June
22, 2007
Beijing, -- China announced with great
flourish this week that it is forgiving debt owed by
Iraq. But with the Iraqi president set to hold talks
Friday with the Chinese premier, it was still
unclear how much debt has been written off.
No details were given on the debt relief, although
Chinese Foreign Ministry spokesman Qin Gang said
Beijing wanted to cut the debt "by a large margin."
According to Iraq‘s finance minister, Iraq owes
China about $8 billion — part of the roughly $60
billion in foreign debt accumulated during the
Saddam Hussein era.
Such debt relief, though, has gone hand-in-hand with
China‘s global campaign to secure natural resources
to feed its sizzling economy.
The company, also known as PetroChina, began
renegotiating the $1.2 billion contract in October.
The project could be reactivated if Iraq‘s
parliament passes a hotly debated oil law.
AP |
Iraqi President Jalal Talabani, left, walks with
Chinese President Hu Jintao during a welcome
ceremony in Beijing's Tiananmen Square Thursday June
21, 2007 Talabani arrived Wednesday. AP |
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