Wirtschaftlicher Tsunami in Irakisch-Kurdistan16. Januar 2016, von Administrator
Iraq’s Kurdistan region is in danger of being drowned by an economic “tsunami” as global oil prices plunge, its deputy prime minister said, warning it could undermine the war effort against Islamic State.
Four months in arrears and deeply in debt, the Kurdistan Regional Government (KRG), which depends on oil revenue to survive, has been hit hard by oil’s slump below $30 per barrel this week from over $100 a barrel two years ago.
Even before oil’s most recent losses, the autonomous region was unable to meet a bloated public payroll including the salaries of its own armed forces, the peshmerga, which are on the front line against Islamic State.
“The world is focused on the war against ISIS but nobody wins a war bankrupt,” Qubad Talabani said in the interview on Thursday, using an acronym for Islamic State. “I think this is something the coalition against ISIS really do need to factor into the equation.”