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Iraq increases deficit to pay salaries

The Iraqi parliament voted on the funding deficit law so that it can borrow to pay salaries that have been in arrears for more than two months.

The Iraqi parliament approved Nov. 12 the funding deficit law, entitling the government to borrow 12 trillion dinars ($10 billion) from internal and external parties in an effort to pay state employees who have seen their salaries delayed for nearly two months. The loan value decreased from 41 trillion dinars ($34 billion) to 12 trillion dinars under the new law.

Iraq’s President Barham Salih said Nov. 13 that it was necessary "to approve the [funding deficit law] to ensure that employees' salaries are paid for the next three months, although borrowing is not a sustainable solution. The law alone is insufficient to end the crisis.”

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