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Iraq orders banks to be opened in Kurdistan

AFP

Aug 20, 2002

 The Iraqi cabinet has ordered the central bank to grant licenses for banks to be opened in parts of Kurdistan which Baghdad lost control of during the 1991 Gulf War, the official INA news agency said Tuesday.

"The cabinet authorises the central bank to grant permits to set up national banks under its supervision in the autonomous region (Dohuk, Arbil and Sulaymaniya)," it said.

The central bank would oversee the new banks "to safeguard public deposits and enable the establishments to carry out their financial and economic activities in accordance with the law" INA said.

Most of northern Iraq has been outside Baghdad's control since a Kurdish uprising following the Gulf War and remains protected today by US and British airpower.

Control of the area is split by the Patriotic Union of Kurdistan, which holds an eastern sector of Iraqi Kurdistan, and the Kurdistan Democratic Party (KDP), which holds sway near the border with Turkey.

President Saddam Hussein has repeatedly sought to strike up a dialogue with Kurdish leaders who are also courted by Washington, which is plotting to overthrow the Baghdad regime.
 

 
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