The salary crisis accelerates a new round of talks between Erbil and Baghdad
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Added 11/22/2023 - 9:27 PM
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The salary crisis in Kurdistan has been stuck for years, awaiting a radical solution
The salary crisis in Kurdistan has been stuck for years, awaiting a radical solution
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Economy News - Baghdad
The Minister of Finance of the Kurdistan Region, Awat Janab Nouri, confirmed that a government team will go to Baghdad to discuss the issue of salaries, indicating that there is a willingness on the part of the federal government to solve the problems of the region, as the problem of salaries is considered one of the most prominent points of chronic disagreement between the two sides .
Nouri told reporters on Wednesday that the regional government sent the audit budget to the federal government regarding financing salaries for the last three months of the current year, but he did not specify a date for the delegation’s upcoming visit .
The region had an independent source of funding that enabled it to pay salaries in part thanks to its oil exports, but since the end of last March it has lost its most important resources due to the cessation of Iraqi oil exports to Turkey .
Last month, Prime Minister Muhammad Shia al-Sudani announced a conditional financial settlement with the Kurdistan Region regarding the salary crisis, pointing out that there were observations on the numbers of the region’s employees, which is the main point in the dispute with the regional government .
The Iraqi government has begun distributing the salaries for the month of November, while the Kurdistan Regional Government is waiting for Baghdad to send it an amount of 700 billion dinars (a little more than 600 million dollars), as a previously agreed upon loan to pay the salaries of last September, and this is the last month in which Baghdad will send loans to the region, while the fate of the remaining three months’ salaries for the region’s government employees for this year is unknown, and it depends on Sudanese’s approval of the request sent several days ago by the head of the region’s government, Masrour Barzani, to obtain new loans from Baghdad .
The Assistant Prime Minister of Kurdistan for Economic and Administrative Affairs, Ribaz Hamlan, had explained that Barzani’s message to Al-Sudani included two important points: the first was to demand another three months’ salary, and the second was to amend the salaries item in the federal budget .
He said in a press conference in the middle of this month, “We previously asked Baghdad for salaries for the last six months of 2023, and the federal government agreed to send 700 billion dinars per month for 3 months,” adding, “We had asked to send 800 billion dinars per month, and Baghdad has sent so far.” For two of the three months it announced its approval for, and it will send another 700 billion dinars by the end of this month .”
Hamlan pointed out that Al-Sudani "took a decision at the cabinet meeting to send three salaries, but we hope that the federal government will send three more salaries." He stressed at the same time that "the Prime Minister of Kurdistan is in constant contact with the Prime Minister of Iraq," pointing out that during the Sudanese visit to Erbil, President Barzani and the President of the Kurdistan Region stressed the importance of strengthening relations between Erbil and Baghdad, especially on the issue of salaries and oil .
Regarding the amount related to the cost of producing Kurdistan’s oil, Hamlan noted that the regional government “specified an amount and the Iraqi government proposed another amount, so there is a convergence, and the export of oil will resume as soon as possible. ”
Politicians in Kurdistan consider that Baghdad is directly responsible for disbursing the salaries of employees in the region, just like other Iraqi governorates, and it must adhere to the agreement concluded with Erbil regarding the budget law and complete the sending of financial payments .
But officials in Baghdad blame the Erbil government, holding it responsible for refraining from performing its duties by refraining from handing over the salaries of the region’s employees under the pretext of not sending them from the central government, while it still continues to illegally seize oil export funds, in addition to revenues. Border crossings .
The government of the autonomous region earlier appealed to the international community to support it in order to obtain its financial dues, holding Baghdad responsible for not sending the budget .
Informed sources stated that the federal government will send during the last week of this month the last financial payment according to the agreement concluded between Baghdad and Erbil, allocated to disburse employees’ salaries, but it will be the last payment and the Kurdistan government has been informed of this, provided that a new agreement will be reached between the two parties, noting that after By sending this payment, Baghdad will not send any other amounts, which will lead to a new crisis in the region as the Kurdistan government will stop paying salaries, if it does not agree with Baghdad .
The Federal Council of Ministers had voted last September to send 2.1 trillion dinars to the Kurdistan region in the form of 3 batches, with 700 billion dinars for each batch as salaries for 3 months. The first two batches were sent in late October and were distributed as salaries for the month of July, and the second batch was sent. A few days ago, they were distributed as salaries for the month of August, while the final payment will be counted as salaries for the month of September, while the salaries for the last three months of the year remain unknown .
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Added 11/22/2023 - 9:27 PM
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