Iraq’s economy awaits the harvest of the payment of “Kuwait compensation”
A few days ago, Iraq ended the file of compensation for the Kuwait war that took place during the last decade of the last century, as it paid the last payment of dues, amounting to 44 million dollars, and it is expected that this will contribute to the re-integration of the Iraqi banking system with its global counterpart and benefit from the financial abundance that will be achieved.
The Central Bank of Iraq said earlier that “the payment of the last remaining installment of the State of Kuwait’s compensation amounting to $44 million has been completed, and thus Iraq has completed the full payment of the compensation amounts approved by the United Nations Compensation Committee of the Security Council under Resolution 687 of the year 1991, with a total of $52.4 billion for the State of Kuwait.
Closing the compensation file, beginning of closing the remains of Chapter VII
The financial advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, said in a press statement that “the compensation file cost Iraq about 52.4 billion dollars in GDP and the efforts of its economy, which is not small, as it is sufficient to build an electricity network system that will revive the country for many years.” He added, “This reckless war was borne by the people of Iraq, and closing the Kuwait compensation file is a new page in Iraq’s economic history.”
Saleh revealed that “this file was costing Iraq daily from 6 to 7 million dollars,” noting that “the value of these funds from its current exports, which amount to more than two billion dollars annually, will be added to the country’s budget, and block one of the exchange doors.” He expressed his hope that “these funds will go to development represented by investment projects that employ the workforce and produce income,” noting that “closing the compensation file is the beginning of closing the remains of Chapter VII.”
Al- Kazemi ’s advisor explained that “about 40 resolutions were imposed on Iraq because of the Kuwait war by the Security Council, and it has been completely shackled until the present time. United”. Iraq is close to bringing the curtain down on the Kuwait war compensation file. This is expected to contribute to the re-integration of the local banking system with its global counterparts.
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He stated that “Iraq was considered an aggressor country, while in fact it is peaceful and loving to its friends and neighbors,” expressing his hope that “all the country’s disputes will be resolved within Chapter VI by amicable means in truth.” He pointed out that “Iraq has great prospects for its integration into the global economy,” explaining that “the isolation in which it lives is great, and the world’s planes still do not reach Baghdad airport except for some regional countries, and this is part of the siege that classifies the country as a war zone, which requires costs. Insurance and shipping in technology transfer and in dealing with economic progress.
Saleh stressed “the need for a ten-year development plan to benefit from oil imports, starting with the infrastructure and ending with income-generating projects in all cases,” expecting that “2022 will be a year of progress and prosperity for Iraq and broad positive indicators that begin with the closure of Chapter VII of the Charter of the United Nations and the end of Compensation for the Kuwait war, a return to normal economic life, and integration into the international community.
al-Jubouri, criticized the unprofessional handling of the file of ending Iraq’s debts in favor of Kuwait. He said in a press statement that “the Iraqi debt file in favor of Kuwait is important and lasted for more than 20 years, under which large sums were paid, and it represents a historical stage.” He added, “Therefore, after announcing the end of this file and Iraq’s payment of these debts, dealing with this issue was irresponsible, and it would have been more appropriate for the two countries to announce this officially in a conference in front of the media.” He pointed out that “public opinion does not yet know what are the next steps to pay off the debt, so why did the Iraqi Foreign Ministry not clarify this in coordination with Kuwait?”
Its repercussions are positive
And economic researcher Evan Shaker points out that “after Iraq pays the last batch of compensation to the State of Kuwait, this will have positive repercussions on the first’s economy in general and its banking system in particular, as well as lifting restrictions on the banking system and upgrading it and integrating it with its global counterpart.”
He added to “The Independent Arabia”, “The government’s success in exploiting this financial abundance and adopting a policy of openness to the world will attract foreign investment, and will help expedite the country’s removal from the tutelage of Chapter VII.”
The economic and political researcher, Nabil Jabbar Al-Ali, explained that the payment of compensation allows Iraq a broader political and economic space in its international relations at the diplomatic and commercial levels.
He continued, “The total amount that the country has repaid over the 17 years since 2003 until today is $52.4 billion, equivalent to approximately 5% of its total oil revenues. Government parties are trying to redirect the funds that were intended to pay compensation towards establishing sovereign funds for the future in which funds will be collected and invested.” Internationally as a fund for generations, however, the idea may not be appropriate. The additional financial abundance estimated at about 2 to 3 billion dollars annually that was allocated to Kuwait’s compensation, it is preferable to place it in a local development fund that participates in the development of a development program to establish profitable and sustainable development projects for the fund and outside the authority of the government And it contributes to strengthening national development plans, instead of the annual borrowing operations that the Iraqi government holds with international parties to pay off some of its expenses or spending on projects classified in its investment budget.
He pointed out that “this amount may equal or exceed what was allocated in the annual contracts, which is called the Iraqi-Chinese agreement.”
Jabbar Zeidan is an Iraqi journalist @jabarzed