Debt: The Whole Enchilada - Updated 3/13/06

[Lux]

There seems to be some confusion about how much Iraq owes. Here's a summary.

There are really FOUR major groups of Iraqi Debt. I've excluded Trade Debt in the past but will include it here.

I. Paris Club Debt Debt stood at $38B+ and now stands at $27B after the 1st phase of debt reduction. Paris Club debt reduction tied into an IMF program:

30% ($11.1B) was reduced immediately and unconditionally in 2004.
Another 30% will be reduced once the plan is approved (pending).
The remainining 20% will be reduced once the IMF is satisfied that Iraq has implemented that program (around 2008).You can read all about the Paris Club on their site: Paris Club (http://www.clubdeparis.org/en/presentation/presentation.php?BATCH=B01WP01)

Here is the list of Paris Club Members (http://www.clubdeparis.org/en/presentation/presentation.php?BATCH=B01WP03):

AUSTRIA
AUSTRALIA
BELGIUM
CANADA
DENMARK
FINLAND
FRANCE
GERMANY
IRELAND
ITALY
JAPAN
NETHERLANDS
NORWAY
RUSSIAN FEDERATION
SPAIN
SWEDEN
SWITZERLAND
UNITED KINGDOM
UNITED STATES OF AMERICA

II. Other Sovereign Nations
At this point, there is about $65-81B in debt that has not been treated yet, meaning that those countries have not decided if they are going to reduce or write off that debt. Some of it is being disputed and is part of negotiations - see section 2 (http://www.jubileeiraq.org/debt_today.htm)

III. Trade
Iraq present has $11B trade debt, which I'm not sure if it's presently being dealt with

IV. Reparations
As discussed in other threads, this has been determined to be $33B.

In a nutshell, these are claims processed through the United Nations Compensation Committee (UNCC) that was established to determine what Iraq owed to countries, companies, and individuals for all the hell Saddam caused throughout the world.

This link (http://www.jubileeiraq.org/reperations.htm) has not been updated to reflect the $366M that represents the final processing stage

Current Tally

$27B - Paris Club [edit: will be reduced to $8B at the end of IMF program]
$65-81 - Other Sovereign Nations
$11B - Trade
$33B - Reparations
$136-152B Total Debt

Including Trade Debt, this could be reduced to $65B, if Iraq complies with the IMF program and Other Sovereigns give them comparable treatment.


:cool:
Lux

[F355]

SL, another highly detailed organized post! :huge:



as usual! :huge:

[buck74]

Thank you for this post, it really helps break it down for us laymen (and laywomen).

[swartzfeger]

Lux, awesome post -- this is what IIF is all about!

[Lux]

Glad to be of some help.

Here's a nice capsule about Iraq's debts with plenty of references that you can Google.

http://www.fas.org/sgp/crs/mideast/RS21765.pdf (http://www.fas.org/sgp/crs/mideast/RS21765.pdf)

[LakewayDaze!]

I do appreciate your time in putting all this together SportsLux. This is a huge part of the puzzle. It appears to me that they are getting it done. This is good!! :)

[Lux]

I posted in the Economy Forum

http://www.investorsiraq.com/showthread.php?p=75312#post75312

[krachon]

Thank you Sportslux. If 65 billion in debt will remain, then what does this translate to in NID opening value? Anyone!!! :wave:

[Lux]

Update from first post above: http://www.investorsiraq.com/iraqi-debt/6917-debt-whole-enchilada.html

I. Paris Club Debt Debt stood at $38B+ and now stands at $27B after the 1st phase of debt reduction. Paris Club debt reduction tied into an IMF program:
30% ($11.1B) was reduced immediately and unconditionally in 2004.
Another 30% will be reduced once the plan is approved (pending).
Update 1/15/06 - triggered by SBA - reduces debt by another $11.1B
The remainining 20% ($8.0B) will be reduced once the IMF is satisfied that Iraq has implemented that program (around 2008).You can read all about the Paris Club on their site: Paris Club (http://www.clubdeparis.org/en/presentation/presentation.php?BATCH=B01WP01)

Here is the list of Paris Club Members (http://www.clubdeparis.org/en/presentation/presentation.php?BATCH=B01WP03):

AUSTRIA
AUSTRALIA
BELGIUM
CANADA
DENMARK
FINLAND
FRANCE
GERMANY
IRELAND
ITALY
JAPAN
NETHERLANDS
NORWAY
RUSSIAN FEDERATION
SPAIN
SWEDEN
SWITZERLAND
UNITED KINGDOM
UNITED STATES OF AMERICA

II. Other Sovereign Nations
At this point, there is about $65-81B in debt that has not been treated yet, meaning that those countries have not decided if they are going to reduce or write off that debt. Some of it is being disputed and is part of negotiations - see section 2 (http://www.jubileeiraq.org/debt_today.htm)

III. Trade
Iraq present has $11B trade debt - Update 1/15/06: Debt Swap Announced (http://www.investorsiraq.com/iraqi-debt/13177-iraq-announces-successful-conclusion-debt-debt.html)

IV. Reparations
As discussed in other threads, this has been determined to be $33B.


Current Tally
updated 1/15/05
$16.0B - Paris Club [will be reduced to $8B at the end of IMF program]
$65.0B - Other Sovereign Nations [may be as high as $81.0B]
$00.0B - Trade [see swap (http://www.investorsiraq.com/iraqi-debt/13177-iraq-announces-successful-conclusion-debt-debt.html)]
$33.0B - Reparations
$114B - $130B Total Debt
$44.0B reduced to date
This could be reduced to $54B, if Iraq complies with the IMF program and Other Sovereigns give them comparable treatment. Best case scenario is special treatment to Reparations which could reduce debt consiberably further (below $30B in total).

:wave:
Lux

[lonelyintexas]

Sportslux,
thanks for all the hard work and the info. I hope the last 4 or 5 countries to hold out will deal out their debt and we can get on with the business at hand.

[ksdunlap]

thanks for the informative post SportsLux

[imwright1]

I think that this is great news, but has anyone heard an dates on the rv of the dinars

[goldraker]

Good job SportsLux. We are headed in the right direction!

[Lux]

Glad I can help

:wave:

"We are in the final leg," Finance Minister Ali Allawi told Reuters by telephone from Baghdad.
"I am positive that the talks will be a success and these countries will help us extinguish the debt, which was mostly direct transfers to the Iraqi Central Bank to finance the war with Iran."

The debt is mostly owed to Saudi Arabia and Kuwait. It is a hugely emotive issue in Iraq, which regards its war with Iran as having saved U.S.-backed Gulf regimes from an expansion of Iranian influence after the 1979 Islamic Revolution.

http://www.investorsiraq.com/iraqi-debt/14160-major-debt-news.html

[DarkRing]

With Iraq $114B - $130B Total Debt. Gee at that amount ours dinars will never take off.


:crying:

[Lux]

Signed bilateral aggreement:

Austria
Belgium
Canada
Denmark
Finland
France
Germany
Italy
Japan
Korea
Netherlands
Spain
Switzerland
United States
The other countries comprising the Paris Club creditors of Iraq are

Australia
Russia
Sweden
United Kingdom
Bilateral agreements between Iraq and each of these countries are expected to be announced in the coming weeks.

http://www.portaliraq.com/news/Korea+cancels+80+percent+f+its+Iraqi+debt__1111835 .html (http://www.portaliraq.com/news/Korea+cancels+80+percent+of+its+Iraqi+debt__111183 5.html)

:wave:

[Tenndinar]

Signed bilateral aggreement:

Austria
Belgium
Canada
Denmark
Finland
France
Germany
Italy
Japan
Korea
Netherlands
Spain
Switzerland
United States
The other countries comprising the Paris Club creditors of Iraq are

Australia
Russia
Sweden
United KingdomBilateral agreements between Iraq and each of these countries are expected to be announced in the coming weeks.

http://www.portaliraq.com/news/Korea+cancels+80+percent+f+its+Iraqi+debt__1111835 .html (http://www.portaliraq.com/news/Korea+cancels+80+percent+of+its+Iraqi+debt__111183 5.html)

:wave:

I think Sweden has been done already Lux....

[Waianae]

Iraq owes Sweden $338 million of which $270
million will be forgiven under the Paris Club Agreement...

http://www.state.gov/documents/organization/63086.pdf

A little help from their friends and with this site:

http://siteresources.worldbank.org/IRFFI/Resources/IraqCEM-finalComplete.pdf

go to page #25, the non-Paris Club countries have lots of debt load, seemingly, many are coming forward, even Korea!

Wow, you get a sense that we may see something in March-April 2006 :happy64:

Maybe even a :eek: "peg!" :drunk:

[Lux]

Well this part is still a big chunk of change but I am confident that we will see a significant part of this reduced this year.


II. Other Sovereign Nations
At this point, there is about $65-81B in debt that has not been treated yet, meaning that those countries have not decided if they are going to reduce or write off that debt. Some of it is being disputed and is part of negotiations - see section 2 (http://www.jubileeiraq.org/debt_today.htm)
Besides, Ali Allawi said we are on the final leg:

http://www.investorsiraq.com/iraqi-debt/14160-major-debt-news.html

[Lux]

I. Paris Club Debt Debt stood at $38B+ and now stands at $27B after the 1st phase of debt reduction. Paris Club debt reduction tied into an IMF program:
30% ($11.1B) was reduced immediately and unconditionally in 2004.
Another 30% will be reduced once the plan is approved (pending).
Update 1/15/06 - triggered by SBA - reduces debt by another $11.1B
The remainining 20% ($8.0B) will be reduced once the IMF is satisfied that Iraq has implemented that program (around 2008).You can read all about the Paris Club on their site: Paris Club (http://www.clubdeparis.org/en/presentation/presentation.php?BATCH=B01WP01)

Here is the list of Paris Club Members (http://www.clubdeparis.org/en/presentation/presentation.php?BATCH=B01WP03):

Updated 3/13/06:
Signed bilateral aggreement:
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Italy
Japan
Korea
Netherlands
Spain
Switzerland
United States
The other countries comprising the Paris Club creditors of Iraq are
Australia
Russia
Sweden
United KingdomBilateral agreements between Iraq and each of these countries are expected to be announced in the coming weeks.

II. Other Sovereign Nations
At this point, there is about $65-81B in debt that has not been treated yet, meaning that those countries have not decided if they are going to reduce or write off that debt. Some of it is being disputed and is part of negotiations - see section 2 (http://www.jubileeiraq.org/debt_today.htm)

III. Trade
Iraq present has $11B trade debt - Update 1/15/06: Debt Swap Announced (http://www.investorsiraq.com/iraqi-debt/13177-iraq-announces-successful-conclusion-debt-debt.html)

IV. Reparations
As discussed in other threads, this has been determined to be $33B.


Current Tally
updated 1/15/06
$16.0B - Paris Club [will be reduced to $8B at the end of IMF program]
$65.0B - Other Sovereign Nations [may be as high as $81.0B]
$00.0B - Trade [see swap (http://www.investorsiraq.com/iraqi-debt/13177-iraq-announces-successful-conclusion-debt-debt.html)]
$33.0B - Reparations
$114B - $130B Total Debt
$44.0B reduced to date
This could be reduced to $54B (if Iraq complies with the IMF program and Other Sovereigns give them comparable treatment).

Best case scenario: special treatment to Reparations which could reduce debt consiberably further (below $30B in total).

:wave:
Lux

[areweryt]

Thanks Lux for the information. It really helps to understand the big picture.:happy64:

[AAD]

Flashback thread:

Wow, thanks for all that dept info Lux...:wave: