Iraq readies to protect overseas funds

[k98nights]

Iraq readies to protect overseas funds

Iraq readies to protect overseas funds AFP - [2/4/2011]

Iraq has told its central bank to open accounts to transfer hundreds of millions of dollars out of a post-Gulf war US fund to protect the money from foreign claims, a government spokesman said on Wednesday.

The cabinet also asked MPs to approve a $400-million compensation package for US victims of toppled dictator Saddam Hussein, and set up a mechanism for UN-mandated war reparations to Kuwait, Ali al-Dabbagh said in a statement.

"The government asked the central bank to immediately open accounts before May 1 to transfer funds," from the Development Fund for Iraq (DFI), he said.

The government approved recommendations "to establish a mechanism to ensure the protection of the money deposited out of Iraq," Dabbagh added. The statement, released Wednesday, came a day after the cabinet meeting.

The DFI, which was set up after the 2003 war to handle oil and other revenues, has been protected against claims by a UN resolution that expires on June 30.

Dabbagh also said that the cabinet called on the central bank to formulate a "specific and transparent" mechanism to calculate payments to Kuwait.

Under UN resolution 1956, Iraq is required to pay five percent of its oil income to Kuwait for reparations stemming from Saddam's 1990 invasion of the neighbouring Gulf emirate.

The request for parliamentary approval for the $400-million package, meanwhile, came after Iraq reached agreement with Washington over the amount in September, with the money meant for Americans who say they were mistreated by Saddam during the Gulf war.

Iraq's August 2, 1990 assault on Kuwait was rapidly met with a concerted international military response that pushed Saddam's forces out of the emirate and eventually ended in his ouster by a US-led coalition in 2003.

Several US citizens were held by Saddam's regime during the war over Kuwait and used as human shields to deter coalition attacks, with some claiming they were mistreated and tortured by Saddam's forces.

"Iraq is keen to fulfill international obligations and to put an end to the results of previous policies," Dabbagh said.

http://www.iraqdirectory.com/DisplayNews.aspx?id=14818

[labdog]

Thank you!

[Slaydadea]

Key words: "Before May 1" and "Expires June 30". Good stuff!