Japan's Official Development Assistance White Paper 2011
(2) Iraq
The international community has been providing assistance for nation building of Iraq so that the country could restore and maintain its peace and stability. It is extremely important that Iraq be rebuilt as a peaceful, democratic nation, not only for the people of Iraq and the Middle East in general, but for the peace and stability of Japan and the international community as well. Iraq is currently moving from a stage at which it requires emergency response to its immediate reconstruction needs to a stage at which it must engage strategically in recovery and development from a medium-term perspective.
<Japan's Efforts>
At the International Donors' Conference on Reconstruction of Iraq held in Madrid in October 2003, Japan announced its financial assistance package totaling up to $5 billion. The package consists of $1.5 billion in grant aid for immediate assistance for recovery of living standards of Iraqi people and up to $3.5 billion in ODA loans to support medium-term reconstruction. Since then, Japan has steadily implemented that plan, disbursing approximately $1.67 billion in grant aid as of the end of FY2010. Japan has also provided assistance in boosting the capabilities of administrative officials and technical personnel in Iraq through training projects in a variety of fields. As of the end of FY2010, Japan determined to provide up to approximately $3.28 billion in ODA loans for 15 projects. In addition, when Iraqi Prime Minister Nouri al-Maliki visited Japan for a Japan-Iraq Summit in November 2011, Prime Minister Yoshihiko Noda announced that Japan would take the measures necessary steps to provide approximately ¥67 billion (approximately $750 million) in ODA loans for four new projects in the areas of oil, communications, and health. This assistance not only completes the final round of Japan's support of up to $5 billion announced at the Conference held in 2003, but also involves new aid as well. Japan provides careful support to ensure that projects that are currently underway will proceed steadily. Japan intends to partner more closely with Iraq and other aid agencies to ensure that Japan's assistance is incorporated effectively into Iraq's medium-term reconstruction and development strategy.
In order to address Iraq's debt problems, the Paris Club* reached an agreement in 2004 to reduce Iraq's total debt of approximately $37.2 billion to creditor nations by 80% in three stages. Based on this agreement, an Exchange of Notes was signed between Japan and Iraq in November 2005, reducing Iraq's total debt to Japan (Iraq's top creditor) of approximately $7.6 billion by 80% in three stages. The debt relief was completed for a total of approximately $6.7 billion, with the final reduction in December 2008.
Prime Minister Yoshihiko Noda meets with Iraqi Prime Minister Nouri al-Maliki on his visit to Japan (Photo: Cabinet Public Relations Office)
Terminology
*Paris Club
An informal gathering of creditor nations to determine measures for bilateral debt relief for debtor nations that are having difficulty repaying debts. The group consists of 19 major creditor nations, including Japan. As a rule, meetings are held ten times each year at the Minister for the Economy, Industry and Employment in Paris.