The Republic of Iraq has cleared all overdue service payments to the International Bank for Reconstruction and Development (IBRD) as of December 16, 2004. Consequently, the country’s eligibility for new operations has been reinstated.


Iraq’s arrears to the IBRD amounted to around US$110mn, of which approximately US$53mn was overdue principal payments. Clearance of these arrears will raise IBRD’s FY05 net income by around US$74mn.


This arrears clearance is another key step in the overall process of Iraq’s programme of economic recovery and reform, which is being strongly supported by the World Bank and other external partners.