According to NRT General Director Bakhtiar Haji told the Kurdistan Democratic Party’s (KDP) official media outlet that “both the [KRG] and [the federal] government have expressed their desire to solve the problems between them.”

Haji is a member of the negotiating delegation.

“Not only will the budget and salaries be discussed, but the total problems between the Region and Baghdad will be discussed as well, in order to solve them and reach an agreement,” he said.

Both the federal government and the KRG are facing large budget shortfalls due to the collapse of oil prices in recent months, but a decision by Baghdad to cut off all budget transfers to Erbil in April exacerbated problems in Erbil and forced it to the negation table.

Although the two sides met several times before the Eid al-Fitr holiday, they were unable to reach the comprehensive and binding agreement sought by the federal government.

However, both Erbil and Baghdad have sent conciliatory signals indicating their willingness to make a deal.

“The [federal] government has showed readiness to send the 400 billion Iraq dinars ($335 million) to the Kurdistan Region after Eid,” Haji said, referencing a move by Baghdad to release some funding to Erbil if it agreed to certain parameters for the talks.

Reporter’s code: 50101