FT.com / Columnists / John Dizard - Iraq's bonds hint at chance of postwar rec... - The Diigo Meta page

• 02 Oct 07
  

  John L. Knight

  economy iraq

  • Since November 2004, when Iraq’s creditors granted it relief of about 80 per cent of the net present value of its prewar debt, I have been optimistic about the long-term prospects for the country’s bonds, even as the military, political, and especially humanitarian situation has worsened. Until 2011, cash debt service is minimal, about $160m annually. After then, principal repayments begin on the country’s official debt.
  • By the end of next year, Iraq’s total external debt should be down to $32bn, or a little over 45 per cent of gross domestic product.
  • The government has high cash balances thanks not only to high oil prices but also to its inability to administer the repair of vital public works, including water and electrical systems.

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