China writes off 80% of debts

The Iraqi government signed an agreement with the Chinese government to write off 80% of Iraq’s debts due to China, according to a foreign ministry press release.

“Iraqi Finance Undersecretary Fadel Nabi Othman signed for Iraq while the secretary of the committee of companies’ indebting Iraq signed for China,” read the statement as received by Aswat al-Iraq news agency.

“The agreement was signed in light of memorandums of understanding signed by Iraqi President Jalal Talabani during his visit to China in June 2007,” it added.

Iraq has been seeking to have its debts $120 billion debts accumulated during the former regime’s time, some of them in compensations over was, be dropped. The war-torn nation has managed to have most of that sum - $55 billion due for the Paris Club members – dropped.

Iraq still owes debts to some Arab countries, including Gulf States, at $21 billion: $15 billion to Saudi Arabia and $6 billion to Kuwait.

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