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Japan to cut most Iraqi debt
29/12/2003 15:44 - (SA)
Tokyo - Japan is willing to forgive the "vast majority" of its Iraqi debt if other Paris Club creditor nations do the same, the foreign ministry said in a statement during a visit by US envoy James A Baker.
Iraq owes Japan US$4.1bn, but that number reaches an estimated US$7.76bn when late penalty fees are included.
The United States has been encouraging creditors to help Iraq by relieving part of its crushing debt.
Baker, who has already won agreements on Iraqi debt relief from several European nations, met early on Monday with Japanese Prime Minister Junichiro Koizumi amid reports that Tokyo was considering some relief.
"Japan would be prepared to eliminate the vast majority of its Iraqi debt if other Paris Club creditors were prepared to do so in the context of a Paris Club agreement," said a statement by the foreign ministry after the meeting.
The statement did not specify an amount, nor did it say whether the "majority" referred to the principal amount owed to it by Iraq or the total debt.
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