SINGAPORE, September 25 /PRNewswire/ --

The Government of Iraq today announced that it has reached a bilateralagreement with the Republic of Cyprus canceling 100% of Cyprus's claimsagainst Iraq.

Cyprus is the fourth of Iraq's bilateral creditors to cancel its claimsentirely and thereby go beyond the 80% forgiveness level agreed by the ParisClub in November 2004. Previously, the United States, Malta and Slovakia havesimilarly cancelled 100% of their respective Iraqi claims.

"The agreement with Cyprus today reflects the widespread support thatIraq is receiving from the international community in its debt restructuringefforts. Iraq is grateful for Cyprus's generosity and assistance in theprocess of restoring Iraq's economy to stability and prosperity," Iraq'sMinister of Finance Baker Jabr Al-Zubaidy said.

The Minister of Finance of Cyprus, Mr. Michael Sarris, stated that he waspleased that Cyprus could help contribute to the reconstruction of Iraq andthat Cyprus was prepared to support ongoing development efforts.

Iraq is in the final stages of the restructuring of all claims resultingfrom the Saddam Hussein era held by both bilateral and commercial creditors.On November 21, 2004, Iraq reached an agreement in principle with itsbilateral creditors comprising the Paris Club. Cyprus marks the 50th countrywith which bilateral debt relations have been resolved, including 33government creditors that are not members of the Paris Club.

The total amount of claims against Iraq held by both bilateral andcommercial entities has been estimated at more than U.S. $140 billion.

Republic of Cyprus

Mr. Kadhim Al-Eyd, +1-703-975-7170, of the Republic of Iraq, for the Republic of Cyprus 

September 26th, 2006

Source; www.earthtimes.org