Budget loans give KRG financial lifeline
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.
