Posted on 11/05/2005 7:04:15 PM PST by nypokerface
TOKYO (Reuters) - Japan has agreed to write off 80 percent of debts owed to it by Iraq, paving the way for the resumption of Japanese financial aid and helping speed up Iraq's negotiations with other creditor nations, Kyodo reported.
The write off covers 690 billion yen, or about 80 percent of the $7.3 billion Iraq owes to Japan, Kyodo said in the late Saturday report, citing unnamed government sources.
A formal agreement is expected by the end of the year, opening the way for Japan to resume loans of up to $3.5 billion to help in Iraq's reconstruction.
The deal comes follows an agreement last November by the Paris Club of 19 creditor nations to write off Iraq's foreign debts.
As Japan is the largest creditor in the Paris Club, the agreement is likely to smooth Iraq's negotiations with other creditor nations, Kyodo quoted the sources as saying.
The Japanese have earned our gratitude. They have remained steadfast allies under pressure. They look at China, and they, like India, know who to ally themselves with.
Give Japan first dibs on oil exports from Iraq once it starts flowing. I remember Japan was the biggest economic contributor in the first gulf war... brand new Toyota Land Cruisers were everywhere!
I starting to like those Jabs. I never thought it would happen, but they ought to apologize for Pearl Harbor, the Bataan death march and the comfort girls.
I believe 80% of the debt is interest accrued when Iraq stopped payments during the first Gulf war. Being that Japan gets all their principal back they fared pretty well as far as bankruptcy cases go. Really creditors should consider themselves lucky they get anything, much less all their original money back.
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