Article

2004-11-20 Iraq-Jordan

U.S., Germany Strike Deal on Iraq Debt Write-Off

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Posted by True German Ally 2004-11-20 13:44|| || Front Page|| [11132 views since 2007-05-07] Top

#1 And Tsar Putty?

Posted by .com 2004-11-20 1:48:36 PM|| 2004-11-20 1:48:36 PM|| Front Page Top

#2 Has there been any sightings of James Baker and his magic briefcase in Berlin?

Posted by JerseyMike 2004-11-20 1:50:36 PM|| 2004-11-20 1:50:36 PM|| Front Page Top

#3 Nope, just common sense prevailing (and a Frenchman pissed off)

Posted by True German Ally 2004-11-20 1:53:51 PM|| 2004-11-20 1:53:51 PM|| Front Page Top

#4 It appears Snow is to be commended (and the Germans thanked) for carving the Germans out and making a deal the others will have to swallow.

Posted by Mrs. Davis 2004-11-20 2:11:04 PM|| 2004-11-20 2:11:04 PM|| Front Page Top

#5 Um, I read the article. There is no deal just talk about one. The French will put a stop to this. Chriac and France want a failed Iraq. France will put a stop to any such agreement. Don't get your hopes up.

Posted by Sock Puppet of Doom 2004-11-20 2:14:12 PM|| [http://www.slhess.com] 2004-11-20 2:14:12 PM|| Front Page Top

#6 Its kind of like jealous children.
France and Germany play together all the time.
Germany was playing with the US this day, now the french are crying in their cheese.
Its alright Chirac, but just remember, my daddy can beat your daddy up ...

Posted by leo88 2004-11-20 2:16:41 PM|| 2004-11-20 2:16:41 PM|| Front Page Top

#7 They don't call it the Paris Club for nothing, heh.

Posted by .com 2004-11-20 2:16:53 PM|| 2004-11-20 2:16:53 PM|| Front Page Top

#8 The United States, Germany and other G7 nations agreed on Saturday to write off up to 80 percent of Iraq's $120 billion foreign debt in a move that could pave the way for a wider international accord, officials said.

The breakthrough came in talks between German Finance Minister Hans Eichel and U.S Treasury Secretary John Snow on the margins of a meeting of finance ministers and central bank chiefs from the G20 group of rich and developing nations.

That's a deal between the US, Iraq, and Germany. It now defines the best deal the rest can get. The alternative is outright repudiation by the Iraqis, involving the release of information about exactly how involved the French and Russians were in supporting Saddam Hussein's regime. There will be lot's of toing and froing, but there's a deal on the table and the rest will have to line up at the end of the day.

Posted by Mrs. Davis 2004-11-20 2:19:22 PM|| 2004-11-20 2:19:22 PM|| Front Page Top

#9 I would like to see all the dealing that France, Germany, and Russia did with Sammy out in the open and on the table, they we will all talk. The world needs to be faced with this outright treachery. I hat backroom deals with evil. I know, I know, sometimes you have to make a deal with the devil, but this seems to need a consciousness raising session.

[/lunatic idealistic rant]

Posted by Alaska Paul 2004-11-20 3:28:04 PM|| 2004-11-20 3:28:04 PM|| Front Page Top

#10 So what would Iraq prefer, $100 billion of loan forgiveness or raised consciences...let me think...

Posted by Mrs. Davis 2004-11-20 3:42:18 PM|| 2004-11-20 3:42:18 PM|| Front Page Top

#11 Not such a bitter pill, considering the currency markets in the last two years already wrote off >30 percent of this dollar-denominated debt.

Posted by lex 2004-11-20 3:47:26 PM|| 2004-11-20 3:47:26 PM|| Front Page Top

#12 I think we should make an offer. Let's buy the debt at 20 precent, if they whine that that's too low, then kill their horses.

Posted by Shipman 2004-11-20 3:51:09 PM|| 2004-11-20 3:51:09 PM|| Front Page Top

#13 you ARE in rare form today - I'll alert the media ;-)

Posted by Frank G 2004-11-20 3:53:03 PM|| 2004-11-20 3:53:03 PM|| Front Page Top

#14 Let's wait and see if anything actually happens:

Officials from the Paris Club of creditor nations, meeting in Paris, have struggled for months to agree terms for an Iraq debt-off, which has remained a thorn in trans-Atlantic relations since the end of the Iraq war.

Eichel said the tentative agreement would be put to other Paris Club members, who have been meeting in Paris since Thursday, for approval but it was unclear if a deal was close.

Posted by rkb 2004-11-20 3:55:44 PM|| 2004-11-20 3:55:44 PM|| Front Page Top

#15 Turkish Headline? (via AFP)

Germany announces international plan to slash Iraqi debt

BERLIN (AFP) - Germany unveiled a breakthrough international plan to wipe out tens of billions of dollars of Iraqi debt so that the war-torn country can begin rebuilding in earnest.

The accord, announced on the sidelines of a Group of 20 meeting of finance chiefs in Berlin, could see the Paris Club of creditor nations cut up to 80 percent of Iraq`s debt and the interests it owes them.

Technical aspects of it were being thrashed out by the Paris Club members in the French capital and representatives in Berlin thought that an official announcement was imminent.

Posted by Mrs. Davis 2004-11-20 4:07:30 PM|| 2004-11-20 4:07:30 PM|| Front Page Top

#16 The lesson is clear. Lend money to dictators and you will lose most of it.

Posted by phil_b 2004-11-20 4:15:48 PM|| 2004-11-20 4:15:48 PM|| Front Page Top

#17 spot on Phil_b .

Posted by MacNails 2004-11-20 5:42:16 PM|| 2004-11-20 5:42:16 PM|| Front Page Top

#18 The German press reports it as a done deal. There might be some discussion left by the Paris Club members but that won't change things.

Please note that these debts were accumulated before the Kuwait invasion, when everyone was dealing with Saddam. Whatever debts Saddam racked up in (illegal) dealings with German businesses (but dealings were mostly cash at this time anyway) is of no concern to the German (or Iraqi) government.

Actually the debts of the 70s and 80s have already been quietly written off. Nobody expected to recover much of them. Iraq may not yet be a fun place to do business but that will change. German companies (especially the technology sector) will return to Iraq and more money will be made than the few billions written off right now.
The real concern of Germany was not to set a precedent. Actually there are many countries that are much poorer than Iraq which might want to claim the same thing.
Btw Iraq owes about as much to Germany as to the United States, but much more to France and Russia.
I see Russia back in business in Iraq rather soon, but not France (unless the Baathists can regain some power).

Posted by True German Ally 2004-11-20 5:54:13 PM|| 2004-11-20 5:54:13 PM|| Front Page Top

#19 TGA, you of course are talking about the very long term. Right now there seems to be a little problem with Jihadists running around and blowing things up. It is not at all certain at this time that anyone will be able to recoup those debts.

Posted by Rafael 2004-11-20 7:43:42 PM|| 2004-11-20 7:43:42 PM|| Front Page Top

#20 Re Russia, they're hardly in a position to demand that other nations honor their obligations at one hundred cents to the dollar. I could be wrong but I think Russia's German creditors ended up with less than ten cents on the dollar for their $30 billion in Russian debt...

Posted by lex 2004-11-20 10:12:45 PM|| 2004-11-20 10:12:45 PM|| Front Page Top

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