According to Daralhayat, Iraqi finance ministry and Iraqi Central bank announced that they appointed financial consultants to provide advice and assistance for Iraq in its bilateral negotiation with international creditors. Lazard Freres & Co was chosen to provide such services to Iraq in its contacts with 17 creditors at “Paris Club”. In November 2004, Iraq has signed an initial agreement with “Paris Club” to cancel 80 percent of its debts, which totaled US$37.2 billion. At the same time, the US cancelled 100% of its claims, equal to approximately US$4.1 billion.
Meanwhile, Iraq also announced that Houlihan Lokey Howard & Zukin will advise Iraq in its debt talks with its other 45 (non-Paris Club) bilateral creditors. The total amount of contractual claims against Iraq held by its approximately 45 non-Paris Club bilateral creditors has been estimated at US$18 billion. These figures do not include claims by six members of the Gulf Cooperation Council.
