Iraq vows to resolve payment problem for Turkish contractors

“We have decided to pay a minimum of 50 percent of the receivables of Turkish companies, which have had difficulties in receiving their payments due to developments in Iraq. They will be able to charge the whole as soon as they have completed 85 percent of the projects they are undertaking. This will help Turkish companies maintain their work in Iraq,” said el-Cumeyli during a visit to Turkey’s Aegean province of İzmir to mark the opening of the 85th İzmir International Fair. 

Turkish companies have been unable to charge payments for their work in Iraq for the past two years due to escalating tensions in the neighboring country, according to officials and sector representatives. 

El-Cumeyli also noted that the bilateral economic and cultural ties have slowed down since 2013 between Iraq and Turkey, but Baghdad want to revive them again. 

“Due to many negative developments, our trade relations have regressed since 2013. Our defense spending has soared since that time as we have been fighting against the Islamic State of Iraq and the Levant [ISIL], while our revenue has declined due to the oil slump. All this has hit our economy as well as trade ties with Turkey. But we aim to revive our cooperation again,” he said.