Iraqi Debt to Stay

The Abu Dhabi-based Arab Monetary Fund (AMF) does not intend to write off Iraq's debt, according to a report in the Gulf Times.

Iraq's debt to the AMF amounted to USD 420mn at the end of 2003. All the fund plans to do to alleviate Iraq's debt to it is to reduce interest service on the debt but the report does not specify by how much. The debt principal amounts to USD 201.7mn and the rest of the sum owed by Iraq is interest accumulated over the past two decades.

AMF halted its assistance to Iraq and suspended Iraq's membership 10 years ago but it maintained technical assistance for the Arab country.