Iraq's Odious Debts

Bulgarian official warns against great expectations about Iraq’s debt

Novinite, Bulgaria

June 30, 2003

Krassimir Katev, Bulgaria’s Deputy Finance Minister, warned Monday against too great expectations about the remittance of Iraq’s USD 1,7 B debt to Bulgaria.

Still the minister conceded that Bulgaria would eventually receive its debt but the timing would not be clear earlier than between 6 and 12 months from now.

He ruled out the option for the US administration to buy out the Iraqi debt, which, in his words, counters its regulations.

Iraq’s debt to all creditors total USD 380 M, which is ten times the country’s Gross Domestic Product.

Minister Katev recommended that Bulgaria collects as much as it can of its debt before the Paris club of official lenders come up with its decision.

The Paris club is expected to remit up to 60% of Iraq’s debts. [PDFver here]

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