ERBIL, Kurdistan Region - The Kurdistan Regional Government (KRG) on Thursday announced it has received the sum of 618 billion dinars (about $471 million) from Baghdad and will begin distributing civil servants’ salaries the next day, despite the amount falling short of the required funds.
“The amount of (618) billion dinars reached the bank account of the Ministry of Finance in the Erbil branch of the Central Bank of Iraq, which is only (65%) of the total entitlements of salaried employees in the Kurdistan Region,” the KRG finance ministry said in a statement.
“On Friday … the distribution of salaries of employees in the Kurdistan Region will begin,” it added.
The Iraqi government earlier this month decided in a cabinet meeting to pay 618 billion dinars to the KRG. The payment is aimed at covering the Kurdistan Region’s share in the federal budget for the month of January.
The KRG has said that it needs over 900 billion dinars (about $686 million) monthly to cover its payroll, but with its oil exports through Turkey halted since March, it does not have the funds. In September, Erbil and Baghdad struck a deal that saw the federal government agree to loan the KRG 2.1 trillion Iraqi dinars in three 700-billion-dollar (about $534 million) installments, to cover the salaries of the months of September, October, and November.
According to Erbil, 325 billion dinars (about $216.5 million) are needed to fill the deficit.
On Wednesday, KRG Finance Minister Awat Sheikh Janab said that Erbil had “cut all excuses” of Baghdad regarding paying salaries and had “implemented everything they had asked for.”
Earlier in January, the KRG Council of Ministers labeled the recent budget talks with Baghdad regarding the unpaid salaries as “positive.”
“The amount of (618) billion dinars reached the bank account of the Ministry of Finance in the Erbil branch of the Central Bank of Iraq, which is only (65%) of the total entitlements of salaried employees in the Kurdistan Region,” the KRG finance ministry said in a statement.
“On Friday … the distribution of salaries of employees in the Kurdistan Region will begin,” it added.
The Iraqi government earlier this month decided in a cabinet meeting to pay 618 billion dinars to the KRG. The payment is aimed at covering the Kurdistan Region’s share in the federal budget for the month of January.
The KRG has said that it needs over 900 billion dinars (about $686 million) monthly to cover its payroll, but with its oil exports through Turkey halted since March, it does not have the funds. In September, Erbil and Baghdad struck a deal that saw the federal government agree to loan the KRG 2.1 trillion Iraqi dinars in three 700-billion-dollar (about $534 million) installments, to cover the salaries of the months of September, October, and November.
According to Erbil, 325 billion dinars (about $216.5 million) are needed to fill the deficit.
On Wednesday, KRG Finance Minister Awat Sheikh Janab said that Erbil had “cut all excuses” of Baghdad regarding paying salaries and had “implemented everything they had asked for.”
Earlier in January, the KRG Council of Ministers labeled the recent budget talks with Baghdad regarding the unpaid salaries as “positive.”
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