Baghdad transfers over $726M to Kurdistan for January salaries – Shafaq News

baghdad-transfers-over-$726m-to-kurdistan-for-january-salaries-–-shafaq-news

Baghdad transfers over $726M to Kurdistan for January salaries

2025-02-04T09:54:54+00:00

Shafaq News/ The Kurdistan Regional Government (KRG) announced, on Tuesday, that the federal government has transferred over 950 billion IQD (approximately $726 million) to the Kurdish Ministry of Finance and Economy to cover the previous month’s salaries.

KRG spokesperson Peshawa Hawramani confirmed that the federal Ministry of Finance deposited 958,012,332,759 IQD ($732,728,551) into the KRG’s Ministry of Finance account.

Hawramani stated that the KRG will begin distributing the January salaries as soon as possible, following the procedures established by the Ministry of Finance.

On Monday, the Kurdish Ministry of Finance announced that a final agreement had been reached with Baghdad to resolve the longstanding issue of public sector salaries, following several days of technical meetings between the two sides.

The payment of public sector salaries in the Region has been a contentious issue between Baghdad and Erbil, particularly after the Iraqi Federal Court’s decision last year, which mandated both the Iraqi and Kurdistan region’s prime ministers to settle salaries through the federal banking system.

While Baghdad has affirmed its commitment to the court ruling, it has conditioned the submission of detailed employee lists, a point of concern for the KRG Ministry of Finance due to uncertainties surrounding the handling of the lists.

The Kurdistan Region is currently facing a financial crisis and liquidity shortage, worsened by the suspension of oil exports to Turkiye through the Ceyhan pipeline. Ankara halted the flow of oil following an international arbitration ruling requiring Turkiye to compensate Baghdad for damages.

Meanwhile, the federal government is also grappling with a significant budget deficit exceeding 64 trillion Iraqi dinars (approximately $48.9 billion), and domestic debt is reported to have reached roughly 14.5% of Iraq’s GDP, according to official data.

Source: Shafaq News

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