Mustafa Al-Kazemi prepares to conclude a “historic agreement” with Kurdistan: the April payment is the last
The government of Prime Minister Mustafa Al-Kazemi is going to solve one of the most complicated issues since the establishment of the new Iraqi regime after the year 2003, after government documents revealed the signs of an agreement described historically between the federal government and the Kurdistan Regional Government, organizes the financial relationship between the two parties and ends decades of uncertainty and exchange Accusations.
According to the documents seen by “people”, correspondence between the federal government and the territorial government, ended in Arbil’s approval of the federal government’s proposal to conduct a “final settlement” that could end decades of difference.
Correspondence begins with a document issued by the office of the Federal Minister of Finance Ali Abdul Amir Allawi on (19 May 2020) mentioning the text of a proposal submitted by the Minister to the President of the Kurdistan Regional Government, Masroor Barzani. Before paying any sums for the coming months, Baghdad also shrank the current payment by about 50 billion dinars from the amount that was sent by the previous government headed by Adel Abdul-Mahdi, which was paid to the region a total of 450 billion dinars.
The federal government proposal consists of 4 points:
1 – The Federal Ministry of Finance pays an amount of 400 billion Iraqi dinars for the month of April to the Kurdistan region.
2 – Entering intensive meetings between representatives of the federal government and representatives of the region to offer agreement on a final settlement between the two parties within a period not exceeding 30 days starting from the date of the financing mentioned in paragraph 1, and adopts the Federal Financial Management Law as a basis for it.
3 – The Federal Financial Supervision Bureau, in coordination with the Federal Ministry of Finance and the Financial Supervision Bureau in the region, shall calculate and audit non-oil revenues for the region.
4 – Financing for the subsequent payments for the month of April after implementing the agreement that will result from the meetings mentioned in paragraph 2.
On the same day, Minister Allawi will receive a response from the Kurdistan Regional Government, signed by the Minister of Finance and Economy in the Kurdistan Regional Government.
According to the response document issued by the office of Minister Awat Janab Nuri, “The Kurdistan Regional Government of Iraq confirms its approval of the content contained” in the Federal Minister of Finance’s book.
Five days after the approval of the federal government on the federal proposal, Finance Minister Ali Allawi will issue his 809 letter, in which he approves the last payment before the comprehensive agreement between the two parties, which amounts to 400 billion dinars.
According to the information, the federal government and the territorial government are going to close the file permanently, and according to a mechanism that will include putting the entire region’s oil at the disposal of the Iraqi Federal Oil Marketing Company “SOMO”.
But the agreement that Baghdad seeks to conclude is not limited to oil exports, but includes, according to the paragraphs proposed by Allawi, and approved by Nuri, the entry of teams from the Federal Financial Supervision Bureau to audit the records of the region, regarding its non-oil imports, such as border crossings.
And in the event that the parties succeed in passing an agreement at this level, a large and thorny file will be closed between Baghdad and Erbil, as long as it raised troubles for the two parties and caused negative consequences for the citizens of the region, such as delayed payment of employee salaries, in addition to the social repercussions left by the crisis that has lasted for more than a decade, in terms of feeling Some provinces are injustice.
The last agreement could also cause the end of the file of temporary remedies that some previous governments were forced to, such as the government of former Prime Minister Haider al-Abadi, which was forced to establish customs controls on the administrative borders of the region, or the government of former Prime Minister Adel Abdul-Mahdi, whose president resigned without a final and radical solution For the case. Source