UN recommends transfer of $100 mn fund for Iraq development

March 21st, 2008 - 1:15 pm ICT by admin  

United Nations, March 21 (Xinhua) UN Secretary-General Ban Ki-moon has asked the Security Council to transfer $100 million from the UN Iraq Account to the Development Fund of Iraq to initiate development activities in the country. The UN Iraq Account is made up of funds related to the expired oil-for-food programme.

The oil-for-food programme, under which a sanctions-bound Iraq was allowed to use monitored oil sales revenue for humanitarian purchases, was phased out in 2003 under a council resolution lifting sanctions on the country.

The Development Fund of Iraq, which will receive the funds, was set up that same year to administer proceeds from export sales of petroleum, petroleum products, and natural gas.

In a letter to the Security Council, the secretary-general also provided an update on the Iraq Account and the processing of the outstanding letters of credit, a UN spokesperson said Thursday.

Ban said as of Feb 29, the Iraq Account has over $1 billion, of which $225 million was being held in the account pending resolution of various issues.

He recommended that $187 million continue to be held as a financial reserve.

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