The Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, recommended, today, Friday, that the deducted financial flows of Kuwait’s compensation be converted to savings and investment.
Salih said in a statement to the Iraqi News Agency (INA): "The fund that has been going outside the national economic cycle in the form of war compensation since 1996, and amounted to $52.4 billion, will turn its deducted annual flows to serve the interest of the national economy, especially in achieving a financial space in the resources of Iraq, with an average of no less than two billion dollars annually, according to the current oil prices, to contribute enhancing Iraq’s financial sustainability”.
He added: "I find it necessary to maintain the path of the transformation of the corresponding amounts of compensation to be savings that flow into the national economic cycle, especially the trend towards financing income-generating investment projects, which is a positive cumulative development process that contributes to promote growth in GDP at accelerated rates, after the war compensations constituted a negative deduction and a drain on the national income cycle and over the past three decades, as Iraq paid a high direct price to war compensation and the costs of inspection teams, and indirect costs represented in the destruction of Iraq’s infrastructure due to the operations of the previous Gulf War, reckless war conflicts and disruption of economic growth opportunities that all formed the costs and burdens may be ten times more than the compensation amounts mentioned.”
Salih concluded that "The shift from the political economy of the war that Iraq fought between the years of 1990-2003 towards the political economy of peace means a shift towards development, progress, stability and building prosperity in a new Iraqi era."
Earlier, The Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, had confirmed that Iraq would end Kuwait's compensation file in early 2022, while revealing the size of the financial compensation paid by Iraq during the past three decades.