From the Central Bank of Iraq website

Government Debt
Government Debt
Total government debt is estimated to be $92.3 billion in 2010 and is comprised of the following components:

- External debt ($87.7 billion, of which $45 billion can be subject to debt reduction by non-Paris Club official creditors, comparable to the Paris Club agreement)

- Domestic debt ($4.6 billion)

Note: Iraq's GDP in 2010 is estimated to be $82.2 billion.

External Debt Restructuring
Following the ouster of the regime in spring 2003, Iraq’s external debt was estimated to be between $130-$140 billion. Reducing this debt to a sustainable level has been a priority since 2003 and debt relief negotiations have taken place in a variety of forums. This has led to the cancelation of a significant amount of Iraq’s external debt.

Iraq’s external debt is comprised of four components:

Paris Club bilateral debt ($42.5 billion)
Non-Paris Club bilateral debt ($67.4 billion)
Commercial debt ($20 billion)
Multilateral debt ($0.5 billion)

Debt relief negotiations first led to an 80% reduction of the Paris Club debt. The Paris Club agreement also set the terms for non-Paris Club and commercial debt cancelation levels. A provision of the Paris Club agreement is that Iraq cannot accept a debt cancellation agreement with other creditors on more favorable terms for Iraq than those reached with the Paris Club.

Thus, Iraq is expected to receive no more than an 80% cancelation from all of its creditors. Negotiations with non-Paris Club creditors are ongoing (mainly with Gulf countries), and resolution of the commercial debt is largely complete.

This portion of the external debt has been reduced to $45 billion in 2010 (see government debt above).