The world's seven leading industrialised countries have vowed to reduce Iraq's 120-billion-dollar debt by the end of the year but remained divided Saturday on the scope of the cut.
"We made progress on the Iraqi debt," French Finance Minister Nicolas Sarkozy said a day after the Group of Seven - Britain, Canada, France, Germany, Italy, Japan and the United States - made clear its commitment following a meeting here to easing Iraq's debt burden by January.
"We agree on a reduction and everyone agrees on reaching an agreement before the end of the year," Sarkozy said.
He said France had suggested an immediate reduction of 50 percent. Over the next three years, as Baghdad implemented measures proposed by the International Monetary Fund, creditors would consider future debt-related moves.
"The Russians, the Germans and the Italians said they agreed with us," Sarkozy reported, adding Britain would go along with the French proposal if the initial cancellation were 80 percent.
"The Americans didn't say anything," Sarkozy said. The United States and Britain have been arguing for the forgiveness of 95 percent of Iraq's obligations.
Following a meeting Saturday with German Finance Minister Hans Eichel, US Treasury Secretary John Snow insisted that headway was being made on Iraqi debt.
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