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Wednesday, April 22, 2015

Wednesday News Summaries by Aggiedad77 at KTFA

aggiedad77 » April 22nd, 2015, 11:03 am 

Wednesday News Summaries and Commentaries

Puzzle of the Iraqi economy?

What has Iraq done in the past four decades with their economy.....in particular what has Iraq done since 2003 and the fall of Saddam with their economy.....

They have not done all that much.....they have certainly not learned from mistakes....they have allowed greed to cloud their vision.....they have cloaked their eyes to corruption....to what end....they stand before the world today a rich nation....rich in natural resources....but poor in technology and abilities to deal effectively with what they stand upon....

What a shame.....but the horizon could be brightening for them...if...and it is a big IF.....if they can follow their new found government in a manner that removes the obstacles they currently face.....lack of liquidity, terrorism, lack faith in the government and their banking system.....
....
They have proven they can crawl over the last six months or so....now they must prove they can walk...and that time frame to do so is much shortened....then will they show the world they can indeed run with the big dogs....let us pray so.

International oil companies get Iraqi crude instead of financial dues


Most of the oil companies operating in Iraq are wanting and willing to take oil in lieu of payment for their work....why is that.....even in today's reduced market pricing for oil.....those oil companies can wheel and deal that oil into something tangible for themselves.....cash....cold hard cash.....something the Iraqi's seem to be incapable of producing for them right now.....

But....and no matter how much it gets chewed upon.....there is always a BUT......but what happens when money stops flowing into Iraqi coffers as their oil sales start to dry up....and why will they dry up you ask.....because Iraq is bartering their oil as payment to the oil companies who are producing it.....

The very oil that provides the life-blood to their country's budget....without oil sales in dollars....where does Iraq get money to operate from.....if ever there was a catch-22 this sounds like the environment.....could very well be one of those "danged if you....danged if you don't" conundrums.


Iraq: Developing More Capacity to Manage Public Funds


When it comes to thinking outside the box....the World Bank can be found at the head of the pack....they are working with Iraq to develop what they see as the next generation of revenue source for Iraq....that of public procurement.....Iraq spent just over $50 billion dollars towards procurement in 2014.....

Now in conjunction with the World Bank they are attempting to educate professionals towards this end in an effort to mold these people into exactly what they need them to be in order to make this process profitable for the country.....they are currently working with diligence to remove bottlenecks and dissolve any efforts that might have been used for corruption in the past....the times they are a changing for Iraq....but it is a slow process in this direction...but the rewards will pay nicely in the end.


Maliki pressed to thwart a commission of inquiry Alhakaqiq fall of Mosul to save for his head


We all know there is a committee working with diligence to get to the bottom of why Mosul fell so easily to the terrorists last year....we also are aware that committee seeks to talk to Maliki and his top leaders about their role in that fall....so in steps Maliki in an attempt to thwart their efforts....also hard at work are a group of politicians that for one reason or another do not want the truth to come forward either....are they pro-Maliki or are they too guilty of some wrong-doing in the process....or both....let us hope that this commission stands strong from an integrity standpoint and cannot be swayed by any political pressure from Maliki or any other source.

Iraq expects oil exports to register a record high in April

Ok, this report says it is six days old....another report out yesterday pointed to an export rate of 2.92 million barrels per day....down from March's 2.98.....this just goes to show you it all depends on which numbers you choose to believe as to the level of exports that are leaving the country.....can they hit 3.1 million per day for April.....I find it highly suspect....I would see such rates but only after they get the Kurds and Kirkuk fully online and pumping all out.....plus a month of good weather that does not hamper exporting in the south.....and they still remain below the bubble of 3.3 that is set in the budget.....so the hole associated with the deficit continues to be dug.....until they can get the price of their oil above $56/barrel....they need to work with the greatest of diligence to raise production/export rates.

Islamic banks are willing to work with "Islamic instruments" and calls for legislation law defines work

The Islamic banks that currently operate in Iraq are calling for legislation to provide laws that can better define how they work with their customers....they are merely seeking a unified presence within the Iraqi banking industry that will set them apart from illegal operations that can and do give them a black eye because of the lack of regulations that allow others to muscle in on their business and then scare customers away because the bad efforts provided by these illegal operators....the Islamic banks want laws that will help them to provide better assistance in developing the Iraqi economy....they want legitimacy to their efforts for all of Iraq.

Economic center: the cost of the port of Faw $ 3 billion and the government is capable of funding

The port of Faw is in need of renovation.....we've seen articles in the past concerning this project....they need $3 billion dollars for the project.....what happened to the Koreans who were looking at funding the project a few months ago.....surely there are others who would touch this...and as the head of the Economic Information Center recognizes...the benefits gained from its completion through increased revenues seem to far outweigh the overall cost of the project....what gives....let's get it moving folks.

During the next two weeks .. exchange all overdue housing loans

It is time to address all housing loans that have fallen into arrears from 2014 and to get moving on 2015 loans....for March the Department of Housing closed just over 3,900 transactions...again they are seeking to streamline the process and get loans into the hands of citizens as quickly as possible.

Council of Ministers constituted a committee headed by Abadi to put investment plans


PM Abadi will head a new committee formed by the COM yesterday to develop strategies and mechanisms towards investment possibilities...the head of the Investment Authority, the CBI, and the Ministry of Electricity will all have representatives serving to help Abadi....another opportunity for Abadi to shine.

The Ministry of Finance assured: Iraq will exceed state austerity and the salaries of the staff locked

A senior level from within the Ministry of Finance spoke saying that Iraq has the ability to overcome the current crisis surrounding falling oil prices that directly impact Iraqi revenues....stating that regardless of how bad things may appear Iraq has things under control.....claiming that the ministry has special controls in place that are working.....this also includes the security of employee salaries.....my gut says this article somehow ties to the one we saw yesterday that says "BY JULY" salary issues will disappear....remember that....don't forget it....I believe we will see more on it.

The Future is Coming – Oil and Gas in Iraq


Indeed the future is coming....and it has the distinct possibility of being a bright future for all of Iraq....thanks to the amount of oil they sit upon....and the vast amount of largely unexplored other natural resources they possess....it is time for Iraq to step up to the plate in a unified fashion and start acting like the world leaders they can be....it is time for Iraq to start to develop their resources to their benefit which in turn will greatly benefit the world as a whole.

Kurdistan contracts with three local banks to distribute the salaries of its employees

The KRG announced on Tuesday that it is contracting with three regional banks to distribute employee salaries starting with the month of February....but of course this comes at a price for each employee.

Minister of Electricity: The Ministry needs to 12 trillion dinars per year for fuel and maintenance

Just to keep things operational the Ministry of Electricity requires 12 trillion dinars for fuel and maintenance costs....just to keep the electricity flowing...when new rates were published earlier in April arguments arose over the rate hikes....but which do you prefer electricity to see your way....or sitting in the dark.
Iraq seeks to loans from the World Bank to pay salaries and cover the budget deficit

A tricky article to manœuvre through....talks of Baghdad attempting to get loans with the World Bank, switching to the Kurds finally receiving their $500 million dollar loan from Turkey to help pay salaries....then back to Baghdad and talks with the World Bank...

And mixed in the World Bank discussions are topics associated with displaced citizens and humanitarian aid type loans....then switching gears and talking about loans of $5-$9 billion dollars to help bridge the budget deficit.....worlds apart on which part of the World Bank they might have been talking to.....thus adding to the confusion of these ongoing talks....

And they are just that at this point....talks.....and don't be confused by the 850 billion dinars/$730 million USD....this is the salary requirements for the Kurds not for the Baghdad government.


Barzani to Talk Independence in Washington

President Barzani from the Kurdistan Region will be visiting the US soon and a major part of his agenda will consist of discussions that surround independence for the region....also on tap will be the liberation of Mosul and continued security for the region.

BP’s Kirkuk Contact Extended

BP's contract, a letter of intent, signed for a year to work in the Kirkuk oil fields to upgrade production has been extended through the end of this year.....largely because of inactivity through parts of 2014 due to terrorist activities.

Ok, time for a stretch and a new cup of coffee.....maybe snitch a cookie or two.

Aloha   Randy


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