Iraq calls for relief in its gult war reparation payment to Kuwait

[FMCC]

Yesterday Iraqi Oil Minister Hussein al-Shahristani warned that Iraq can no longer sustain its current level of reparations payments to Kuwait. These payments were imposed because of Saddam Hussein’s destructive 1990 invasion of the small oil-rich emirate in the northwest corner of the Persian Gulf.

"Iraq has paid Kuwait enormous amounts of compensation for its losses and we do not know of any country in the world that has paid such high sums," Shahristani told Agence France Presse (AFP) reporters in Baghdad yesterday.

Last month, Adnan Abdulsamad, head of the Kuwaiti parliament’s Budgets Committee reported that Iraq has already paid Kuwait $17.5 billion out of a $41.8 billion reparation fund approved by the UN. Iraq is required to put five percent of its oil revenues into this fund.

"Iraq cannot continue to make these payments and has made this known to the U.N. Security Council," Shahristani continued. "We call on our Kuwaiti brothers to work together with us to forget the past, which has cost our country more than our neighbors."

Before the 1991 Gulf War, Kuwait, along with other Gulf nations, had supported Iraq financially during its 1980-1988 war with Iran. According to the AFP story, Iraq still owes Kuwait around $16 billion. That conflict left the world's fourth largest oil producer virtually bankrupt.

"The sum of money that Germany paid to France and Britain is less than what Iraq has paid to Kuwait, even though that was a world war and the losses were considerable," added Shahristani.

Between crippling UN sanctions after the Gulf War and the damage related to the US-led invasion of 2003, Iraq slipped further into debt and has repeatedly appealed to Kuwait and other countries to waive tens of billions of dollars in compensation and debt payments.

Are Iraq’s requests for debt forgiveness reasonable? According to the CIA, the average gross domestic product per capita (GDP) among its population of 28.9 million is estimated at $3,600 (2009 figures), and the nation is still struggling to cope with an insurgency as well as other political and economic challenges.

Last July, UN leader Ban Ki-moon urged Iraq to use investments and other alternatives to resolve its reparations dispute with Kuwait, and pressed UN Security Council members to help Baghdad meet its outstanding financial obligations.

Meanwhile, Kuwait has fully recovered from the Gulf War, which had heavily damaged its infrastructure and oil production, GDP is around $50,100 for a population of 2.7 million. The emirate might well afford to be generous--or flexible--when it comes to rescheduling Iraq's enormous debt. However, significant psychological scars from the brutal Iraqi occupation remain.

In a positive move for Iraq, Kuwaiti Foreign Minister Sheikh Mohammad al-Sabah did say last September that his country is considering a proposal by the UN General-Secretary to recover the unpaid compensation by investing in joint ventures in Iraq.

http://www.examiner.com/x-38007-Middle-East-Affairs-Examiner~y2010m5d8-Iraq-calls-for-relief-in-its-Gulf-War-reparation-payments-to-Kuwait

[carlablum]

Iraq calls for relief in its Gulf War reparation payments to Kuwait

May 8, 4:01 PMMiddle East Affairs

Yesterday Iraqi Oil Minister Hussein al-Shahristani warned that Iraq can no longer sustain its current level of reparations payments to Kuwait. These payments were imposed because of Saddam Hussein’s destructive 1990 invasion of the small oil-rich emirate in the northwest corner of the Persian Gulf.

"Iraq has paid Kuwait enormous amounts of compensation for its losses and we do not know of any country in the world that has paid such high sums," Shahristani told Agence France Presse (AFP) reporters in Baghdad yesterday.

Last month, Adnan Abdulsamad, head of the Kuwaiti parliament’s Budgets Committee reported that Iraq has already paid Kuwait $17.5 billion out of a $41.8 billion reparation fund approved by the UN. Iraq is required to put five percent of its oil revenues into this fund.

"Iraq cannot continue to make these payments and has made this known to the U.N. Security Council," Shahristani continued. "We call on our Kuwaiti brothers to work together with us to forget the past, which has cost our country more than our neighbors."

Before the 1991 Gulf War, Kuwait, along with other Gulf nations, had supported Iraq financially during its 1980-1988 war with Iran. According to the AFP story, Iraq still owes Kuwait around $16 billion. That conflict left the world's fourth largest oil producer virtually bankrupt.

"The sum of money that Germany paid to France and Britain is less than what Iraq has paid to Kuwait, even though that was a world war and the losses were considerable," added Shahristani.

Between crippling UN sanctions after the Gulf War and the damage related to the US-led invasion of 2003, Iraq slipped further into debt and has repeatedly appealed to Kuwait and other countries to waive tens of billions of dollars in compensation and debt payments.

Are Iraq’s requests for debt forgiveness reasonable? According to the CIA, the average gross domestic product per capita (GDP) among its population of 28.9 million is estimated at $3,600 (2009 figures), and the nation is still struggling to cope with an insurgency as well as other political and economic challenges.

Last July, UN leader Ban Ki-moon urged Iraq to use investments and other alternatives to resolve its reparations dispute with Kuwait, and pressed UN Security Council members to help Baghdad meet its outstanding financial obligations.

Meanwhile, Kuwait has fully recovered from the Gulf War, which had heavily damaged its infrastructure and oil production, GDP is around $50,100 for a population of 2.7 million. The emirate might well afford to be generous--or flexible--when it comes to rescheduling Iraq's enormous debt. However, significant psychological scars from the brutal Iraqi occupation remain.

In a positive move for Iraq, Kuwaiti Foreign Minister Sheikh Mohammad al-Sabah did say last September that his country is considering a proposal by the UN General-Secretary to recover the unpaid compensation by investing in joint ventures in Iraq.

http://www.examiner....ments-to-Kuwait

[mariejose]

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[Danneedsrvnow]

I WONDER IF IT WOULD HELP THEM TO REVAL THEIR CURRENCY?

Once again, another article that makes you wonder if the rv is really going to happen this year or ever!

[retirementafterrv]

May 8, 2010

Iraq calls for relief in its Gulf War reparation payments to Kuwait

Yesterday Iraqi Oil Minister Hussein al-Shahristani warned that Iraq can no longer sustain its current level of reparations payments to Kuwait. These payments were imposed because of Saddam Hussein’s destructive 1990 invasion of the small oil-rich emirate in the northwest corner of the Persian Gulf.

"Iraq has paid Kuwait enormous amounts of compensation for its losses and we do not know of any country in the world that has paid such high sums," Shahristani told Agence France Presse (AFP) reporters in Baghdad yesterday.

Last month, Adnan Abdulsamad, head of the Kuwaiti parliament’s Budgets Committee reported that Iraq has already paid Kuwait $17.5 billion out of a $41.8 billion reparation fund approved by the UN. Iraq is required to put five percent of its oil revenues into this fund.

"Iraq cannot continue to make these payments and has made this known to the U.N. Security Council," Shahristani continued. "We call on our Kuwaiti brothers to work together with us to forget the past, which has cost our country more than our neighbors."

Before the 1991 Gulf War, Kuwait, along with other Gulf nations, had supported Iraq financially during its 1980-1988 war with Iran. According to the AFP story, Iraq still owes Kuwait around $16 billion. That conflict left the world's fourth largest oil producer virtually bankrupt.

"The sum of money that Germany paid to France and Britain is less than what Iraq has paid to Kuwait, even though that was a world war and the losses were considerable," added Shahristani.

Between crippling UN sanctions after the Gulf War and the damage related to the US-led invasion of 2003, Iraq slipped further into debt and has repeatedly appealed to Kuwait and other countries to waive tens of billions of dollars in compensation and debt payments.

Are Iraq’s requests for debt forgiveness reasonable? According to the CIA, the average gross domestic product per capita (GDP) among its population of 28.9 million is estimated at $3,600 (2009 figures), and the nation is still struggling to cope with an insurgency as well as other political and economic challenges.

Last July, UN leader Ban Ki-moon urged Iraq to use investments and other alternatives to resolve its reparations dispute with Kuwait, and pressed UN Security Council members to help Baghdad meet its outstanding financial obligations.

Meanwhile, Kuwait has fully recovered from the Gulf War, which had heavily damaged its infrastructure and oil production, GDP is around $50,100 for a population of 2.7 million.

The emirate might well afford to be generous--or flexible--when it comes to rescheduling Iraq's enormous debt. However, significant psychological scars from the brutal Iraqi occupation remain.

In a positive move for Iraq, Kuwaiti Foreign Minister Sheikh Mohammad al-Sabah did say last September that his country is considering a proposal by the UN General-Secretary to recover the unpaid compensation by investing in joint ventures in Iraq.

http://www.examiner.com/x-38007-Middle-East-Affairs-Examiner~y2010m5d8-Iraq-calls-for-relief-in-its-Gulf-War-reparation-payments-to-Kuwait