Germany has unveiled an international plan to wipe out tens of billions of dollars of Iraqi debt so that the war-torn country can rebuild in earnest.
The deal could see the Paris Club of creditor nations, of which Ireland is one, erase 80% of Iraq's debt.
A third of the country's €120 billion debt burden is owed to the 19 Paris Club members.
The deal is likely to be finalised tomorrow, after a breakthrough in talks between German Finance Minister Hans Eichel and US Treasury Secretary John Snow on the margins of a meeting of finance ministers and central bank chiefs from the G20 group of nations.
