German construction cos protest Paris Club plans to slash Iraq debt

[Kellanved]

BERLIN (AFX) - German construction firms today slammed plans by the Paris Club of creditor nations to wipe out 80 pct of Iraq's debt, warning that individual companies might decide to seek legal action against the German government to protect their claims

"We were prepared to accept debt forgiveness of 50 pct. That would have been enough," the head of the German construction industry federation, Michael Knipper, said in a statement. Iraq owes the 19-member Paris club some 40 bln usd, which is about one third of its total foreign debt

But on Sunday, the Paris club had agreed to wipe out 80 pct of the debt in three phases over three years. That would mean German construction companies would have to say goodbye to 1.3 bln eur in debt claims, the federation calculated
...
http://futures.fxstreet.com/Futures/news/afx/singleNew.asp?menu=economicnews&pv_noticia=1101140754-9e32d306-32345