China Guarantees Future Stronghold In Iraq After Forgiving Saddam's Debt

Gulf War USA Iraq

Interesting move on the part of China, presumably intended to guarantee close cooperation between it and Iraq going forward.

With Iraq potentially set to be the new Saudi Arabia — and China having an amazing thirst for oil — this move makes sense.

AP: Iraq says China has agreed to write off 80 per cent of its Saddam Hussein-era debt.

A statement posted on the Iraqi Finance Ministry Web site on Tuesday put Iraq’s debt to China at $8.5 billion.

The statement says the promise followed a meeting between China’s ambassador to Iraq and Iraq’s Finance Minister Bayan Jabr. It says the write-off “will enhance economic cooperation between the two friendly countries.”

The deal could further push Chinese business interests in Iraq. The China National Petroleum Corp. has secured two lucrative oil deals that reflects China’s drive to seek new energy sources for its growing economy.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.