Iraq’s Prime Minister’s financial advisor, Mazhar Muhammad Salih, said on Sunday that the government has a plan to control public spending and make sure salaries continue to be paid.
Speaking to dinaropinions.com, Salih explained that Iraq will start cutting unnecessary spending within the next two months. The goal is to make sure the government can keep paying salaries for employees, retirees, and people who depend on the social safety net.
He also said the government has several options if it faces a shortage of cash. One option is borrowing money from local banks inside Iraq.
Salih noted that there is strong coordination between the Ministry of Finance and Iraqi banks to support the country’s financial position. He added that Iraq still has solid cash reserves, which makes borrowing easier if needed.
To reassure the public, Salih said Iraq’s finances are secure for about four to five months. Even if the current crisis continues during that time, he said it should not seriously affect the country’s financial situation, and the government will still be able to pay salaries and other payments without problems.
