Restructuring of Iraq Debt 'On Track'

[buzzsaw_23]

Restructuring of Iraq debt ‘on track'
By Joanna Chung in London
Published: September 16 2005 05:28 | Last updated: September 16 2005 05:28

Iraq is poised to announce Friday the successful completion of the first phase in the restructuring of Saddam-era commercial debt.

The first phase of the deal, orchestrated by JP Morgan and Citigroup, the US banks, involves about $750m (£410m) of debt owed to the private sector. About 78 per cent of those who had claims on this amount accepted the offer, which will pay them 10.25 per cent of the principle and past due interest. Only about 2 per cent rejected the terms outright.

“We are very encouraged by the results of this first round of offers,” said Ali A. Allawi, Iraq's minister of finance. “Iraq's debt restructuring programme is on track and on schedule.”

This first batch is only a small portion of what is thought to be more than $20bn in commercial claims. Claims owed to the private sector amount to about 15 per cent of some $125bn of total outstanding debt that makes Iraq, relative to the size of its economy, one of the most indebted countries in the world. The rest is owed to various creditor nations.

http://news.ft.com/cms/s/88cc8244-265f-11da-a4a7-00000e2511c8.html

From d.a. levy
"Really"
                     the police try to protect
                     the banks - and everything else
                     is secondary"

[enigma000]

1. Odious Debts

If a despotic power incurs a debt not for the needs or in the interest of the State, but to strengthen its despotic regime, to repress the population that fights against it, etc., this debt is odious for the population of all the State.

This debt is not an obligation for the nation; it is a regime's debt, a personal debt of the power that has incurred it, consequently it falls with the fall of this power.

The reason these "odious" debts cannot be considered to encumber the territory of the State, is that such debts do not fulfill one of the conditions that determine the legality of the debts of the State, that is: the debts of the State must be incurred and the funds from it employed for the needs and in the interests of the State.

http://www.odiousdebts.org/odiousdebts/index.cfm?DSP=subcontent&AreaID=3

How much foreign debt has been forgiven? I can't see Iraq making a fresh start until much of its debt is cleared.

[Javaman]

2. Wow, and here I thought they just stopped construction...

only 3 weeks ago because security has eaten up all the funds for rebuilding. So I guess the equate success with running out of money.

colossal racist failure*.

[enigma000]

3. What, you ran out of money?

Tell the Chinese to lend some more!