Budget loans give KRG financial lifeline

Baghdad has sent nearly $1 billion to Kurdistan since March, highlighting political cooperation that could grow into reliable financial flows with the passage of a new budget law.
Iraqi Prime Minister Mohammed Shia al-Sudani (right) and KRG Prime Minister Masrour Barzani (left) shake hands at a ceremony in Baghdad on April 4, 2023, to sign a temporary deal for restarting northern oil exports. (Photo credit: Prime Minister's Office)

SULAIMANIYA - Recent financial transfers from Baghdad have provided a glimmer of hope for the economy in Iraqi Kurdistan, despite a two-month pipeline outage that has deprived the regional government of its single largest revenue stream.

In the past three months, the federal government has extended 1.2 trillion Iraqi dinars ($923 million) in loans to the Kurdistan Regional Government (KRG) — a sign of political good will that could lead to more reliable financial flows with the passage of a national budget law.

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