In Shafaaq

The Iraqi government is turning to domestic borrowing to secure June salaries and avoids savings

Parliamentary Finance Committee revealed, on Monday, that the Iraqi government will go to the central bank to secure employee salaries for the month of June.

Iraq suffers from a severe financial crisis, caused by the collapse of oil prices in global markets

Iraq relies, which is the second largest oil exporter in the Organization of ” OPEC ”, on the sale of crude revenues to finance about  95  percent of state spending.

“The government does not have the cash to pay the salaries of the employees, and it will go to local borrowing to secure the salaries, as it did last May,” committee member Jamal Couger told Shafaq News.

He added that “the government will go to borrowing from the Central Bank of Iraq to provide financial liquidity and secure employee salaries for the month of June, which exceeded five trillion dinars per month.”

Cougar noted, “The government is not ready to open an opposition front of employees in the event of saving, deduction or delaying their salaries.”

Parliament held a preliminary discussion of the draft domestic and foreign borrowing law, to finance the fiscal deficit during the current year. Source