OUT FROM UNDER ODIUM:

A Landmark Debt Deal for Iraq: Most of its big corporate creditors have agreed to a settlement giving them 20% of what's owed. It's a big step toward rebuilding the economy (Stanley Reed, Jan. 11, 2006, Business Week)

[I]n the midst of Iraq's violence, Allawi is starting to impose order on Iraq's chaotic finances. In the latest milestone, most of the nation's largest corporate creditors, dating back to before the 1990 invasion of Kuwait, have accepted a deal to swap the bulk of Iraq's commercial debt -- nearly $14 billion -- for new dollar-denominated notes. The notes will have a face value of 20% of what the companies are owed. "This will make it easier for Iraq to start getting the type of credits it needs for trade and business," says William Rhodes, senior vice-chairman of Citigroup (C), which arranged the debt deal together with J.P. Morgan (JPM).

The pact gives Iraq an important shot at rebuilding credibility in global financial markets at a time when the U.S. is expected to begin trimming its aid for the Iraqi economy.