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FINANCIAL NEWS
Iraq to pay USD500m to resolve Kuwait Airways raw
28 Jul 2012
(MENAFN) Iraqi government agreed to pay USD500 million to resolve a dispute with Kuwait over the debts of Iraqi Airways, Arabian Business reported.
State Minister Ali Al Dabbagh said the Cabinet asked the parliament to approve the allocation of USD300 million from next year’s budget and another USD200 million the following year.
Iraq said the long-running dispute had prevented its airline from flying into Europe due to the threat of its planes being confiscated.
Kuwait has long disputed with Iraq over USD1.2 billion in compensation for ten aircraft taken during Saddam Hussein’s invasion of Kuwait in 1990.
Iraq in March said it had agreed to pay Kuwait USD300 million in cash and invest USD200 million in a joint Iraqi-Kuwaiti airline venture. In return, Kuwait agreed to suspend legal actions against Iraqi Airways.
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