Paris Club moves to write off Iraq's debts
The Paris Club of creditor nations on Saturday discussed a plan to write off about 80 percent of Iraq's debts. According to The AP, U.S. Treasury Secretary John Snow and German Finance Minister Hans Eichel concluded the agreement, which was expected to be approved by the Paris Club.
Iraq's debt to the 19 members of the Paris Club (the United States, Japan, Russia and 16 European nations) is put at $42 billion. In addition, Iraq owes some $80 billion to Arab states.
Experts claim that an agreement by the Paris Club to write off its Iraqi debt would be an important move to free Iraq from paying interest as it struggles to rebuild its economy. (menareport.com)