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Iraq donors pledge $33 b.

By Batuk Gathani

Brussels Oct. 25. The two-day "donors conference" in Madrid, Spain, on the reconstruction of post-war Iraq, ended on a "satisfactory note" as donors pledged $33 billions for the next four years to finance proposed programmes. This figure includes $20 billions offered earlier by the U.S. Other nations at the conference promised $13 billions.

The pledges are mostly in the form of loans and grants, which will have to be repaid when Iraq's formidable oil resources are marketed after its restoration and modernisation. Iraq has the world's second largest oil resources after Saudi Arabia and now the task is to use the money to rebuild the country's infrastructure.

While the European Union pledged $200 millions, Britain, the closest ally of the U.S. in the Iraq war, said it would contribute another $500 millions and Spain donated $300 millions. Germany, France and Russia sent only junior Ministers to the conference.

Germany has offered only training programme for the Iraqi police force while France said it would not offer any support. As the French Foreign Minister put it: "To us, the starting point is truly the full and complete recognition of Iraqi sovereignty". Japan emerged as the second largest donor with a commitment of $1,500 millions in grant.

The World Bank said it would offer a conditional loan package of $3 billions to $5 billions over the next five years.

The fund raised in Madrid is earmarked for Iraq's reconstruction in 14 areas ranging from education to power generation. Apart from Government leaders and aid officials of financial institutions, the conference also lured many businessmen seeking reconstruction contracts.

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