BAGHDAD, July 25 (KUNA) ** The Iraqi government said on Wednesday it had agreed to a settlement previously signed by the Iraqi and Kuwaiti ministers of transport and communication on the payment of compensations to Kuwait Airways out of the country’s 2012 and 2013 budgets

Spokesman for the Iraqi Government Ali Al*Dabbagh said in a release: “The Iraqi cabinet agreed today (Wednesday) to a friendly settlement signed by the Iraqi minister of transports and the Kuwaiti minister of communications for resolving the problem of Iraqi Airways.”

The Iraqi cabinet asked the parliament to allocate USD 300 million out of the 2012 state budget and USD 200 million out of the 2013 state budget, he said

The Iraqi government had entrusted its transport minister with negotiating with the Kuwaiti side on a mechanism to pay compensations to Kuwait Airways for damages to the latter’s planes during the Iraqi invasion of Kuwait in 1990

Iraqi and Kuwaiti governments had reached a settlement on the dossier of Kuwait Airways, whereby Kuwait would scrap its legal claims against Iraqi Airways in return for compensations to its national carrier.