Iraq is awaiting a UN decision to remove it from Chapter VII, and two billion dollars will be added to the budget
Investigations and Reports 23-12-2021, 11:35
Baghdad - conscious - Nassar al-Hajj
Iraq has turned one of the most draining files on its economy, after paying all its dues in the Kuwait compensation file, amid optimism about an economic recovery and openness to global investment.
Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, told the Iraqi News Agency (INA), today, Thursday, that "Iraq ended the Kuwait war compensation file, as it paid the last payment of dues about less than 45 million dollars," noting that
"with this, Iraq paid all obligations imposed on him under Chapter VII of the United Nations Charter and relevant Security Council resolutions in 1991.
And he continued, "The compensation file cost Iraq from the gross domestic product and the efforts of its economy about 52.4 billion dollars," explaining,
"This amount is not small, as this amount is sufficient to build an electricity network system that revives Iraq for many years."
He added, "This reckless war was borne by the people of Iraq," noting that
"closing the Kuwait compensation file is a new page in Iraq's economic history."
And Saleh said, "This file was costing the Iraqi daily from 6-7 million dollars," noting that
"the value of these funds from Iraq's current exports, which amount to more than two billion dollars annually, will be added to the budget of the Republic of Iraq and block one of the exchange doors with the truth."
Saleh expressed his hope that "these funds will go to development, that is, investment projects that employ the workforce and produce income," noting that
"closing the compensation file is the beginning of closing the remnants of Chapter VII."
And Al-Kazemi’s advisor indicated that “Iraq has imposed about 40 decisions on it because of the Kuwait war from the Security Council and has been completely shackled until the present time, so the
end of this file means the issuance of a decision by the UN Security Council that is expected to be the beginning of next year to get Iraq out of the problems of Chapter VII of the United Nations Charter.”
He stated that "Iraq was considered an aggressor country, while in fact it is a peaceful country that loves its friends and neighbors,"
expressing his hope that "all Iraq's disputes will be resolved within Chapter Six by amicable means in truth."
Saleh pointed out that "Iraq has great prospects by its integration into the global economy," explaining that
"the isolation in which Iraq lives is very 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 Iraq is still considered a war zone with insurance and shipping costs in Transfer of technology and in dealing with economic progress.
Saleh stressed "the need for a ten-year development plan that will last for ten years to benefit from oil imports, as we start with the infrastructure and end with income-generating projects in all cases,"
expecting that "the year 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." The United States, the end of the Kuwait war reparations, the return to normal economic life, and integration into the international community.
While the economic expert, Basem Antoine, confirmed to the Iraqi News Agency (INA), that "closing the Kuwait compensation file will restore confidence in Iraq and its investments, in addition to improving its image and reputation among several countries and companies to serve the people of the country, as well as the confidence of foreign citizens in Iraq," noting that
"exiting from The seventh item will be followed by some measures, but it is a step forward, and it remains on the efforts of the Central Bank in this process.”
And Antoine indicated that "Iraqi banks will restore their dealings, such as using correspondents from abroad, to achieve great and wide achievements with these banks, such as Al-Rafidain Bank, which is mainly a giant bank, in addition to the need for intermediary banks with Iraq."
He stated, "The value of the amount of compensation will continue after closing the file and placing it in a sovereign fund, to be like the rest of the Gulf countries, and this fund will have rewarding results."
While the academic at Basra University, Nabil Jaafar, confirmed to the Iraqi News Agency (INA), that "Iraq has paid all the compensation imposed on it by the UN Security Council, amounting to 52 billion and 400 million dollars, and
therefore the Iraqi government must request that Iraq be removed from Chapter VII to VI and the liberation of its financial accounts Especially the oil revenues that go to the US Federal Bank to deduct the share of Kuwait’s compensation and then go to the Ministry of Finance.”
He stated, "The compensation has ended, and therefore oil revenues, which are revenues in foreign currency, should go to Iraq directly to the Ministry of Finance,"
stressing the need for "Iraq to ask the Security Council to protect Iraqi funds deposited abroad in international banks."
And he indicated that "the government's directions after this file are to establish a sovereign fund in which the 3% of the oil proceeds that used to go to Kuwait, which sometimes amounted to two billion dollars annually, are deposited, to be invested at home and abroad and be a kind of buffer against the international crises that befall Iraq as one of the countries rentierism".
While the economic analyst Tariq Al-Ansari told the Iraqi News Agency (INA), that "the gains that Iraq achieved from ending the Kuwait compensation file are to reduce the burden on the Iraqi budget related to debt, including Kuwait's unfair compensation against the Iraqi people, because the decision was based mainly by the Security Council on The damaged party without taking into account the causative party with a great exaggeration that is not commensurate with the extent of the damage inflicted on Kuwait,”
stressing the necessity of “exiting Iraq from Chapter VII as a result of paying its debts from Kuwait’s compensation 100% and entering it within Chapter VI because Iraq fulfilled its obligations from a legal point of view.” and finance.”
He continued, "The investment of the value of the sums that were paid to Kuwait, estimated at two and a half billion, is through restoring the infrastructure of Iraq, absorbing unemployment and reducing inflation and poverty, which has reached the 7% inflation rate in Iraq, and this is a very large number and has negative repercussions on the life of the homeland, because This inflation should not be more than 1-1.5%, which is acceptable.”
He stressed the need to "put the Iraqi economy on the right track from a scientific and methodological point of view, and restructure the economy with its monetary, financial, investment and oil policies as mentioned in the white paper."
Al-Ansari called on the Iraqi government to take immediate, correct and sound measures since the beginning of next year to absorb unemployment, identify competencies, and put the Iraqi citizen on the right track, while reducing the exchange rate of the dollar against the Iraqi dinar to 130 as a first stage, and after three months it must be reduced to 120 so that the citizen can Iraqis are able to meet their basic and daily legal needs.
And economic analyst Osama Al-Tamimi confirmed to the Iraqi News Agency (INA), that "Iraq will return to its normal state after it has finished paying its compensation to Kuwait under the relevant Security Council resolutions approved in 1991, including Resolution 687 to pay the Central Bank 44 million dollars, as the item will leave. The seventh and moves to Article VI of the Charter of the United Nations, and the Iraqi banking program is integrated within the international programme.
He pointed out that "it has become imperative for future governments to invest the financial surplus, which represents the sums deducted from Iraq for the benefit of the United Nations Compensation Fund, on a regular basis, and direct them to the national development wheel to establish various projects that serve the growing economy according to promising economic plans." It amounts to about 5% of the federal budgets.
And the Central Bank of Iraq announced, earlier, the completion of the last remaining installment of Kuwait's compensation, amounting to 44 million dollars.
The bank stated in a statement received by the Iraqi News Agency (INA), that "the payment of the last remaining installment of the State of Kuwait's compensation amounting to 44 million US dollars has been completed, and thus Iraq has completed the full payment of the compensation amounts approved by the United Nations Compensation Committee of the UN Security Council under Resolution (687) for the year 1991, with a total of (52.4) billion US dollars for the State of Kuwait.
He added, "It is hoped that ending the payment of compensation will contribute to removing Iraq from Chapter VII, as well as its impact on reintegrating the Iraqi banking system into the global banking system and benefiting from the financial abundance that will be achieved."