Economy

KRG official welcomes Iraqi PM's decision on payrolls in private banks

“This decision finally settles the debate over the role of state versus private banks in managing government employees' payrolls,” Ahmad wrote.

The logo of the MyAccount initiative. (Photo: MyAccount initiative)
The logo of the MyAccount initiative. (Photo: MyAccount initiative)
Kurdistan MyAccount initiative Mohammed Shia al-Sudani KRG Central Bank of Iraq

ERBIL (Kurdistan24) – Aziz Ahmad, Deputy Chief of Staff to Kurdistan Region Prime Minister Masrour Barzani, hailed a key decision by Iraqi Prime Minister Mohammed Shia al-Sudani to domicile federal government payrolls with private banks licensed by the Central Bank of Iraq (CBI). In a statement posted Tuesday on the social media platform X, Ahmad described the move as "very promising news for the country," aligning with the objectives of the Kurdistan Regional Government’s (KRG) MyAccount initiative. 

“This decision finally settles the debate over the role of state versus private banks in managing government employees' payrolls,” Ahmad wrote, emphasizing its potential to modernize Iraq’s banking sector and bolster economic growth. 

The CBI-licensed private banks, which adhere to strong anti-money laundering (AML) and compliance policies and maintain direct relationships with global financial institutions, are positioned to offer competitive consumer loans and financial products, Ahmad noted. This shift could invigorate Iraq’s economy, addressing the challenges traditionally faced by state banks. 

Ahmad further linked the development to the federal court's July ruling that permitted CBI-licensed banks to compete for state assets, including government payrolls. The decision was reportedly influenced by discussions at a recent high-level economic council meeting in Erbil, where Iraq’s finance minister proposed leveraging the court’s clarification. 

"This step aligns with the KRG’s vision of a strong, competitive, and inclusive banking ecosystem,” Ahmad stated, urging KRG employees to promptly complete their MyAccount forms to facilitate the transition. 

The decision marks a significant milestone in Iraq’s financial reform efforts and highlights the growing cooperation between federal and regional authorities to strengthen the country’s economic infrastructure.