Kuwait News Agency (KUNA)
August 13, 2006

Up to $US120 billion of Iraq’s total debt is expected to be cancelled by the end of next year, the Iraqi central bank governor Dr. Snan Al-Shabibi announced last month.

During a lecture to the Iraqi Foreign Ministry, the governor said it was hoped that only $US20 billion would be left to repay
after the cancellation of $US120 billion of the country’s debt.

The accumulation of Iraq’s $US146 billion debt was due in part to the financing of wars under the former Iraqi regime, including the eight-year war with Iran, said Dr. Al-Shabibi.

He said the new Iraq could not carry out fresh development and construction projects if the country’s debts were not cancelled.

The governor noted that US$50 billion of Iraq’s debt to Paris Club members had been cancelled, and that this would be of advantage to them in regard to future investment opportunities in Iraq.

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