§ Mr. TynanTo ask the Chancellor of the Exchequer what recent discussions he has had(a) as part of the Paris Club, (b) with Gulf states and (c) with other states regarding the cancellation, reduction and rescheduling of Iraq's sovereign debt. [147530]
§ John HealeyThe UK believes that Iraq's external debt is unsustainable and that creditors will need to agree a significant reduction through a clear multilateral process in order to restore Iraq to sustainability. This is likely to lead to the writing off the vast majority of Iraq's external debt. The UK would like to see this agreed by creditors before the end of 2004.
The UK welcomed the success of the US Presidential Envoy, James A. Baker III, in creating a G7 consensus on the need for substantial debt reduction for Iraq in the Paris Club during 2004.
The UK frequently discusses Iraq's debt problems with international partners and with international financial institutions, including discussions in the Paris Club, with the aim of broadening and deepening the emerging international consensus.