“The Iraqi Ministry of Finance on Saturday deposited 443 billion dinars as the April entitlements into the bank account of the Ministry of Finance and Economy in the Erbil branch of the Central bank of Iraq,” said a statement from the Kurdistan Region’s finance ministry.
On Tuesday, Kurdistan Region President Barzani met with Iraqi Prime Minister Mohammed Shia’ al-Sudani in Baghdad to discuss pressing issues between Baghdad and Erbil, including the payment of the salaries of the Region’s civil servants. It marked Barzani’s third visit to the Iraqi capital since April.
Iraq’s Federal Supreme Court in February ordered the Kurdistan Regional Government (KRG) to submit a breakdown of the monthly budget for the Region’s employees’ salaries to the finance ministry so Baghdad could start paying the Region’s share from the federal budget.
The ruling mandates the Kurdish government to open accounts for its employees at Iraqi state-owned banks - a process dubbed “localization” by Baghdad.
The KRG has failed to pay the salaries of its civil servants on time and in full for a decade due to a financial crisis which deteriorated when a ruling by a Paris-based arbitration court suspended its export of oil to the international markets a year ago. The Kurdish government now relies on local income and its controversial share from the federal budget.
Erbil has repeatedly accused Baghdad of not making regular payments of its share of federal funds. Last June, Iraq passed a three-year budget of which the Kurdistan Region's share is 12.6 percent. Baghdad has claimed it has fully implemented its financial obligations to the KRG, including through loans to assist the Region in paying the salaries of its civil servants.
