region relies on contracts to participate in the revenues of the sold oil.

The government explained that its amendment stipulates exporting oil through SOMO according to the prices and mechanisms applied in all regions of Iraq, with all oil revenues being delivered to the public treasury as final revenues without any deductions. Compensation for oil production costs is done separately from revenues, according to a mechanism determined between the federal Ministries of Finance and the Kurdistan Regional Government.

Another note from the government indicated that the amendment of the Finance Committee does not include "delivering the full revenues, but rather deducting the production costs from them before delivering them," and considered that this mechanism "is not consistent with the contexts of SOMO's work."

The government's letter stated that the proposed amendment to the Finance Committee "does not guarantee the receipt of revenues without additional deductions, or according to estimates of production costs not agreed upon with the federal government," and that "the proposed addition violates the text of Article (13/First/A) and restricts Article (12/Second/A) of the current budget law, which are important articles that the federal government insists on keeping as they are."

Paragraph (A) of the first item of Article 13 of the budget law also states that all revenues from the sale of oil delivered from the Kurdistan Region are deposited in a bank account affiliated with the federal Ministry of Finance, opened by the Central Bank. Paragraph (A) of the first item of Article 12 deals with the delivery of 400,000 barrels of oil per day from the Kurdistan Region to SOMO, to be sold by the company.

At the end of its letter, the government confirmed its rejection of the proposed amendment to the Finance Committee, explaining that it reduces the share of the general treasury and has a negative impact on the revenues of the federal government, in addition to its contradiction "with the contexts applied in the rest of the regions of Iraq and the mechanisms of SOMO."

The amendment to the General Budget Law has passed the first and second reading stages, and all that remains is a vote on it.

The government preferred, if Parliament fails to pass the amendment, to formulate it in a way that guarantees the payment of “revenues from the sale of oil, its derivatives and gas, locally and abroad, as final revenue to the public treasury without any deductions, and in accordance with the procedures adopted in the rest of the regions of Iraq and the amended Financial Management Law of 2019.”

LINK

TIDBIT FROM MNT GOAT, 1 FEB

 Mnt Goat  

 The governor of the CBI knows the Dr Shabibi plan and it can not be stopped. It can be delayed but the reforms move ahead in spite of the U.S. foreign policy of the past. 

However, it also took a decent prime minister like Al-Sudani to move it ahead regardless. Remember the Nori Al-Maliki days. Yes, this was yet 8 more years of wasted time...

All we need to do is take a good hard look at the last couple years of progress under Al-Sudani and we can clearly see a change. This took strong leadership and dedication to the White Paper reforms. This is where we are today. They are now at the point in spite of all the corruption they have made it to the finish line but now they need a push over it...