Iraq’s public debt was estimated to be US$120.2 billion in nominal value as of the end of 2004. The debt owed to Paris Club creditors as of December 31, 2004, was estimated to be US$38.9 billion. The U.S. share of this amount is around $4 billion. Non-Paris Club countries, mostly Persian Gulf countries, are owed around $60 - $65 billion. The remaining debts are to private commercial creditors. Iraqi debt relief is a high priority for both the President and Congress (H.R. 2482). This report will discuss efforts to implement Iraqi debt relief and highlight some policy concerns.

Iraq’s chemical, biological, and nuclear weapons programs, together with Iraqi long-range missile development and support for al-Queda terrorism, were the primary justifications put forward for military action. On March 17, 2003, President Bush issued an ultimatum demanding that Saddam Hussein and his sons depart from Iraq within 48 hours. On March 19, offensive operations began with air strikes against Iraqi leadership positions. By April 15, after 27 days of operations, coalition forces were in relative control of all major Iraqi cities and Iraqi political and military leadership had disintegrated. On May 1, 2003, President Bush declared an end to major combat operations. There was no use of chemical or biological (CB)weapons, and no CB or nuclear weapons stockpiles or production facilities have been found.

A report intended to inform Congress, the Administration, and the public about how the principal U.S. government agency involved in foreign assistance has responded to the major crises in the developing world, such as reconstruction in Iraq and Afghanistan, averting famine in Ethiopia, and helping hurricane victims in Haiti.