Saturday, May 05, 2007
International Iraq conference ends on mixed note
Conference, International
(Arabian Business) - Iraq's Deputy Prime Minister has described a conference dedicated to stabilising and rebuilding his war-torn country as a major success. At the conclusion of the four day conference in Egypt, he called it "a historic day for Iraq," adding: "We go back to Baghdad with a message of hope, reinvigorated and feeling much more confident about the future. However, hopes that Iraq would secure commitments to write-off billions of dollars of debts were not fully realised.
Saudi Arabia said it is still negotiating with Iraq over writing off billions of dollars owed it by the war-torn country, and major creditors Kuwait and Russia failed to offer immediate debt relief. More than 60 countries and international organisations gathered for the conference, and managed to agree a blueprint for the stabilisation of Iraq that they called the International Compact. The agreement sets benchmarks to achieve a stable, united, democratic Iraq within five years. It defines international help for Iraq - including debt relief - but also sets conditions for the Baghdad government, particularly carrying out reforms aimed at giving Iraq's Sunni Arabs a greater role in the political process.
Saudi Arabia said it is still negotiating with Iraq over writing off billions of dollars owed it by the war-torn country, and major creditors Kuwait and Russia failed to offer immediate debt relief. More than 60 countries and international organisations gathered for the conference, and managed to agree a blueprint for the stabilisation of Iraq that they called the International Compact. The agreement sets benchmarks to achieve a stable, united, democratic Iraq within five years. It defines international help for Iraq - including debt relief - but also sets conditions for the Baghdad government, particularly carrying out reforms aimed at giving Iraq's Sunni Arabs a greater role in the political process.
Although the conference ended on a positive note, it also ended with issue of debt relief largely unconcluded. The Paris Club of affluent lender nations has already written off $100 billion of Iraq's debt, but the government still owes other countries over $50 billion; possibly as much as $62 billion. Saudi Arabia was expected to make a formal announcement to wipe out Iraq's debut, but its Foreign Minister Saud Al-Faisal said only that his country was in talks with Iraq "to have an appropriate solution to debts in line with rules of the Paris Club." The Paris Club had pledged to write-off only 80 percent of Iraq's debts.
A lack of accurate records could prove a sticking point in the negotiations. Saudi Arabia is reported by the United Nations as believing the debt to be anything between $15 billion and $18 billion. Throughout the final day of the conference, Arab diplomats underlined their demands that al-Maliki do more to embrace Sunni Arabs, including changing the constitution and ending a purge of former members of Saddam's ousted Baath party. Al-Maliki promised Baghdad would fulfill its side of the bargain, acknowledging "the international compact cannot take its natural path" unless the Iraqis do their part to achieve national reconciliation.
Labels: conference, International Compact with Iraq, Iraq, Paris Club, Sharm el-Sheikh
Thursday, April 26, 2007
U.S. continues to work on Iraq debt relief in run-up to International Compact
International
(KUNA) - The United States will continue to work with other countries on debt relief for Iraq as the International Compact with Iraq prepares to meet next week, State Department deputy spokesman Tom Casey said on Wednesday. The government of Iraq and the United Nations co-chair the International Compact. During a regular State Department briefing, Casey noted that debt relief has been part of the effort to help Iraq move forward since 2004.
"The Paris Club made a decision to ask for 80 percent as a minimum level of debt forgiveness for Iraq among its members, and that is something that a number of countries have already acted upon," Casey said. "But it is certainly an issue that we continue to discuss with many countries in the Paris Club, and certainly something that we do want to see people live up to that Paris Club commitment on."
"The Paris Club made a decision to ask for 80 percent as a minimum level of debt forgiveness for Iraq among its members, and that is something that a number of countries have already acted upon," Casey said. "But it is certainly an issue that we continue to discuss with many countries in the Paris Club, and certainly something that we do want to see people live up to that Paris Club commitment on."
The Saudis have made some announcements in that regard, "and we are very pleased to see that," Casey said. "And we will certainly be continuing to work with other countries as we move closer to next week's compact date, as well as beyond that, to see that they carry out those agreements." The compact is not simply a debt relief agreement, but is designed to provide a variety of different kinds of support "in part in response to the Iraqis' own ability to meet the commitments they have set out for themselves in terms of economic reform," he said.
Labels: debt relief, International Compact with Iraq, Paris Club, U.S.
