After Lifting Chapter VII Iraq is Preparing to Claim Assets in America

Iraq NewsThere are more than $82 billion of Iraq frozen in the American banks because of chapter 7, imposed by United Nations as a result of invasion of Kuwait by Iraq in 1990. The United Nation lifted chapter VII sanctions from Iraq few months ago. After lifting sanctions from Iraq a number of positive changes have been seen in the economy of Iraq in last three months.

Numbers of companies signed oil and energy contracts with government of Iraq and some huge investments were also seen in the other private sectors and in the small scale industry. Iraq is going to announce its final budget for the year 2014 in the next month. Iraq is facing 35 billion deficits in the annual budget and looking to fulfill or minimize the budgetary gap by available sources. There are three options available for Iraq to fulfill this gap: one is to ask for loan from Work Bank, second is the internal borrowing and third is to ask for the freeze assets of Iraq in American Banks.

World Bank has already offered $355 million as loan for Iraq to fulfill the budgetary gap but Iraq is looking for its frozen assets in the American Banks. Iraq will be able to announce its budget with ease, if American Banks unfreeze the $82 billion of Iraq government. Iraq also borrowed $150 million from Islamic Bank of Iraq as internal borrowing to fulfill the budget gap.

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