Iraq to Ask Sofia to Write Off Debt

Politics | November 23, 2004, Tuesday // 00:00

The Iraqi government will launch negotiations with Bulgaria to write off 80% of the USD 1.7 B debt overdue from Iraq.

World media reported that Iraq has decided to initiate discussions with the countries that are not members of the Paris club, including Bulgaria and Romania, in order to seek waiver of its major debt.

Bulgaria maintains its position that the Arab country should pay off its pending liabilities, despite mounting international pressure on Iraq's creditors to agree on substantial debt reduction.

On Sunday, major creditor nations of the Paris Club, including the United States, Britain, Germany, France and Spain, reached an agreement in Berlin to write off 80% of Iraq's debts.

According to the Paris Club, Iraq's foreign debts have swollen to around USD 120 B, some USD 42 B of which was owed to Paris Club countries.

Iraq owes another USD 80 B to non-Paris Club lenders among which Bulgaria. International sanctions imposed on Iraq following its 1990 invasion of Kuwait prevented Bulgaria from collecting the debt.
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