Baghdad – Al-Mawred News
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed, today, Tuesday, positive proposals to establish a sovereign wealth fund in which funds are deposited equivalent to the current compensation for the Kuwait war, in line with the reform white paper.
Saleh said, “We have positive ideas and proposals to establish an Iraqi sovereign wealth fund, in which amounts equivalent to the compensation for the Kuwait war are deposited after the payment of these compensation in the coming months, and it is managed along the lines of the generational funds.”
He added, “It is a sovereign investment resource for Iraq, in line with the white paper launched by the government to strengthen and reform the structure of the Iraqi economy.”
Saleh explained, “There is nothing left of the Kuwait war compensation, but an amount that may be less than 2.5 billion dollars out of 52 billion dollars until the moment, as 3% of the proceeds are still deducted from every barrel of Iraqi crude oil that is exported, through a mechanism and a bank account that the bank takes over The Federal Reserve in New York, pursuant to a subsequent Security Council Resolution No. 1483 in May 2003. ”
He pointed out that “the deductions are currently paid through the United Nations Compensation Fund” UNCC “, expecting that” all the remaining compensation will end within a year or a little more, depending on the evolution of oil prices and the proceeds of a barrel of Iraqi oil. ”
It is noteworthy that the United Nations Compensation Committee was formed in 1991, the same year in which the US-led coalition removed Iraqi forces from Kuwait, and mandated the committee to pay $ 52.4 billion (46.8 billion euros) to Kuwaiti individuals, companies, government agencies and other organizations that suffered losses. Because of the Saddam regime’s invasion of Kuwait, the compensation money comes from a tax levied on sales of Iraqi oil and its products.