Some Facts on Iraqi Debt
By Paul
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.