Hey Iraq doesn’t owe me any money so maybe I am the wrong person to be criticizing the creditors. However the muslims states should have forgiven the debt. Baiscally the arab states stated that they will but after Iraqi-elections. Iwouldn’t be surprised that after elections the same states change their mantra and start saying legitimite elections (knowing that Chacha Allow-me will win hands down) weren’t held.
http://www.msnbc.msn.com/id/6569155/
DUBAI, United Arab Emirates - Arab countries made clear Tuesday they are far from ready to commit to a deal to forgive more than $30 billion owed them by Iraq, despite U.S. pressure and a recent debt-relief package by other major countries.
Kuwait’s refusal to forgive the Iraqi loans was one issue Saddam Hussein used as justification for invading Kuwait in 1990.
Saudi Arabia, which is owed $9 billion, also has not changed its position.
In January, the country told former Secretary of State James A. Baker III during a debt-relief lobbying trip that it was willing to forgive some Iraqi debt — but only after Iraqi elections are held.
Saudi Arabia, Qatar, UAE, Jordan line up.
Saudi Arabia also made participation by Saudi companies in Iraq’s reconstruction a condition of any debt relief.
Iraq owes an additional $19 billion to private Saudi companies and banks, which would not be included in any deal between the two governments.
Iraq owes Qatar $4 billion and the United Arab Emirates $3.8 billion. Both countries have adopted stances similar to Kuwait and Saudi Arabia.
Unlike the Persian Gulf states, the much-smaller and poorer Jordan is unlikely to write off Iraq’s debt, a Jordanian government official said Tuesday on condition of anonymity.
Jordan might allow Iraq to repay the debt in small installments with a long grace period, or exchange the debt for Iraqi investments in Jordan or vice versa. Jordan has a much smaller economy compared to its gulf neighbors, with few natural resources.
Iraq — despite its recent violence — is considered one of the region’s largest untapped markets, and infrastructure and reconstruction contracts are expected to be worth tens of billions of dollars.
Iraq’s debt carries annual servicing charges of $7 billion to $8 billion.