Paying the employees' salaries is linked to the approval of the local borrowing law draft, source says
Shafaq News / An informed source revealed today, Tuesday, that the salaries of employees in Iraq for September are linked to the approval of the local borrowing law draft to finance the fiscal deficit.
The source told Shafaq News Agency, "the Ministry of Finance could not distribute September salaries during these days without the legislation of the law, because the ministry currently has two trillion dinars. However, more than 3 trillion dinars are still needed to pay the salaries.
"The Ministry has suspended the salaries of profitable self-financing companies, even though these companies can feed the salaries of their employees", the source noted.
Furthermore, the Ministry of Finance can borrow from the Central Bank after the Parliament's approval, the source told Shafaq News Agency.
On September 28, the Ministry of Finance asked the Iraqi government to approve the law draft of domestic borrowing to finance the fiscal deficit for the year 2020.
Iraq is going through a stifling financial crisis due to the drop in oil prices since the outbreak of the COVID-19, which has led to concerns regarding the impact of the declining revenues on the federal budget for the year 2020, the operating budget and the salaries of government employees and retirees.
