Donors Promise Iraq $33 Billion, Smashing Expectations

Reuters - Yahoo ^ | Oct. 24, 2003 | David Chance and Mona Megalli

[Ragtime Cowgirl]

Donors Promise Iraq $33 Billion, Smashing Expectations

30 minutes ago

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By David Chance and Mona Megalli

MADRID (Reuters) - International donors pledged at least $33 billion in aid and loans over the next four years to help rebuild war-ravaged Iraq (news - web sites) on Friday as the response to a U.S.-led drive for funds far outstripped expectations.

Reuters Photo

Latest headlines:

·	Global Donors Pledge $33 Billion for Iraq AP - 21 minutes ago

·	List of Largest Contributions for Iraq AP - 22 minutes ago

·	Donors Promise Iraq $33 Billion, Smashing Expectations Reuters - 30 minutes ago

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Spanish Economy Minister Rodrigo Rato said the combined offer -- made at a gathering of more than 70 nations in Madrid -- was equivalent to twice Iraq's annual national income and was a global vote of confidence in the country's future.

"If you take the American contribution which is hopefully totally a grant, then we have at least $33 billion, of which $25 billion is grants," said Marek Belka, a former Polish finance minister who is spearheading the fund raising efforts of the U.S.-led Coalition Provisional Authority.

"All in all we are overwhelmed, we are very happy, it surpasses all expectations," Belka told Reuters.

He said the figure took the lowest likely contribution from the International Monetary Fund (news - web sites) and World Bank (news - web sites) and excluded trade finance and grants in kind.

The highest estimate for pledges from non-U.S. donors came from the Iraqis themselves. Planning Minister Mahdi Hafez told reporters they had matched Washington's promise of $20 billion.

That is on top of $20 billion promised by Washington and is far in excess of what had been expected a few weeks ago, when political divisions threatened the existence of the meeting.

"A little over six months ago Iraq was the black sheep of the international community," Iraq Governing Council President Iyad Allawi told a news conference. "Today I am again proud to be Iraqi."

VIOLENCE CLOUDS OPTIMISM

But elation was clouded by the treacherous security situation in Iraq, from where aid agencies and international organizations have pulled out or cut staffing to a minimum.

Two U.S. soldiers were killed in a mortar attack on Friday, bringing to 108 the number of U.S. soldiers killed in Iraq since Washington declared major combat operations over.

"Security is not going to be a permanent hindrance to reconstruction," Secretary of State Colin Powell (news - web sites) said. "It is making it a little harder now but...it will improve."

EU External Affairs Commissioner Chris Patten cautioned that past experience had shown there was often a huge lag between promises and delivery of aid. "We need to get the money out of the bank and into Iraq as quickly as possible," he said.

The aid conference had struggled against skepticism from critics of the war. Indeed, international fault lines that were opened by the conflict were still apparent in Madrid, with France, Germany and Russia bringing no new aid.

The $33 billion falls short of the $56 billion the World Bank and United Nations (news - web sites) have said is needed over four years to rebuild an economy torn apart by war and sanctions, but future oil revenues, foreign direct investment and a refund on the oil-for-food program could narrow the gap.

JAPAN PLEDGES MORE

Pledges from governments and agencies came in a confusing mixture, including humanitarian and reconstruction aid, export credits and project finance, and covered up to five years.

The World Bank said it would make between $3-5 billion available up to 2008, while the IMF promised support of up to $4.25 billion over three years.

Japan made the largest offer after the United States, pledging a further $3.5 billion in medium-term loans to bring its total promised aid to $5 billion.

Saudi Arabia announced a $1 billion financing package and promised to look at reducing Iraq's debt burden, estimated at $120 billion, within a wider framework of debt forgiveness.

A State Department official said Washington had wanted as much of the assistance to be in the form of grants, rather than loans, but declined to criticize any of the countries -- like Saudi Arabia -- that chose to offer loans.

"Obviously we would prefer the maximum amount in grants, but every country has to make (the) decision of what it can afford," he said.

The EU said its combined aid for Iraq in 2004 had risen to some 700 million euros ($826 million), overtaking its contribution to Afghanistan (news - web sites) last year.

Total pledges from the EU budget and member states from now until 2007 stand at 1.3 billion euros.

Iraq received a wide-ranging offer of help from former enemy Iran, against which Saddam fought a war between 1980 and 1988.

Tehran promised a credit facility of up to $300 million, offered cross-border electricity and gas supplies and said it would let Iraq export oil through Iranian terminals.

Pledges piled up from poorer nations too, with Vietnam offering $500,000 worth of rice and Sri Lanka 100 tons of tea. (Additional reporting by Jonathan Wright, Daniel Trotta and Emma Ross-Thomas) ($1=.8479 Euros)

[Ragtime Cowgirl]

 Thanks, Tonkin!

[mewzilla]

Wow, thanks for the thread! We sure as heck won't hear much, if anything, about this in the lamestream media!

[Ragtime Cowgirl]

"A little over six months ago Iraq was the black sheep of the international community," Iraq Governing Council President Iyad Allawi told a news conference. "Today I am again proud to be Iraqi."

~~~
NON-UN-ilateral, ping!
~~~

If you want on or off my Pro-Coalition ping list, please Freepmail me. Warning: it is a high volume ping list on good days. (Most days are good days).

[RonF]

Big farking deal. Call me when the checks actually start arriving. There's been lots of promises made for funding Afghanistan, too, but when it comes to actually releasing money, things have been a lot different.

[facedown]

The $33 billion falls short of the $56 billion the World Bank and United Nations (news - web sites) have said is needed over four years...

This is what's being touted in all the lamestream media.

[1Old Pro]

Wow, thanks for the thread! We sure as heck won't hear much, if anything, about this in the lamestream media!

Nope, their headlines will be "FRANCE AND GERMANY REFUSE TO SPEND ON ILLEGAL IRAQ WAR, MORE SOLDIERS KILLED"

[RonF]

Tehran promised a credit facility of up to $300 million, offered cross-border electricity and gas supplies and said it would let Iraq export oil through Iranian terminals.

Tehran said, "We won't give them a dime, but we'll let them borrow themselves into one Hell of a hole. That should give us some leverage on them. What? Those verses in the Qu'ran about not lending money at interest? Ah, that Allah, what a kidder!"

[babaloo]

I have a feeling that as progress is made in rebuilding Iraq more "investments" will be forthcoming.

[Oldeconomybuyer]

Note alternate spin below:

US Wins Commitments for at Least $13 Billion in Aid for Iraq
New York Times - 24 minutes ago
MADRID, Oct. 24 The United States, completing an extraordinary campaign
for economic aid to a nation invaded by American forces ...
 

New pledges top $14 billion for Iraq
CNN - 41 minutes ago
(CNN) -- Japan, Kuwait and other countries at a donors' conference for Iraq pledged
a total of $14 billion to $19 billion in grants and loans Friday to help in ...
 

Iraq aid pledges 'to reach $18bn'
BBC News, UK - 3 hours ago
A summit of international donors has reportedly raised pledges for the reconstruction
of Iraq totalling around $18bn, on top of $20bn promised by the United ...
 

Pledges to Rebuild Iraq Total $33 Billion
Guardian, UK - 3 hours ago
By DANIEL WOOLLS. MADRID, Spain (AP) - An international donors conference
for Iraqi reconstruction ended Friday with pledges totaling ...
 

Donors promise $40 bln for Iraq
Reuters, UK - 3 hours ago
By David Chance and Mona Megalli. MADRID (Reuters) - International
donors have pledged around $40 billion (24 billion pounds) in ...

[dead]

International donors pledged at least $33 billion in aid and loans over the next four years to help rebuild war-ravaged Iraq

The very liberal press of Australia was a little premature in writing their obituary for this fundraising effort:

Cautious world donors fail to heed appeal from Iraq

The US hoped for big contributions on the last day of a donors conference for Iraq yesterday, amid fears the meeting would not garner anything near the $US36 billion needed for the next three years…

They can not supress their desire to see thousands more dead Iraqis, just to prove our “cowboy” president wrong. Typical of "compassionate" leftists.

[Naspino]

Great post.

[1rudeboy]

But, but, ABC radio was reporting that the total figure was disappointing, and that the Bush administration wanted more.

[Coop]

The US hoped for big contributions on the last day of a donors conference for Iraq yesterday, amid fears the meeting would not garner anything near the $US36 billion needed for the next three years…

The total estimated for reconstruction of Iraq is about $56 billion. The U.S. has already pledged $20 billion, thereby leaving $36 billion remaining. So when we see reports of 33-40$ billion pledged, that includes our $20 billion. The rest of the countries have come up with $13-20 bil.

[JimVT]

Posted by the_greatest_country_ever On 10/24/2003 3:35 PM EDT

Yahoo News/AP | October 24,2003 Global Donors Pledge $33 Billion for Iraq; Miscreant "Weasels" Shamelessly Withold Pledge MADRID, Spain - International donors Friday pledged more than $33 billion for Iraq (news - web sites)'s reconstruction in the next four years — nearly two-thirds of it from the United States. The figure was short of the estimated $56 billion needed to rebuild the country.M/u> Spanish Foreign Minister Ana Palacio called the two-day conference "a great success," despite concerns in some quarters that much of the pledges are in the form of loans to a country already burdened with an estimated $120 billion in debt run...

Posted by Ragtime Cowgirl

On 10/24/2003 3:23 PM EDT with 10 comments

Reuters - Yahoo ^ | Oct. 24, 2003 | David Chance and Mona Megalli Donors Promise Iraq $33 Billion, Smashing Expectations 30 minutes ago Add World - Reuters to My Yahoo! By David Chance and Mona Megalli MADRID (Reuters) - International donors pledged at least $33 billion in aid and loans over the next four years to help rebuild war-ravaged Iraq (news - web sites) on Friday as the response to a U.S.-led drive for funds far outstripped expectations. Reuters Photo Latest headlines: · Global Donors Pledge $33 Billion for Iraq AP - 21 minutes ago · List of Largest Contributions for Iraq AP - 22 minutes ago · Donors Promise Iraq $33...

Note.....so who's got the right info here????

[.cnI redruM]

So, sight unseen, these countries have pledged $13-$14 billion. Consider the following:

1) There is no Iraqui Constitution.
2) The new Iraqui Gov. has yet to hold elections.
3) We still have to garrison Iraq with over 100K troops.

Under these three conditions, response was widespread. We can and should reward these decent and gracious allies.

[dead]

That is the UN estimate, and they are not exactly models of fiscal competence.

Besides, even if that number is correct, there is no reason all of that $56 billion has to come from government loans and grants. Private industry will spot opportunities for profit and begin investing.

Plus, if I remember the anti-war chants correctly, I think Iraq has a natural commodity that is of some value.

This money will get the ball rolling very nicely. It's a shame that we (as always) have to come up with the lion's share, but some other nation's have been fairly generous as well, like Japan.

And Iraq is getting that 100 tons of free Sri Lankan tea, so they have that going for them, which is nice.

[Wicket]

I listed to NPR last nite - I know, bad mistake - their spin (what a surprise) was how disappointing the response was to the request for funding and (now we're all surprise here, I'm sure) the US will still have to pay the majority of the cost.

Anybody else listen to Hugh Hewett yesterday? He had an individual on who I think was a military historian. Very, very good program about how disproportionately negative the media coverage has been, and how badly some want us to fail in Iraq, regardless of the consequences.

[blackie]

NON-UN-ilateral ~ Big Bucks ~ Bump!

[Coop]

Agreed. I didn't mean to imply I found the total to be negative. $13-20 billion is a lot of money! I just wanted folks to be clear where the numbers stood. There are a lot of them flying around concerning this conference.

[zencat]

Just last week I heard on NPR (look, I was traveling and don't have XM radio yet) that chances were there would be no additional donations beyond Japan's $1.5 billion and the EU's $233 million.