Probe International

(May 26, 2003) "Michael Kremer and Seema Jayachandran misread history when they argue that ‘the world needs a system to determine which loans should be considered legitimate’. The world already has such a system; the Paris Club process.", says Lex Rieffel.

(May 24, 2003) Peter McPherson, assigned by the US Treasury to rebuild Iraq’s financial sector, also lamented the country’s "very substantial" need for debt relief. "The debt as it stands would be crushing to service," he said.

(May 23, 2003) Russia dropped its opposition to a UN resolution lifting sanctions on Iraq once it believed its Soviet-era debt and massive oil contracts in the country would be respected, the Russian press said Friday, May 23.

(May 23, 2003) A new Iraqi government would have the sovereign authority to make negotiations on debt relief says the State Department’s Assistant Secretary for International Organization Affairs, Kim Holmes.

(May 23, 2003) The oil industry should generate $20 bn next year. That will ease the suffering, though it’s nowhere near enough to finance a $20 bn a year rebuilding effort, plus the servicing of a $400 bn debt. Aid and debt relief will be needed.

(May 23, 2003) Papers across Europe view the UN resolution on post-conflict Iraq as a sign of an outbreak of resigned pragmatism at the Security Council.

(May 22, 2003) Carlo Invernizzi introduces ‘Jubilee Iraq’ – a non-governmental organisation campaigning for the cancellation of Iraq’s debt that has called on creditors to demonstrate the legitimacy of their liabilities or otherwise drop their claims.

(May 22, 2003) The resolution envisages a rescheduling of Iraq’s debt through the Paris Club and establishes a moratorium on the debt by declaring Iraq’s oil revenues immune from legal proceedings until December 31, 2007.

(May 21, 2003) The main tenets of the plan for Iraq’s reconstruction should be: let Iraqis determine the future of Iraq, lift the U.N. sanctions, share the wealth and forgive the debt.

(May 21, 2003) A new draft of the UN Security Council resolution on Iraq envisages settlement of Iraqi debts within the framework of the Paris Club, Russian Deputy Foreign Minister Yuri Fedotov announced.

(May 21, 2003) "I personally would not favour paying in full the debts incurred by Saddam Hussein’s regime," George Soros said. "It would send a very healthy signal to the financial markets that extending credit to dictators is not without risk."

(May 21, 2003) The mass graves are enough evidence to explain why the culture of fear is rife among the Iraqi people. These graves bring suit against Saddam and his regime and condemn both of them for perpetrating crimes.

(May 20, 2003) "We must encourage the world community to address all outstanding debt and reparations claims against Iraq. If not addressed [they] will compromise Iraq’s future and undermine the prospects for democracy." says U.S. Senator Chuck Hagel.

(May 20, 2003) The debt and contracts look problematic, since any new Iraqi government will try to annul them on the grounds that it can’t be held responsible for the excesses of its former dictator.