Identifier
Created
Classification
Origin
05PARIS8603
2005-12-22 11:00:00
CONFIDENTIAL
Embassy Paris
Cable title:  

FRANCE SIGNS 80 PERCENT DEBT REDUCTION AGREEMENT

Tags:  PREL EFIN EAID IZ FR 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L PARIS 008603 

SIPDIS

E.O. 12958: DECL: 12/14/2015
TAGS: PREL EFIN EAID IZ FR
SUBJECT: FRANCE SIGNS 80 PERCENT DEBT REDUCTION AGREEMENT
WITH IRAQ

REF: A. PARIS 8461

B. PARIS 8441

Classified By: Acting Political Counselor Bruce Turner, reasons 1.4 (b)
and (d).

C O N F I D E N T I A L PARIS 008603

SIPDIS

E.O. 12958: DECL: 12/14/2015
TAGS: PREL EFIN EAID IZ FR
SUBJECT: FRANCE SIGNS 80 PERCENT DEBT REDUCTION AGREEMENT
WITH IRAQ

REF: A. PARIS 8461

B. PARIS 8441

Classified By: Acting Political Counselor Bruce Turner, reasons 1.4 (b)
and (d).


1. (U) On December 21, the GoF signed a bilateral debt
reduction agreement with Iraq, in accordance with Paris Club
terms agreed to in November 2004. The agreement offers an 80
percent cancellation of Iraq's debt between 2005 and 2008,
disbursed in three tranches linked to implementation of
Iraq's stand-by agreement with the IMF. According to the
French MFA, the total amount of canceled debt will amount to
some 4 billion euros (one euro equals about 1.20 USD) between
2005 and 2008. The MFA announcement of the agreement
concluded, "While Iraq is entering a crucial phase of its
political transition after the December 15 election of a
National Assembly, France sends a strong signal of its
willingness to contribute substantially to the recovery of
the financial situation of the country and its
reconstruction."


2. (C) Comment: We welcome this positive development, which
French officials have foreshadowed for some time (reftels).
At the same time, GoF efforts to portray the debt agreement
as "new news" suggest a continuation of French efforts to
play up existing assistance/offers to Iraq, while avoiding
the topic of new aid. End comment.
Please visit Paris' Classified Website at:
http://www.state.sgov.gov/p/eur/paris/index.c fm

Stapleton