Investors weigh pros and cons of Iraq debt - FT.com

Iraq’s hydrocarbons sector has been slowly turning a corner, supported by investment by international oil companies. Now, investors are turning their attention to the country’s debt.

In 2004, after the US invasion of Iraq and the subsequent toppling of Saddam Hussein, the former president, the Paris Club of 19 western creditors agreed to forgive roughly 80 per cent of the $37.2bn owed to them.

The Paris Club debt deal was used as a template for resolutions with other creditors and prevented the Iraqi government from favouring other countries outside the group.

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