Paris Club Forgives Iraq Debt

The so-called Paris Club of creditor nations has agreed to wipe out 80 percent of the money Iraq owes in three phases over three years. 

Iraq owes the 19-member club roughly 40 billion dollars, about one third of its total foreign debt.  Sweden, Denmark, the United States and Britain are among the club members to reach the deal, which represents a major diplomatic victory for the U.S. in its bid to rebuild Iraq.  The club now says it is essential for other creditors to give Iraq similarly favorable treatment.