US, Iraqi agreement on debt relief

[LiviaOlivia]

US, Iraqi agreement on debt relief
Source: BAGHDAD AP
Date: 2004-Sep-19 06:30 AM

The United States has secured the broad outlines of an agreement with many of Iraq's creditors to provide a major debt reduction before the end of the year, a visiting US official said. The announcement came after two days of intensive talks here between a US delegation headed by the undersecretary of state for economic affairs, Alan P. Larson, and an Iraqi team led by Iraq's Finance Minister Adel Abdul-Mahdi.

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Iraq has said its overall foreign debt of $US122 billion ($A175.15 billion) is hindering postwar reconstruction. Iraq owes about $US42 billion ($A60.3 billion) in debt to the G-8 countries and other rich nations who make up the so-called Paris Club of creditor countries. Another $US80 billion ($A114.85 billion) is owed to various Arab governments.

Larson said his country(US)is working hard with Iraqi officials to fight the high unemployment which is said to be around 30 per cent. He added that America's Export Import Bank will cooperate with Iraqi authorities to extend up to $US500 million ($A717.82 million) worth of grace credits to Iraq.

"We are very interested in making sure that our economic assistance contributes to employment in Iraq," Larson said. "We are working directly to increase employment through short-term jobs programs that are employing on an average 40,000 every month."

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http://news.fairfax.com.au/article.cgi?id=78742