Arab States Not Ready to Forgive Iraq Debt

[Khephra]

DUBAI, United Arab Emirates -- Arab countries made clear Tuesday they are far from ready to commit to a deal to forgive more than $30 billion owed them by Iraq, despite U.S. pressure and a recent debt-relief package by other major countries.

The hesitation on the part of Saudi Arabia and Kuwait -- both strong U.S. allies -- could have widespread ramifications for the effort to help Iraq get back on its feet economically. A weekend deal by Russia, Japan, Europe and the United States to forgive 80 percent of their portion of Iraq's debt hinges on Arab countries going along.

Both Kuwait -- Iraq's largest single creditor -- and Saudi Arabia have said no debt-relief commitments are possible until after Iraq has an elected and internationally recognized government.

Iraq takes the first step in that process in January, when it plans to hold elections for a National Assembly that is to draft a new constitution. If that is ratified, an election to choose a national government will be held in December 2005. It remains unclear at what point in that lengthy process the Arab countries would view a debt-relief deal as possible.

http://www.newsday.com/news/nationworld/world/wire/sns-ap-iraqi-debt-arabs,0,7255440.story?coll=sns-ap-world-headlines

[aquart]

1. Why would they give a gift to the United States?

Especially since it would be used to invade them?

[54anickel]

2. Well good for them! I think they are waiting to see how the spoils of

war are going to be divied up. Why forgive debts if it will only benefit US multinationals and not their Iraqi neighbors. Of course the motive could also be to use the debts to have greater influence and control of an Iraq that has been kept away from them all these years by the US installed puppet, Saddam. :shrug:

snip>

Iraq -- despite its recent violence -- is considered one of the region's largest untapped markets, and infrastructure and reconstruction contracts are expected to be worth tens of billions of dollars.

[Name removed]

3. Deleted message

Message removed by moderator. Click here to review the message board rules.

[VivaKerry]

4. These are iraq's pre invasion debts.....

not the ones incurred after the invasion. FYI,

France, Russia and Germany are in for a LOT of forgiveness.

[Name removed]

6. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Tom Yossarian Joad]

5. Kind of odd that the country with the second largest supply of oil

in the world needs to have its debts forgiven.

Right after the US has pretty much stolen it.

The logic is bizarre! We destroy a country for its oil and ask the rest of the world to rebuild the country and pay for the bombs we used.

[Paleocon]

7. We can always fire up the printing presses and pay it off...

Creating inflation and devaluing our dollar along the way...

Sounds like a job for my man Greenspan!