Contact l Sitemap

home industries issues reasearch weblog press

Home  » Industries » War & Disaster Profiteering

Iraq: Facing $310 Billion Debt Crisis


Nick Mathiason


Observer (London)
March 28th, 2004

Iraq is heading for economic meltdown under the weight of its $ 310 billion international debt and reparations bill.

Attempts by the International Monetary Fund to reduce it are insufficient and will block Iraq's long-term reconstruction. Financial meltdown could come despite increased oil revenues.

The stark warning comes from Jubilee Iraq, an offshoot of the Jubilee Debt Campaign. It says Iraq owes $ 135bn in loans dating back to its war against Iran in the 1980s. The country owes another $ 175bn in reparation payments for damage inflicted on neighbouring countries during its 1990 invasion of Kuwait.

'Even with the best deal rich countries are likely to offer Iraq, its debt will still exceed the country's health and education budget and will devastate a country that is desperately poor and in danger of civil war,' said Justin Alexander of Jubilee Iraq. 'Quite apart from the injustice of requiring Iraqis to pay debts incurred by Saddam it is economically crazy to expect the repayment of so much because it will send the country into a tailspin.'

The IMF is due to publish a debt plan for Iraq next month. It is expected to demand widescale privatisation of Iraq's energy industry and public services in return for write-offs.




This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.