Iraq's external debt at $70-120 bil: Treasury official

[Nambe]

WASHINGTON, Sept. 16, Kyodo

Iraq's official external debt is estimated at between $70 billion and $120 billion, a senior U.S. Treasury official said Tuesday.

The United States has said reconstructing Iraq could cost as much as $75 billion, and the estimate is way above the $20 billion set aside in President George W. Bush's emergency spending request for rebuilding Iraq.

John Taylor, Treasury undersecretary for international affairs, provided the figure during testimony at a Senate Banking subcommittee. It is based on an International Monetary Fund survey of creditor nations.

Taylor said the estimate includes $40 billion in debts to the so-called Paris Club of major creditor nations, including the U.S., Japan and major European countries. ---

[madrchsod]

1. now we know why

the europeans won`t join..they want their money or contracts.but bushboys won`t give the either

[jayfish]

2. We Knew This Before The War.

That’s why the whole "oil revenue for reconstruction" line was a sham.
Even at 100% capacity, oil returns won't even pay Iraqs’ debt for years, let alone pay for reconstruction.

Jay

[Paschall]

4. Quite

The whole "oil revenue for reconstruction" theory was discussed widely here in France, and not one talking head I heard speak on the subject thought the idea plausible.

But the American public was perhaps hoodwinked because:
(1) oil is synonomous with unlimited wealth (Isn't that why God made the SUV?)
(2) ShrubCo and the media hid the facts on the actual state of the bomb- and sanction-ravaged Iraqi infrastructure. (Admittedly, the facts have been cloaked for at least a decade; Shrub is not the first offender, just the worst.)

[kalash477]

3. too bad

We may not like it but we still have to pay for reconstruction. It was a situation we shouldnt have gotten ourselves into, nonetheless the usa must pick up the pieces. We cant just get out of there and leave the Iraqi's with a bombed out shell of a country. Bush screwed up and know we have to pay for it. It sucks but there is no other choice.

[leftchick]

5. sure there is another choice...

chimp and co. can admit they fucked up big time, crawl to the UN on hands and knees, appologise profusly to all they offended (which is everyone!) and beg for help cleaning up this mess with no conditions. It is what should happen but wont.....

[ze_dscherman]

6. War reparations

Much, if not most, of that foreign debt is in reparations that Iraq has to pay for Gulf War I, the biggest lump of it going to Kuwait.

As well, Iraq has a lot of debts from the Iraq-Iran war, when Arab countries and the West supported Saddam Hussein to fight the Evil Ayatollah - yes, even arch enemies change.

These war reparations are rarely mentioned when Iraq debt is discussed - it's always the "Paris Club" that is urged to pay for the invasion ...