Like some Gulf countries, Al-Kazemi plans to establish the Generations Fund after completing the payment of compensation to Kuwait

Like some Gulf countries, Al-Kazemi plans to establish the Generations Fund after completing the payment of compensation to Kuwait
Policy  ,   2021/03/11 11:32  

Baghdad - Iraq today:

The financial advisor to the Prime Minister Mazhar Muhammad Salih revealed positive proposals to establish a sovereign wealth fund in which funds equivalent to the current compensation deductions for the Kuwait war are deposited, in line with the reform white paper, indicating in another aspect that the difference in the price of a barrel of oil in the budget goes To fill the deficit, and the government does not need to borrow, indicating that the development of a supplementary budget remains according to the government's need.

We have positive ideas and proposals to establish an Iraqi sovereign wealth fund, in which amounts equivalent to the compensation of the Kuwait war are deposited after the completion of the payment of these compensation in the coming months, and it is managed like the funds of other generations, which is considered a sovereign investment resource for Iraq, and in line with the white paper that I launched. The government to strengthen and reform the structure of the Iraqi economy.

Saleh indicated that only an amount of less than $ 2.5 billion of the $ 52 billion out of $ 52 billion remains of the Kuwait war compensation until the moment, as 3% of the proceeds of every barrel of Iraqi crude oil exported is still being deducted, through a mechanism and a bank account that is handled by the Reserve Bank. Federal Council in New York, according to a subsequent Security Council resolution No. 1483 in May 2003.

He indicated 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 source.

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 commission 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.

The economic advisor to the Prime Minister said that the budget was built on a deficit, meaning that the expenditures are more, and there can be borrowing, but the difference in the price of a barrel of oil today is filling the deficit, so there is no need for borrowing, that is, the surplus replaces borrowings.

He added that this difference in the price of a barrel of oil closes the budget deficit, and the government may not need to borrow, noting that this does not mean that there is no final borrowing, but the difference is compensated, and there may be a surplus, and this depends on the stability of oil prices.

And on the existence of a complementary budget, Saleh indicated that creating a supplementary budget is not necessary, but it remains according to the government's need and the extent of the revenue strength, and does it have important deferred




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