Iraq pays $218 million for war compensation
Iraq, Economics, 10/6/1997

A UN committee is studying requests from countries and companies that asked for the UN's permission to sign economic agreements with Iraq within the oil-for-food agreement, whose second phase is being implemented.

Another committee is preparing the documents of the companies and individuals from different countries who were impaired by the second Gulf War. The UN Compensation Committee estimates the amount of compensations at $6 million for 6 thousand individuals, $82 million for companies, and $130 million for foreign and Arab countries, constituting a total amount of $218 million.

According to the UN resolution Iraq is allowed to sell $2 billion worth of oil each 6 months, $4 billion a year, 3 % of which is dedicated to paying out compensation.

Adding the old debts claimed by Iran for its losses in its 6-year war with Iraq, Iraq will need decades to pay all its debts.

The UN committee will first pay the individuals, the companies, and then the countries. Though the international companies insure their overseas projects, this insurance does not include war risks, especially in regions with the remote possibility of war.

Kuwaiti companies top the list of companies requesting compensation with about $40 million, followed by 55 Japanese companies requesting $6.9 million. Saudi companies request $6.5 million, German companies request $5.7 million.

Iraq will depend solely on its oil revenues to pay its debts because the other sectors are totally paralyzed.

Previous Stories:
  Full speed ahead for the Nimitz battleship on way Gulf, troubled Iraq   (10/4/1997)
  Pay back time of $416 million to Kuwait victims of Iraqi invasion   (10/3/1997)
  Iraq exports 18 million barrels via Gulf   (9/22/1997)

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