ERBIL, Kurdistan Region - The Kurdistan Regional Government (KRG) announced on Friday that it will promptly disburse the delayed salaries of its civil servants for March in the upcoming days, following the receipt of its allocated share from the federal budget. This decision coincides with President Nechirvan Barzani's scheduled visit to Baghdad, where he plans to address the Region's pressing financial challenges in discussions with federal authorities. The KRG’s finance ministry announced on Friday that it would commence the distribution of March salaries for public employees starting the following day, ensuring that all civil servants will receive their payments within three days. This decision follows recent negotiations between Erbil and Baghdad delegations, culminating in the federal government's agreement to resume payments of the Region's share from the federal budget, effective from January onwards. The KRG paid the February salaries of its civil servants last week after receiving its monthly share from Baghdad. President Barzani is scheduled to arrive in Baghdad on Saturday for discussions with Iraqi authorities on various matters, such as the salary dispute and the resumption of the Region's oil exports. Additionally, he plans to meet with Iraqi Prime Minister Mohammed Shia’ al-Sudani during his visit. The KRG has failed to pay the salaries of its civil servants on time and in full for a decade due to a financial crisis which deteriorated when a ruling by a Paris-based arbitration court suspended its export of oil to the international markets a year ago. The Kurdish government now relies on local income and its controversial share from the federal budget. The KRG paid nine salaries of public employees last year and has paid only one salary this year. The cash-strapped KRG has repeatedly accused Baghdad of not making regular payments of its share of federal funds. Last June, Iraq passed a three-year budget of which the Kurdistan Region's share is 12.6 percent. Baghdad has claimed it has fully implemented its financial obligations to the KRG, including through loans to assist the Region in paying the salaries of its civil servants. The KRG has provided Baghdad with the names of its civil servants, with the exception of those serving in security forces. Initially, the federal government declined to release the salaries of security forces without their specific names, but eventually acquiesced to temporarily identifying them using unique codes. Kurdistan Region Prime Minister Masrour Barzani on Wednesday said that an “appropriate” solution was found for the issue of paying salaries of civil servants with the assistance of Sudani. Lack of cash in people’s pockets has almost killed the market, with many businesses closed or on the brink of closure. The financial crisis has also contributed to a dramatic drop in the real estate market.
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