Clarification on status of the Development Fund for Iraq

Clarification on status of the Development Fund for Iraq

Washington, DC (June 5, 2014) – In response to several queries regarding the U.S. government’s recent decision to terminate immunities granted to the Development Fund for Iraq and other Iraqi entities, the Embassy of Iraq would like to make the following clarification:

The Republic of Iraq welcomes the decision by the U.S. government to remove decade-old immunities that were granted to protect certain Iraqi financial entities and sectors from lawsuits following the collapse of Saddam Hussein’s regime.

The decision terminates immunities granted to the Development Fund for Iraq, Iraqi petroleum assets and the Central Bank of Iraq under section 1 of Executive Order 13303 of May 22, 2003, as amended by Executive Order 13364 of November 29, 2004.

The action by the White House is the result of efforts taken by the Government of Iraq to address debts and claims against the former Baathist regime. The recent decision reflects Iraq’s cooperation with the U.S. government and international community, including the United Nations, to address specific financial concerns and highlights the growing maturity of our nation.

Ultimately, the decision recognizes that Iraq has rejoined the world community, as evidenced by its work with the World Bank and International Monetary Fund.

The decision does not affect the sanctions and freezing of assets against individuals and entities related to the former regime, which pose significant risk to peace and stability in Iraq. These actions remain in place as part of the national emergency that is stipulated in Executive Order 13303.