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Cyprus cancels 100 % of claims against Iraq
2006-09-28 11:51:13

Newswires, Sep. 25 -- The Government of Iraq announced that it has reached a bilateral agreement with the Republic of Cyprus canceling 100% of Cyprus?s claims against Iraq, which amount to approximately $100 million.

Cyprus is the fourth of Iraq's bilateral creditors to cancel its claims entirely and thereby go beyond the 80% forgiveness level agreed by the Paris Club in November 2004. Previously, the United States, Malta and Slovakia have similarly cancelled 100% of their respective Iraqi claims.

"The agreement with Cyprus today reflects the widespread support that Iraq is receiving from the international community in its debt restructuring efforts. Iraq is grateful for Cyprus?s generosity and assistance in the process of restoring Iraq's economy to stability and prosperity," Iraq's Minister of Finance Baker Jabr Al-Zubaidy said.

Cyprus? Minister of Finance Michael Sarris stated that he was pleased that Cyprus could help contribute to the reconstruction of Iraq and that Cyprus was prepared to support ongoing development efforts.

Iraq is in the final stages of the restructuring of all claims resulting from the Saddam Hussein era held by both bilateral and commercial creditors.

On November 21, 2004, Iraq reached an agreement in principle with its bilateral creditors comprising the Paris Club. Cyprus marks the 50th country with which bilateral debt relations have been resolved, including 33 government creditors that are not members of the Paris Club.

The total amount of claims against Iraq held by both bilateral and commercial entities has been estimated at more than U.S. $140 billion.

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