U.S. Releases Frozen Kuwaiti Bank Assets
The Treasury Department announced Monday that seven Kuwaiti banks have been authorized, starting March 18, to draw on frozen assets to settle claims that were made before the Aug. 2 Iraqi invasion.
After Iraq stormed into Kuwait, President Bush froze assets of both countries in the United States. The action was taken to ensure that Iraq could not take control of the funds.
Still excluded from the Treasury Department order are settlement of obligations denominated in Kuwaiti dinars and claims related to deposits held in either country.
The Treasury also said no transfers can be made to the government of Iraq, persons in Iraq or occupied Kuwait or entities operated from either country.
The banks are Al Ahli Bank of Kuwait, Bank of Kuwait & the Middle East, Burgan Bank, Commercial Bank of Kuwait, Gulf Bank, Industrial Bank of Kuwait and Kuwait Real Estate Bank.
The U.S. action was taken at the request of the central bank of Kuwait, which has guaranteed all the banks’ obligations.
The Bank of England took similar action Monday, the Treasury announcement said.
The order by the Office of Foreign Assets Control permits the banks to begin preparations for settling the claims, such as gathering information, arranging credit and liquidating or transferring blocked assets.
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