The Central Bank of Iraq's Erbil branch has not yet received the funds needed to distribute June salaries, according to information obtained by Channel8. However, the Kurdistan Region's Ministry of Finance says payroll preparations are complete, and the required funding is expected to arrive from Baghdad.

No Salary Funds at Erbil Central Bank Branch

According to information obtained by Channel8, the funds required to pay public sector salaries have not yet reached the Central Bank's Erbil branch, and no money has been transferred for this purpose. The delay comes as public employees await the start of June salary payments.

Ministry of Finance: Banks Are Ready

A source at the Kurdistan Region's Ministry of Finance and Economy said the issue is expected to be resolved within the next 24 hours. The source explained that some procedures were delayed because of a public holiday but confirmed that payroll lists have been finalized and banks have been instructed to begin distributing salaries immediately once the funds arrive.

MP: Funds to Reach Erbil Within 24 Hours

Sherwan Dubardani, a member of the Iraqi Council of Representatives, said that despite cash liquidity challenges in Baghdad, the legal and administrative procedures to transfer the Kurdistan Region's June salaries are underway. He said the required funds are expected to reach Erbil within the next 24 hours.

120 Billion Dinars Deducted as Non-Oil Revenue

Iraqi Finance Minister Taif Sami has instructed the ministry's accounting department to transfer the Kurdistan Region's salary allocation after deducting 120 billion Iraqi dinars as non-oil revenue. The deduction was set under the July 2025 agreement and will remain in effect until the 2027 federal budget law is approved.

Non-Oil Revenue Clearance Mechanism Remains in Effect

Last month, the Kurdistan Region transferred 50 billion Iraqi dinars in non-oil revenue to the Central Bank's Erbil branch. To complete the required amount, Baghdad accounted for the remaining balance through a clearance mechanism. The arrangement will continue until Erbil and Baghdad reach a new agreement.