An economist for / NINA /: The delay in paying employees' salaries confirms the weakness of the financial liquidity management in Iraq

Saturday 03, October 2020 10:50
 
Baghdad / NINA / An expert in economic affairs, Safwan Qusay, confirmed that the Ministry of Finance's reluctance to release salaries for state employees at the appropriate time shows the weakness of the financial liquidity management process in Iraq.

Qusay said in a statement to the Iraqi National News Agency ( NINA ): "The Ministry of Finance took advantage of the internal borrowing law, which allowed it to borrow 15 trillion Iraqi dinars from public banks and the central bank, to pay the salaries of the previous months, without stopping the exchange on other items represented by commodity expenditures." And service, "indicating that:" It was assumed that the financial emergency was declared from an early age and the powers of exchange were limited to the Minister of Finance or whoever authorized by Parliament, but we did not notice that, unfortunately, and high spending continued based on the rate of 1/12 of the actual spending for the year 2019 which is very high and is not commensurate with With the current oil prices. "

He added, "Nevertheless, it was possible to release the salaries for the month of September at the appropriate time with some measures that fall within the powers of the Minister of Finance, including withdrawing the liquidity in the accounts of federal ministries to finance salaries, and at the same time stopping the financing of units that can finance themselves far from Financing the Ministry of Finance, as well as direct selling part of the Ministry of Finance’s properties to finance the liquidity deficit.

The expert called for "adopting new solutions that change the approach of public spending, away from easy solutions represented in repeated borrowing and weakening the financial position of the central bank that will lead to financial failure, as is happening now in Beirut and other countries that did not follow ideal financial, monetary and economic policies consistent with Effective plans depend on the available resources and invest them in the best way ./ End 8

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