Northern Iraq's Kurdish Regional Government (KRG) has agreed to relinquish the right to operate and oversee banks in the region, the governor of Iraq's central bank said Tuesday.
BAGHDAD-A dispute between the Iraqi government and its semiautonomous Kurdish region is easing, five months after clashes in the wake of a referendum on independence that changed the balance of power in the country.
"The opening of Kurdish airports to global flights is an important step", Kurdish Prime Minister Nechirvan Barzani told a news conference according to Kurdish Rudaw TV."We hope more significant steps will be taken".More news: Sam Bradford plans to sign one-year contract with Cardinals
Since the air ban was enforced, all Kurdistan-bound worldwide flights have been rerouted to Baghdad, which has also imposed entry visas to foreigners wishing to visit the Kurdistan region.
This hit the Kurdistan Region's economy, with a decrease in tourism and travel affecting local businesses.
Kurdistan's regional airports will be under the command of the federal Interior Ministry, according to the prime minister's statement. The move followed an agreement with Kurdish officials to put their two airports under federal control.More news: Goodyear Tire & Rubber Co (GT) Holdings Reduced by Franklin Resources Inc
Baghdad reduced the Kurdistan Region's share of the federal budget to roughly 12 percent, a significant drop from its previous 17 percent allocation, and did not allocate any budget for the Peshmerga forces, the primary reason for representatives from the Region to protest the bill.
The Iraqi President has rejected the 2018 national budget law, approved by the Iraqi Parliament after a majority vote, due to the presence of constitutional violations in the bill. Kurdish lawmakers boycotted a recent vote in parliament approving the country's 2018 budget. It did not specify the exact percentage to be allocated to the KRG instead stipulating it would receive funds proportional to its share of the population.
"We are sending it (the budget) back to the parliament to amend the legal and constitutional violations we pointed out", Kenany said.More news: Fifth Third Bancorp Stake In Celgene Corp (CELG) Was Raised