Businessmen and investors in Iraq’s Kurdistan Region have given $85m to the Central Bank of Kurdistan to help resolve the region’s cash crisis. The money will be used to pay salaries for employees. Teachers, laborers and some other workers have been on strike after weeks of delayed salaries.
Kurdish officials say the cash crisis started when Iraq’s central government didn’t send Kurdistan’s monthly budgets on time. Leaders in Baghdad say the money has now been sent. Arbil and Baghdad are still locked in a dispute over Kurdistan’s independent oil exports. But the central government says that’s not why they money was delayed. Kurdish officials say Baghdad still owes the region billions of dollars in unpaid expenses. But the central government says Kurdistan has not calculated its expenses accurately. Iraq’s Kurdish deputy finance minister, Fazil Nabi, has resigned from his post due to Baghdad’s delay in paying Kurdistan’s salaries. But Iraq’s central government says the problem is simply because paying in cash is an outdated method.