National Intelligence Daily
I RAO: New Financing
Iraq and Franca areinancial package consisting0 million In oil1 billion credll lo cover Baghdad's debts io French contractorseveral other countries recently havo agreed to soli Iraq agricultural commodities on short-lerm credit.
[Baghdad also will signmillion contractomanian lirm for ihearrel-per-dey kibe oil refinery. I '
however,] 'Western banks are not extending loiters o! credit to
companies TOr'salos lo Iraqfear Baghdid will be forced
lo reschedule lis debl wllhln the next year or two.'
Comment: The now arrangements will allow Iraq to deal with lis tmmedlale financial needs. The French credlls, however, are unlikely io allay the concerns of Western end even Arab banks that are Increasingly dubious of Iraq's creditworthiness. Baghdad appears to bo turning to Eastern Europe for barter and credit arrangements that Western countries and companies are unwilling to offer.lOriginal document.