Bulgaria secures debt repayment from Iraq

Bulgaria will receive EUR 247mn Euros from Iraq, as overdue payment of a loan dating back to the Cold War era. Payment would be made next year; it comes after the two countries reached agreement on a revised figure for the total debt owed to Bulgaria by the government in Baghdad, a statement posted on the Bulgarian Finance Ministry's website said on Monday. Bulgaria secures debt repayment from Iraq Under the terms of the deal Iraq's debt to Bulgaria now amounts to EUR 2.4bn. This revised figure has been reached in the context of agreements between the Paris Club of creditor nations and Iraq. Bulgaria will also accept a one-time cash payment at a ratio of 10.25 cents on the dollar, the statement said. Iraq's debt to Bulgaria was incurred during the Cold War years when the two countries had extensive weapons and construction deals. International sanctions imposed on Iraq after its 1990 invasion of Kuwait had prevented Bulgaria from collecting the debt. Bulgaria maintains a military contingent in Iraq, where it has been part of the U.S.-led coalition since 2003.

Bulgaria secures debt repayment from Iraq

Under the terms of the deal Iraq's debt to Bulgaria now amounts to EUR 2.4bn. This revised figure has been reached in the context of agreements between the Paris Club of creditor nations and Iraq.

Bulgaria will also accept a one-time cash payment at a ratio of 10.25 cents on the dollar, the statement said.

Iraq's debt to Bulgaria was incurred during the Cold War years when the two countries had extensive weapons and construction deals.

International sanctions imposed on Iraq after its 1990 invasion of Kuwait had prevented Bulgaria from collecting the debt.

Bulgaria maintains a military contingent in Iraq, where it has been part of the U.S.-led coalition since 2003.