Spain writes off 80pc of Iraqi debt

23rd November 2004, Comments 0 comments

23 November 2004, MADRID- Spain is to write-off of up to 80 percent, or USD 482 million, of the debt owed by Iraq, the Spanish Economy and Finance Ministry said.

23 November 2004

MADRID- Spain is to write-off of up to 80 percent, or USD 482 million, of the debt owed by Iraq, the Spanish Economy and Finance Ministry said.

Iraq's total foreign debt amounts to nearly USD 120 billion, of which Spain's share is USD 602 million.

Spain sees the write-off as a necessary measure on behalf of the Iraqi people as they work to rebuild their nation after wars and more than a decade of economic sanctions.

Under an agreement reached between the Paris Club, of wealthy nations, and Iraq, wealthy nations will write-off 80 percent of Iraq's foreign debt on the condition that the freed-up resources be used for reconstruction efforts.

The measure will be completed in three phases, the first of which calls for the immediate write-off of 30 percent of the debt and the second phase - also for 30 percent - when Iraq agrees on a programme with the International Monetary Fund, expected to happen in the second half of 2005.

The remainder of the debt will be written off during the second half of 2008.

Countries participating in the agreement include Australia, Austria, Belgium, Britain, Canada, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Russia, South Korea, Spain, Sweden, Switzerland and the United States.

[Copyright EFE with Expatica]

Subject: Spanish news

 

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