Ban Kimoon recommends UN transfer 100 million to Iraq development fund

20 March 2008Secretary-General Ban Ki-moon has recommended the Security Council transfer $100 million from United Nations Iraq Account, made up of funds related to the expired oil-for-food programme, to an account for the country’s development, a UN spokesperson said today. 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 (DFI), which will received 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 provides an update on the Iraq Account and the processing of outstanding letters of credit. As of 29 February, Mr. Ban says, the Iraq Account contained somewhat over $1 billion in total funds, out 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. read more