Head of World Bank calls on rich nations to forgive two-thirds of Iraq's debt

Associated Press ^ | 10-29-03 | MARTIN CRUTSINGER, AP Economics Writer

[Oldeconomybuyer]

WASHINGTON (AP) -- The United States and other rich nations should forgive at least two-thirds of Iraq's massive foreign debt in order to give the country a chance at economic recovery, World Bank President James Wolfensohn said Wednesday.

In an appearance at the National Press Club, Wolfensohn predicted "quite a lot of arm twisting" on the issue of debt forgiveness over the next year among rich countries that are owed an estimated $120 billion by Iraq.

[Rodney King]

I say the new Iraqi government declare all debts made my Saddam null and void, as they were financings for criminal behavior.

[vbmoneyspender]

Wolfensohn said Iraq owed roughly $40 billion to the United States, France, Germany, Japan, Russia and other countries who are among 19 nations belonging to the Paris Club, an umbrella organization that conducts debt negotiations.

I would like to see Wolfensohn's source for his contention that Iraq owes the United States monies. I believe we were pretty good about not loaning any money to Iraq while Hussein was in power.

[Oldeconomybuyer]

I suspect most of the wallpaper is held by Russia, France and Germany.

[Just mythoughts]

At least we don't know about any loans but who knows what maddie albright and bjclinton did under that "oil for food" program that so few were getting rich off of.

[Cobra64]

What is the definition of a "rich" nation? What is the definition of "tax-cuts for the rich"? We are in debt; does that make us "rich"? I have a mortgage; does that make me rich when I have two kids to put through college and pay 46% of my INCOME to taxing authorities.

I'm totally fed (no pun intended) up with people who confuse a personal income statement with a balance sheet. And I'm not even a CPA and I understand the difference.

My wife and I were bringing in a substantial income, but we are not "rich."

Why don't others stop breeding like fruit flies and be responsible in husbanding their financial resources for their future?

My wife earned close to 6 figures before Chevron/Texaco laid her off last year after 36 years with Texaco. She's still driving a 1996 Subaru Forester with over 100k on the dial. We think we need to be accountable and responsible for our own destiny in life and point our children in the right direction. Are we "rich"?

Nope

Then again, wifey is from MN, and I'm from CO. No coasties in our family. Except the kids who are paying 90% of their paychecks living in Berkeley, CA. They're getting a wake-up call... /rant.

[ChicagoHebrew]

You're wrong... we loaned Hussein massive amounts of money in the mid-80s, when he was fighting Iran.

[waterstraat]

Ummm, isnt Iraq one of the richest countries in the world? How much oil do they have?

[waterstraat]

What is the definition of a "rich" nation? What is the definition of "tax-cuts for the rich"? We are in debt; does that make us "rich"?

Exactly. We are not only in debt, but the United States cant even pay its current bills, we are running a deficit of half a trillion dollars this year, with no hope in sight of seeing a budget surplus in the years to come.

[vbmoneyspender]

You're wrong. Site me one credible source that shows we loaned them monies during the 80's when they were fighting Iran. FYI, the only support we gave them during the 1980s was tactical information in the form of satellite photos showing where the Iranians were massing for attacks.

[colorado tanker]

I imagine he threw the U.S. into the mix to soften the blow on the others. Everybody knows France, Germany and Russia are in line to take the hit on this. Payback's a b!tch, Jacques.

[vbmoneyspender]

Here is a link for you Iraq Foreign Debt.