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The salaries of the region's employees will be settled in the federal banks next year. What does that mean?


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The salaries of the region's employees will be settled in the federal banks next year. What does that mean?



Baghdad Today - Kurdistan

Today, Thursday (November 23, 2023), a member of the Parliamentary Finance Committee in the Iraqi parliament, Jamal Kojar, revealed the details of the process of localizing the salaries of Kurdistan employees in federal banks.

Kojar said in an interview with "Baghdad Today" that "an official letter signed by the Prime Minister in which he confirmed that there is no objection to settling the salaries of the region's employees in banks and federal banks, provided that the Kurdistan government submits a full draft in which details in numbers about the region's employees."

He added that "this step will come into effect next year, and does not involve any excess or reduction of the powers of the regional government, on the contrary, it will solve a major crisis that the government suffers from in Kurdistan, and also end the economic crisis of the Kurdish citizen."

"This step is excellent, according to which employees in the region will receive their monthly salary through the MasterCard system, like the rest of the employees in Basra, Ninawa, Anbar and other provinces, on a regular basis without delay," he said.

"The next step requires the approval of the federal government to secure a new loan for the Kurdistan government under which the issue of the salary of the remaining three months of this year, which was not received by the employee in the region, will be resolved," he said.

"The step of localizing salaries is very important and is credited to Prime Minister Mohammed Shia al-Sudani, and the Kurdish street will react to it because it will save it from a stifling economic crisis," he said.

Meanwhile, economist Nasser al-Kinani blamed the federal government and the Kurdistan Regional Government for the impact on the payment of salaries of employees in the region due to political differences.

Al-Kinani said in a previous interview with "Baghdad Today" that "politicians in Baghdad and the region must solve the problem of the salaries of the region's employees, surprising from the commitment of the regional government to pay the salaries of employees through it."

He revealed that "there are space employees in the payrolls of the Kurdistan region, and a census must be conducted, lists of employees must be prepared and a salary scale must be developed to settle the controversy."

The Council of Ministers had approved in mid-September, sending three payments to Kurdistan to pay salaries to employees in the region at a rate of 700 billion dinars for each payment, with a total of more than 2 trillion dinars.

The regional government has distributed the first payment during the current month as salaries for the month of July, while it is hoped that the salaries of the remaining months will gradually reach until the end of the year.

Earlier, a member of the Finance Committee in the House of Representatives, Nermine Maarouf, said in press statements: "We have a big problem in the lists of the number of employees in the Kurdistan region, because the last list was approved by the federal government, was in 2013, and after this date, due to cutting the region's budget, these lists were not updated."

She explained that, "There are real forms in the issue of paying the salaries of salary recipients in the Kurdistan region directly, because the figures adopted by Baghdad on the number of employees in the Kurdistan region date back to 2013. These figures were not updated during the years after 2013, because the federal government cut off the region's share of the general budget, and the regional government relied on itself to manage its financial affairs after adopting the policy of an independent economy, so there was no need to provide Baghdad with lists of the number of its employees, during the approval of other budgets after this date.

She explained that "the last figure that the federal government has officially and approved is 659,<> employees, so there is a vast difference between the number in the federal government and the number provided by the region, which far exceeds this number."

"In addition to this problem, there is also the problem of infrastructure, through which salaries can be paid directly, i.e. through federal government banks and through the smart card," Maarouf said.

"There is only one branch of a federal bank in the region, TBI, and I believe that this bank does not have the capacity and willingness at the moment to take on this responsibility and pay the salaries of this number of employees," she said.

"So I think even if the salaries of the employees are agreed to be paid by Baghdad directly, the process will take at least (three) months," she said.

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