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Budget payment to be released for Kurdistan by Iraqi government | ||
| 22/03/2015 | ||
Hoshiyar Zebari said that the delay in what is meant to be a monthly transfer of over $1 billion from Baghdad in exchange for oil from the semi-autonomous region was due to a fiscal crisis rather than political factors. He remarked that both Baghdad and Erbil are interested in deals. However, he has not said anything regarding the amount of the payment. The minister, a Kurd, cited poor fiscal management, the costly battle against ISIS militants, and the sharp fall in oil prices as reasons for the federal government’s cash shortfall. Since Baghdad cut payment from January 2014, Iraqi Kurdistan started battling against financial crisis. The payment resumed again by Baghdad in the month of December. However, according to the report, Baghdad has paid only a fraction of the payment. Iraqi government stated on this regard that the oil handed by Kurdistan to Iraq’s State Oil Marketing Company does not match the volumes the Kurds committed to. Zebari said it also remained a cornerstone of bilateral relations. He mentioned, “It’s a comprehensive deal that means a great deal for everybody. Both sides are committed to it and that is encouraging.” The minister acknowledged that the impatience from the end of Kurdish government is a natural thing, as they haven’t received payment for a long time. However, he thinks that at this point mutual mistrust is harmful for the sovereign and integrity of the nation. Kurdish authorities in Irbil have threatened to sue buyers and ramp up independent oil exports, and say they have already been forced to sell some oil independently because Baghdad has not paid them and the region needs to meet a bloated public sector payroll as well as repaying creditors. Mr. Zebari remarked that without any serious progress the deal will not sustain. He is confident that both sides want to avoid such situation. | ||
Last Update:: 22/03/2015 | ||
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