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Kurdistan Region and its dispute with Iraq regarding: Oil, Budget and the future relationship.
The following article will describe the current situation:
#twitterkurds https://www.washingtoninstitute.org/policy-analysis/view/shock-therapy-will-kill-not-cure-iraqi-kurdistans-economy#.X67yQJ2Njyg.twitter
The following article will describe the current situation:
#twitterkurds https://www.washingtoninstitute.org/policy-analysis/view/shock-therapy-will-kill-not-cure-iraqi-kurdistans-economy#.X67yQJ2Njyg.twitter
Iraq’s parliament approved emergency borrowing of $10 billion USD to cover government expenses for the last quarter of 2020. The vote passed with the support of 173 Shia +Sunni members in the 329-seat legislature, though the 60-odd Kurdish members walked out of the session [1/9]
After the fall of Saddam’s regime, the Iraqi gov. instituted a customary form of revenue sharing with the KRG, a subnational entity that encompasses four of the country’s nineteen provinces.Baghdad transferred a monthly block share of government spending 17% to the Kurds [2/9]
KRG’s share was drawn from a subset of the federal budget called “non-sovereign” spending, which excluded “sovereign” items such as defense, the Foreign Ministry, the parliament, oil production costs, and so on. As a result, the Kurdish 17% was really more like 13%. [3/9]
Iraq transferred $268 m. monthly without requiring the Kurds to send all of their revenues. The transfers from Iraq have enabled KRG officials to meet most of their $1.08 billion in monthly spending obligations, incl. the crucial $710 m. portion needed to pay salaries [4/9]
If the new funding deficit law is implemented as is, it would mean: The $268 million in monthly transfers would apparently continue, but the law would also require the KRG to immediately send all of its oil revenues + customs portion of its non-oil revenues [5/9]
If one assumes that the Kurds sell 400,000 bpd of oil monthly at the discounted price of around $33 per barrel (vs. $45 per barrel Brent averages), this would mean they need to surrender $396 million in oil revenues each month, along with around three-quarters of [6/9]
their non-oil revenue. KRG income would plummet from $764 million per month (i.e., $268 m. federal transfers, $396 m. oil revenues, $100 m. non-oil revenues) to $293 million per month ($268 million in federal transfers plus $25 million in residual non-oil income). [7/9]
The KRG is currently riding a tough but manageable 30% monthly account deficit (i.e., $764 million in income vs. nominal spending of $1.08 billion). Yet by decreasing this monthly income to $293 million, the new law would increase the KRG deficit to a crushing 73% and ... [8/9]
... leave Kurdish officials far short of meeting their most important obligations: the $710 million in monthly salary and social security payments. Insisting on immediate implementation is therefore an economic suicide pill for the KRG. [9/9]
Kurdistan Region’s federal budget share a right, not a privilege: KRG PM Barzani https://www.rudaw.net/english/middleeast/iraq/14112020
Passage of Fiscal Deficit Financing bill without Kurdish MPs is negative precedent: Iraqi President https://www.nrttv.com/en/News.aspx?id=25023&MapID=1
People like Ranj Talabani are saying the same thing for more than 4 years.
It doesn't make sense to withdraw all officials and this "argumentation" is stupid.
It doesn't make sense to withdraw all officials and this "argumentation" is stupid.
And what the Co-leader of PUK Lahur is doing is divide the nation by spreading weird tweets.
Here Lahur is indirectly referring to the referendum. He forges that he also voted and was part of it-incl. PUK. So why isn't he talking to KDP, so we have a united front? I didn't see a single meeting where he was talking to KDP. Maybe it would harm his hate rhetoric towards KDP
