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Gulf Today - 05 August, 2011
The United Nations released $ 1.06 billion in Iraqi compensation to Kuwait on Thursday in the latest payment of a war reparation scheme that began in 1994.
The payment brings the total sum of compensation paid to Kuwait to $ 33.3 billion. A further $ 19 billion is due.
Most of the latest round went to state and private companies, and governments and international organisations, the UN Compensation Commission said in a statement.
Following the 1991 invasion of Kuwait by Saddam Hussein’s regime, Iraq is required to put five per cent of its oil and gas revenues into the UN reparations fund.
Kuwait and Saudi Arabia are among the notable holdouts, he said.
Iraq will open accounts at three European central banks to protect oil revenue from claims by commercial creditors.
BA-Merrill Lynch estimates, Saudi Arabia is owed about $ 30 billion while Kuwait is owed some $ 22 billion in addition to war reparations likely to be fully repaid by 2016.
Baghdad is in a long-running battle with Kuwait Airways which is seeking $ 1.2 billion in compensation for aircraft and parts seized when Iraq invaded Kuwait in 1990.
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