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Paris Club President Sets Preconditions for Iraq's Debt Relief

Paris Club President Jean-Pierre Jouyet said Thursday that an internationally recognized Iraqi government is a precondition for the Paris Club of creditor nations to forgive Iraq's debts. 

In an interview with BFM radio, Jouyet said Iraq's total foreign debt was estimated at US$115 billion to US$120 billion and he hoped an agreement to alleviate the burden could be struck by the end of 2004.     

 

"The sooner the authorities are in place, the sooner we can do this," Jouyet said, referring the need for a sovereign Iraqi leadership to sign the deal.

 

He also noted that the International Monetary Fund would assess what scale of debt relief is necessary before a deal could be reached.

 

Jouyet, head of the treasury department of the French finance ministry, serves as chairman of negotiations between creditors and indebted countries in the Paris Club.

 

The Paris Club boss was making the remarks as US envoy James Baker continued his Europe tour, which has led to the pledge from France, Germany and Italy to offer debt relief to the war-ravaged but oil-rich Iraq.

 

(Xinhua News Agency December 19, 2003)

Germany, France Agree to Relieve Iraq Debt
US Welcomes French, German Commitment to Reduce Iraqi Debt
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