Iraq/Kurdistan: KRG Shares of International Loans to Iraq

May 15, 2016 | Lana Sardar Qader, NRT
View Original

For the past decade the Kurdistan Regional Government (KRG) had established what ended up being a false sense of financial security.  The KRG economy has been chronically dependent on oil revenues, be it coming from Baghdad or through independent oil sales. The pre-2014 economic boom resulted from high oil prices; however the KRG’s economic security was quickly shaken by the souring of relations with Baghdad, the invasion of the Islamic State (ISIS) and plummeting oil prices. The structural shortcomings of KRG’s economy became evident, as did the need for reforms. International loans to KRG could facilitate some of the economic reforms that the KRG sorely needs.