IRAQ - April 10 - Washington Aims For Big Baghdad Debt Write-Off.

US Deputy Defence Secretary Paul Wolfowitz tells a Senate committee that France, Germany and Russia "ought to consider whether it might not be appropriate" to forgive some or all of the debt owed to them by Iraq. Iraqi debt promises to become a thorny issue at the April 12-13 meeting in Washington of finance ministers from the Group of Seven leading industrial countries, which precedes the World Bank and IMF gatherings in Washington. But senior officials damped US hopes of a quick resolution. Russian FM Igor Ivanov said Moscow had not been informed of official proposals on debt relief. He said Russia had argued that it should be reimbursed in full and existing Russian commercial contracts respected by any new Iraqi regime. Iraq is estimated to owe more than $100 bn in international loans, and has paid no interest for 15 years. The country also faces other claims, such as war reparations. Iraq's indebtedness is estimated at about 400% of GDP, making it a heavily indebted country. Among key lenders belonging to the Paris Club of creditors, Russia and France are each owed about $8 bn by Iraq, while its loans to Germany total about $4.3 bn. The biggest creditor is Saudi Arabia, to which Iraq owes $25 bn.