Bondlady’s Corner – Iraq Economic News and Points to Ponder Wednesday AM 2-14-24


Iraq Economic News and Points to Ponder Wednesday AM 2-14-24

Tlm724 Administrator Bondlady’s Corner

Parliamentary Oil Reveals The Reason For The Government’s Move Towards Electronic Payment At Gas Stations

 Time: 02/12/2024 16:25:10 Read: 4,888 times  {Economic: Al-Furat News} The Parliamentary Oil Committee revealed, today, Monday, the government’s approach to electronic payment at gas stations.

Committee member, Zainab Al-Moussawi, said {to Al-Furat News}:

“We, the coordinating framework, strongly support the government’s economic measures, including moving toward cash payment with electronic cards, since

electronic payments are inherently safer than paper ones, whether on the health and safety side of the transmission of viruses, or on the side of not counterfeiting.” Sukuk.” She explained,

“Bank cards provide double security from any fraud attempt, and the various controls and successive verification processes contribute to making the payment process more secure.”

 Al-Moussawi added, “In addition,  individuals can track all their transactions online, which contributes to increasing financial awareness and improving the management of expenses and the personal budget.”  She pointed out that”other features of electronic payment

enhance the financial security of individuals, as carrying cash exposes people to theft and loss, while

electronic payment provides an additional layer of protection and encryption for financial transactions.”

On January 30, 2024, the Petroleum Products Distribution Company, in cooperation with Rafidain Bank, launched the service of issuing electronic payment cards immediately at gas stations.

The Petroleum Products Directorate of the Ministry of Oil announced the continuation of cash payment at fuel filling stations until next April.

In its regular session, the Council of Ministers approved the following regarding commissions for electronic payment operations:

1. (The recipient bears electronic payment commissions from the private and public sectors, and the payer does not bear any electronic payment commissions), and

the government compensates a percentage (50%) of electronic payment commissions. paid by the holder (the merchant, the employer, and all private sector entities),

provided that it is used to pay the holder’s obligations to the state exclusively through electronic payment, such as renewing licenses, paying taxes, customs, fees, municipal fees, electricity fees, and everything owed to the state, and it cannot be recovered in cash in any case. Conditions.

2. Determine all electronic payment commissions (at a percentage determined by the Central Bank of Iraq), with a maximum commission limit that stops at a commission amount (the value of which is determined by the Central Bank of Iraq for both the public and private sectors) and what exceeds that without commissions, and a minimum that is exempt from commissions as well (Exempting small transactions in the public and private sectors from commissions up to a ceiling determined by the Central Bank of Iraq.

3. The contracts signed based on what was stated in the decisions of the Council of Ministers related to electronic payment, especially the decisions of the Council of Ministers (23044 and 23620 of 2023) etween state institutions and electronic payment companies, will continue to be effective until December 31, 2024, and  the contracting institution may submit a reasoned request to the Central Bank of Iraq in If she wishes not to extend the approval process.

4. The decision will be re-evaluated in light of the results of the application before the end of this year 2024.

5. This decision will be implemented starting March 1, 2024.النفط-النيابية-تكشف-سبب-التوجه-الحكومي-للدفع-الالكتروني-في-محطات-الوقود

Specialists Urge Directing Loans To Increase Domestic Product

Economical 02/13/2024   Baghdad: Haider Falih Al-Rubaie  Specialists in economic affairs urged the necessity of seeking to direct the loans and credit facilities granted by banks to the private sector, towards activating and increasing production processes,

indicating that these facilities exceeded 50 trillion dinars last year 2023,

but they did not contribute to increasing output rates. GDP, stressing at the same time the importance of building more bridges of trust between investors, businessmen and companies with government and private banks with the aim of facilitating the granting of loans directed towards increasing local production.

Unofficial statistics, reported by the economist, Manar Al-Obaidi, showed that

“the credit facilities provided by the banking sector to the private sector exceeded the barrier of 50 trillion Iraqi dinars during the past year 2023, which is the first time that this number of credit facilities provided by the banking sector has been recorded.” “The Iraqi.” 

Al-Obaidi pointed out that  “the value of credit facilities provided to the private sector represents 14 percent of the total Iraqi domestic product,” noting that

“despite the increase in the volume of credit facilities provided to the private sector during 2023 by 11 percent compared to the year 2022, the credit ratio The percentage of GDP is still low compared to the percentage of Arab countries, as the percentage reached, according to the World Bank, about 55 percent of the GDP.”

 Al-Obaidi explained,  “Cash credit facilities increased by 19 percent compared to 2022, as the credit facilities amounted to 40 trillion Iraqi dinars,

while the pledged facilities provided by the banking sector to the private sector amounted to 12.5 trillion Iraqi dinars,” suggesting at the same time that “the percentage will rise in the coming years.”

As a result of the increase in the value of deposits with banks, which is considered the most important factor for the banking sector’s ability to provide direct credit facilities to the private sector,” indicating that

“increasing the domestic product from non-oil sectors will lead to an increase in demand for credit facilities during the coming years,

which will improve the reality of credit provided to the sector.” private” .

In turn, the economic expert, Dr. Ali Daadoush, said during his speech to “Al-Sabah” that

the first step to the success of the partnership between the two parties is to build confidence between businessmen, merchants and investors from the private sector on the one hand, and with the banks on the other hand.  Daadoush stressed,

“In order to empower the private sector, we should move towards activating what he called “moral persuasion” as part of the monetary policy that can be followed with the aim of revitalizing the role of the private sector,

by directing the banks by the Central Bank to work in accordance with supporting the private sector by increasing… Investment credit, that is, supporting local production,” indicating that  this step “is capable of achieving a lot if the banks move towards this matter.”

 Daadoush pointed out that  most of the funds granted to the private sector in the past went to finance imports and were not invested in building a production base for local industries, and  thus this matter led to deepening imports and weakening local production further.

To read more current and reliable Iraqi news please visit BondLady’s Corner: 

Points To Ponder on Anxiety about the Future

The sheer rebelliousness in giving ourselves permission to fail frees a childlike awareness and clarity. … When we give ourselves permission to fail, we at the same time give ourselves permission to excel.  – Eloise Ristad

He is much to be dreaded who stands in dread of poverty. – Publilius Syrus

I was nervous and confident at the same time, nervous about going out there in front of all of those people, with so much at stake, and confident that I was going to go out there and win.  – Althea Gibson

There are those who are so scrupulously afraid of doing wrong that they seldom venture to do anything.  – Vauvenargues

Real courage is when you know you’re licked before you begin, but you begin anyway and see it through no matter what.  – Harper Lee