Iraq's main creditors at the Paris Club have reached an agreement to cancel 80 per cent of the debt
owed to them by Baghdad, a Paris Club source said on Saturday.
"There is an agreement between the main creditors on 80 per cent of the debt," the source said, adding that a full agreement at the Paris Club group of creditor nations was likely to be finalised tomorrow.
A final deal would end a dispute between the United States and France over how much of Iraq's debts they should waive, and could serve as a benchmark for relief deals with other creditors such as Saudi Arabia, Kuwait and eastern European states.