Baghdad Loans Erbil $1.6bn As US Presses For Ceyhan Export Restart

22 Sep 2023 Issue: 66 / 38 By: Yesar Al-Maleki

Baghdad has agreed three-month stopgap funding to cover the KRG payroll in a fragile deal ahead of the Iraqi PM’s visit to New York this week. The US is pressing both parties to pursue dialogue, and for pipeline exports via Turkey’s Ceyhan terminal to resume. But for this a commercial deal between Baghdad and the KRG’s IOCs is needed.

Following marathon meetings in Baghdad by the Kurdistan Regional Government (KRG)’s PM Masrour Barzani, the Iraqi cabinet on 17 September approved ID2.1tr ($1.62bn) in loans to the semi-autonomous region to help cover public sector salaries for September, October and November.

The decision will provide a much-needed cash infusion for Erbil’s finances which have reeled since the mid-March halt of independent pipeline oil exports to the Turkish Mediterranean terminal of Ceyhan (MEES, 31 March). It came a day ahead of Iraqi PM Mohammed al-Sudani’s trip to New York to attend the UN General Assembly and meet officials from the US State and Treasury Departments and executives from American private sector and energy companies. (CONTINUED - 1638 WORDS)