Federal banks prepping to open in Kurdistan in a move toward centralizing salaries

Shafaq News/ Federal banks are gearing up to open branches in Erbil and Sulaimaniyah, a move seen as a step towards centralizing the salaries of public employees serving in the Kurdistan Region.

According to an informed source, "intensive meetings" are currently underway between Baghdad and Erbil officials, alongside technical and logistical preparations for the branch openings. The source, speaking to Shafaq News Agency, revealed that the banks will offer a variety of services in addition to salary disbursement.

This development comes on the heels of the Federal Supreme Court's February 21st ruling, mandating both Prime Minister Mohammed Shia al-Sudani and his regional counterpart Masrour Barzani to centralize the salaries of public sector employees through federal banks.

The former Iraqi Deputy Finance Minister, Fadhel Nabi, had previously urged the Kurdistan Region to work with Baghdad to establish a mechanism for salary disbursement to avoid further disruptions. He also warned that the region should "adapt to the new reality" shaped by the court's decisions.