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Cash-strapped Iraq seeks to delay final $5.75 billion due to Kuwait over 1990 invasion

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Cash-strapped Iraq seeks to delay final $5.75 billion due to Kuwait over 1990 invasion

Published on Dec 12, 2014 6:24 PM

EmakIraq1212e.jpg

Iraq is seeking to postpone a final US$4.6 billion (S$5.75 billion) instalment of reparations for its 1990-91 occupation of Kuwait, Finance Minister Hoshiyar Zebari told Reuters, as it faces a cash crisis caused by falling oil prices and war with Islamic State. -- PHOTO: AFP

BAGHDAD (Reuters) - Iraq is seeking to postpone a final US$4.6 billion (S$5.75 billion) instalment of reparations for its 1990-91 occupation of Kuwait, Finance Minister Hoshiyar Zebari told Reuters, as it faces a cash crisis caused by falling oil prices and war with Islamic State.

Since Iraq was first allowed to resume oil sales nearly two decades ago it has paid funds into a United Nations body overseeing compensation for looting and damage inflicted during Saddam Hussein's seven-month occupation of Kuwait.

More than a million claimants have been paid and nearly all the US$52.4 billion reparations bill has been met through Iraq's annual allocation of 5 percent of crude oil exports to the UN Compensation Commission (UNCC).

But with its economy now set to shrink for the first time since the 2003 US-led invasion toppled Saddam and ended more than a decade of sanctions, Iraq can ill afford to divert a large chunk of the 2015 budget to make that last payment due next year.

http://www.straitstimes.com/news/world/middle-east/story/cash-strapped-iraq-seeks-delay-final-575-billion-due-kuwait-over-1990-i

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So IF they are going to increase the value of the dinar IN THE NEAR FUTURE.....

 

Why then, would they bother postphoning a mere $5 billion?

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Cash-strapped Iraq seeks to delay final $5.75 billion due to Kuwait over 1990 invasion

Published on Dec 12, 2014 6:24 PM

EmakIraq1212e.jpg

Iraq is seeking to postpone a final US$4.6 billion (S$5.75 billion) instalment of reparations for its 1990-91 occupation of Kuwait, Finance Minister Hoshiyar Zebari told Reuters, as it faces a cash crisis caused by falling oil prices and war with Islamic State. -- PHOTO: AFP

BAGHDAD (Reuters) - Iraq is seeking to postpone a final US$4.6 billion (S$5.75 billion) instalment of reparations for its 1990-91 occupation of Kuwait, Finance Minister Hoshiyar Zebari told Reuters, as it faces a cash crisis caused by falling oil prices and war with Islamic State.

Since Iraq was first allowed to resume oil sales nearly two decades ago it has paid funds into a United Nations body overseeing compensation for looting and damage inflicted during Saddam Hussein's seven-month occupation of Kuwait.

More than a million claimants have been paid and nearly all the US$52.4 billion reparations bill has been met through Iraq's annual allocation of 5 percent of crude oil exports to the UN Compensation Commission (UNCC).

But with its economy now set to shrink for the first time since the 2003 US-led invasion toppled Saddam and ended more than a decade of sanctions, Iraq can ill afford to divert a large chunk of the 2015 budget to make that last payment due next year.

http://www.straitstimes.com/news/world/middle-east/story/cash-strapped-iraq-seeks-delay-final-575-billion-due-kuwait-over-1990-i

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Price of oil is really hurting Iraq and many other countries. They still need to come up with a budget but based on what price per barrel. Crude dropped to $59 a barrel today. 

 

Even Kuwait will run a deficit with these numbers. But Kuwait did have quite the surplus last year at $45 Billion.  They just might agree to this, but I doubt they will ever just forgive the debt.  I dont see them taking 5.75 Billion IQD as payment in full either. 

 

Working only 45 days a year is also not sustainable.  They need to get off their butts and WORK!!!! It sure would be nice to see some industrial growth.

 

 

 

Thanks K98

Edited by SocalDinar

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Social-

It is kinda difficult to build industry when the terrorist group De jour is either blowing it up or taking it over to steal the profits.

But yah, development does need to happen.

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Its even harder with a lazy unskilled work force.  Look whats happening here. 

 

Socialism does not work.

Yeah, I've been waiting since January 2009 to have my house, truck and bills all paid by Comrade Barry and Uncle Joe. What gives??? Lol

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I'm just sayin' that this development does not bode well for a "near future" RV.  If there were to be an imminent RV, this would NOT be an issue.

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Just a bunch of negative nellies tonight.......you spend 1/10 of 1% and you want to be an overnight millionaires. Look I drank from the same waters as you and it is what it is, hold your chins up, it ain't over yet ! Your only a looser if you think your a looser. I guaranty this, in 5 years from now we will all look back and laugh one side or the other. If we get rich we are going to have to pay somebody and if we don't gain a thing monetarily speaking, we are still going to pay somebody. Step back and live, it's all we got ! Thanks

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Zebari: the budget deficit after the adjustment of $ 30 billion and a request to postpone the payment of compensation to Kuwait for two years [Expanded]

December 12, 2014

Finance Minister Hoshyar Zebari said after his ministry to reduce the deficit budget for fiscal 2015, but remained $ 30 billion.

Zebari said in a press statement that “After the refusal of Prime Minister Haider al-Abadi to the original draft budget, the Ministry of Finance has reduced spending by about ten billion dollars but still expected the deficit to about $ 30 billion.”

He pointed out that “the deficit was originally exceed 47 trillion dinars [$ 40 billion] with all the extra expenses, and then cut back contracts and payments or postpone non-essential projects.”

Zebari and hoped that “the government agree to a revised budget for 2015 at a meeting next Sunday.”

Despite going down the price of oil from $ 70 a barrel, said the Finance Minister said that “the government is adopting its spending plans for next year are still based on the approach of the price of this level as the IMF expects the arrival of the average crude price to that level over the whole year.”

Zebari said Iraq seeks “to postpone the final round worth $ 4.6 billion in damages related to the occupation of the former regime of Kuwait in 1990 and 1991″.

He stressed, “We are truly committed to pay this money on time until this moment,” he said, adding “We are holding discussions with Kuwaiti and seek to defer payments for two years, or at least for a year to make some room, to provide a realistic budget.”

The Minister of Finance “There understand this, and next week will see some frantic diplomatic activity between Baghdad and Kuwait, Geneva and New York to make a joint request to delay payment,” adding that “the delay of a year or two will give Iraq an outlet of the financial crisis.”

This comes Iraqi request of Kuwait at a time when the government is facing a liquidity crisis due to falling oil prices and fight al Daash.

Since the first time allowed the resumption of Iraq’s oil sales for nearly two decades before Iraq pays money to a United Nations body that oversees compensation for looting and damage caused by the previous regime of the occupation of Kuwait in the nineties of the last century, which lasted seven months.

It was compensation from Iraq to exchange more than a million demands were almost all pay and compensation totaling $ 52.4 billion of annual allocations amounting to five percent of the oil export revenue protection from Iraq to the United Nations Taweidat.anthy

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