File - A general birds-eye view shows the northern Iraqi city of Arbil, the capital of the autonomous Kurdistan region, on 19 March 2013. AFP PHOTO / SAFIN HAMED
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The Kurdistan Regional Government is sounding out investors about a potential debt financing, although a number of gray areas need to be clarified before any deal emerges.The second investor added that if there were any deal, it would be subject to enactment of a debt law, which is expected to receive parliamentary approval by the end of November.Its tense relations with the Iraqi central government mean there are several gray areas about how exactly Kurdistan would raise any funds – or even if it could do so without Baghdad's authorization.This uncertainty extends also to the servicing of any debt and whether or not the regional government would need either explicit or implicit approval from the Iraqi central bank to pay investors.Under the Iraqi constitution, Kurdistan is entitled to 17 percent of the national budget after sovereign expenses.Kurdistan says the shipments are allowed under the Iraqi constitution.
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