‘There is no money’: Is Iraq entering a phase of lean years?
Summary
Iraq is facing a serious money shortage that is affecting the government's ability to pay salaries and cover basic expenses. This financial trouble is linked to a big drop in oil revenues after exports stopped through the Strait of Hormuz, highlighting Iraq’s heavy dependence on oil income.Key Facts
- Iraqi Minister of Health said the government is struggling to find money for salaries.
- Iraq needs about 10.8 trillion dinars ($8.24 billion) per month to pay salaries and basic costs.
- Oil exports through the Strait of Hormuz have stopped, causing a sharp drop in Iraq’s oil revenues.
- The government has paid part of the salaries but still owes about 3.2 trillion dinars ($2.4 billion) this month.
- Total monthly state revenue recently has been around 3 trillion dinars ($2.3 billion), less than what is needed.
- Many government workers are anxious because salary delays are affecting their daily lives and financial obligations.
- The economic crisis reveals the risks of Iraq’s dependence on oil and the challenges in diversifying its economy.
- The government was planning to boost the economy with new development projects and private partnerships before the crisis worsened.
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