Iraqi Government may resort to treasury bonds to secure employees' salaries

Shafaq News / The Parliamentary Finance Committee revealed on Wednesday a government proposal to resort to central bank treasury bonds to secure employees' salaries, warning of the collapse of Iraq's economy in 2021.

Committee member Naji Al-Saeedi told Shafaq News agency, "The government needs 6 trillion dinars per month to secure the salaries of employees and retirees", adding, "oil and non-oil revenues amount to 3 trillion dinars and are not sufficient to secure their salaries".

"The government has become unable to secure the salaries of employees in the coming months, so it has resorted to preparing a four-month budget covered by the new borrowing law", he added.

Yesterday, Tuesday, an official source in the Iraqi Central Bank assured employees that their salaries will be covered for September and the following months.

This comes after an informed source revealed, earlier yesterday, that the Ministry of Finance had not started paying employees' salaries for the month of September until now, due to the lack of cash.

Iraq is currently suffering from the difficulty of distributing the salaries of employees and retirees as a result of the global drop in oil prices on which the federal budget depends by 90%.