Erbil has now received $138 million payments in both July and August, as a fragile political deal revives financial flows that had been stalled since October 2020.

Officials on both sides say a July financial transfer was a one-off deal, as political and technical disputes hold up further federal budget payments for Kurdistan.

Security forces in Sulaimaniya were mustered on behalf of respective party leaders as negotiations continue.

The budget transfer relieves some financial pressure on Erbil, though regular payments going forward are hardly assured.