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Samson:  Iraq Stock Market Report

15th May 2020

Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 15th May 2020).

Please click here to view a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD552 (+0.7%) / $573 (+0.7%) (weekly change) (-16.2% and -18.2% YTD change, respectively). The number of week traded shares was 2.1 bn and the weekly trading volume was IQD2.2 bn ($1.8 mn).

Note: ISX will be closed starting from May 22, 2020 due to the religious holiday of Eid Al-Fitr. The next trading session will be held on May 31, 2020. ISX will resume trading five days a week starting May 31, 2020 (Sunday).

The lower daily price change limit will be maintained at 5% and the upper daily price change limit will be maintained at 10%.

ISX Company Announcements

Ameen Al-Iraq Islamic Bank for Islamic Investment & Finance (BAME) with a capital of IQD100 bn will start trading on May 17, 2020 in the non-regular market. The opening price will be free for the first three sessions, and then will have +/-20% price change limit.

Rajih Islamic Bank for Investment & Finance (BRAJ) with a capital of IQD250 bn will start trading after depositing and activating 5% of the listed shares or after 21 days of depositing the company's shares.

ISX suspended trading of Zain Al-Iraq Islamic Bank for Investment (BZII) starting on May. 12 due to the GA that will be held on May. 17 to elect 7 original and 7 alternative board members.

Al-Sadeer Hotel (HSAD) resumed trading on May. 12 after disclosing its financial statements and deciding to increase the company's capital to IQD1.36 bn through 10% rights issue.  LINK

Samson:  Newspaper: Al-Kazemi intends to replace most of the heads of the 25 independent bodies

12:25 - 05/13/2020
Al-Arabi Al-Jadeed newspaper revealed, Wednesday, Prime Minister Mustafa Al-Kazemi's intention to open the file of independent bodies and replace most of its presidency.

With the advent of the new Prime Minister, Mustafa Al-Kazemi, today the file of independent bodies in Iraq, whose number exceeds 25 different bodies, exceeds some of the tasks and financial allocations allocated to them by government ministries.

She added that “extending the independent bodies in Iraq to more than 25 bodies, the most prominent of which are the Hajj and Umrah Commission, the Central Bank, the Martyrs’ Foundation, the Political Prisoners ’Organization, the Investment Authority, the Financial Control Bureau, the House of Wisdom (Cultural Foundation), the Provincial Authority, the Baghdad Municipality, The Reconstruction Council, the Integrity Commission, the Accountability and Justice Commission, the Media Commission, the Federal Revenue Authority, the Securities Commission, the Independent High Electoral Commission, the Communications Commission, and the High Commissioner for Human Rights, the most recent of which is the Popular Mobilization Authority that was introduced recently.

She added, “The majority of those bodies that have been run by the agency for years, and registered in the last two years serious corruption files linked to them, have become an indefinable file, especially since most of them are monopolized by political parties, while others have become redundant and can be merged or attached to other ministries in The area of ​​specialization or interest itself, which contributes to reducing spending and eliminating corruption. The sources emphasized that some of these bodies turned into party fronts for a number of political entities rather than official institutions.

The newspaper quoted the deputy from the "Al-Fath" coalition, the Charter of Al-Hamedi, in saying that "every file that has not been opened in the jurisdiction of the government of Adel Abdul Mahdi, will be opened by the new Prime Minister Mustafa Al-Kazemi, and on top of that is the file of independent bodies," explaining that "opening this file It will generate new political differences regarding the distribution of independent bodies between the political forces, but in the end there will be agreement, as happened with the formation of the Al-Kazemi government, which was the closest to failure.”

MilitiaMan:    The presidencies of most bodies have corruption files.. Doesn’t say all, but suggests many and they will be held accountable with and under the new Prime Minister.. This was back on the 12th around the time of the crisis cell meeting and the UNSC on the 13th.. The money players are awoke!!

With a new change to come, they’ll want no corruption to hinder this effort to reform with our failure..

 I am seriously liking this new PM more and more and apparently the citizens do too! Open the files and let’s see who is who and what changes were made or are to come..

I would like to see the Governor of the Central Bank make and announcement this weekend! imo! ~ MM

Samson:  Prison for a former director of an Iraqi government bank wasted $ 30 million

16th May, 2020

The Federal Integrity Commission announced, on Saturday, the issuance of a seven-year prison sentence against the former director general of the Iraqi Trade Bank, stating that the decision came against the backdrop of willful harm to public money.

The investigation department of the commission, while talking about the details of the case that it investigated and referred to the judiciary, indicated, according to a statement issued by the Integrity Commission, to Shafaq News, that "the convict was brought in 2014 during his tenure as director general of the Iraqi Trade Bank to cause willful damage to public money through The financial loan granted to a company amounting to (30,000,000) million dollars without taking adequate guarantees. LINK

Chappy86:  As law and order are restored within Iraq the Iranians thieves will bail out like rats on a sinking ship.

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Samson:  An Iraqi bank provides employees with electronic cards that allow them to shop in it

16th May, 2020

The Rafidain State Bank said on Saturday that the electronic card is known as the "Master Card", which allows the employee working in the public sector to shop in it from malls as well as receiving monthly salaries.

The media office of the bank said in a statement today that the salaries of a number of employees of ministries and state institutions have been localized, given an electronic card and received their monthly salaries through them.

The statement added that masters of card holders can take advantage of the financial features and services recently launched by the bank and benefit from that card in shopping and purchasing from other places and commercial centers.   LINK

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Don961:  Financial Reform Emergency Cell

Saturday 16 May 2020

Samir Al-Nassery

In the second session of the new cabinet, an emergency cell for financial reform was formed to manage the financial situation in the current circumstance and find remedies and solutions to overcome the country to the complex economic crisis for the known reason, which is the drop in oil prices due to the Corona virus that swept all the countries of the flag and led to economic stagnation and affected most countries ’economies and slowed growth For the global economy.

Therefore, the formation of this cell headed by Mr. Prime Minister Mustafa Al-Kazemi and the membership of the competent ministers and the governor of the Central Bank and advisors means that the government has already begun to put its urgent plans and draw a road map to overcome The economic and financial crisis that Iraq is going through. 

Based on the bold decisions taken by the new government at the beginning of its journey, I find it necessary for us economists and financial experts to support and cooperate with the government in implementing its plans for economic and financial reform. Therefore, we propose to the Emergency Financial Reform Cell to study a package of urgent and immediate treatments that can be implemented quickly and strategic solutions that It requires a period of time exceeding one year, which constitutes a driving force for comprehensive and radical reform policies, as follows: -

Prompt and immediate treatments:

First - Preparing an emergency budget based on the expected revenues from the marketed oil for the year 2020 with the minimum price forecast, and a monthly balance is approved from which to spend according to the specified priorities.

Second: Reducing government expenditures by 50 percent for the three presidencies, the House of Representatives, special grades, and special pension salaries, and upwards of the Director General’s level, including those who previously worked in these locations since 2003. Excluding the salaries of employees, retirees, and social welfare from the reduction.

Third - Securing the funds for dealing with the Corona pandemic to the Ministry of Health.

Fourth ‐ Securing the amounts allocated to the reform decisions that the resigned government committed to implement the demands of the demonstrators.

Fifthly, coordination between the financial and monetary policies to maintain the stability of the exchange rate and maintain the standard adequacy of the foreign monetary reserves of the Central Bank and to determine the rates of internal borrowing and not to go for external borrowing.

Sixth: To stimulate and encourage the private sector and its involvement in the management of the economic process, and its involvement in economic decision-making.

Seventh ‐ Halting the import of semi-essential and luxury items and restricting the import of ration card materials, medicine and medical supplies, while increasing the food basket for the Iraqi family.

Eighth: Establishing the National Emergency Fund.

Ninth: Exclusion of staff, economic and health career experiences, and higher education from the law of referring them to retirement implemented from 1/1/2020. And fixing the special grades who had a fundamental role in overcoming the economic and financial crisis that Iraq experienced in 2014-2014.

 Strategic economic treatments:

First, there is a need for a systematic movement to map a road map for economic reform by Iraqi elites and economic, financial and banking efficiencies and for economic mobility to be based on several important economic pillars that adopt a new methodology for managing the economy and achieving the central goal of creating sustainable development, achieving diversity in resources and developing economic and human structures For the sake of proper building of the national economy and building the premises of the transition to a social market economy.

Second ‐ Draw a realistic and ambitious road map that depends mainly on managing and distributing public money in a transparent and fair manner, provided that the beneficiaries in the results and outputs of the people and that the citizen feel that his national economy, resources and goods are dedicated to ensuring decent living as mentioned in the articles of the permanent Iraqi constitution.

Third, the formation of the Supreme Council for Economic Reform to be enacted by a law binding on the ministries to implement its decisions and has the power to monitor, monitor, and evaluate, and to form and preside over and chair a membership of elite government experts and the private sector.

Fourth ‐ Moving to the central administration of the economy so that the principle of (centralization of planning and implementation decentralization) is implemented, and this means that the Supreme Council for Economic Reform takes charge of drawing plans and policies centrally and distributes their implementation to specialized councils for reconstruction and investment and the implementation of development projects in the economic and human sphere These councils are: -

* Private Sector Council 

* Construction Council  

* Small and Medium Enterprises Development Authority  

* Public Service Council 

* Local Product Support and Protection Council.

 Fifthly: Creating and creating the investment climate for local and foreign investors, motivating and encouraging them, and ensuring their contractual rights to attract their capital and protect them from the pressure of spoilers.

Sixth: Providing soft loans to finance small, medium and large projects and establishing a legal and institutional system for managing, developing and developing them, as well as issuing and amending the laws of the legal environment to regulate the economic process. This means issuing new laws instead of laws issued in 2004 due to the changes that occurred in the national economy during 17 Year.

Seventh, activating investment in the sectors .. agricultural, industrial, energy, tourism, services and housing, as well as working to reform, develop and develop the banking sector through monetary policy applications and regulating the relationship and restrictions that govern financial and monetary policies, as well as a serious approach to reforming the tax, financial and customs system, and handling cases of failure In achieving the required growth rates in national income and exceeding the rise in unemployment and poverty rates.

Eighth ‐ Supporting, developing and motivating the private sector and benefiting from its capabilities, capabilities, capital and investments in building the national economy and involving it in managing the economy.

IX ‐ Developing a new methodology to overcome the challenges of instability in the financial system and the monetary system, and this means developing balanced and coordinated plans to overcome the challenges of monetary policy and the challenges of the deficit in non-oil revenue and the deficit in the balance of payments.

Tenth - Reconstruction of a new structure of the government apparatus in line with the emphasis on centralization of planning and decentralization of implementation, including the adoption of a strict and disciplined market economy system as is currently the case in China according to Iraqi doctrine and experience, especially in economic construction, that depends on the material, natural, economic, and human capabilities of Iraq.

Eleven ‐ laying the proper basis for the transition to the health system in Iraq in terms of the number of hospitals, the number of beds, the number of doctors and those with health professions, the manufacture of medicines and medical supplies locally, the development of expertise, and the attraction of Iraqi competencies abroad.

Twelve ‐ Accelerate the implementation of the e-government program and its coordination with the electronic payment system.   LINK

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Samson:  Threatening crops of 7 billion dollars ... locust swarms invade Iran and extend the borders with Iraq

16th May, 2020

An Iranian Ministry of Agriculture official said that Iran may use the army to help combat locust swarms that invade the south of the country and threaten to destroy crops estimated at more than seven billion dollars.

The locust infestation, which is the worst of its kind in decades, exacerbates the problems facing Iran, which has already been subjected to harsh strikes from the outbreak of the Corona virus internally and the decline of its oil exports to record levels in light of the US sanctions imposed on them.

The semi-official Iranian Labor News Agency quoted Mohammad Reza Mir, an official at the Ministry of Agriculture, as saying that the Desert Locust attacked more than 200,000 hectares of fields and agricultural lands in seven of the 31 provinces in the country.

Mir told the agency that the affected areas, which extend from eastern Iran on the border with Pakistan to the border with Iraq in the southwest of the country, will likely increase soon and reach one million hectares.

Mir told the workers agency that "the army promised to help in the fight against the Desert Locust, including providing vehicles that are used in difficult terrain for use in hard-to-reach areas."  LINK