Bush Calls for More Iraqi Debt Cuts

Politics | November 22, 2004, Monday // 00:00

U.S. President George W. Bush hailed the Paris Club agreement to write off 80 percent of Iraq's debt and called on other nations to join as well.

"I encourage non-Paris Club creditor nations to agree to comparable debt reduction for Iraq," Bush said in a written statement issued during the summit of Pacific Rim leaders in Santiago.

The United States, Germany and other G7 nations agreed Saturday to write off up to 80% or USD 33 B of Iraq's Paris Club debt, which is expected to pave the way for a wider international accord.

"I congratulate the Iraqi interim government and the Paris Club of creditor nations for today's agreement to reduce dramatically Iraq's international debt," Bush said.

Iraq owes Paris Club member states some USD 42 B, another USD 80 B is due to non-members like Bulgaria.

Bulgaria has repeatedly voiced unwillingness to remit Iraq's debt, which totals USD 1.7 B, accounting for 10% of the country's GDP.

The accord with the Paris Club, to be put into effect in three steps over the next four years, may help Iraq to receive about USD 8 B in aid from the International Monetary Fund and the World Bank.

The Arab country ran up about USD 125 B in debt under Saddam Hussein.
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