KRG seeks loan from Iraqi Central Bank

ERBIL, Kurdistan Region (K24) – On Monday, Najiba Najib, a Kurdish member of the Baghdad parliament, stated that the Kurdistan Regional Government (KRG) is seeking a loan from the Central Bank of Iraq to resolve its financial crisis.

The Kurdistan Region is struggling from the current economic crisis in the country, and the KRG has plans to make reforms in the government as well as decrease public expenditures to solve the issue.

However, Najib told K24, “The Central Bank of Iraq has a USD $59 billion deposit…The bank can potentially play a major role in resolving the current financial crisis in the country if it intends to help.”

“Kurdistan Region is part of Iraq, and the Bank should deal with it just like the rest of the country,” she said. “The bank has saved money since 2003, before Erbil and Baghdad relations worsened.”

Najib mentioned that the Kurdish parliament members in Baghdad will meet with the Central Bank of Iraq to discuss possible assistance for Kurdistan.

She mentioned that Baghdad has benefitted from the Bank’s loans, stating that the Federal Government has previously received USD $6 billion to cover industrial and agricultural expenditures, while the KRG hasn’t received any shares.

Najib noted that the KRG has sent a letter to the Bank inquiring about the lack of branches in the Kurdistan Region. “We wonder why the Central Bank of Iraq has not opened any branches or offices in the Region,” she added.

“They have responded and stated that constitutionally, Kurdistan Region is allowed to have a branch and receive its share from the Bank accordingly, but don’t know what the actual barriers (in practice) are,” Najib concluded.

Reporting by Mewan Dolamari: Editing by Karzan Sulaivany