France proposes Iraq debt relief
Monday 15 December 2003, 20:07 Makka Time, 17:07 GMT
De Villepin hopes Paris will play a key role aiding Baghdad
Related:
EU blasts 'gratuitous' US contracts policy
Iraq contracts for US and allies only
Tools:
Email Article
Print Article
Send Your Feedback
French Foreign Minister Dominique de Villepin says France is keen to carve out a key role in aiding Iraq and is prepared to write off some of the war-torn country's debts.
Speaking on Monday at a meeting of the Paris Club, countries and agencies with claims on indebted countries, de Villepin told reporters that France could help establish an agreement to reduce Iraq's debt, by 2004.
France chairs the Paris Club, as well as being a creditor itself, Paris said that it was optimistic about the prospects of a deal to reduce Iraq's debt burden.
"France could in those circumstances envisage debt write-offs that would be suitable and in line with Iraq's financing capacity," Villepin said.
Iraq's has an estimated debt of $40 billion, owed to countries that make up the 19 Paris Club countries.
Future agreement
Sources close to the Paris Club said recently there were two major prerequisites to any Paris Club deal, a fully recognised government in Iraq and a basic agreement between Baghdad and the (IMF) on Iraq's economic strategy.
One source said the US-led occupation authority in Iraq would not be deemed as sufficiently legitimate to sign legal debt deals concerning write-off and rescheduling of repayments over decades, as well as issues such as oil output.
Members of the Iraqi delegation that was in Paris, welcomed the French offer to push for debt relief with the Paris Club.
"We asked France to show some initiative to the Iraqi people, and they were forthcoming," said Hoshyar Zebari, Iraq's interim foreign minister.
"This is a gift... We hope other European countries will now act like France," said Jalal Talabani, a member of the Iraqi Governing Council and head of the Patriotic Union of Kurdistan.
Monday 15 December 2003, 20:07 Makka Time, 17:07 GMT
De Villepin hopes Paris will play a key role aiding Baghdad
Related:
EU blasts 'gratuitous' US contracts policy
Iraq contracts for US and allies only
Tools:
Email Article
Print Article
Send Your Feedback
French Foreign Minister Dominique de Villepin says France is keen to carve out a key role in aiding Iraq and is prepared to write off some of the war-torn country's debts.
Speaking on Monday at a meeting of the Paris Club, countries and agencies with claims on indebted countries, de Villepin told reporters that France could help establish an agreement to reduce Iraq's debt, by 2004.
France chairs the Paris Club, as well as being a creditor itself, Paris said that it was optimistic about the prospects of a deal to reduce Iraq's debt burden.
"France could in those circumstances envisage debt write-offs that would be suitable and in line with Iraq's financing capacity," Villepin said.
Iraq's has an estimated debt of $40 billion, owed to countries that make up the 19 Paris Club countries.
Future agreement
Sources close to the Paris Club said recently there were two major prerequisites to any Paris Club deal, a fully recognised government in Iraq and a basic agreement between Baghdad and the (IMF) on Iraq's economic strategy.
One source said the US-led occupation authority in Iraq would not be deemed as sufficiently legitimate to sign legal debt deals concerning write-off and rescheduling of repayments over decades, as well as issues such as oil output.
Members of the Iraqi delegation that was in Paris, welcomed the French offer to push for debt relief with the Paris Club.
"We asked France to show some initiative to the Iraqi people, and they were forthcoming," said Hoshyar Zebari, Iraq's interim foreign minister.
"This is a gift... We hope other European countries will now act like France," said Jalal Talabani, a member of the Iraqi Governing Council and head of the Patriotic Union of Kurdistan.
