AP Wire | Iraq May Be Relieved of 80 Percent of Debt

AP Wire | Iraq May Be Relieved of 80 Percent of Debt: "PARIS - The Paris Club of creditor nations on Saturday was debating a plan to write off as much as 80 percent of the debts Iraq owes them, a key step in the United States' push to ease the financial burden on the nation as it tries to rebuild.
U.S. Treasury Secretary John Snow and German Finance Minister Hans Eichel sealed the agreement, Eichel said earlier Saturday, adding that he expected the Paris Club would approve the deal.
Iraq owes around $42 billion to the members of the Paris Club, a grouping of 19 countries including the United States, Japan, Russia and European nations.
An agreement by the Paris Club to forgive its Iraqi debt would be a significant step toward freeing the country from paying interest on the money owed just as it struggles to put its economy back on its feet.
Still, Iraq owes another $80 billion to various Arab governments."