Beijing is ready to forgive a major part of the estimated $5.8 billion owed to it by Iraq if...
Beijing is ready to forgive a major part of the estimated $5.8 billion owed to it by Iraq if Chinese companies are allowed on major rebuilding projects within the country.
"We are considering reducing and forgiving these debts owed by Iraq to China by a large margin," said Shen Gofang, China's deputy foreign minister. "The task is easier with government debt, but for the corporate debt we need to have the agreement of those companies concerned."
Gofang explained that a large part of the debt owed by Iraq was to Chinese companies and that they would be more willing to forgive or reduce that debt if they could bid on oil, power and infrastructure projects.
"If they can take a greater part in this process they are more than ready to forgive part or all of their debts owed by Iraq," he said.
Iraq has forecast debt forgiveness of some 60 percent of the 120 billion dollars owed after former US secretary of state James Baker visited Baghdad's major creditors to press for waivers.
