Iraq looks to cut Kuwait payments

It appears that Iraq is hoping to cut by half the amount of money it is required to pay Kuwait annually for damages inflicted during the first Gulf War, according to an aide to Prime Minister Nouri Al-Maliki. Currently, Iraq turns over 5 percent of its oil revenue to a United Nations war reparations fund created after the 1990 invasion of Kuwait. Kuwait is the fund’s primary beneficiary.

Iraqi officials say the financial obligation is a heavy burden as Iraq attempts to rebuild; some say that their country should no longer be required to pay reparations. So far, Kuwait is insisting that Iraq continue its reparation payments. The issue is raising tensions between the two neighbors.

Negotiations with Kuwait are ongoing,” said Maliki’s adviser, Ali Al- Musawi. “We hope that Kuwait will (allow Iraq to) eliminate its debts, but we do not think they will accept it. So we want to reduce the 5 percent to 2.5 percent.” Musawi made the comments days after Iraq’s UN ambassador, Hamid al-Bayati, told reporters that Iraq is “trying to talk to the Kuwaitis to convince them either to forgive (the reparations) or reduce them.

Al-Bayati said that Iraq has already paid just over $27 billion in reparations and owes $25.5 billion more, $24 billion of which would go to Kuwait. He argued that Iraq needs the money “for services, reconstruction and development.” Reparations are only part of a broader issue facing the country as it attempts to rejoin the world community.

Kuwait Times