Iraq denies treasury shortfall amid rumors of seeking international aid

Shafaq News

18-02-2025

Shafaq News/ A document purportedly signed by Iraq's Finance Minister Taif Sami, indicating a "significant financial deficit" in the country's treasury, has sparked debate over the possibility of Baghdad seeking financial assistance from the United Nations or the United States, particularly amid rising expenditures and US sanctions on Iraqi banks restricting their access to dollar transactions.
The document, addressed to the Prime Minister's office on Feb. 9, stated that "the treasury is facing a major shortfall in funding salaries for employees, retirees, and social welfare programs."
However, the Finance Ministry later issued a statement denying any financial shortfall affecting salary expenditures, asserting that it continues to ensure financial stability and allocate funds according to approved plans.
Legal Basis for International Assistance
Legal expert Ali Al-Tamimi told Shafaq News Agency that under Article 50 of the UN Charter, countries fighting terrorist organizations designated under Chapter VII of the Charter are eligible to request economic assistance from the United Nations.
"ISIS was placed under Chapter VII through UN Security Council Resolution 2170 in 2014, and several countries, including the UK, have previously expressed readiness to provide economic assistance to Iraq," Al-Tamimi said. "Therefore, Iraq can request support from the international community and the UN for rebuilding war-damaged cities and addressing the consequences of counterterrorism efforts, including the recovery of an estimated $350 billion in smuggled funds."
He also pointed to Articles 26 and 27 of the 2008 US-Iraq Strategic Framework Agreement for a Relationship of Friendship and Cooperation, which provide a legal basis for Iraq to seek economic aid from Washington. "These articles explicitly allow for such requests, making it a viable option under the binding agreement, which is recognized under Article 102 of the UN Charter," he said.
Al-Tamimi further noted that the 2005 UN Convention Against Corruption, which Iraq ratified in 2007, enables Baghdad to request UN assistance in recovering funds lost to money laundering and corruption. "Several countries, including Nigeria, the Philippines, and Singapore, have successfully utilized this framework," he said.
As Iraq grapples with global economic shifts, fluctuating oil prices, and restrictions on dollar transactions imposed by Washington, Al-Tamimi suggested that these factors 'provide grounds for such a request, and I doubt this is lost on the Iraqi government," Al-Tamimi added.