Of course not, in part because DemocratX would be wanting to forgive debt owed to the American Taxpayer, not debt owed by odious socialist dictators.
Just because a new government governs the same territory as an old one doesn't neccessarily mean it's the same entity. Russia kept lots of old commies in place, and not just the peon level ones either. Will Saddam's thugs be kept around in the new government? I don't think so. The new government is not merely a slightly modified continuation of the old one, but an entirely new entity. Why should it deprive it's people some more, to pay the costs of their own enslavement. Let the Arab fatcats pay the debt to nations and individuals outside the region, and forgive that owned to them. Repudiation of these debts could be looked on a form of declaring bankrupcy I suppose, but I prefer to look on it as I describe above.
In the case of debts run up by one's ex, one at least theoretically was a party to the actions that resulted in the debt, I don't see how debts for Saddams Palaces, his missles and his WMDs are the responsibility of the Iraqi people. The Russians/Soviets, the French and the Germans knew what sort of person they were advancing credit to, let them eat the debt, just a lenders have to eat bad loans here.
According to the US state department they will. Powell says that members of Saddam Hussiens Baath Party must be included in any future government.