Salary payments in Iraq have been delayed until the end of the month or the beginning of next month due to “liquidity shortages and funding delays”.
An informed source revealed on Tuesday that the payment of state employees’ salaries may be delayed until the end of this month or the beginning of next month, attributing this to the fact that funding for ministries and state institutions has not yet been released, despite the month having passed. DailyNews Subscription
The source explained in a statement to Shafaq News Agency that the process of funding and disbursing salaries is carried out for each ministry and institution separately and sequentially, which takes several days and delays the completion of the disbursement process for all employees.
He pointed out that a number of government banks are facing a shortage of cash liquidity as a result of the decline in their cash assets, which limits their ability to provide financing or enter into domestic borrowing operations.
The source added that the absence of credit plans related to the work of some government banks, along with weak management in a number of them, contributed to the decline in the level of banking services, as well as the decrease in withdrawal and deposit activity, which negatively affects the levels of available liquidity.
He stressed that addressing the liquidity crisis requires strengthening the cash assets of government banks and revitalizing banking and credit operations, in addition to developing clear plans to support the banks’ ability to finance the needs of state institutions and ensure the smooth disbursement of salaries on time.
Shafaq.com