Some Facts on Iraqi Debt

From the Global Development Finance report;

- In November 2004, the Paris Club agreement with Iraq considered $37 billion in debt, canceling $30 billion (80 percent) and rescheduling the rest.

- Aid to Iraq rose from an average of only $90 million in 2000–2 to $3.2 billion in 2003–4, making it the largest recipient of ODA.

- Commercial Debt Restructuring in Iraq; In October 2005, Iraq concluded a two phase commercial debt restructuring with small creditors holding $35 million or less of debt incurred under Saddam Hussein’s reign. Of about $1.6 billion in eligible claims, it is estimated that 71 percent of creditors accepted the deal and only 8 percent of creditors elected to reject. In January 2006, the government of Iraq completed a debt exchange operation with commercial creditors holding more than $35 million of debt incurred under Saddam Hussein’s reign, swapping about $14 billion in defaulted debt for a new Eurobond issue worth bout $2.7 billion. In accordance with a December 2005 agreement, the holder of each $100 of tendered claims received a new bond with a $20 face value, carrying a coupon of 5.8 percent and amortizing between 2020 and 2028. Some creditors received a floating rate note paying 50 basis points over Libor in lieu of the new bond. Further notes up to an additional $800 million may be issued for other eligible outstanding claims on the same terms.

Pages

Powered by Movable Type 5.02

About this Entry

This page contains a single entry by Paul published on May 31, 2006 1:24 AM.

Redemption from Original Sin was the previous entry in this blog.

The Land of War and Opium is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.