KRG alone in solving financial crisis

ERBIL, Kurdistan Region (K24) – On Friday, Qubad Talabani, Deputy Prime Minister of the Kurdistan Regional Government (KRG), said that, “The current income of the Kurdistan Region does not match the expenditure rate. We can’t print money or borrow it from outside. We are alone in addressing the financial crisis in the [Region].”

Talabani held a meeting with Kurdish teachers in Erbil, the regional capital, to discuss the current economic situation.

Following the meeting, Talabani held a press conference where he stated, “We will continue making reforms in the KRG in order to increase trust between the people of the Kurdistan Region and the government."

The Region is currently suffering from a financial crisis that emerged in the beginning of 2014 when the Federal Government of Iraq blocked its budget share (17% of Iraq’s total budget).

Baghdad accused the KRG of exporting oil independently, but the KRG claims that they have “a constitutional right” to administrate its resources. Since then, the relations between Erbil and Baghdad have worsened.

Furthermore, the sharp decrease in oil prices internationally is another factor that has affected the KRG’s budget since the Region relies heavily on oil revenue.

He explained, “The people of the Kurdistan Region should know that the financial issue is not related to salaries [government employees’ salaries] alone, but the problem of halting infrastructure projects, and the Daesh [Islamic State] war among many other issues.”

Talabani also revealed that out of the Kurdistan Region’s 5.2 million population, 1.4 million are KRG employees. In addition, he mentioned that the size of “the KRG is much bigger than what [the Region] needs.”

“Our meeting with teachers was more like an advisory. It was an opportunity to explain the current situation and for the teachers to understand that what we now have is our total income. I frankly discussed this issue with them [teachers],” Talabani said in the press conference.

The meeting was aimed at gaining the trust of teachers in the Kurdistan Region, and encouraging them to uphold their responsibilities even if their salaries are delayed.

(Reporting by Mewan Dolamari; Editing by Karzan Sulaivany)