Counterguarantees - Iraq
Posted: Fri Jul 23, 2004 1:00 am
Hi,
the embargo against Iraq being lifted, we are now free to engage in commercial transactions with Iraqi parties. However, payment liabilities stemming from transactions effected before the embargo remain an open issue. During the embargo period, claims (pay/extend and/or banking commissions) made by Iraqi banks under counterguarantees issued to them had not been met in spite of their continuous requests. There are lots of such transactions living through their second decade of existence. The question is how we deal with them now. As far as I know (thanks to Jeremy's article in DCInsight), with a court decision in UK, payment of such claims was permanently prohibited. Any legal regulation or court decision in other countries? What is your banks' policy on this issue? Best regards,
the embargo against Iraq being lifted, we are now free to engage in commercial transactions with Iraqi parties. However, payment liabilities stemming from transactions effected before the embargo remain an open issue. During the embargo period, claims (pay/extend and/or banking commissions) made by Iraqi banks under counterguarantees issued to them had not been met in spite of their continuous requests. There are lots of such transactions living through their second decade of existence. The question is how we deal with them now. As far as I know (thanks to Jeremy's article in DCInsight), with a court decision in UK, payment of such claims was permanently prohibited. Any legal regulation or court decision in other countries? What is your banks' policy on this issue? Best regards,