Finance announces the depletion of loan funds and links salary insurance with legislation



Iraqi Finance

Staff salaries

2020-10-23 14:53

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Shafaq News / The Ministry of Finance announced, on Friday, that securing salaries for employees and retirees and social care is linked to the approval of the borrowing law in the House of Representatives.

The ministry confirmed, in a statement received by Shafth News, that it “works diligently to ensure that all government obligations are fulfilled and on time, and on top of those obligations are the salaries of state employees, retirees and social welfare.”

She added, “It is not a secret for the Iraqi public opinion that the ministry is making these efforts under exceptional circumstances and a financial crisis beyond the control of the government, represented by the sharp decline in oil imports, the Corona pandemic and its domestic and international effects, in a manner that exacerbated the shortage of liquidity available to the state, especially with the unplanned expansion.” His staff numbers over the past year. ”

The ministry continued, “To address this lack of financial liquidity, the Iraqi government sought to obtain parliamentary legislation that would enable it to borrow internally and externally. The funds available through internal borrowing amounting to 15 trillion Iraqi dinars were used until the end of last month to finance salaries and meet other basic expenses, especially what It relates to health and security, while international loans are used to finance development projects. ”

She pointed out that she “is currently preparing a detailed road map for financing basic expenditures for the remaining three months of the current year, and we will present it soon to the esteemed parliament. This plan will include increasing the ministry’s ability to borrow internally, and once approved, it will enable us to start securing government salaries.” In full. ”  

The Ministry of Finance attributed its tendency to borrow now to “structural weaknesses in public finances, which affect revenues and expenditures, that can only be corrected after major reforms are undertaken.”

She explained that “the ministry is preparing for the 2021 budget draft in a manner that addresses the accumulated financial and economic challenges that burden the country,” noting that “the circumstances the country is currently going through stress the urgent need for political and societal forces to come together, and to work together responsibly to achieve security and stability.” And moving Iraq towards what its patient people deserve in terms of prosperity and development. ”

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