Iraq Suspends Korek Telecom Operations Over Unpaid Debt

BAGHDAD, Iraq — Iraq's Communication and Media Commission has cancelled a reconciliation agreement with Korek Telecom and suspended the company's activities following failed talks in Baghdad on Tuesday. The Erbil-based company failed to fulfill contract terms despite receiving numerous opportunities to resolve its obligations, the commission said. Korek Telecom's debts, including overdue license fees, have reached approximately 2 trillion Iraqi dinars, roughly 1.5 billion dollars. The commission said it has initiated proceedings with Iraqi banks to seize all of the company's assets to collect government funds. It also warned state institutions, private companies and citizens against making new agreements or entering business relations with Korek Telecom. The commission said Korek Telecom bears full responsibility for all legal and financial consequences of the suspension.