KTFA Members "News and Views" Thursday PM 12-23-2021
KTFA:
Kuwait’s compensation file is awaiting complete closure.. UN meetings are expected
The Chairman of the Committee of Financial Experts, Abdul Basit Turki, received an invitation to attend the meetings of the Compensation Committee at the United Nations, on February 9th, related to the invasion of Kuwait.
Turki said in an interview with Alsumaria News, today, Thursday, that “the invitation sent by the head of the Compensation Committee to the UN Security Council, Irene, referring to him, included a mention of the possibility of holding side meetings, before starting the work of the sixteenth special session of the Compensation Committee Board of Directors in Geneva on February 9 of next year. He added that the meetings to permanently close the compensation file will start next February. LINK
Godlover:This article sounds about right. As I had previously stated, I fully expect Iraq to use the 1/12 budget for at least January & likely most of February of next year. Parliament needs to be announced/seated & then start reading & eventually voting on the 2022 budget.
GodLover: This will take some time, but without corruption, it should be quicker process as far as passing laws etc. Now with that said, Iraq being removed from chapter 7 is some of the biggest news to date, this will change Iraq from business as usual to business international. The 2022 budget will be different as well & I personally think the opening of that budget should clearly NOT be opened until AFTER the UN decision is official because Iraq’s budget will most definitely be affected by the UN declaration.
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PETRA: The question one must ask is…was the UN aware of the actions both budgetary and strategically as to all the next steps, actions, and necessary protocols to finish payment to Kuwait? Does one think the UN was blind to the approach Iraq was taking to lift all sanctions in order to progress their country to the international marketplace?
No! The UN has been in lock step all the way and frankly was part of the timing and strategic moves of Iraq for years. I cannot count how many times the UN was in Iraq or, Iraq was at the UN laying out their carefully laid out plans for their future with the most important document…the White Papers that I would not hesitate to say they had a part or contribution to its development and approval.
The final payment to Kuwait was NOT a surprise to the UN.
Wasn’t the UN representative Ms Blanchert (sp?) there for several days just 2 weeks ago? Why? IMO, for this very purpose. Did not Kuwait and SA formally recognize Iraq as a sovereign country? Surely they know what that means.
Clearly much occurs in the background we don’t know about but the timing of bank activities, cessation of banking activities outside the normal protocols, and the announcement by both the CBI and the representative declaring their sovereignty cannot be ignored.
Now there is the “letter” of the law and the “spirit” of the law and IMO the spirit of the law (intent of Chapter 7) has been fulfilled to allow Iraq to move forward with their reinstatement and forward progress of this country as designed in the White Papers. Go Iraq!!!
Respectfully Submitted and IMO….PETRA
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Popeye7: Imo, Spot on post Petra as there have been meetings all along during this process… Stability has been determined to be the case in Iraq by the powers that be, as well as all of the requirements met to fulfill article 7 obligations… So there really is no reason to withhold this any longer… Feb 9th will be nothing more than an announcement of what will have already been accomplished… If I am not mistaken, a real rate of their currency must also be made public as well before all is complete… The incoming parliament, as was stated by yourself, and MM, will be able to begin with a shiny new rate, and ensure this transition is a complete one…
BlaqueBeauty: Hello, may I ask could this or these meetings already been done in the background & just showing the paper work of the process it took to get to “glory days” & could possibly flip the switch let’s just say Christmas morning, I mean we are having a wealth management ub2b tonight ijs, IMO
Wagmister: Frank did state no more Monday UBTUBIES. I hope we can truly say” see you on the other side”. I believe Frank and the elections are over and settled, and chapter 7 is in the past tense.
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Samson: Brent crude exceeds $75 per barrel
12/23/2021 08:16:22
Oil prices rose today, Thursday, for the third consecutive day, supported by the decline of the dollar due to optimism about global growth.
US West Texas Intermediate crude futures rose 22 cents, or 0.22%, to $72.98 a barrel, after jumping 2.3%, in the previous session.
Brent crude futures rose 24 cents, also equivalent to 0.24%, to $ 75.53 a barrel, after rising 1.8 percent, in the previous session.
Wednesday’s big gains were partly driven by a larger-than-expected drop in US crude stocks last week.
The dollar’s decline supports the oil markets, as it makes commodities cheaper for holders of other currencies. The dollar fell close to a one-week low after data on Wednesday showed US consumer confidence improved more-than-expected in December.LINK
Samson: For the sake of the banking system.. Kuwait: Iraq handed over the last batch of compensation before it was due
23rd December, 2021
Kuwait announced that Iraq delivered the last batch of compensation amounting to 44 million dollars before it was due.
The Kuwaiti Al-Rai newspaper, quoting officials, reported that “Iraq paid the last payment of $44 million to complete the remaining $629 million for Kuwait, revealing that the amount returned from the deduction from oil sales amounted to about $585 million, and the remaining 44 million, so the Iraqi government decided to pay the remaining amount instead of waiting for the next quarterly withholding payment to be due, in the spring of 2022.”
She added that “the Iraqi government wants to achieve two goals, the first is a message of friendly signal to Kuwait of its commitment to implement its commitments, and the second is to
re-integrate the Iraqi banking system with the global banking system.”
And she indicated that “the United Nations Compensation Committee will hand over to Kuwait the last batch of compensation due to it from Iraq at the end of this month or the beginning of next January at the latest, indicating that the committee will meet next February to issue its own report that Iraq has fulfilled all its obligations in terms of paying the prescribed compensation claims. It is complete for Kuwait.
In accordance with Security Council resolutions, the percentage deducted from the proceeds of export sales of oil and its products was 5% in 2003, then it decreased to 0.5% in 2018, and then rose to 1.5% in 2019, to stabilize since 2020 at 3%.
In 1991, a UN Compensation Committee was formed, obligating Baghdad to pay $52.4 billion in compensation to individuals, companies, governmental organizations and others, who incurred losses resulting directly from the invasion and occupation of Kuwait.
On November 21, 2021, the Central Bank announced the payment of the last batch of compensation to Kuwait amounting to (44) million US dollars, expressing the hope that the termination of the payment of compensation would contribute to removing Iraq from Chapter VII. LINK
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Al-Tamimi : Iraq is awaiting action from the Security Council to get rid of the consequences of Kuwait’s debts
23rd December, 2021
Legal expert Ali Al-Tamimi confirmed, on Thursday, that Iraq has fulfilled all the financial benefits that it accumulated as a result of the invasion of Kuwait, stressing that this matter has positive repercussions on the economy in the coming years.
Al-Tamimi said in an exclusive statement to “Nass” (December 23, 2021), that “Iraq was placed in Chapter VII of the Charter of the United Nations after entering Kuwait, according to UN Security Council Resolution 666 in 1990, and that this decision came after warnings, warnings and an economic siege imposed on Iraq, then international sanctions came under Chapter VII, which means that Iraq’s character at the international level has become weak, so it is not permissible for it to contract and conclude import and export agreements.
He added, “Iraq exited from Chapter VII in 2017 under Resolution No. 23/90 – but entered Chapter VI due to the presence of related matters with Kuwait worth 4 and a half billion dollars (compensations), and after it fulfilled these financial obligations, the Iraqi government and its representative at the United Nations must notifying the Security Council in order for the Council to issue its decision that Iraq has completely completed Chapter VI and VII.
The economic expert stressed, “This has economic repercussions on Iraq, because the money that was deducted from Iraqi oil exports will be part of the country’s financial reserves, and it may have positive effects on the economy in the coming years.” LINK
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Samson: Iraq is awaiting a UN decision to remove it from Chapter VII, and a billion dollars will be added to the budget
23rd December, 2021
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 LINK