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Analysis: The cost of war Daash cause to drop Kuwait debts on Iraq
BAGHDAD / Obelisk: Finance Minister Hoshiyar Zebari told Reuters that his country is seeking to postpone the value of a final batch of 4.6 billion dollars in compensation for the occupation of Kuwait in 1990 and 1991 at a time when Baghdad is facing a liquidity crisis due to falling oil prices and fight al Daash terrorist. 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 occupation of Kuwait, which lasted seven months, during the reign of the defunct Iraqi dictator Saddam Hussein. The compensation was disbursed to more than one million claims 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 Compensation Commission.
But with the direction of current Iraqi economy toward deflation for the first time since the US-led invasion that toppled Saddam Hussein in 2003, and put an end to sanctions lasted more than ten years, Iraq is facing difficulty in converting a large part of the budget in 2015 to pay off the last payment of compensation in the next year.
Zebari said in a telephone interview with Reuters and pursued "obelisk" ... "We really are committed to pay this (money) in the time until this moment."
Said an economist for "obelisk" Iraq is the cost of the war on terrorism, and pay state employees and institutions associated wages, from the red lines that can not be overcome. "
He says political editor for "obelisk" "The supposed States which calls for Iraq's debts, including Kuwait that waived because the war on terrorism, which threatens everyone's expensive and should cost countries, particularly the Gulf of them to contribute to the expenses."
He added "We are holding discussions with Kuwaiti and seek to postpone payment for two years, or at least for a year to make some room ... to provide a realistic budget."
A senior official at the United Nations Compensation Commission in Geneva, said no decision yet, adding that any change would require the approval of the Management Committee, which includes the same five-ten Member States of the UN Security Council.
The official told Reuters: "Atramy to our ears that the Governing Council will consider the issue during a special session held next week," he said, adding that it was decided in principle to hold a meeting on 18 December in Geneva.
No one was immediately available for comment Kuwaiti officials.
Iraq has suffered one of the members of the Organization of the Petroleum Exporting Countries producers (OPEC) from the sharp drop in global oil prices and the control of the organization Daash areas in the country's north and west, which led to the displacement of large numbers of people and the destruction of infrastructure and a significant increase in military expenditures.
Two weeks ago, Iraq canceled the 2015 draft budget because of falling oil prices, saying it would reduce spending plans.
Iraq needs the approval of Kuwait to defer payment because the last and largest of compensation not yet paid by Baghdad's share of Kuwait for damage to oil their facilities.
Iraqi troops set fire to more than 700 Kuwaiti oil wells during the withdrawal during Operation Desert Storm, the US-led liberation of Kuwait in January 1991 and has been on fire in some of these wells to ten months.
Iraq will also need to gain international support for a wide postpone payment because its commitment to pay the funds provided for in Security Council resolutions.
Zebari said: "There is understanding ... next week will see some frantic diplomatic activity between Baghdad and Kuwait, Geneva and New York to make a joint request to postpone the payment," he said, adding that the delay of a year or two will give Iraq "breathing space".
The provisions which avoids Iraq to pay compensation determined at the outset by 30 percent and then 25 percent of the oil sales while Baghdad resumed export limited amounts under the United Nations agreement to swap oil with food in 1996. It was to reduce the proportion of allowances to five percent after the overthrow of Saddam Hussein in 2003 and the lifting of sanctions.
The International Monetary Fund said that Iraq's economy is heading for a contraction of 0.5 in 2014, the first contraction in at least ten years, and foreign exchange reserves fell by ten billion dollars so far this year.
The Fund is likely that the deficit in the 2014 budget up to five percent of GDP.
Zebari and hoped that the government agree to a revised budget for 2015 at a meeting Sunday.
Despite going down the price of oil below $ 70 a barrel, said the Minister of Finance that Baghdad is still adopt spending plans for next year based on the approach of the price of this level as IMF expects the arrival of the average crude price to that level over the whole year.
Zebari said 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 was (deficit originally) exceeds 47 trillion dinars ($ 40 billion), with the presence of all additional expenses. It is then cut back contracts and payments or postpone non-essential projects."
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BAGHDAD / Obelisk: Finance Minister Hoshiyar Zebari told Reuters that his country is seeking to postpone the value of a final batch of 4.6 billion dollars in compensation for the occupation of Kuwait in 1990 and 1991 at a time when Baghdad is facing a liquidity crisis due to falling oil prices and fight al Daash terrorist. 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 occupation of Kuwait, which lasted seven months, during the reign of the defunct Iraqi dictator Saddam Hussein. The compensation was disbursed to more than one million claims 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 Compensation Commission.
But with the direction of current Iraqi economy toward deflation for the first time since the US-led invasion that toppled Saddam Hussein in 2003, and put an end to sanctions lasted more than ten years, Iraq is facing difficulty in converting a large part of the budget in 2015 to pay off the last payment of compensation in the next year.
Zebari said in a telephone interview with Reuters and pursued "obelisk" ... "We really are committed to pay this (money) in the time until this moment."
Said an economist for "obelisk" Iraq is the cost of the war on terrorism, and pay state employees and institutions associated wages, from the red lines that can not be overcome. "
He says political editor for "obelisk" "The supposed States which calls for Iraq's debts, including Kuwait that waived because the war on terrorism, which threatens everyone's expensive and should cost countries, particularly the Gulf of them to contribute to the expenses."
He added "We are holding discussions with Kuwaiti and seek to postpone payment for two years, or at least for a year to make some room ... to provide a realistic budget."
A senior official at the United Nations Compensation Commission in Geneva, said no decision yet, adding that any change would require the approval of the Management Committee, which includes the same five-ten Member States of the UN Security Council.
The official told Reuters: "Atramy to our ears that the Governing Council will consider the issue during a special session held next week," he said, adding that it was decided in principle to hold a meeting on 18 December in Geneva.
No one was immediately available for comment Kuwaiti officials.
Iraq has suffered one of the members of the Organization of the Petroleum Exporting Countries producers (OPEC) from the sharp drop in global oil prices and the control of the organization Daash areas in the country's north and west, which led to the displacement of large numbers of people and the destruction of infrastructure and a significant increase in military expenditures.
Two weeks ago, Iraq canceled the 2015 draft budget because of falling oil prices, saying it would reduce spending plans.
Iraq needs the approval of Kuwait to defer payment because the last and largest of compensation not yet paid by Baghdad's share of Kuwait for damage to oil their facilities.
Iraqi troops set fire to more than 700 Kuwaiti oil wells during the withdrawal during Operation Desert Storm, the US-led liberation of Kuwait in January 1991 and has been on fire in some of these wells to ten months.
Iraq will also need to gain international support for a wide postpone payment because its commitment to pay the funds provided for in Security Council resolutions.
Zebari said: "There is understanding ... next week will see some frantic diplomatic activity between Baghdad and Kuwait, Geneva and New York to make a joint request to postpone the payment," he said, adding that the delay of a year or two will give Iraq "breathing space".
The provisions which avoids Iraq to pay compensation determined at the outset by 30 percent and then 25 percent of the oil sales while Baghdad resumed export limited amounts under the United Nations agreement to swap oil with food in 1996. It was to reduce the proportion of allowances to five percent after the overthrow of Saddam Hussein in 2003 and the lifting of sanctions.
The International Monetary Fund said that Iraq's economy is heading for a contraction of 0.5 in 2014, the first contraction in at least ten years, and foreign exchange reserves fell by ten billion dollars so far this year.
The Fund is likely that the deficit in the 2014 budget up to five percent of GDP.
Zebari and hoped that the government agree to a revised budget for 2015 at a meeting Sunday.
Despite going down the price of oil below $ 70 a barrel, said the Minister of Finance that Baghdad is still adopt spending plans for next year based on the approach of the price of this level as IMF expects the arrival of the average crude price to that level over the whole year.
Zebari said 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 was (deficit originally) exceeds 47 trillion dinars ($ 40 billion), with the presence of all additional expenses. It is then cut back contracts and payments or postpone non-essential projects."
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