KRG collects over $400 thousand of debt from business owners amid economic crisis: official
ERBIL, Kurdistan Region — Business owners who received loans from the Kurdistan Regional Government (KRG) roughly a decade ago are now being pursued for repayment in light of the recent economic crisis. The KRG has collected over $400 thousand US dollars so far, according to an official.
The dramatic drop in the value of oil, the KRG’s main source of income , Baghdad’s cutting of Erbil’s budget share, as well as coronavirus prevention measures have rendered the KRG unable to pay most civil servant salaries on time and in full or properly fund many public service projects. The government has since sought out other ways to ease the crisis.
Abdul-Hakeem Khasraw, the secretary of the High Committee for Implementing Reform Law, told Rudaw on Tuesday that, “so far, the government has taken back 500 million dinars ($419,000 US dollars) from businessmen and others who had taken loans from it,” adding that this has been done legally.
“The finance ministry’s banks have informed the property registration offices that if the indebted fail to pay their debts, their properties, submitted as guaranties, will be sold in auction. If we fail to sell them there, they will be the property of the finance ministry.”
The KRG has given 800 billion dinars to businessmen between 2007-2011, according to data obtained by Rudaw. During this period Erbil was receiving its share of the federal budget from Baghdad.
The KRG had not pressured these business owners in the past or taken legal action. However, the current year-old cabinet appears to be aggressively pursuing debts.
Another measure that may aid the economy is the KRG’s implementation of a reform law, which targets illegal government salary collection, inflated salaries, among other financial drains on Erbil. The legislation, which was passed and approved by President Nechirvan Barzani at the beginning of the year, is expected to save the government millions of dollars.
Reporting by Aso Sarawi
The dramatic drop in the value of oil, the KRG’s main source of income , Baghdad’s cutting of Erbil’s budget share, as well as coronavirus prevention measures have rendered the KRG unable to pay most civil servant salaries on time and in full or properly fund many public service projects. The government has since sought out other ways to ease the crisis.
Abdul-Hakeem Khasraw, the secretary of the High Committee for Implementing Reform Law, told Rudaw on Tuesday that, “so far, the government has taken back 500 million dinars ($419,000 US dollars) from businessmen and others who had taken loans from it,” adding that this has been done legally.
“The finance ministry’s banks have informed the property registration offices that if the indebted fail to pay their debts, their properties, submitted as guaranties, will be sold in auction. If we fail to sell them there, they will be the property of the finance ministry.”
The KRG has given 800 billion dinars to businessmen between 2007-2011, according to data obtained by Rudaw. During this period Erbil was receiving its share of the federal budget from Baghdad.
The KRG had not pressured these business owners in the past or taken legal action. However, the current year-old cabinet appears to be aggressively pursuing debts.
Another measure that may aid the economy is the KRG’s implementation of a reform law, which targets illegal government salary collection, inflated salaries, among other financial drains on Erbil. The legislation, which was passed and approved by President Nechirvan Barzani at the beginning of the year, is expected to save the government millions of dollars.
Reporting by Aso Sarawi