Iraqi Debt

JavaFox

Many of us know that enormous amounts of money is owed by the Iraqi regime to Russia, France, and Germany. In the aftermath of this war, do you think that those countries should be paid? Do the Iraqi people have an obligation to honor the debts incurred by Saddam Hussein?

I say no. What do you guys think?

Falstaff

Germany, France and Russia must reinvent the food for oil program, to aleviate the ruptured economy in IRAQ and this may be achieved by modifying the existing structure of the aggreement. It is well known that
the United Nations Security Council passed a resolution which introduces improvements in its humanitarian oil-for-food program with Iraq which started in 1996. The $10 billion program allowed Baghdad to sell its oil to buy food, medicine and other humanitarian goods for the civilian population. But the US had delayed more than $5 billion of imports for Iraq because it was used for military purposes. This in turn resulted in a growing number of blocked contracts and the criticism from the UN Secretariat.
In 2001, Washington in its attempt to stop Iraq's $2-3 billion of illicit trade, agreed to rewrite the rules of the humanitarian program. The UN is granted much more power now to decide which contracts are to be approved and which ones have to be denied.
As a result of negotiations with Russia, one of the most significant Iraqi trading partners and its most important ally in the Security Council, it was possible to adopt a new plan which will allow Iraq to import with little control all humanitarian goods except those listed by the Security Council as having military uses.
The UN had already fully implemented the new procedures and, as a result, states can more quickly process contracts on all goods that are not directly subject to the sanctions in place and are not referenced on a Goods Review List.
Billions of dollars of stalled contracts will be reassessed by the UN. However, Iraq no longer the money to pay for the goods as the hostilities come to an end a halt exports, and a drop in global oil prices, have left the humanitarian program more than $4 billion short of funds.
The United Nations panel, based in Geneva, paid out over $700 million in July for the damages arising from Iraq's 1990 invasion and later occupation of Kuwait. The UN Compensation Commission, which draws its funds from a portion of Iraqi oil revenue, distributed a total of $708 million for 961 successful claimants. The money was granted to 33 countries and two international organizations - the UN Development Programme (UNDP) and the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). The countries and the two organizations are responsible for distributing payments to the successful claimants within one year, or the money must be returned. The security council will have to brainstorm a new alternative method to activate the flow of oil and allow IRAQ to rebuild it's industry, this may not take long. But the flegling government yet to be installed may already know what the master plan might be, they will no doubt be praying for time....

SOURCE:http://www.casi.org.uk/info/mahdi98.html

Dom

The Iraqi people had no controll over their country, nor did they over the actions of Saddam Hussein and his regime. Since Saddam and the old government is gone, thus the debt shoud also be.

Falstaff

It is possible that those assets that Saddam Hussein had accrued during his regime might also go towards rebuilding the borrowing power of the New IRAQ. Surely many debts may be forgiven, in the spirit of unity with the people of IRAQ, fostering a kind economic compact. This will undoubtedly go hand in hand with the production of oil within IRAQ. I cannot see how the military can afford to rearm, which must happen soon, unless the recieve leased or loaned equipment that is comparable with their neighbors. IRAN, SYRIA, JORDAN, KUWAIT, TURKEY, all possess similiar types and Richer countries like Libya and Eygpt have offered support in the past. France probably has the highest percentage of IRAQI debt owed to them, and may in a conciliatory gesture to mend political fences, dissolve the notes and contracts and offer real support..i.e. a nuclear reacter, functional airline, revamped oil industry, etc, etc..

ToshiroOC

Regardless of whether they were incurred by Saddam Hussein, it wasn't just Saddam Hussein who personally profited from such transactions. I say that the new government should incur some of the costs of the previous government, but perhaps not all. It is a difficult issue, one that I'm going to go research before I say too much more

Falstaff

The world financial community will face a tougher challenge if it is called upon to rebuild Iraq than in the case of former outcasts Iraq than in the case of former outcasts like Yugoslavia or Afghanistan. Success of the American policy of "regime change", toppling the Iraqi leadership via threatened military action, would make an end to a 12-year UN embargo.
Then, the international community have to assess the now unknown costs of rebuilding Iraq. International leaders will also have to resolve what to do about billions of dollars in past debt and war reparation claims. Even Yugoslavia, the closest recent parallel to Iraq in terms of debt profile and sanctions, would not compare in terms of scale in aid requirements and external obligations.
For Iraq, even the estimates run higher.
The country will need assistance in the range from $1 to $7 billion annually for several years to as high as tens of billions for total reconstruction.
Therefore, foreign banks and companies are acting now to safeguard their rights and to avoid time limitation of their claims. East-West Debt offers the most attractive solutions on the basis of its long-lasting experience in this area. The United Nations has approved about $43.6 billion of the $300 billion worth of claims lodged against Iraq so far.
The biggest economic fallout from a war in Iraq would come in the form of oil-supply disruptions, which will push up prices. The IMF (international monetary fund) estimates that a sustained increase in oil prices would shave points off global economic growth. The IMF's economic forecasts are based on an assumption of oil being priced at $24 a barrel.
Even if the oil flows soon and debts are forgiven, Iraq's biggest concerns will be rebuilding and finding more water for it's people. since the 90's Iraq has been running out of water and claims that sanctions on equipment and chemicals to treat the water have caused 5 to 6 thousand childred to die every year, the price of finding and treating the water will become part of the larger equation..

Falstaff

(1) To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems.

(2) To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.

(3) To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation.

(4) To assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade.

(5) To give confidence to members by making the general resources of the Fund temporarily available to them under adequate safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity.

(6) In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.

Clearly the IMF and the World Bank has been consulted to determine the method of repayment, debts will no doubt be forgiven, as in the case of Yugoslavia, however Kuwait still has not recieved total repayment for damages sustained during the occupation in 90 and 91. It is also possible that tribes within IRAQ and the remainder of the expatriated countrymen that wish to return may have to coordinate a viable scheme or plan for implementing an orderly rebuilding of the country. The occupation by Coalition forces, or U.N. forces or whomever the IRAQI people elect or determine to rule them, will have to borrow money against the oil resources within it's borders. This among many will be great challenges. Forgiveness of debt sounds workable until the calculators and the slide rules come out. However the world has been patient before..and perhaps a delay in repayment will be enjoyed as well as debt forgiveness. A powerful economic tonic is in order, and this will test the resolve of anti war nations that wish to contribute..
Freedom is not Free....what legacy will the children of IRAQ inherit? will there be a new Hussien lurking in the shadows, waiting to sieze power, I hope this will not be a repeat of the economic depression that followed actions by the league of nations after WW2. That surely led to the rise of the charismatic leader of germany, and the destruction of Europe in the 30s and 40s and perhaps even the cold war..
Our economic polices and the policies of the World Bank and IMF and U.N. may prevent another dictater from rising like a phoenix from the ashes of the old IRAQI government...

Falstaff

Good article by David Chance from Rueters-http://www.moscowtimes.ru/stories/2003/03/19/041.html

to lift sanctions since the gulf war..http://www.boston.com/dailyglobe2/10...UN_says+.shtml

JavaFox

A revitalization of the Oill for Food Program is unecessary. The only reason that program was implemented was because sanctions created a humanitarian disaster in Iraq. And the only reason sanctions were imposed was because Iraq did not disarm. With a new government, surely there will be no sanctions.

bluelight

Well ....Once a government is in place.....nationalise all oil in order to see to it that ALL profits from the oil goes to Iraq...and nowhere else.



Bluelight

bluelight

It is also noteworthy......to what extent everybody is interested in discussing the reconstruction of Iraq

(talking about nations) and the total lack of the same interest in Afganistan.

Hmmm....wonder why....

No money to make in Kabul.....i figure.

So...money makes the world go round... a buck a mark a yen or a pound....




Bluelight

The_Neon_Cowboy

Unkle sam will be watching iraq for a long long time and would help iraq if they fell in parrel with any of those nations

bluelight

See to that it is nationalised ...so that the oil isnt controlled by US enterprises that is...


Bluelight

The_Neon_Cowboy

"UNITED NATIONS - Crippling sanctions on war-torn Iraq cannot be lifted yet because United Nations resolutions require that weapons inspectors first verify that Iraq is free of banned deadly weapons, Security Council diplomats said yesterday. "


I dont trust that the weapons inpspectors they are useless ..... what about the barrels of unrefined unranium! with un inpectors labels on them??? well they were not weapons grade so they didn't think those a threat or worth mentioning.... not to meantion the location that they fond small amounts of VX nerve gas chemical suits and large amounts of powder based explosives that had been inpeced by the un team. They fact that the country had as many rpg lauchers as it had people is not a couse for consern? The mass amonts of chemical suits... by honz bliks own words "if they had rocket fuel then thier must be rockets" aprently he didn't use that same logic if they have tons of chemial suits should that make you think they might have chemical weapons?...the un didn't find the frogs, scuds, chineses ship to ship missles, ETC banned / non declared weapons ... they failed to find them before thats what made this war neccacary in the fist place. They must mean thats the un team is usless.

The un said the purpose of the un inpectors was to find WMD. People like raid and bluelight have said in the past it wan't the weapons inpectors job to find wmd. Iraq is supposed to declare it / lead them to it. Aparently they don't understand hideing something thier not supposed to have is something that was never going to happen.. I belive the incedably poor work be the weapons inpectors a partialy to blame here. If they had done a better join thier would have been much more international support for this war. Or at least would have been the possablity of peacefull/diplomatic soultion.

as for debts owed two iraq they should all be wiped clean.......


I love it.. the people who said this war is all about oil. Not focusing on more importat issues still... But keep focus on thier worrys about who controlls iraq oil that thier contry imports.... ...

bluelight

Qoute Neon

The un said the purpose of the un inpectors was to find WMD.





People like raid and bluelight have said in the past it wan't the weapons inpectors job to find wmd.







Iraq is supposed to declare it / lead them to it. Aparently they don't understand hideing something thier not supposed to have is something that was never going to happen.. I belive the incedably poor work be the weapons inpectors a partialy to blame here. If they had done a better join thier would have been much more international support for this war. Or at least would have been the possablity of
peacefull/diplomatic soultion.





Where ??!!....tap ...tap.....tap.....im waiting......



Bluelight

JavaFox

No, I don't think that's true, although there may be some validity to your claim. There is a lot more reconstruction work (and thus, a lot more money to be made) to be done in Afghanistan than there is in Iraq -- Afghanistan looks like it's in the Stone Age by comparison. I think the reason you don't see the same interest is because there isn't a stable government in Afghanistan. The government there has little power outside of Kabul, and the international forces have had trouble getting the country up and running, so to speak.

I think people expect the opposite to happen in Iraq. We'll see if they're right.

Falstaff

Drugs for one thing....lots and lots of smuggling, spices, precious stones and well, smuggling..