Major Creditors in Accord to Waive 80% of Iraq Debt
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The agreement is a critical step in rebuilding Iraq's devastated economy and an important precedent for other creditors.
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The Paris Club of creditor nations, except for Russia, agreed on Sunday to relieve Iraq of as much as 80 percent of the debts it owes them.
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The Group of Seven major industrial nations agreed yesterday to allow tsunami-stricken countries to defer debt payments, a largely symbolic gesture but one that could boost broader debt-relief initiatives for poor nations later this year.
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The deal is part of a new international agreement to forgive 80 per cent of Iraq&#39;s international debt, amounting to a total of about $150 billion.
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Major economic powers agreed Sunday to write off more than &#36;31 billion in debt for Iraq in a deal that boosted U.S. efforts to help put the Iraqi economy back on its feet.
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China Thursday signed an agreement to cancel Iraqi debt at a ceremony after a meeting between Chinese President Hu Jintao and his Iraqi counterpart Jalal Talabani.
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Iraq&#39;s foreign debt will be reduced by 80% after a compromise deal was brokered between France, Germany and the USA in the framework of the Paris Club of creditors on 21 November.
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Russia agreed on Sunday to forgive up to 80 percent of Iraqâs debts to the Paris Club (about $33 billion). A US Treasury official quoted by Reuters said they received this information from Russia.
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Iraq hopes to reach a debt  forgiveness deal with leading creditor nations by the end of  the year, and views as a "starting point" a proposal by France  to initially relieve 50 percent of its debt, Iraq's Finance  Minister said on Tuesday.
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The Paris Club of international creditors has agreed to cancel 80 percent of the debt Iraq owes member countries. Officials say the deal, brokered in Berlin, is worth about $33 billion.
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The Paris Club of creditor nations was considering on Saturday a plan to relieve Iraq of as much as 80 percent of the debts it owes them.
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The United States has erased over $ 4 billion of Iraqi foreign debt. It is also urging all other nations to join the effort to cancel the debt racked up under former Iraqi leader Saddam Hussein.
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Germany's Finance Minister Hans Eichel said Saturday he and U.S. Treasury Secretary John Snow had agreed on a proposal to write off as much as 80 percent of Iraq's debt, capping a U.S. push for debt forgiveness.
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Major economic powers agreed on Sunday to write off billions of dollars of debt for Iraq in a deal that marked a significant step in U.S. efforts to help put the Iraqi economy back on its feet.
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Nineteen countries, including Australia, have agreed to cancel 80 per cent of the debt Iraq owes them. The deal secured for the Paris Club of creditor nations ends a trans-Atlantic dispute and probably sets
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Creditor nations, with the exception of Russia, reportedly approve a plan to slash Iraq's debts.
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Iraq cleared around &#36;81 million in debt it owed the International Monetary Fund late last week, fund sources said on Monday, opening the way for the first aid to flow from the global lender to Iraq.