21 November 2004
Bush Hails Paris Club Decision to Reduce Iraqi Debt, November 21, 2004 (Paris Club nations agree to 80 percent debt reduction)
President Bush has welcomed the decision by the Paris Club of creditor nations to forgive 80 percent of Iraqi debt owed to its members.
"The Paris Club agreement represents a major international contribution to Iraq's continued political and economic reconstruction," Bush said in a November 21 statement from Santiago, Chile, where he is participating in the Asia-Pacific Economic Cooperation (APEC) forum.
The Paris Club agreement reduces Iraq's debt to the member countries from $38.9 billion to $7.8 billion in a three-phase process over the next four years.
Prior to this agreement, Iraq's sovereign debt stood at $120 billion. President Bush encouraged non-Paris Club nations to follow suit and agree to comparable debt forgiveness for Iraq.
Following is the text of Bush's statement:
(begin text)
THE WHITE HOUSE
Office of the Press Secretary
(Santiago, Chile)
For Immediate Release
November 21, 2004
STATEMENT BY THE PRESIDENT
I congratulate the Iraqi Interim Government and the Paris Club of creditor nations for today's agreement to reduce dramatically Iraq's international debt. The Iraqi people have an historic opportunity to build a free and democratic Iraq after more than two decades of political oppression and economic devastation under the brutal regime of Saddam Hussein. The Paris Club agreement represents a major international contribution to Iraq's continued political and economic reconstruction. I encourage non-Paris Club creditor nations to agree to comparable debt reduction for Iraq.
The Paris Club leadership deserves particular thanks for its efforts in making this agreement possible. I also commend Secretaries Powell and Snow and Special Presidential Envoy James Baker for their tireless efforts in working with creditor nations to reach this agreement.
(end text)
