Wednesday, June 06, 2007
Iraqi parliament demands Kuwait cancels debts from former regime
Finance
(Iraq Directory) - Vice-Chairman of the Investment Committee in the Iraqi Parliament demanded the Kuwaiti government cancel Iraq debts resulting from policies of the previous government, and confirmed Iraq's need for nearly $200 billion to restore economic infrastructure such as asphalt, petrochemical, cement and other plants.
Abdul Hadi Hassani said, "We call on the Kuwaiti government to cancel its debt on Iraq because it is now investing the oil fields of southern Rumaila wells which are located 94% on Iraqi territory and 6% on Kuwaiti territory." [Ed. Note: this was one of Saddam's excuses for invading Kuwait.]
He pointed out, "Kuwaiti oil production for the southern Rumaila fields is up to 8,500 barrels of oil per day, while Kuwaiti production amounts to 350,000 barrels a day."Hassani explained, "the Kuwaiti side is digging wells for horizontal extraction of oil from Iraqi territory, in particular in the Rumaila oilfields overlapping southern Iraq and northern Kuwait, making it easy to draw oil to the adjacent Kuwaiti wells."
He added, "Shortly Iraq's total debt will fall after the 80% cancellation commitments at the recent Sharm el-Sheikh conference." Hasani said, "Iraqi people and the current government are not responsible for the [odious] debts resulting from the arms purchases of the former regime, used to build military bases and arsenals that burdened and indebted the country." .
He called on Arab countries to cancel these debts and added, "We don't count on Egypt to cancel Iraqi debt because it is not a rich capitalist country, rather a poor one living on external assistance provided by states like the United States of America."
Abdul Hadi Hassani said, "We call on the Kuwaiti government to cancel its debt on Iraq because it is now investing the oil fields of southern Rumaila wells which are located 94% on Iraqi territory and 6% on Kuwaiti territory." [Ed. Note: this was one of Saddam's excuses for invading Kuwait.]
He pointed out, "Kuwaiti oil production for the southern Rumaila fields is up to 8,500 barrels of oil per day, while Kuwaiti production amounts to 350,000 barrels a day."Hassani explained, "the Kuwaiti side is digging wells for horizontal extraction of oil from Iraqi territory, in particular in the Rumaila oilfields overlapping southern Iraq and northern Kuwait, making it easy to draw oil to the adjacent Kuwaiti wells."
He added, "Shortly Iraq's total debt will fall after the 80% cancellation commitments at the recent Sharm el-Sheikh conference." Hasani said, "Iraqi people and the current government are not responsible for the [odious] debts resulting from the arms purchases of the former regime, used to build military bases and arsenals that burdened and indebted the country." .
He called on Arab countries to cancel these debts and added, "We don't count on Egypt to cancel Iraqi debt because it is not a rich capitalist country, rather a poor one living on external assistance provided by states like the United States of America."
Labels: Abdul Hadi Hassani, debt, Kuwait, oil production, Rumaila field
Thursday, May 10, 2007
Iraqi government to settle debt with Turkish bank
Turkey, Finance
(Zaman) - The Iraqi government has taken a constructive step in efforts to settle its YTL 2 billion ($1.5 billion) in debt to Turkey's Central Bank, nominating US accounting and consulting firm Ernst & Young to negotiate its amount outstanding with the Turkish Treasury. As the central bank's biggest partner, the Treasury is dealing with the collection problem in the name of the bank and has also enlisted the help of the UN towards this goal.
The debt began accumulating before the US invaded Iraq in 1991. In accordance with commercial agreements between the two countries before the first Gulf war, the Turkish Central Bank was proceeding with payments to Turkish exporters and contractors that do business in Iraq. The funds expended were later collected from the Iraqi government. The system was working smoothly until it broke down after the US invaded Iraq 16 years ago. Iraq has been unable to pay the remaining debt since then due to internal disorder created after the war.
The Iraqis’ debt to the Turkish Central Bank is equal to 31 percent of the bank’s annual expenditures. Although the bank is making allowances to hedge the risk for bad debts, it has not made any provision for receivables from Iraq since 2002, when it adopted international accounting standards.
The state-owned Turkish Pipeline Company (BOTAق) is also owed a significant sum by Iraq, totaling as much as $900 million. This debt stems from transportation costs through the Kirkuk-Yumurtalk oil pipeline. BOTAق officials say they are waiting for the Iraqi government to settle its debt with the government since there is no appropriate authority to deal with the problem.
The debt began accumulating before the US invaded Iraq in 1991. In accordance with commercial agreements between the two countries before the first Gulf war, the Turkish Central Bank was proceeding with payments to Turkish exporters and contractors that do business in Iraq. The funds expended were later collected from the Iraqi government. The system was working smoothly until it broke down after the US invaded Iraq 16 years ago. Iraq has been unable to pay the remaining debt since then due to internal disorder created after the war.
The Iraqis’ debt to the Turkish Central Bank is equal to 31 percent of the bank’s annual expenditures. Although the bank is making allowances to hedge the risk for bad debts, it has not made any provision for receivables from Iraq since 2002, when it adopted international accounting standards.
The state-owned Turkish Pipeline Company (BOTAق) is also owed a significant sum by Iraq, totaling as much as $900 million. This debt stems from transportation costs through the Kirkuk-Yumurtalk oil pipeline. BOTAق officials say they are waiting for the Iraqi government to settle its debt with the government since there is no appropriate authority to deal with the problem.
Labels: BOTAق, debt, Ernst and Young, Iraqi government, Kirkuk-Yumurtalk oil pipeline, Turkey, Turkish Central Bank, Turkish Pipeline Company
Wednesday, April 25, 2007
Maliki goes to Kuwait to discuss $15 bn debt
Kuwait
(Associated Press) - Iraqi Prime Minister Nouri Al Maliki met with top officials from Kuwait and the US yesterday to discuss the $15 billion (Dh55.05 billion) Baghdad owes Kuwait and ways to stop the infiltration of foreign fighters, officials said. Al Maliki, on his second visit to this country as prime minister, met with Emir Shaikh Sabah Al Ahmad Al Sabah for about an hour and later held a separate meeting with David Satterfield, an adviser to US Secretary of State Condoleezza Rice on Iraq.
Satterfield, who was on a regional tour to encourage financial support for the Iraqi government, told Al Maliki that Saudi Arabia has agreed to write off most of the more than $15 billion Iraq owes the country, but Kuwait has not made a final decision, according to an aide to Al Maliki. During his visit, Al Maliki is expected to ask Kuwait to forgive the $15 billion that his country owes the nation dating back to Saddam Hussain's former regime.
The Kuwaiti government has pledged to forgive 80 per cent of the debt, but the decision is subject to parliamentary approval. Many lawmakers oppose the move, arguing that Iraq also is an oil-rich country and should pay back the money. Satterfield said on Monday that the American and the Iraqi governments are "working closely" with Gulf countries and other major creditors to write off Baghdad's debts.
The US official asked the prime minister on Tuesday about what should be done to stop the infiltration of foreign fighters and weapons into Iraq from neighbouring Iran and Syria, the aide to Al Maliki said on condition of anonymity because of the sensitivity of the issue.
Satterfield, who was on a regional tour to encourage financial support for the Iraqi government, told Al Maliki that Saudi Arabia has agreed to write off most of the more than $15 billion Iraq owes the country, but Kuwait has not made a final decision, according to an aide to Al Maliki. During his visit, Al Maliki is expected to ask Kuwait to forgive the $15 billion that his country owes the nation dating back to Saddam Hussain's former regime.
The Kuwaiti government has pledged to forgive 80 per cent of the debt, but the decision is subject to parliamentary approval. Many lawmakers oppose the move, arguing that Iraq also is an oil-rich country and should pay back the money. Satterfield said on Monday that the American and the Iraqi governments are "working closely" with Gulf countries and other major creditors to write off Baghdad's debts.
The US official asked the prime minister on Tuesday about what should be done to stop the infiltration of foreign fighters and weapons into Iraq from neighbouring Iran and Syria, the aide to Al Maliki said on condition of anonymity because of the sensitivity of the issue.
Labels: David Satterfield, debt, Kuwait, Nouri Al-Maliki
Friday, April 20, 2007
Iraq appeals to Egypt to wipe out Iraqi debts owed
Finance, International
(VOI) – Iraqi Finance Minister Baqer Jabur Solagh urged his Egyptian counterpart Boutros Ghali to wipe out the huge debts owed by the Iraqi government, as Egypt is the host country for the international conference on Iraq this May."The Egyptian minister presented the idea to Egyptian President Hosni Mubarak and vowed to forgive Iraq's debts by 100% as a sign of Egypt's support of the Iraqi government," the Iraqi Finance Ministry said in a statement received by the independent news agency Voices of Iraq (VOI).
"There are (also) good signs from Saudi Arabia on forgiving Iraq's debts. Iraqis are looking for such a step, especially from Arab neighboring countries," the statement added. "There are also contacts and talks with Kuwait and Turkey for the same purpose," it noted. "The Iraqi minister also met with his Slovenian counterpart to urge him to wipe out Iraq's debts, highlighting the importance of Slovenian participation in Iraq's conference," the statement said. The conference will be held at the Egyptian Red Sea resort of Sharm el-Sheikh from 3-4 May, 2007.
Labels: Baqer Jabur Solagh, Boutros Ghali, debt, Egypt, Iraqi government, Kuwait, Turkey
Thursday, April 19, 2007
54 countries reduce Iraq debt
Finance
(Iraq Directory) - The Ministry of Finance said that the number of countries that have reduced their debt on Iraq hit 54 states, and the government is continuing its efforts to reduce the remaining debt and hopes to reduce some of its debt to the rate of 100%, while the Adviser of the Prime Minister for Economic Affairs, Kamal Al-Basri, said the Paris Club settlement stipulated stopping the State’s subsidy to a number of sectors and activities in order to drop 80% of Iraq's debt.
The Ministry of Finance noted that the follow-up efforts of the Ministry will continue in order to cancel the debts of Iraq once and for all to promote the economic reality of the country and ensure a decent life for all its citizens; the Ministry was working to repatriate funds, especially those funds and real estates stolen by the former regime and his followers and smuggled outside the country, as well as following-up Iraq's dues for loans granted to some countries where the Iraqi Fund for Foreign Development is following-up Iraq’s debts and their benefits according to time periods.
Adviser of the Prime Minister for Economic Affairs said that there is a plan to compensate the current ration card with cash and provide a competitive market for supply materials; the plan will be implemented in three provinces: Dahuk, Samawah and Hillah, where the amount of compensation will be $ 10 per person, since the volume of the State’s expenditure, the big deficit in its budget and the total amount of the government’s subsidy has become a major burden on the State’s budget and its economic growth. He continued that Iraq needs 200 billion dollars for reconstruction, and this amount can only be provided after 20 years if the National Oil Company were able to maintain the production of three million barrels per day.
The Ministry of Finance noted that the follow-up efforts of the Ministry will continue in order to cancel the debts of Iraq once and for all to promote the economic reality of the country and ensure a decent life for all its citizens; the Ministry was working to repatriate funds, especially those funds and real estates stolen by the former regime and his followers and smuggled outside the country, as well as following-up Iraq's dues for loans granted to some countries where the Iraqi Fund for Foreign Development is following-up Iraq’s debts and their benefits according to time periods.
Adviser of the Prime Minister for Economic Affairs said that there is a plan to compensate the current ration card with cash and provide a competitive market for supply materials; the plan will be implemented in three provinces: Dahuk, Samawah and Hillah, where the amount of compensation will be $ 10 per person, since the volume of the State’s expenditure, the big deficit in its budget and the total amount of the government’s subsidy has become a major burden on the State’s budget and its economic growth. He continued that Iraq needs 200 billion dollars for reconstruction, and this amount can only be provided after 20 years if the National Oil Company were able to maintain the production of three million barrels per day.
Labels: debt, Ministry of Finance, ration cards
Wednesday, April 18, 2007
Most of Iraq's debt to Saudi to be cancelled
Finance
(Gulf News) - Saudi Arabia has decided to write off 80 percent of the more than $15 billion it is owed by Iraq, the Washington Post reported on Wednesday. As part of its plan to help Iraq rebuild, the Bush administration has been pressing Iraq's creditors to follow Washington's lead and write off debt it is owed by Baghdad. A senior Saudi official, who was not named, told the Post that his country would write off 80 percent of Iraq's debt. The official estimated Iraq's debt to his country at $15 billion to$18 billion.
Iraq's Finance Minister Bayan Jabr estimates Iraq's debt at $140 billion. Much of that money was borrowed to finance the 1980-1988 war between Iraq and Iran. Jabr, who was in Washington for World Bank meetings, said he had asked Saudi Arabia to forgive all of Iraq's debt but was rebuffed. So far, 52 countries have cancelled 80 to 100 percent of Iraq's debt, Jabr told the Post.
Iraq's Finance Minister Bayan Jabr estimates Iraq's debt at $140 billion. Much of that money was borrowed to finance the 1980-1988 war between Iraq and Iran. Jabr, who was in Washington for World Bank meetings, said he had asked Saudi Arabia to forgive all of Iraq's debt but was rebuffed. So far, 52 countries have cancelled 80 to 100 percent of Iraq's debt, Jabr told the Post.
Labels: debt, Iraq, Saudi Arabia
