The Paris Club of creditor nations, with the exception of Russia, has reached an agreement in principle to slash debts Iraq owes to the group by up to 80 percent, a well-placed official said Sunday. The deal was reached after discussions that stretched into the early hours of Sunday morning, said the official who spoke on condition of anonymity. He said the deal could be announced later in the day, according to a report circulated today by the Associated Press. "There is an agreement in principle with all the creditors except Russia," he said. The deal would allow for phased reductions of Iraq's debts to Paris Club nations, to a total of up to 80 percent, he said. Russian negotiators needed to get their government's agreement, he added.
