Iraq’s central bank is negotiating with the United Nations to transfer some of oil revenues, currently deposited in French bank BNP-Paribas, to five other European banks, according to Al Ittihad newspaper on Sunday.
Quoting the bank’s spokesman, the paper said that that banks in Austria, France, Germany, Spain and Switzerland are recommended by Baghdad to share the only bank investment of the Iraqi money, which is earned under the UN- sponsored oil-for food program.
Central bank governor Issam Rashid Hawish last month criticized BNP-Paribas' "slowness in opening lines of credit and settling bills" with suppliers, said AFP.
BNP-Paribas had caused "Iraq enormous losses with lateness in deliveries," Hawish said, adding that "our suppliers demand surcharges because they are liable to have to wait for payment" by the bank.
UN Secretary General Kofi Annan has defended the French bank, shifting the blame to the Iraqi central bank by saying it had been repeatedly asked to speed up its own procedures.
The bank spokesman said that previous reservations over adding more banks to the list was because the Iraqi authorities were not consulted and due to the French bank’s “lack of transparency” in handling the deals, but Iraq “has no objection to the investment itself.”
BNP-Paribas handles all Iraq's oil revenues -- expected to total about 5.7 billion dollars in the first half of this year -- and opens letters of credit for all its imports under the UN's oil-for-food program, according to AFP – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
