KRG makes historic move: Transfers non-oil revenues to Baghdad

SULAIMANI, Kurdistan Region — For the first time, the Ministry of Finance and Economy of the Kurdistan Regional Government (KRG) has transferred over 85 billion Iraqi dinars to the bank account of the Iraqi Ministry of Finance in Baghdad, according to a statement from the KRG Ministry of Finance.

The move aligns with the ruling of the Iraqi Federal Supreme Court concerning the financial disputes between Baghdad and Erbil. Its aim is to ensure the salaries of civil servants in the Kurdistan Region and the Region’s share of the federal budget.

The statement clarifies that the funds were transferred in cash to the bank account of the Finance Ministry of the federal government via the Erbil branch of the Central Bank of Iraq (CBI).

“The total amounts to 50 percent of the tax and customs tariff revenues collected at the border crossings of the Region for February,” reads the statement.

Civil servants in the Kurdistan Region have endured months of unpaid salaries over the past decade, attributed to financial challenges claimed by the KRG. The situation escalated dramatically after the halt of the Region’s oil exports last year, exacerbating the crisis. Thousands of teachers and civil servants subsequently protested, demanding their monthly wages.

In February, a Federal Court Ruling mandated the Iraqi government to pay civil servants in the Region directly through Iraqi federal banks. Additionally, it compelled the KRG to hand over all its oil and non-oil revenues to the central government.

The KRG’s move appears to be a significant step toward resolving the longstanding issues between the two governments, providing relief to pensioners in the region by ensuring timely payment of their wages, similar to other parts of Iraq.

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