Iraqi parliament votes to lift sanctions on Kurdistan banks

Rudaw

BAGHDAD, Iraq — The Iraqi parliament on Monday voted to lift sanctions imposed on Kurdish banks in November by the Iraqi Central Bank following the Kurdistan Region’s referendum.

Masud Haidar, a Kurdish MP from Gorran, told Rudaw that the motion came at the request of his faction.

Ziz Kazim, an Iraqi MP from the Hikma faction, said that the parliament voted to end the measures taken against the financial institutions in the Kurdistan Region.

He said the motion “commits” the Central Bank of Iraq to end the sanctions, adding that the bank has to provide monthly reports regarding the practice of its powers in the Kurdistan Region.

In November, the Central Bank of Iraq called on all Iraqi banks in the country to halt their operations in the Kurdistan Region indefinitely. It stated then that any bank that found in violations of the instructions would no longer receive foreign currency transfers from the central bank.

The move was seen as part of punitive measures taken by the government of Iraq against the Kurdistan Region in response to the vote for independence held on September 25 despite the opposition of Iraq, neighboring countries, and others including the United States.

 

The first reading of the Iraqi budget for 2018 also took place on Monday despite a boycott by the Kurdish and some Sunni MPs.

The Kurdistan Region has demanded 17 percent of the budget — as has been the case since the foundation of the new Iraq after the US invasion in 2003 — while the Iraqi government insists on a lower share, as low as 12.6 percent, arguing that amount represents a “fair” share compared to the Kurdish population.

Haidar said that all Kurdish MPs boycotted the session when the first reading was tabled even though it was not in the agenda.

Iraqi Prime Minister Haider al-Abadi is supposed to meet with the finance committee of the Iraqi parliament, and the heads of faction following the first reading, Haider said, adding that the premier is prepared to listen to the demands of the Kurdish MPs.

 

Iraq to send $210 million to Kurdistan for salaries

 

Last updated at 3:45 p.m.