By Iraq-Localize
In alignment with the provisions of Coalition Authority Order No. (87) of 2004 and pursuant to the directives outlined in Ministerial Order No. (1) of 2020, the Ministry of Planning has issued new instructions concerning the handling of financial accounts for contractors working with government contracts. These instructions fall under the framework of ensuring transparency and addressing challenges associated with the financial stability of contractors.
Furthermore, It has been decided to amend Clause (Fourth) of Regulation (5) attached to the Instructions for the Implementation of Government Contracts No. (2) of 2014, pertaining to letters of credit, which stipulates that: “The expenses for opening the letter of credit within Iraq shall be borne by the contracting authority, while expenses outside Iraq shall be borne by the contractor,” to now read: “The expenses for opening the letter of credit, both within and outside Iraq, shall be borne by the contractor.
The Ministry emphasized the importance of facilitating financial transactions to support the financial stability of contractors while addressing critical issues such as exchange rate fluctuations. The new regulations also aim to alleviate difficulties faced by contractors in fulfilling their financial obligations efficiently.
The Ministry concluded by urging all relevant authorities to review and implement the instructions promptly.
