Iraqi Dinar Discussion Board

[Arctec]

Officials hope Kuwait waives billions in debt
By Basil Adas

--------------------------------------------------------------------------------

Baghdad, 09 February 2007 (Gulf News)
Print article Send to friend
Iraqi officials are making an intensive effort to cancel the compensation that Iraq is expected to pay to those who suffered from the 1990 invasion of Kuwait and to write off billions of dollars of Iraqi debt to Kuwait.

"Kuwaitis promised us to write-off 80 per cent of the $10 billion (the total value of its debts on Iraq)," Ayad Al-Samarra'ai, Chairman of the Finance Committee in the Iraqi Parliament told Gulf News.

He added, "Iraqi political activities towards Kuwait aim to cancel or to convince Kuwait to waive the compensation from the second Gulf War and to reduce its debts on Iraq."

Al Samarra'ai continued to say, "Kuwaiti officials expressed the possibility of responding positively to Iraqi demands. However, before the Kuwaitis take any political decision, they want to be reassured on the political and economic situation in Iraq, and that the circumstances will allow Kuwaiti investements to enter Iraqi markets."

Ammira Al-Bldawi, an Economist and a member of the Economic Committee in the Iraqi Parliament told Gulf News, "about 100 Iraqi members of parliament signed a petition to submit to the Kuwaiti national assembly asking it to write off Kuwait's debts."

"Iraq pays 5 per cent of its oil revenues as compensation to Kuwait. In 2006 Iraq paid 21 billion Iraqi dinars (Dh59.89 million), while in 2007 the payment decreased to 19 billion Iraqi dinars (Dh54.19 million). This certainly will have a negative impact on the Iraqi government's general budget, and it will affect providing services to Iraqi citizens," she added.

For Iraq to continue paying compensation for the 1990-1991 Gulf War is "unacceptable because the new political situation cannot endure the burdens of the former regime, and Kuwait, which stood by the political change in Iraq, should take practical steps for the cancellation of debts and compensations."

She called both governments to start political negotiations to achieve this.