24/6/2005
Press Release
SC/8427


Security Council

5214th Meeting (AM)


SECURITY COUNCIL APPROVES TRANSFER OF $200 MILLION

 

FROM ESCROW ACCOUNT TO DEVELOPMENT FUND FOR IRAQ


The Security Council endorsed this morning a proposal by the United Nations Secretary-General to transfer some $200 million from the escrow account established under resolutions 1284 (1999), 687 (1991), 706 (1991) and 1284 (1999) to the Development Fund for Iraq and to credit the balance against assessments issued in respects of the Iraqi Governmentís obligations for the regular budget, peacekeeping and tribunal activities and the Capital Master Plan of the United Nations.† It also agreed that the President send a reply to the Secretary-General approving his proposal.


The meeting began at 10:20 a.m. and ended at 10:25 a.m.


Background


When the Security Council met to consider the situation in Iraq, it had before it a letter dated 20 June 2005 from the Secretary-General (document S/2005/406) addressed to the Council President concerning the United Nations Monitoring, Verification and Inspection Commission (UNMOVIC) escrow account, established under resolution 1284 (1999) and related resolutions 687 (1991) and 706 (1991).


The Secretary-General stated that, as of 31 December 2004, the reserves and fund balances of the escrow account amounted to some $345.9 million and proposed the transfer, bearing in mind the resources required to be retained in the account, of $220,256,697.† Some $200 million would be transferred to the Development Fund for Iraq and the balance, $20,256,697, would be credited against assessments issued in respect of the obligations of the Government of Iraq.


Also before the Council was the Presidentís letter approving the Secretary-General proposal (document S/2005/407).


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