China pledges debt relief, $6.5mln in aid to Iraq

BEIJING, May 3 (RIA Novosti) - China pledged debt relief and $6.5 million in humanitarian aid for Iraq Thursday at an international conference discussing ways to restore security and economic prosperity to the conflict-torn Middle Eastern country.

Addressing the conference in the Egyptian resort town of Sharm el-Sheikh, Chinese Foreign Minister Yang Jiechi said his country will fully write off the Iraqi government's debt, but did not specify the sum.

The gesture is part of an International Compact plan aimed at supporting Iraqi institutions in exchange for the government's commitment to pursuing economic and political reforms.

According to the Xinhua news agency, China's aid package will be released to finance public health and educational programs in Iraq, which is struggling to overcome the aftermath of the U.S invasion in 2003, including an upsurge in domestic violence.

Egypt, Slovenia, Bulgaria and Poland agreed to waive 80% of Iraqi debt. Saudi Arabia is also considering debt relief.

Iraq reportedly accrued foreign debt of $140 billion during the Saddam Hussein era. Much of that amount was borrowed by the dictatorial regime between 1980 and 1988 to finance its war against Iran.