Russia agrees to US deal that writes off $33bn of Iraq debt

[emad]

The Times
By Caroline Merrell



RUSSIA finally signed up yesterday to an agreement between 19 nations to write off $33 billion (£17.8 billion) of Iraq’s debt.

The agreement was confirmed by a US Treasury official at the Group of 20 meeting of finance ministers and central bankers in Berlin. Earlier, John Snow, the US Treasury Secretary, had said he was confident a deal was close.

The deal between the 19-nation Paris Club of creditors to lighten Iraq’s sovereign debt load is expected to be the forerunner of a broader agreement among Iraq’s other creditors, who are owed $125 billion. The $33 billion agreement represents 80 per cent of the money owed to the 19 countries by Iraq. The US had sought a deal within the Paris Club to give Iraq a chance to get on its feet and to demonstrate that even countries that opposed the war could waive the debt.

The US Treasury official said: “It’s a good arrangement for Iraq and it will also show how the world community can come together in a very co-operative way to address a problem.”
http://www.timesonline.co.uk/newspaper/0,,170-1369576,00.html

MAKES ME wonder if they also did a deal on keeping schtum on the Yukos scandal and the farcical charade that is Sibneft Oil Co chief Roman Abramovich.......

[bahrbearian]

1. So whats it costing the U.S.!

[Racenut20]

2. Don't kid yourself

This will be more "off budget" payouts from the US, to compensate the Ruskies. After all, we want to beef up their oil production and buy it.