He said the 80 per cent write-off was a 'benchmark' for Iraq as it opens bilateral talks with non-Paris Club creditors Saudi Arabia, Kuwait and Eastern European states on debt accumulated by the Saddam Hussein regime.
The Paris Club's 19 members include the Group of Seven leading industrial countries, other Western European states, Russia and Australia. Iraq's economy is expected to expand by 40 percent to 50 percent this year versus last year, while double-digit growth is forecast for next year despite costs to maintain security, said Alan Larson, US under secretary for economics, business and agricultural affairs at the State Department.
"Notwithstanding the costs of security and support for the Iraqi national guard, the economy is working through that and recovering," said Alan Larson, US under secretary for economics, business and agricultural affairs at the State Department.
Larson said discussions in Washington centered on ways to bolster private sector development, job creation, development of Iraq's agricultural sector and a legal and regulatory framework for the oil sector. The US would also provide technical assistance to develop a framework to attract private sector and multilateral sources of mortgage finance for a government housing program, Larson said.
Larson said it was important for Iraq to be part of a thriving regional economy that included economic partnerships with its neighbors. "I think it is going to be natural for Iraq to expand trade with all of its neighbours," Larson said. He said Iraq had from early on become an observer of the World Trade Organisation, which agreed to begin talks with Iraq on becoming a member. -Reuters
Source: TradeArabia
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