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We are ready to settle with Kadhimi’s government: Barzani


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We are ready to settle with Kadhimi’s government: Barzani

 
Kurdistan Kadhimi’s government Barzani KRG Baghdad

2020/05/22 12:57:29

Shafaq News / PM of Kurdistan Regional Government (KRG), Masrour Barzani said on Friday that his government had taken serious steps in discussions with Baghdad to resolve years of outstanding disputes, expressing his government's willingness to resolve it with the new Iraqi government headed by Mustafa Al-Kadhimi.

This came in a televised speech on the economic crisis afflicting the region.

“Kurdistan Region has taken serious steps in relations with the federal government since the 9th ministerial formation formally assumed its mission in July 2019 (Adel Abdul Mahdi government,” Barzani said.

"Our first visits were to Baghdad– in which we expressed our readiness to resolve all disputes based on the constitution and put forward several proposals to end the outstanding issues, especially the oil issue- but unfortunately, the situation in Baghdad aggravated last October and the Iraqi government resigned after pressure of the protests."

"Now the new Iraqi government, headed by Mr. Mustafa Al-Kadhmi, has started its duties, we have renewed our readiness to resolve all differences and to guarantee the constitutional rights of Kurdistan Region as a federal entity."

“Our latest effort was to send three delegations to Baghdad, and we will continue our talks until reaching a fair and constitutional solution,” Barzani added.

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2 minutes ago, Pitcher said:

 

 

Is it me or does it seem like everyone in the ME is becoming more conciliatory the last few weeks.  I’m reading a lot of articles that sure seem like something big is lining up.  Could it be??  Is it almost time?   I don’t know, I’m no Guru.  I read a lot though and I have to say what I’m reading is very encouraging.  

 

Pitcher Thanks,  We patiently await the next few weeks what will happen.  Let's hope Iraq can git er done.  The CBI holds the key to our RV or RI...👍👍🙏🙏

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Here is another good article 

 

 

 

Kurdistan PM stresses reform, resolving Baghdad disputes to face economic crisis

Kurdistan Region Prime Minister Masrour Barzani gives a televised speech in Erbil, May 22, 2020. (Photo: KRG)

ERBIL (Kurdistan 24) – Kurdistan Region Prime Minister Masrour Barzani on Friday stressed that his administration would continue its robust plans for economic reform and dialogue with federal Iraqi authorities in Baghdad as key strategies in efforts to tackle ongoing financial hardship faced by the autonomous region.

“The whole world, including the Kurdistan Region, is going through a difficult economic period due to the implications of the outbreak and falling oil prices,” Barzani said in a speech addressing the public. “These are challenging times for the Kurdistan Regional Government. From the outset of this economic crisis, we have been doing our best to ease the financial burden on people throughout our region.” 

He added that, since the disease first broke out, his cabinet had made continual efforts to ease its impact on the lives of citizens amid a series of crises that have further exacerbated the ability of the Kurdistan Regional Government (KRG) to pay its public sector employees.

Erbil-Baghdad ties

Primary among ongoing disputes is the federal government transfer of KRG’s share of the national budget and Erbil’s handover of 250,000 barrels of oil per day to Iraqi state oil marketer SOMO, as outlined in an agreement between the two sides that was recently renewed in late 2019 but never implemented. In late April, Baghdad froze monthly payments to Erbil of its budget share that was being used to pay government salaries.

The prime minister asserted that, since he took office in July 2019, his cabinet had upped efforts to “resolve” long-standing disputes with Baghdad.

He explained that the KRG and the federal Iraqi government were making progress before Prime Minister Adil Abdul Mahdi was forced to resign amid ongoing anti-establishment protests in central and southern parts of the country.

“From then on,” said Barzani, the caretaker government of Abdul Mahdi “did not take full responsibility to resolve outstanding issues, including Kurdistan Region’s constitutional rights and entitlements which they have failed to deliver since 2005.” 

He was quick to point out, however, that since former Iraqi spy chief Mustafa al-Kadhimi took the helm as the federal premier, Erbil has reaffirmed its readiness to address the lingering disputes. Top KRG delegations have visited Baghdad for three rounds of talks with top government officials and political leaders, he added.

Related Article: KRG delegation heads back to Baghdad for talks on oil, budget freeze

“Dialogue will continue until we reach a fair and constitutional solution to these problems,” the prime minister affirmed.

Economic Hardship

Barzani continued, “This financial crisis makes us even more committed to the strategy of diversifying our economy and the ongoing the reform process, as well as putting an end to historical issues regarding public administration and finances.”

Related Article: KRG investment board plans to diversify Kurdistan Region economy

“We therefore support decentralization in a way that continues to protect the integrity of the Kurdistan Region.”

He went on to say that, since his inauguration, the KRG has missed one month of paying its employees, precipitated by an extremely difficult financial situation. “We have also taken a number of steps to reduce the burden on low-income families,” and others whose conditions have been significantly affected by the strict curfew measures and economic shutdown enacted to limit the spread of COVID-19.

The premier explained that KRG is $27 billion in debt, but that most of this is due to “the failure by previous Iraqi federal governments to allocate correctly the budget of the Kurdistan Region. As a result, unfortunately, the government holds little or no reserves, forcing us to depend on revenues received monthly.”

Out of $700 million monthly income from oil sales before a sharp decline in prices starting in April, KRG was expending $400 million of it in various costs associated with the production and sale of the commodity, Barzani said. The remainder, along with $383 million from Baghdad, would reportedly be used to pay public servants' a portion of their salaries.

He explained that this amount was not enough and so the KRG used internal sources of revenue to fund as much of the salaries it could, still coming short by close to $60 million, Barzani said, adding, “It is clear that in the past government spending has been both unjust and mismanaged,” since 80 percent of revenue goes to public sector salaries, while public sector beneficiaries make up just 20 percent of the population.

“That is why we together – as citizens, government and political parties – to make a consequential decision that even in better financial circumstances most of the revenues cannot be spent on public sector salaries. We must use a significant part of the budget for increasing public services and building a stronger economy.”

 

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Economic crisis 'here to stay': Kurdistan Region PM Barzani

4 hours ago
Prime Minister of the Kurdistan Region Masrour Barzani makes a televised speech on May 22, 2020. Photo: Rudaw
Prime Minister of the Kurdistan Region Masrour Barzani makes a televised speech on May 22, 2020. Photo: Rudaw
ERBIL, Kurdistan Region – Prime Minister Masrour Barzani has made a lengthy televised speech to address the current condition of the Kurdistan Region's economy, dealt a severe blow by the global collapse of oil prices, the COVID-19 pandemic and budget cuts from Baghdad.

“The world is suffering from the economic crisis that happened due to COVID-19 and the drop in oil prices,” Barzani said from Erbil on Friday evening. “We are facing more challenges, as Baghdad decided to cut the salaries of KRG employees after months of unrest in Iraq and the resignation of previous cabinet.”

But Erbil-Baghdad relations appear to be looking up under the leadership of Iraq's new prime minister Mustafa al-Kadhimi.

“We now have a common understanding with the new cabinet in Baghdad led by PM Mustafa al-Kadhimi on KRG employees’ salaries,”  Barzani said.

Erbil is in “continuous efforts” to fix the outstanding issues with Baghdad, including KRG employee salaries, Barzani said. 

“I call on the Kurdish MPs in Baghdad to unite and work for the sake of people in Kurdistan Region, and avoid working for their party or personal interests.”

In mid-April, Iraq's former Prime Minister Adil Abdul-Mahdi called on the finance ministry to halt budget transfers to the KRG and take back all budget sent since January 1, 2020.

Baghdad accused the KRG of failing to send oil in exchange for its share of the federal budget – an arrangement agreed to in December.

Eager to keep public sector workers on the payroll, a KRG delegation visited Baghdad late last month to hash budget cuts out with Baghdad. But with no agreement reached, the KRG announced it would pay the salaries of civil servants from the "limited financial resources" available.

KRG delegations have already made several visits to the new government in Baghdad over the past two weeks to put an end to the budget cuts. No agreement on the oil-for-budget deal has yet been reached.

Kurdistan Region economy in numbers

The KRG is in poor standing to pay off what Barzani announced as its $27 billion in debt, in part due to a lack of Kurdistan Region reserves and the budget cuts from federal government.

World oil price collapse has meant that Kurdistan Region monthly revenue has shrunk to a fraction of its usual total, with only $90 million dollars made in April –  with just $30 million coming from oil exports.

“In previous months, when our oil revenues were over $700 million, more than $400 million was used to pay back debts and pay oil companies for their work in Kurdistan Region oil fields,” Barzani said., “while more than $300 million was used to pay salaries of KRG employees, along with the $383 million that Baghdad was sending.”

The fall in oil prices resulted from a standoff between energy giants Russia and Saudi Arabia, both of which flooded the market with cheap oil  – causing the price per barrel to drop to its lowest level in years.

Moscow and Riyadh reached a deal on April 12 to cut oil production by 9.7 million bpd – equivalent to 10 percent of the world’s daily supply – for May and June. However, global demand will likely remain low for the foreseeable future as a result of the COVID-19 pandemic and the economic downturn it has  sparked.

OPEC producers including Iraq agreed to continue the reduction until April of next year to stabilize the struggling oil market. Erbil has agreed to abide by the Iraqi government’s production cut pledge.

An end to short-term planning?

A focus on civil servant salaries has meant that previous Kurdistan Region governments - including government under the premiership of his cousin and current president Nechirvan Barzani  – have failed to plan for the future.

“The previous Kurdistan Region cabinet did not draw up a solid plan for the future of the Kurdistan Region's economy,” Barzani said. “The previous KRG cabinet has only provided salaries for the public and failed to provide budget for state development and public projects.”

“More than 80 percent of the previous cabinet's KRG budget was used to pay employee salaries, and only 20 percent was used for developing projects,” Barzani said.
 

 

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It looks to me like the leaders of the Kurdish region have been fine keeping all their oil profits until those profits shrank so much that they couldn't pay their bills.  Now they are ready to cooperate with Baghdad.  If a worldwide virus scare is what it takes to get the HCL done, then so be it!

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". . . a misplaced decision to depend on unpredictable oil revenues." WHAT :bs: this is ! 

Nothing misplaced about this. The decision to rob, steal, embezzle & bleed white the country was not misplaced. Now comes the Spin Zone and deflections designed to exonerate some and implicate others.

 

They're played out and have no other real options but to finally begin to do the right thing ( we hope/waiting for the cessation of verbal diarrhea & implementation of the rollout ) . . . and now this - That’s why one of our priorities is to diversify the economy and our income. We cannot accept relying on one source of income."

 

 

 

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KRG DELEGATION TO VISIT BAGHDAD THIS WEEK: KRG OFFICIAL

2752020175612112752020165110al_kurd_iraq
Flags of Iraq and the Kurdistan Region (File)

49 minutes ago

http://nrttv.com/En/News.aspx?id=21534&MapID=1#.Xs5x0sJJOqA.twitter

 

SULAIMANI — The General Director of the Kurdistan Regional Government’s (KRG) Foreign Relations Department in Baghdad said on Wednesday (May 27) that a KRG negotiating delegation will soon visit the Iraqi capital for discussions about ongoing disputes over the budget, oil revenues, and other long-standing issues.

Both the [KRG] and [the federal] government have expressed their desire to solve the problems between them,” General Director Bakhtiar Haji told the Kurdistan Democratic Party’s (KDP) official media outlet. Haji is also a member of the negotiating delegation.

Not only will the budget and salaries be discussed, but the total problems between the Region and Baghdad will be discussed as well, in order to solve them and reach an agreement,” he said.

Both the federal government and the KRG are facing large budget shortfalls due to the collapse of oil prices in recent months, but a decision by Baghdad to cut off all budget transfers to Erbil in April exacerbated problems in Erbil and forced it to the negation table.

Although the two sides met several times before the Eid al-Fitr holiday, they were unable to reach the comprehensive and binding agreement sought by the federal government.

However, both Erbil and Baghdad have sent conciliatory signals indicating their willingness to make a deal.

“The [federal] government has showed readiness to send the 400 billion Iraq dinars ($335 million) to the Kurdistan Region after Eid,” Haji said, referencing a move by Baghdad to release some funding to Erbil if it agreed to certain parameters for the talks.

(NRT Digital Media

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