Loan within days to avert pre-Eid salary crisis in Kurdistan
Shafaq News/ The Iraqi government is expected to send an emergency loan to the Kurdistan Region within the next two days to cover public sector salaries ahead of Eid al-Adha.
Iraqi lawmaker Karwan Yaroes told Shafaq News that the payment aims to ensure employees receive their wages before the Eid Al-Adha holiday, on Friday, June 6.
However, he noted that a ruling by the Federal Supreme Court prohibits treating funds sent to the Kurdistan Region as loans, citing Kurdistan's entitlement to a share of the national budget.
Yaroes also called for the formation of a joint committee after the Eid holiday to revisit the Baghdad-Erbil financial agreement and implement any pending terms within 30 days.
Earlier, sources informed Shafaq News that Prime Minister Mohammed Shia al-Sudani expressed readiness to disburse May salaries for Kurdistan employees under two conditions: the funds must be issued as a temporary loan outside the formal budget framework, and a joint committee must be formed with the regional government to find a lasting resolution to the ongoing salary crisis.
A letter from Finance Minister Taif Sami to the Kurdistan Regional Government, seen by Shafaq News, stated that further financing could not continue as the Region had already exceeded its 12.67% allocation under the federal budget law.
The ministry also reported that the Kurdistan Region generated 19.9 trillion dinars in oil and non-oil revenues from 2023 to April 2025 but has only transferred 598.5 billion dinars to the federal treasury during that period.
The funding freeze triggered a strong backlash from Kurdish political groups. Kurdish parliamentary blocs issued a joint statement urging PM al-Sudani to intervene, calling the halt in payments a “clear constitutional violation” and a form of “political targeting.”
In a separate meeting, Kurdish parties condemned the decision, saying it undermines the constitutional status of the region and emphasized dialogue as the only path to resolving disputes.
