KTFA

FRANK26: "SUDANI WANTS THE SALARIES, BUT THE SALARIES WANT THE NEW EXCHANGE RATE"....F26

Al-Sudani and Rashid discuss resolving the salary crisis between Baghdad and Erbil in accordance with the constitution.

5/31/2025

President Abdul Latif Jamal Rashid discussed with Prime Minister Mohammed Shia al-Sudani, on Saturday, finding radical solutions regarding the financial obligations between the federal government and the Kurdistan Regional Government, in accordance with the constitution, the budget law, and the Federal Court's decision.

According to a statement from the Presidency's media office received by Shafaq News Agency, Rashid and Al-Sudani's meeting in Baghdad reviewed the general situation at the national level, political and economic developments, and the progress of government programs.

Regarding the salary crisis between Baghdad and Erbil, the statement indicated that "the need to find radical solutions within the framework of the constitution and the law regarding the financial obligations between the federal government and the Kurdistan Regional Government, as stipulated in the constitution, the budget law, and the Federal Court ruling, and the importance of enacting the oil and gas law, was emphasized."

The meeting also highlighted, according to the statement, "the importance of unifying national ranks to enhance security and social stability across the country, and preparing for the upcoming parliamentary elections as a fundamental pillar of the democratic process, with the results reflecting the will and choice of the Iraqi people and contributing to supporting the process of construction, reconstruction, and development in a secure and stable Iraq."

An informed political source revealed to Shafaq News Agency on Saturday that the main Kurdish parties are considering withdrawing from the political process in Iraq if what they describe as "financial and political pressure" from the federal government in Baghdad against the Kurdistan Region continues.

He pointed out that "Hadi al-Amiri, leader of the Fatah Alliance, will make an upcoming visit to the Kurdistan Region, during which he will meet with Kurdish party leaders, with the aim of defusing the crisis and seeking an urgent settlement to the tense financial situation between the central government and the region."

Earlier, informed sources told Shafaq News Agency that federal Prime Minister Mohammed Shia al-Sudani expressed his willingness to pay the salaries of Kurdistan Region employees for May, under two conditions: that the payments be made as a temporary loan rather than as dues, and that a joint high-level committee be formed with Erbil to find solutions to the backlog of salaries before Eid al-Adha.

An expanded meeting called by the Kurdistan Democratic Party (KDP) began Saturday morning in Erbil, attended by representatives of a number of Kurdish political parties and forces. The meeting aimed to discuss the repercussions of the federal government's decision to halt funding for the salaries of Kurdistan Region employees.

These developments come amid an escalating financial crisis between Baghdad and Erbil, following the federal government's announcement that it would halt payments to the salaries of the region's employees. The decision was justified by Kurdistan's failure to meet its constitutional budget allocation and to release oil and non-oil revenues.

In contrast, the regional government believes Baghdad is "using the financial issue as a political bargaining chip," accusing it of violating Federal Court rulings that stipulate direct payment of salaries to employees and not linking them to political disputes.

This crisis coincided with a visit by Kurdish leaders to Washington and the signing of massive investment agreements with American companies. Baghdad considered this a violation of economic sovereignty, while Erbil maintains that it is exercising its right to develop the region and attract foreign investment.

In a statement to Shafaq News Agency, the US State Department called for an expedited settlement of the payments issue, considering that resolving the crisis reflects Iraq's commitment to the interests of its people, sends a positive message to investors, and paves the
way for the resumption of the Kirkuk-Ceyhan pipeline.

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