Expert calls for Iraq’s debts rescheduling after its exit from UN 7th Article on financial boycott:

BASRA / IraqiNews.com: An outstanding Iraqi economic expert has called for rescheduling of his country’s foreign debts, in order to face the implications that followed its exit from the UN Charter’s 7th Article, that imposed a financial boycott against it, pointing out that such measures would continue for six more months after its exit from the UN‘s trusteeship from the said article. “Iraq‘s financial funds are under UN trusteeship, according to UN‘s Article 7,” Dr. Nabil Jaafar of Basra Univesity told IraqiNews.com news agency, pointing out that “the official and private debtors would activate their demands to force Iraq pay back its debts, thing that necessitates its scheduling of the debts,” warning that such development “would cause a real problem, due to the inrease of such payments.”  He said that “if this year’s debts payment would be US$ 1.3 billions (b), it may become 5-6 billion (b) dollars during the forthcoming few years, caused by the payment of the instalment plus the interest, that is linked to the average of the rate of inflation.” Dr. Jaafar said that “Iraq might be forced to pay back such debts to the creditors, thing that would leave passive impacts on its economy, as such debts would drain out the country’s foreign currency reserves, along with the oil revenues.” He added that Iraq “must treat this problem though avoiding foreign loans, so long as the local resources are enough,” calling for “holding talks with the creditors for rescheduling of the debts, in prelude to pay them back and get rid of their bulks.” Iraq had been suffering from UN Charter’s 7th Article, imposed on it after its occupation of Kuwait in 1990, allowing the use of military force against it, charging that it had threatened internatinal security, along with the freezing of its huge funds in world banks, to pay compensations for the parties harmed by its Kuwait‘s invasion, reaching 5% of its annual oil revenues. Basra, the center of southern Iraq‘s province carrying the same name, is 590 kms to the south of Baghdad. AA (A) / SKH 56