FRANK26…5-23-25…..ALOHA

A Government Advisor Reveals A "Dangerous Paradox" In The Private Banking Sector.

 A Government Advisor Reveals A "Dangerous Paradox" In The Private Banking Sector.

Time: 2025/05/24 Read: 3,240 times  {Economic: Al Furat News} The Prime Minister's economic advisor, Mazhar Mohammed Salih, affirmed that restructuring the banking sector is a fundamental and important step toward enhancing the stability of the financial system and supporting economic development in Iraq.

Saleh explained in a press statement that this restructuring aims to better organize cash flow management and improve the efficiency of the state's financial liquidity, which will contribute to alleviating financial pressures on the public treasury. 

He pointed out that there is a clear division in the banking market, as private banks own more than 78% of capital, but contribute a limited percentage not exceeding 20% ​​of financing and deposit operations.

Saleh stressed that the banking restructuring is a comprehensive process that includes modernizing the infrastructure of government banks, enhancing the efficiency of asset and liability management, and developing governance systems in line with international standards.

He added that these measures will increase the banking sector's ability to effectively contribute to the gross domestic product, expand the scope of financing and lending for development projects, which supports economic growth and reduces dependence on oil revenues.

He emphasized that the current financial and monetary challenges, particularly oil price fluctuations and liquidity pressures, require accelerating the implementation of reforms, including increasing bank capital and modernizing operating mechanisms, to enhance the stability of the banking sector and improve the management of public financial resources.

At the beginning of this year, the Iraqi government announced plans to restructure state-owned banks, most notably Rafidain and Rashid Banks, with the aim of transforming them into more modern and efficient financial institutions capable of meeting the needs of the growing Iraqi economy.

In its session held on January 13, 2025, it also decided to establish a completely new bank based on the latest digital banking technologies, aiming to provide integrated banking services to individuals and companies, both inside and outside Iraq.

This new bank has been named "Rafidain First Bank" and will start with an initial capital of 500 billion Iraqi dinars (approximately $381.8 million), with the goal of reaching a final capital of one trillion Iraqi dinars (approximately $763.7 million). The state's contribution to this capital will be 28%.  LINK

TIDBIT FROM FRANK26

 Frank26

 The CBI came out last night and told the citizens of Iraq, 'we know you got 90%-93% [dinar hoarded under your mattress].

  We know that...Security and stability used to be the problem.  We got that.  Now you're the problem Iraqi citizen...

We want you to bring in your 3-zero note.  When you do, deposit them in 'My Accounts'...they'll be safe and secure... 

Then when we raise the value of your currency, boom, automatically they are adjusted and you get credit for what you had...

We want to become a digitalized nation.  Bring them in for crying out lout.  We have 'My account' established for you...'

  That's where we're at...The CBI knows very well what they need in order to release the new exchange rate.

TNT CC SUMMARY!!! @DINARREVALUATION #iraqidinar #iraq #iqd

 

The Kurdistan Gambit: New gas deals ignite the Baghdad-Erbil divide

 Shafaq News/ The Kurdistan Regional Government’s decision to advance two high-value gas development deals has reignited deep-seated tensions with Baghdad over natural resource control—this time centered around two of Iraq’s most promising fields: Miran and Topkhana.

In mid-May, the KRG signed contracts with US-based energy firms HKN Energy and WesternZagros to develop the fields located in al-Sulaymaniyah province. 

The agreements, valued in the tens of billions of dollars, were announced during an official visit of PM Masrour Barzani to Washington. Erbil presented the deals as a strategic leap toward energy security, economic growth, and stronger ties with the United States.

The Miran and Topkhana-Qardagh fields are among Iraq’s most gas-rich undeveloped assets. Together, they are estimated to hold between 15 and 17 trillion cubic feet of recoverable gas, with total reserves—recoverable and non-recoverable—reaching up to 28 trillion cubic feet. The Miran field alone is believed to contain more than 11 trillion cubic feet of extractable gas.

Abdullah Youssef, an economist specializing in Iraq’s energy sector, described Miran as “one of the richest gas fields in Iraq,” telling Shafaq News that it is capable of producing over 500 million cubic feet per day.

“The size of the reserves puts it among the most strategic undeveloped assets in the region,” he said, adding that Topkhana offers equally transformative potential. “This field can support Iraq’s national gas network once it’s linked to federal infrastructure.”

Baghdad Pushes Back

Within days of the announcement, Iraq’s federal oil ministry issued a sharp rebuttal, labeling the KRG’s contracts “legally invalid,” citing Federal Supreme Court rulings in cases 59/2012 and 110/2019 to argue that the federal government holds exclusive authority over oil and gas contracts.

“Such agreements fall strictly under the jurisdiction of the federal government,” Oil Minister Hayan Abdul-Ghani told Shafaq News, emphasizing that resource management must occur transparently through federal institutions. 

Bypassing Baghdad, he warned, not only violates the constitution but also disrupts revenue-sharing frameworks.

The ministry’s objections extended beyond the agreements themselves. It also rejected KRG-led development efforts in two gas-rich areas of al-Sulaymaniyah, stating that unilateral investment in these fields would not be recognized by federal authorities.

In response, the Kurdistan Region’s Ministry of Natural Resources defended the contracts as both lawful and previously approved by Iraqi courts.

“These agreements are lawful and were approved through judicial processes,” the ministry stated, clarifying that the current announcement reflects a shift in operational partners, not a departure from legal precedent.

Erbil maintained that the development of the fields is necessary to meet growing domestic energy demand and reduce dependence on imported gas, arguing that it holds constitutional authority to manage natural resources within its territory, particularly those it developed or explored independently before national legislation existed.

That position was echoed during the Washington signing ceremony, where KRG officials and American business representatives described the deals as a vote of confidence in the region’s investment environment and institutional stability.

Legal Ambiguity, Constitutional Gaps

At the center of the dispute lies a long-standing legal gray zone, reflecting deeper constitutional ambiguity that has plagued federal–regional relations for years.

Both Baghdad and the KRG cite the Iraqi constitution to support their positions. The federal government references Article 111, which declares oil and gas the property of all Iraqis, and Article 112, which grants the federal government authority to manage production from current fields. 

Federal Court decisions in 2012 and 2019 have reinforced this interpretation, granting Baghdad exclusive rights over contract approvals.

The KRG, in contrast, points to Articles 115 and 121, which grant regional governments control over areas not explicitly assigned to federal authorities—including pre-existing fields. Officials argue that in the absence of a national hydrocarbons law, Erbil has the right to manage resources within its jurisdiction.

However, Youssef warned that unresolved legal and political gridlock could significantly harm Iraq’s economy and energy security.

“Delaying the investment process in Miran and Topkhana will directly affect gas production and electricity generation,” he told Shafaq News, noting that continued disputes will likely push Iraq to increase its reliance on expensive gas imports, especially from neighboring countries.

“This will place a greater financial burden on the state and hinder economic development, particularly in the energy sector,” he said.

Youssef emphasized that the ripple effects would extend far beyond technical metrics. “Electricity supply will suffer, public services will decline, and ultimately, the citizen will bear the cost.”

He also cautioned that ongoing legal ambiguity could deter global investment. “The dispute may limit the willingness of international companies to operate in Iraq. Investors do not move toward contested, unstable, or legally ambiguous zones.”

The presence of two US firms—HKN Energy and WesternZagros—at the center of the dispute adds a diplomatic layer to the conflict. 

Should Baghdad escalate its opposition or pursue legal avenues to halt implementation, it risks straining not only relations with Erbil but potentially with Washington as well.

From an investor’s perspective, the Miran and Topkhana deals send mixed signals. On one hand, they indicate that major international players still see potential in Iraq’s energy sector. On the other hand, Baghdad’s legal threats and the absence of a unified resource law could reinforce perceptions of regulatory instability.

The Road Ahead

The Miran and Topkhana fields represent more than untapped energy—they symbolize the battle over federalism in Iraq. 

In 2023, Iraq won an international arbitration case against Turkiye, resulting in the suspension of Kurdish oil exports through the Ceyhan port. That episode dealt a heavy blow to the KRG’s economy and highlighted Baghdad’s growing willingness to assert control through legal and diplomatic means.

While Baghdad sees the KRG’s unilateral contracts as a threat to national unity and legal order, Erbil views federal resistance as an infringement on regional rights and an obstacle to development.

The paths forward remain limited and politically charged. Baghdad may attempt to block the contracts through legal challenges or budgetary restrictions, while the KRG may proceed regardless, testing the limits of federal authority while banking on tacit support from the US or other international actors.

A mediated compromise remains possible, with some lawmakers and diplomats calling for neutral intervention. Others have renewed efforts to pass a long-delayed national hydrocarbons law that could provide clarity and a shared legal foundation, yet deep political divisions continue to block progress.

What is clear, as Abdullah Youssef emphasized, is that “success in investing in these resources requires political and legal agreement that guarantees the rights of all parties and achieves sustainable development.”

DETAILED ANALYSIS ABOUT THE RECENT NEWS ABOUT THE ENERGY DEALS BETWEEN KURDISTAN REGION & AMERICAN COMPANIES

 News of recent energy deals between the Kurdistan Regional Government (KRG) and American companies has reignited the historic dispute between Baghdad and Erbil over control of Iraq's energy resources. Below is a detailed analysis of this situation.

📰 News Summary

On May 19, 2025, Kurdistan Prime Minister Masrour Barzani oversaw the signing of two energy agreements with American companies HKN Energy and WesternZagros.

 These deals, valued at $110 billion, seek to develop the Miran and Topkhana-Kurdamir gas fields in the Sulaymaniya region. However, Iraq's Oil Ministry declared these agreements "null and void" due to lack of approval from the federal government.

 Baghdad insists that natural resources are the collective property of all Iraqis and that any agreement must go through the central government.

⚖️ Causes of Conflict

The dispute between Baghdad and Erbil focuses on several key points:

Control of energy resources: Kurdistan has sought to develop and export its own energy resources without supervision from Baghdad, which has generated tensions over the sovereignty and control of these resources.

Interpretation of Article 112 of the Constitution of Iraq: This article states that the federal government must manage natural resources in collaboration with regions and provinces. However, the implementation of this article has been the subject of debate, with Kurdistan interpreting it in a way that grants it greater autonomy in the management of its resources.

S&P Global

Judicial decisions: Iraq's Federal Supreme Court has issued rulings deeming Kurdistan's 2007 oil and gas law unconstitutional, ordering the KRG to hand over control of its energy resources to the federal government.

peregraf.com

🔄 Internal Dynamics of Kurdistan

In addition to tensions with Baghdad, Kurdistan faces internal challenges that complicate its position:

Internal political divisions: Kurdistan is divided between the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK). These factions have had disagreements over the management of energy resources, leading to boycotts and internal disputes.

washingtoninstitute.org

Economic dependence: The KRG has relied heavily on oil revenues to finance its administration. The lack of regular payments and the accumulation of debts have generated tensions internally and with international investors.

washingtoninstitute.org

🌍 Regional and International Implications

The dispute between Baghdad and Erbil has repercussions beyond Iraq:

Relations with Türkiye: Kurdistan has sought to develop energy infrastructure in collaboration with Türkiye, including pipelines to export oil. However, legal disputes have affected these initiatives, such as the International Trade Court's decision that ordered Turkey to pay damages for allowing Kurdish oil exports without Baghdad's approval.

Interests of international actors: Countries such as the United States have shown interest in Kurdistan's energy resources. However, political tensions and a lack of legal stability have made foreign investment in the region difficult.

🔍 Conclusion

The dispute between Baghdad and Erbil over Iraq's energy resources is complex and multifaceted.

 While Kurdistan seeks greater autonomy in the management of its resources, it faces internal and external challenges that complicate its position. 

Resolving this conflict will require a diplomatic approach that considers both the aspirations of Kurdistan and the unity and sovereignty of Iraq.

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Clearly, we have a "County" (Kurdistan), which is part of the Whole of Iraq (Erbil-Baghdad), but by having more resources of oil, gas, etc., it considers that it should have more control than the Country in General to decide what to do with its resources and how to manage them...

Basically it is like having a "County" that wants to be Independent of the Central Country, only in matters of distribution of profits from "their resources" because they consider that "Their Land" is not part of Erbil-Baghdad, or if it is,

 because it is "Their Land" they should decide more about that land than the others...

This is a problem that is very complicated and that at this point, thank God, has not generated a civil war within Iraq...

FRANK26: 'we know you got 90%-93% [dinar hoarded under your mattress!! @DINARREVALUATION #iqd