Iraq pays full compensation to Kuwait..and the Central Bank receives the remaining amount

Iraq pays full compensation to Kuwait..and the Central Bank receives the remaining amount

December 12, 2022 02:04 PM

Central Bank of IraqMubasher: The Central Bank of Iraq announced today, Monday, that it had received the remaining amount of $7.95 million from the Kuwait Compensation Fund. After paying the full compensation for the State of Kuwait.

An authorized source in the Central Bank of Iraq said, in a statement to the bank today, that the amount was returned after auditing the accounts according to Security Council Resolution No. (2621) for the year (2022) concerned with ending the file of compensation resulting from the invasion of the former Iraqi regime of the State of Kuwait.

It is reported that Iraq revealed in 2021 that it had terminated all necessary banking arrangements with the US Federal Reserve Bank; To stop the automatic deduction of Kuwait’s compensation from the revenues of exporting Iraqi crude oil, after paying the full remaining amount of compensation.

And the financial advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, revealed on March 2, 2021, that only an amount remained from the compensation for the Kuwait war, perhaps less than $ 2.5 billion out of $ 52 billion so far; 3% of the proceeds of every barrel of Iraqi crude oil being exported is still being deducted, through a mechanism and a bank account maintained by the Federal Reserve Bank in New York, according to a subsequent Security Council Resolution No. 1483 in May 2003.

On November 3, 2021, Iraq announced the payment of $490 million in compensation for the invasion of Kuwait .

It is noteworthy that the United Nations Compensation Commission was formed in 1991; It is the same year that the US-led coalition drove Iraqi forces out of Kuwait, and commissioned the committee to pay $52.4 billion (46.8 billion euros) to individuals, companies, Kuwaiti government agencies and other organizations that suffered losses due to the war to Kuwait, and the compensation money comes from a tax imposed on sales Iraqi oil and its products.