Iraqi Finance Minister’s Document Highlights Significant Treasury Deficit
A document attributed to Iraqi Finance Minister Sami al-Araji has emerged, indicating a substantial financial deficit within the Iraqi treasury. This revelation raises pertinent questions regarding Iraq’s potential request for financial assistance from global entities such as the United Nations and the United States, particularly given the current extensive financial expenditures and the existing U.S. sanctions that limit the country’s access to dollar transactions in international financial transfers.
The document, which was addressed to the office of Prime Minister Mohammed Shia Sudani on February 9, notes that "the treasury is experiencing a significant shortfall in funding for employee salaries, pensions, and social welfare programs."
In response to these concerns, the Ministry of Finance asserted that "there is no financial deficit impacting salary expenditures," reinforcing its commitment to maintaining stability in fiscal policy and ensuring timely disbursement of dues according to established plans.
Legal Framework for Seeking Assistance
Legal expert Ali al-Tamimi commented on the situation, citing the United Nations Charter, specifically Article 50, which allows nations facing challenges from terrorist organizations—those classified under the UN’s seventh chapter—to seek economic assistance from the United Nations. Al-Tamimi pointed out that, according to UN Security Council Resolution 2170 of 2014, ISIS has been categorized under this chapter, permitting Iraq to request economic support.
He noted that several countries, including the UK, have expressed their willingness to provide economic aid to Iraq. This support could facilitate the rebuilding of war-torn cities and help address the repercussions of the fight against terrorism, alongside the reclamation of approximately $350 billion in smuggled funds.
U.S. Assistance Under Strategic Agreement
Further aligning with international frameworks, al-Tamimi referenced Article 26 and 27 of the 2008 Iraqi Strategic Framework Agreement, which allows Iraq to seek economic assistance from the United States. This provision mandates collaboration between the two nations under Article 102 of the United Nations Charter.
Additionally, Iraq is a signatory to the international anti-corruption agreement established by the United Nations in 2005. This agreement — ratified by Iraq in 2007 — entitles Iraq to request the recovery of misappropriated funds associated with money laundering and financial corruption, reflecting practices utilized by countries such as Nigeria, the Philippines, and Singapore.
Conclusion: Economic Viability Amidst Global Changes
Al-Tamimi concluded by emphasizing that the evolving global landscape and fluctuations in oil prices and currency values present an opportunity for Iraq to navigate these challenges effectively. He expressed confidence that these economic dynamics are well understood by the Iraqi government.
This situation underscores the intricate economic challenges Iraq faces and the potential pathways available through international cooperation and assistance.
