UNSC EXTENDS DFI PROTECTION THROUGH 2010

UNSC extends arrangements for deposit of Iraqi oil revenues until Dec. 2010
Politics 12/21/2009 8:44:00 PM

UNITED NATIONS, Dec 21 (KUNA) -- Noting Iraq's progress in the security, political and economic fields, while recognizing that the country still needed regional and international support in order to advance further, the Security Council on Monday decided to extend until 31 December 2010 arrangements for depositing the revenues from its oil and gas sales into the Development Fund for Iraq (DFI).

Acting unanimously under Chapter VII of the UN Charter, the council also extended the task of the International Advisory and Monitoring Board (IAMB) in overseeing the Fund for the same period.

The Council also decided that those decisions would be reviewed upon request by the Government of Iraq or no later than 15 June 2010.

The council requested the Secretary-General to provide written reports to the council on a quarterly basis, with the first report no later than April 1st, on the progress made in strengthening financial and administrative oversight of the current DFI, as well as the legal issues and options to be considered to implement successor arrangements and an assessment of Iraq's progress in preparing for the successor arrangements for the Fund.

The council also called on the Iraqi Government to put in place the necessary action plan and timeline by April 2010 and to ensure the timely and effective transition to a post-Development Fund mechanism by next December, which takes into account IMF stand-by arrangement requirements and includes external auditing arrangements and enables Iraq to meet its obligations.

It further requested Iraq through the head of the Committee of Financial Experts (COFE) to report to the council on a quarterly basis, with the first report no later that next April to provide an action plan and timeline for the transition from the DFI and details on the progress made in strengthening financial and administrative oversight of the Fund, with subsequent quarterly reports to provide an assessment of progress against the action plan and oversight improvements.

Annexed to the resolution was a letter by Iraqi Prime Minister Nouri Al-Maliki addressed to the council president last week, in which he urged the members to extend the arrangements for both the DFI and IAMB until the end of next December.

In his letter Al-Maliki vowed that the government will in 2010 make "appropriate arrangement" for the Fund and the Board with a view to "ensuring that oil revenue continues to be used fairly and in the interest of the Iraqi people," in conformity with the Constitution and with the international "best practices with respect to transparency, accountability and integrity".

That, he argued, "cannot be achieved without the continued assistance of the international community by means of the adoption of a Security Council resolution whereby the arrangements are extended under Chapter VII.

Iraq wants to keep the DFI under Chapter VII in order to protect it from any claimants. (end) sj.bs KUNA 212044 Dec 09NNNN

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