SA writes off 80% of Iraqi debt

2007-05-17 19:13

Cape Town - The Cabinet has agreed to cancel 80% of the Iraqi government's total debt of $160m to the Export Credit Insurance Corporation (ECIC).

Briefing the media on Thursday after the Cabinet's fortnightly meeting on Wednesday, government spokesperson Themba Maseko said it also had been agreed to reschedule the balance of 20% in accordance with the terms of the agreement between the ECIC and Iraq.

"This decision is in line with Paris Club commitment to ease the debt burden of the Iraqi government," he said.

The Cabinet also decided to contribute R1m to Palestine for urgently needed medicines and medical supplies.

Maseko said the Cabinet had noted the widespread humanitarian crisis facing the people of Palestine, particularly women and children.

R1m for medical supplies

"The meeting notes that the World Health Organisation has warned that basic services and essential public health care might be severely disrupted as a result of the freeze on funding to the Palestinian Authority.

"The meeting decided that the South African Government would contribute R1m to Palestine for the purchase of urgently required medicines and other medical supplies.

"We will be considering other forms of assistance with a view to reducing the burden on the Palestinian people," he said.

- SAPA