Friday, April 27, 2007
Kuwait reluctant to forgive Iraq's debt
Economy, Kuwait
(Associated Press) - Lingering bitterness from the 1990 Iraqi invasion and distrust of the government of Nouri Al Maliki are making it impossible to convince Kuwaitis and their lawmakers to forgive most of the $15 billion (Dh55 billion) of Iraq's debt. But the struggling Iraqi premier was hoping to do just that as he ended a two-day visit to this country on Wednesday, with appeals to Kuwaiti leaders and statements to editors of local dailies that he hoped their parliament was going to be "generous" and write off some of the debt.
Al Maliki said he believed Kuwait was "no less generous" than fellow Gulf country Saudi Arabia, which was writing off 80 per cent of a similar sum in debts. But Saudi Arabia, the world's largest oil producer, has no legislature. Kuwait, a constitutional democracy with a ruling royal family, cannot make such a decision without its elected parliament. And while Kuwait's government itself may be willing to oblige Al Maliki and Washington requests, the decision rests with parliament, where strong sentiments prevail.
"Most Kuwaitis and parliament members believe that Iraq must pay," lawmaker Mohammad Al Mutairi said. "A commitment is a commitment; we have suffered enough from that neighbour." The UN panel overseeing compensation for victims of Iraq's 1990 invasion of Kuwait said yesterday it has paid out a $280 million instalment from Iraqi oil funds to cover claims for losses and damages. The latest transfer brings the total amount paid in compensation to more than $22.1 billion. Most of the payments - about $229.5 million - went to 35 claimants in Kuwait, the United Nations Compensation Commission said.
Al Maliki said he believed Kuwait was "no less generous" than fellow Gulf country Saudi Arabia, which was writing off 80 per cent of a similar sum in debts. But Saudi Arabia, the world's largest oil producer, has no legislature. Kuwait, a constitutional democracy with a ruling royal family, cannot make such a decision without its elected parliament. And while Kuwait's government itself may be willing to oblige Al Maliki and Washington requests, the decision rests with parliament, where strong sentiments prevail.
"Most Kuwaitis and parliament members believe that Iraq must pay," lawmaker Mohammad Al Mutairi said. "A commitment is a commitment; we have suffered enough from that neighbour." The UN panel overseeing compensation for victims of Iraq's 1990 invasion of Kuwait said yesterday it has paid out a $280 million instalment from Iraqi oil funds to cover claims for losses and damages. The latest transfer brings the total amount paid in compensation to more than $22.1 billion. Most of the payments - about $229.5 million - went to 35 claimants in Kuwait, the United Nations Compensation Commission said.
Labels: debt relief, Iraq, Kuwait, Mohammad Al Mutairi, U.N., United Nations Compensation Commission
