France and Germany and other nations who benfitted from the oil-for-food program cry themselves to sleep every night because the gig is up. Their sugar daddy Saddam is in jail. To show their appreciation for what Iraq and the US coalition have accomplished in freedom without their help, they want to be reimbursed for what Saddam "owes" them, rather than give the Iraqis a break! High irony at work here.
Considering how much some of these "allies" stole from Iraq I'd call it more of payback then debt relief.
Question for any economists/currency traders/hedge funders out there:
Anyone want to hazard a guess on the true value of the Iraqi Dinar (ID), pro forma for an 80% debt reduction as outlined in the story? Current rate is 1460 ID to 1 USD.
I always appreciate the economic analysis of various topics here on FR, and would love to be able to look back on these guesses years from now and see who was closest to the mark.
They can either write off 80% and collect the remaining 20% or have the Iraqis claim onerous debt and write off 100%. Especially as the OFF becomes more public. They are being given an opportunity to salvage a little pride (and 20%), if they're too stupid to take us up on it, so be it.
Obviously, we are just "going it alone" again.