Tuesday, September 27, 2005

Question for Economics Experts re: Iraqi Debt and Iraqi Dinar

Posted on 12/17/2004 7:17:23 AM PST by Deo et Patria

US to forgive $5.4bn Iraq debt From correspondents in Washington December 17, 2004
THE administration of US President George W Bush will agree to write off the $US4.1 billion ($5.4 billion) worth of debt Iraq racked up during the regime of Saddam Hussein.

The debt write-off accord will be signed in Washington tomorrow by US Secretary of State Colin Powell, Treasury Secretary John Snow and Iraq's Finance Minister Adel Abdel Mahdi, according to a State Department statement today.

"The signing of the debt cancellation agreement is the bilateral agreement that implements the United States' part of the Paris Club debt-reduction agreement reached November 21, 2004," the statement said.

"In fact the United States will go beyond the 80 per cent reduction agreed at the Paris Club and forgive 100 per cent of the $US4.1 billion Iraq owes the United States from the Saddam era," it said.

In late November, the Paris Club of 19 creditor countries, including the United States, Japan, Russia and EU nations, said its members had agreed to wipe out 80 per cent of the money it is owed by Iraq over three years.

Iraq owes the Paris Club nations $US40 billion, about one-third of the country's foreign debt.

Agence France-Presse

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Regards Marcel.