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Iraqi banks are waiting for a notice to launch salaries within 24 hours

A source in the Ministry of Finance revealed on Sunday that government banks are awaiting a notice to release the salaries for the employees of the month of June.

The source said to Shafaq News, that the banks are awaiting a notice from the ministry to enter data on electronic regulations and launch salaries for state employees.

He added that it is hoped that the notice will reach the banks to launch and pay salaries within the next 24 hours.

Yesterday, Saturday, the Prime Minister, Mustafa Al-Kazemi, instructed the Ministry of Finance to expel the salaries of employees.

The Iraqi government is struggling to secure employee salaries and other operating expenses due to the collapse in oil prices due to the Corona pandemic, which has paralyzed large sectors of the world economy. The country relies on revenue from the sale of crude to finance 95 percent of the country’s expenditures.

The Iraqi Finance Minister Ali Allawi, had told the French Press Agency, on Wednesday, that the Iraqi economy may face “shocks that it will not be able to address” unless reform measures are adopted in less than a year, stressing that 40 million Iraqis will have to They are subject to a tight austerity policy that may last for “two years”.

Projections indicate that the Iraqi economy will face a 10 percent contraction during the year.

With one out of every five Iraqis receiving government aid, the bill becomes heavier for the country that depends on paying all its expenditures on oil sales revenue.

And at the beginning of this month, when pensions were deducted in the first steps of the government austerity policy, the protest was unanimous against Allawi and Prime Minister Mustafa Al-Kazemi, even within the parliament that is usually mandated to approve reforms, especially the fight against corruption that led to the evaporation of more than 450 billion Dollars of public money since 2003. Source