PARIS (AP) – Major economic powers agreed on Sunday to write off billions of dollars of debt for Iraq in a deal that marked a significant step in U.S. efforts to help put the Iraqi economy back on its feet.
Under the agreement, the Paris Club of 19 creditor nations will write off 80 percent of the $42 billion that Iraq owes them, the group’s chairman, Jean-Pierre Jouyet said.
The Paris Club includes, the United States, Japan, Russia and European nations. . . . The deal represented a considerable concession from France, just as French President Jacques Chirac’s government is pushing to rebuild ties with Bush’s administration that were damaged by disagreements over the U.S.-led Iraq war. France opposed the invasion that toppled Saddam Hussein.
At a guess, this may explain why the Administration hasn’t been playing up the “UNSCAM” oil-for-food scandal.