The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

The mother of all debt restructurings

A restructuring of Iraq's financial obligations is arguably the most important initiative that must be undertaken in that country next to providing humanitarian assistance.

Iraq's current liability profile shows that it has outstanding obligations of about $383 billion. This includes $199 billion in compensation claims received by the United Nations Compensation Commission (UNCC) in the aftermath of the first Gulf War, as well as external debt and pending contracts.

Iraq's external debt is estimated variously at between $62 billion and $130 billion. The differential principally relates to a disagreement over the amount of assistance given by Gulf states to Iraq during the Iran-Iraq war and whether accrued but unpaid debt interest is included or excluded.

No resources Finally, in the run-up to Operation Iraqi Freedom and earlier, the Iraqi administration entered into several infrastructure contracts with public and private foreign companies to the tune of $57.2 billion.

The liability total of $383 billion must be measured against the asset side of the ledger, where it can be shown that Iraq has no meaningful source of financial liquidity resources under its control.

At a minimum, Iraq's net financial liability profile will prevent any new funds and resources being made available for reconstruction and the rebuilding of the country.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree