Iraq
KRG delegation meets with Iraqi delegation in Baghdad to discuss budget disputes on September 14, 2023. Photo: PM Barzani’s office
ERBIL, Kurdistan Region - The United States’ ambassador to Iraq on Sunday applauded the efforts made by Erbil and Baghdad to resolve budget disputes, after the two sides reached an agreement which will see the federal government financing the salaries of the Kurdistan Region’s civil servants for the next three months.
Iraq’s Council of Ministers on Sunday agreed to lend the Kurdistan Regional Government (KRG) 2.1 trillion Iraqi dinars to pay the salaries of its civil servants. The amount will be paid in three equal installments and will cover the salaries of September, October, and November.
The KRG’s share in the 2023 federal budget will be used to pay back the loans. If Erbil’s share was not enough to cover the loans, Erbil’s dues will be settled using its allocations within the 2024 budget.
“We applaud efforts between @IraqiGovt & KRG to reach resolution on the budget & its implementation, such as today’s CoM [Council of Ministers] decision to transfer payments over the coming months,” wrote US Ambassador to Baghdad Alina Romanowski in a post on X (formerly Twitter).
The US top diplomat urged the continuation of dialogue between Erbil and Baghdad in hopes of reaching more permanent solutions.
The KRG on Sunday evening announced that the first 700 billion dinar installment will be used to pay July’s salaries. The Region's civil servants are yet to receive their salaries for July and August.
The Iraqi government decision came after a high-level delegation from the KRG, led by Prime Minister Masrour Barzani, went to Baghdad on Thursday to meet senior Iraqi officials and campaign for the Kurdistan Region’s financial entitlements.
Iraq passed its highly-contentious budget bill for the years 2023, 2024, and 2025 in June, which includes a record $152 billion in spending, of which the Kurdistan Region’s share is 12.6.
However, budget issues between the two governments have not been resolved as Erbil blamed Baghdad for not sending the required funds to pay the Region’s civil servants.
Economic woes in the Kurdistan Region have worsened in recent months after Turkey suspended the flow of Kurdish crude oil through the Iraq-Turkey pipeline to its Ceyhan port in March following a ruling from a Paris arbitration court, causing the KRG billions of dollars in losses.
The Kurdish government has failed to pay its civil servants on time and in full for nearly a decade due to the financial crisis.
Iraq’s Council of Ministers on Sunday agreed to lend the Kurdistan Regional Government (KRG) 2.1 trillion Iraqi dinars to pay the salaries of its civil servants. The amount will be paid in three equal installments and will cover the salaries of September, October, and November.
The KRG’s share in the 2023 federal budget will be used to pay back the loans. If Erbil’s share was not enough to cover the loans, Erbil’s dues will be settled using its allocations within the 2024 budget.
“We applaud efforts between @IraqiGovt & KRG to reach resolution on the budget & its implementation, such as today’s CoM [Council of Ministers] decision to transfer payments over the coming months,” wrote US Ambassador to Baghdad Alina Romanowski in a post on X (formerly Twitter).
The US top diplomat urged the continuation of dialogue between Erbil and Baghdad in hopes of reaching more permanent solutions.
We applaud efforts between @IraqiGovt & KRG to reach resolution on the budget & its implementation, such as today’s CoM decision to transfer payments over the coming months. We look forward to continued dialogue to reach a more lasting resolution in the interest of the Iraqis.
— Ambassador Alina L. Romanowski (@USAmbIraq) September 17, 2023
The KRG on Sunday evening announced that the first 700 billion dinar installment will be used to pay July’s salaries. The Region's civil servants are yet to receive their salaries for July and August.
The Iraqi government decision came after a high-level delegation from the KRG, led by Prime Minister Masrour Barzani, went to Baghdad on Thursday to meet senior Iraqi officials and campaign for the Kurdistan Region’s financial entitlements.
Iraq passed its highly-contentious budget bill for the years 2023, 2024, and 2025 in June, which includes a record $152 billion in spending, of which the Kurdistan Region’s share is 12.6.
However, budget issues between the two governments have not been resolved as Erbil blamed Baghdad for not sending the required funds to pay the Region’s civil servants.
Economic woes in the Kurdistan Region have worsened in recent months after Turkey suspended the flow of Kurdish crude oil through the Iraq-Turkey pipeline to its Ceyhan port in March following a ruling from a Paris arbitration court, causing the KRG billions of dollars in losses.
The Kurdish government has failed to pay its civil servants on time and in full for nearly a decade due to the financial crisis.
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