HEADLINES:

Federal government to send 400bn IQD to KRG on condition of negotiations

2020-05-23

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 SULAIMANI — The Kurdistan Regional Government (KRG) agreed on May 19 to conditions set by the federal government in order to receive 400 billion Iraqi dinars ($335.3 million) in desperately needed cash to pay its public servants.

According to the document sent by the federal government's Ministry of Finance, Baghdad will send the the funding to Erbil, but will do so on the condition that the two sides engage in intensive negotiations over the next month to finalize an agreement governing the budget and oil revenues.

The KRG officially agreed to the terms in a letter in response.

On Saturday, a source in the KRG’s delegation to Baghdad told NRT Digital Media that Prime Minister Mustafa al-Kadhimi had agreed to send the Kurdistan Region budget share, but only after giving out all salaries in other Iraqi governorates.

The source said that al-Kadhimi and other Iraqi officials will immediately send the budget share to Kurdistan Region after they distribute it in Iraq and that Iraqi officials are not planning to risk not paying the Iraqi employees.

On April 16, the federal Council of Ministers froze budget transfers to the KRG after patience ran out with Erbil’s failure to live up to its obligations under the 2019 federal budget law, in particular its refusal to send oil to Baghdad for export.

On Friday night, KRG Prime Minister Masrour Barzani said in a speech that the Region had received only minimal income from independent oil sales and internal sources and, as a result, had no monetary reserves, leaving it unable to pay its public sector employees.

(NRT Digital Media)