Post by bot on Jun 5, 2004 20:45:08 GMT -5
G8 Summit Aims to Bridge Gap on Iraq Debt-Canada
Sat Jun 5, 2004 05:37 PM ET
By Gilbert Le Gras
www.reuters.com/newsArticle.jhtml?type=topNews&storyID=5352483
OTTAWA (Reuters) - Leaders of the Group of Eight nations want to decide how much of Iraq's estimated $120 billion debt should be forgiven when they meet next week, Canadian Finance Minister Ralph Goodale said on Saturday.
"There is a view -- at least on the part of some European countries -- that something in the order of 60 to 65 percent would be appropriate. There are some other countries, including the United States, that would argue for a substantially higher number in the 90 to 95 percent range," Goodale told Reuters.
"They'll discuss it. Whether it'll be ripe for conclusion remains to be determined," Goodale added.
Iraqi Finance Minister Adel Abdul-Mahdi said this week he expects up to 90 percent of the debt to be forgiven. Ottawa favors a higher, rather than lower, percentage of debt forgiveness.
The International Monetary Fund said last month an analysis of Iraq's debt had been given to Paris Club members, which will help creditors to decide how much could be written off.
"Our Canadian view would be that something toward the higher end of the range would be most appropriate and we could also argue very strongly that this does need to be accomplished under the auspices of the Paris Club," Goodale said.
The IMF analysis painted different scenarios for dealing with the war-shattered country's debt, and it is due to be discussed at a meeting of creditors in this month.
World Bank President James Wolfensohn has said at least two-thirds of Iraq's debt would have to be forgiven to rebuild the country properly.
"We're not publicly putting a figure on it. We're trying to be helpful in the (G8) discussion here," Goodale added.
The Group of Seven economic powers agreed last year to reach a deal on forgiving Iraqi debt by the end of 2004. The G7 and Russia hold the bulk of the debt Iraq owes the Paris Club, which includes 19 of the world's wealthiest nations.
© Reuters 2004. All Rights Reserved.
Sat Jun 5, 2004 05:37 PM ET
By Gilbert Le Gras
www.reuters.com/newsArticle.jhtml?type=topNews&storyID=5352483
OTTAWA (Reuters) - Leaders of the Group of Eight nations want to decide how much of Iraq's estimated $120 billion debt should be forgiven when they meet next week, Canadian Finance Minister Ralph Goodale said on Saturday.
"There is a view -- at least on the part of some European countries -- that something in the order of 60 to 65 percent would be appropriate. There are some other countries, including the United States, that would argue for a substantially higher number in the 90 to 95 percent range," Goodale told Reuters.
"They'll discuss it. Whether it'll be ripe for conclusion remains to be determined," Goodale added.
Iraqi Finance Minister Adel Abdul-Mahdi said this week he expects up to 90 percent of the debt to be forgiven. Ottawa favors a higher, rather than lower, percentage of debt forgiveness.
The International Monetary Fund said last month an analysis of Iraq's debt had been given to Paris Club members, which will help creditors to decide how much could be written off.
"Our Canadian view would be that something toward the higher end of the range would be most appropriate and we could also argue very strongly that this does need to be accomplished under the auspices of the Paris Club," Goodale said.
The IMF analysis painted different scenarios for dealing with the war-shattered country's debt, and it is due to be discussed at a meeting of creditors in this month.
World Bank President James Wolfensohn has said at least two-thirds of Iraq's debt would have to be forgiven to rebuild the country properly.
"We're not publicly putting a figure on it. We're trying to be helpful in the (G8) discussion here," Goodale added.
The Group of Seven economic powers agreed last year to reach a deal on forgiving Iraqi debt by the end of 2004. The G7 and Russia hold the bulk of the debt Iraq owes the Paris Club, which includes 19 of the world's wealthiest nations.
© Reuters 2004. All Rights Reserved.