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UK wants majority of Iraq`s debts written off by end of year

IRNA - Islamic Republic News Agency

London, Jan. 16, IRNA - The British government is seeking an 
international consensus to achieve writing off most of Iraq`s 
external debt burden, estimated to range between Dlrs 160 and Dlrs 
300 billion, this year, according to Economic Secretary John Healey. 
"The UK believes that Iraq`s external debt is unsustainable and 
that creditors will need to agree a significant reduction through a 
clear multilateral process in order to restore Iraq to 
sustainability," Healy said. 
Much of Iraq`s external debts are owed through the 18-nation Paris
Club, which regulates Third World and other debts. Of the largest 
share, Russia, France, Germany and Japan have the biggest claims with 
each owed around Dlrs 8 bn or more. 
After meeting President George W. Bush`s special envoy on Iraq`s 
debts, James Baker, last December, Prime Minister Tony Blair declared 
that he supported a "substantial reduction" in Iraq`s international 
debt burden. 
The British government itself is owed less than Dlrs 2 billion in 
repayments and interests, but as yet has given no indication of being 
willing to write off any of the amount. 
Outside the Paris Club, unofficial loans claimed by Arab states in
the Persian Gulf are estimated by the Economist Intelligence Unit to 
be worth around Dlrs 72 bn. 
There are also loan liabilities and compensation claims 
outstanding, in particular for reparations from Iraqi-imposed war on 
Iran which cost eight-year-long consecutive devastation and dlrs 1,000
billion in damage for Iran and Iraqi invasion of Kuwait. 
HC/215 
End