Iraq May Be Allowed to Restructure Debt (IMF)

[Barrett808]

PARIS - A senior U.S. treasury official said Tuesday that Iraq is on course to reach a deal this month with the International Monetary Fund that would allow it to restructure its colossal debt.

Restoring the Iraqi economy to a sound footing "will require an enormous amount of debt reduction," said John Taylor, the U.S. treasury's under secretary for international affairs, at a press conference in Paris.

Taylor said the IMF was "working actively" with Iraq's government and central bank, adding: "We are very much hoping that the program of the IMF can be finished before the end of September."

An agreement with the IMF on an economic recovery program for Iraq would allow the country's new government to apply formally to the Paris Club to write off some or all of its $40 billion debt to its member governments, including interest.

The United States has been pushing for generous debt write-off for Iraq while other governments have questioned whether a country rich in oil should benefit from huge debt reduction.

Taylor refused to say what level of debt reduction was sought by Washington.

"I don't want to talk about numbers," he said.

(more)

http://story.news.yahoo.com/news?tmpl=story&u=/ap/20040914/ap_on_re_mi_ea/iraq_debt&cid=540&ncid=1480

[cthrumatrix]

1. In exchange for "natural resources"...thats the way they work...this is a

tragedy.

[Tempest]

2. Didn't Bush promise to get a majority of Iraq's debt forgiven?

Another Bush failure.

[daleo]

3. Invade country, "restructure debt", ride off with the oil

That seems to be the plan. IMF - International Muggers Fraternity, in this case at least.