Japan has agreed in principle to write off 690 billion, yen or 80 percent, of Iraq's $7.3 billion debts to Tokyo, and the rest will be repaid over 23 years with a six-year deferment, government sources said Saturday.
The agreement paves the way for the resumption of Japanese government loans of up to $3.5 billion to help with the reconstruction in Iraq. The two sides are expected to conclude a formal agreement on the debt relief by the end of the year, the sources said.
The deal came after several working-level meetings following an agreement in November 2004 by the Paris Club of 19 creditor nations to write off Iraq's foreign debts.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.