Iraq Pays off $81 M of IMF Debt

Reuters reports that Iraq last week paid off $81 M of its $120 B in foreign debt, opening the way for loan forgiveness and an additional $800 M (I assume through IBRD) to rebuild the wartorn country. This relates back to a previous story where the US wants to forgive up to 90% of the Iraqi debt as well as have the World Bank cover the unpaid portions for all developing nations with unsustainable debt. The UK, on the other hand, has proposed a plan to erase all debt owed to the UK through the World Bank.

There seems to be quite a lot of discussion revolving around the issue of debt in developing countries.