Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Join the forum, it's quick and easy

Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

Would you like to react to this message? Create an account in a few clicks or log in to continue.
Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Financially and economically... How will the end of Iraq's compensation file affect Kuwait?

    Rocky
    Rocky
    Rocky
    Admin Assist
    Admin Assist


    Posts : 269873
    Join date : 2012-12-21
    • Post n°1

    Financially and economically... How will the end of Iraq's compensation file affect Kuwait? Empty Financially and economically... How will the end of Iraq's compensation file affect Kuwait?

    Post by Rocky Wed 23 Feb 2022, 2:59 pm

    [size=39]Financially and economically... How will the end of Iraq's compensation file affect Kuwait?

    Al Hurra - Washington
    Feb 23 2022
    [/size]
    [You must be registered and logged in to see this link.]
    [You must be registered and logged in to see this image.]
    [You must be registered and logged in to see this link.]
    Officially, Iraq announced its exit from Chapter VII of the United Nations Charter, nearly 30 years after the Iraqi invasion of Kuwait during the era of former President Saddam Hussein, in a move that would contribute to improving the country's economy and providing millions of dollars to the exhausted state treasury, according to experts and officials.
    On Tuesday, the UN Security Council unanimously issued a resolution officially ending the mandate of the “United Nations Commission on Compensation for Damage Resulting from Iraq’s invasion of Kuwait in 1990”, after Baghdad paid the full sums owed to Kuwait, amounting to 52.4 billion dollars.
    The resolution stated that the Security Council "decides to terminate the commission's mandate" and considers it "accomplished." 
    The resolution added that the Security Council "confirms that the Iraqi government is no longer required to pay to the fund" managed by the committee "a percentage of the proceeds from sales of its exports of oil, petroleum products and natural gas." 
    Iraqi and UN officials praised the decision, with the UNAMI mission in Iraq describing the decision as a "historic milestone for the people of Iraq."

    Iraqi President Barham Salih confirmed that his country has completed a "terrible chapter of the absurd war of the tyrannical regime", after announcing the end of the Iraqi compensation file to Kuwait.

    Prime Minister Mustafa Al-Kazemi said that the step is "a new beginning for Iraq to restore its role and presence through the vision of the state, not the absurdity of the non-state."

    Iraqi Foreign Minister Fouad Hussein welcomed Iraq's exit from Chapter VII procedures, after paying all of its financial obligations, and stressed that his country is no longer required to pay any additional sums of money in the future.

    Economist Hammam Al-Shammaa believes that Iraq's exit from Chapter VII and the termination of the Compensation Committee file will have positive effects in terms of financial and economic terms.
    On the financial side, Al-Shammaa tells Al-Hurra that "the end of the committee's work means that the claims against Iraq have stopped, and it is no longer permissible to claim any amounts through it."
    Al-Shammaa added, "Before this date, many claimants for damages, who are many and often claiming damages, were preparing on every occasion and other to claim compensation through courts in their foreign countries."
    And he continues, "It was dangerous for the Iraqi economy for those courts to issue judgments and seize Iraqi funds that are dealt with in banks, whether for trade or investment purposes."
    He points out that "this caused that most banks in foreign countries did not open accounts for Iraqi banks, and Iraqi commercial dealings were done through correspondent banks, which cost Iraq additional commissions and exorbitant money."
    On the economic side, Al-Shamaa asserts that "the end of the committee's work means that about two billion dollars annually, which were paid as compensation, will be added to the state budget."
    Al-Shammaa states that these "amounts will be spent for the benefit of the Iraqi economy," stressing the need to allocate these funds to "sovereign funds in order to compensate future generations for what the current generations are draining of oil revenues and pulsating wealth."
    Al-Shammaa stresses the importance of establishing "a fund in which the money, which was earmarked for compensation, is invested in global markets, because it will generate in the future tens of billions from which future generations can benefit."
    Al-Shammaa points out that "Iraq's return to Article VII has become a thing of the past, given that there is no intention or aggressive external thinking in Iraq now."
    Al-Shammaa expressed his hope that "a new Iraqi government will be formed that is interested in fighting corruption and using Iraq's wealth to improve the economy and enable it to face challenges represented by the deteriorating oil markets."
    The committee was established in May 1991 under Resolution 692 of the UN Security Council, and was responsible for managing the financial compensation owed by Iraq, which deducted 5% of its revenues from sales of oil, petroleum products and natural gas. 
    During its mandate, the committee decided about 2.7 million requests for compensation, which amounted to 52.4 billion dollars of the 352 billion dollars claimed. The most recent was on January 13, with a value of about $630 million, according to the committee's report.
    Compensation was distributed to individuals, corporations, governmental organizations and other organizations who suffered losses resulting directly from the invasion and occupation.
    Saddam's army occupied Kuwait for seven months, from August 1990 to February 1991, before being expelled by an international coalition, led by the United States.
    Adviser to Iraqi Prime Minister Hussein Allawi confirmed that Iraq's exit from Chapter VII and the termination of the work of the Compensation Committee will contribute to "the openness of the Iraqi economy in terms of overlapping international investments with local ones."
    Allawi said in a statement to state television that the step would also "return the status of the Iraqi economy to its previous era, as it will enable Iraqi banks to transfer funds from inside and outside the country, and end the need for correspondent banks that were a challenge to the country."
    Allawi also stressed that the decision "will raise Iraq's financial credit and invest political conditions to achieve more openness towards investment."
    The Security Council imposed a series of sanctions on Iraq after the invasion of Kuwait, including paying compensation and freezing its assets abroad.
    Chapter VII of the Charter of the United Nations opened the door to the possibility of imposing sanctions as well as the possibility of military action against Iraq.
    In February 2014, the UN Security Council eased the sanctions imposed on Iraq since its invasion of Kuwait in 1990, due to the improvement of relations between the two countries.
    In a resolution adopted unanimously by its 15 members, the Security Council raised the threat of imposing sanctions on Baghdad or resorting to force against it under Chapter VII of the United Nations Charter, in connection with two contentious issues between Kuwait and Iraq, namely the loss of 600 Kuwaiti citizens following the invasion and the loss of the Kuwaiti National Archives.
    Based on the decision at the time, the United Nations Mission in Iraq (UNAMI) took over the treatment of these two issues under Chapter VI of the United Nations Charter, which provides for the peaceful resolution of disputes.
    [You must be registered and logged in to see this link.]
    • Back to top
      Current date/time is Sat 11 May 2024, 3:40 pm