TNAG-2027-FCO40-2889-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 80

Provision of cash to residents of Iraq in the United Kingdom

14 Banks and other persons in the United Kingdom may provide cash in reasonable

amounts in sterling in the United Kingdom to residents of Iraq -

(a) in exchange for foreign currency (other than Iraqi or Kuwaiti dinars) of

equivalent value;

(b)

against cheques, travellers' cheques, travellers' letters of credit, credit and debit cards and other payment instruments except for those payable in Iraqi dinars;

(c) through automated teller machines.

Payments by branches in the United Kingdom of companies resident in Iraq

15 Permission is hereby given for branches in the United Kingdom of Iraqi companies or businesses resident in Iraq to make salary and pension payments to persons living in the United Kingdom.

16 The Bank of England will consider applications from branches in the United Kingdom of companies or businesses resident in Iraq to make other payments of a current nature. Payments of a capital nature will not normally be permitted.

Pensions, etc, due to residents of Iraq

17 Any necessary permission is hereby given for the payment outside the United Kingdom of pensions due to residents of Iraq and of widows' and widowers' annuities associated with deceased husbands' and wives' employments.

Credits, loans and overdrafts

18 For the time being, permissions will not normally be given to enable existing or intending lenders subject to the directions (see paragraph 4 above) to comply with any order given by or on behalf of a person resident of Iraq to make any payment - without such permission no further drawings may be made under existing facilities. No new arrangements should be entered into, no bills of exchange drawn by a resident of Iraq should be accepted, and no credits, discount or acceptance facilities of any sort should be issued, confirmed or advised for account of, or in favour of, or on behalf of, a resident of Iraq.

19 Any necessary permission is, however, hereby given for irrevocable credits opened before 4 August 1990 in respect of transactions with Iraq to be honoured. "Iraqi Accounts" may not be debited in reimbursement except where otherwise permitted in this Notice.

Maturing bills of exchange

20 All necessary permissions are hereby given for maturing bills of exchange drawn by residents of Iraq and accepted before 4 August 1990 by persons subject to the directions to be paid by the acceptor on maturity. "Iraqi Accounts" may not be debited in reimbursement without permission.

Servicing of syndicated loans

21 Any necessary permission will be given for banks which are agents for syndicated loans and credits to the government or residents of Iraq to distribute capital repayments and interest payments to participants in the syndicates, provided that the necessary funds are received from outside the United Kingdom. Applications for such permission should be made to the Bank of England. Permission will not normally be given to use balances on "Iraqi Accounts".

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