SULAIMANI (ESTA) — The Kurdistan Regional Government (KRG) will borrow $205 million to pay salaries of public servants in the Region, its spokesman said on Wednesday.
KRG Spokesman Jotiar Adil said in a press conference that the KRG needs $755 million per month to pay employees’ salaries.
“The Kurdistan Region has a deficit of $355 million for this month,” Adil said.
The KRG will pay back the loan once the federal government transfers 320 billion Iraqi dinars ($265 million) to the Region, he continued.
“The prime minister [Masrour Barzani] has been in contact with [Iraqi Prime Minister] Mustafa al-Kadhimi and the Iraqi Council of Ministers, and they both promised to solve the issue of salaries of the Region’s employees,” Adil said.
The Region’s government will start paying salaries of public servants for October from Thursday, with 21% cut, the KRG spokesman further said.
Earlier on Wednesday, hundreds of public servants protested in Sulaimani city against delays in payment in the Kurdistan Region.
The KRG has yet to pay salaries of October and November to its employees, saying Baghdad is the reason for delays in payments. The KRG has already cut off employees’ salaries for April, May, June, July and August.
A number of lawmakers warned on Wednesday that the continuity of such governance would further deteriorate crises in the Kurdistan Region, proposing three steps to overcome the issues.
“The people’s livings are in the worst condition. With the continuity of this kind of governance, the crises will deteriorate further, and the people will pay the price,” the lawmakers said in a statement.
They warned: “If the following three steps are not taken, the Kurdistan Region will face a bigger economic crisis in 2021.”
The lawmakers said the KRG should reach an agreement with the federal government and transfer half of the non-oil revenues and 250,000 barrels of oil per day to Baghdad in exchange for the Region’s financial entitlements.
They also called on the KRG to control smuggling of “officials” on the border crossings and to implement reform on the crossings.
The MPs also said the KRG should “review the oil dossier and put an end to corruption and waste of public finds in the dossier.”
