The Iraqi government has allocated 4.8 billion Iraqi Dinars IQD to the Sulaimani Governorate to restore investment plagued by a financial crisis facing the Kurdistan Region.
The Acting Governor of Sulaimani, Sardar Qadir told NRT the money will be distributed among the contractors who the Kurdistan Regional Government (KRG) owes more than one trillion IQD.
“The money is not sufficient for the 593 eligible investors in the Sulaimani Governorate to boost their projects,” he said during an interview with NRT.
A member of the Sulaimani Provincial Council said the money is not enough to launch new projects or to restore those which were suspended.
Several contractors and companies declared bankruptcy after the Kurdistan Region faced a financial crisis in late 2104 which the KRG blames on the slump in oil prices, the fight against the Islamic State (ISIS) and the hosting of an influx number of IDPs.
The KRG is delaying payments to government contractors as a slump in oil prices over the past few months has led to significant revenue shortfalls, deepening its financial crisis.
The financial crisis has already resulted in the suspension of about 4,000 contractor projects as the government seeks to preserve cash.
Up to 2,200 small, medium and large factories have closed in the city of Sulaimani, according to statistics gained from the Sulaimani Chamber of Commerce and Industry last year.