Loans begin to flow, but KRG faces uphill battle for financial security

Baghdad has begun implementing a three-month deal to enable payments for Kurdistan's civil servants, prompting political backlash.
Iraqi Prime Minister Mohammed Shia al-Sudani (left) meets with KRG President Masrour Barzani (right) in Erbil on March 14, 2023. (Photo credit: Prime Minister's Office)

SULAIMANIYA - The Kurdistan Regional Government (KRG) has begun receiving loans from Baghdad under a temporary funding deal, despite a lawsuit challenging the legality of the stop-gap financial support.

The KRG Ministry of Finance said it received 250 billion Iraqi dinars ($192 million) from the state-run Rafidain bank on Sept. 24, and another 250 billion dinars from the state-run Rashid bank on Sept. 25. A third loan transfer, of 200 billion dinars ($154 million), is expected from the Trade Bank of Iraq (TBI) this week.

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