*EPF121 11/22/2004
Text: Bush Hails Paris Club Decision to Reduce Iraqi Debt
(Paris Club nations agree to 80 percent debt reduction) (380)

President Bush has welcomed the decision by the Paris Club of major creditor nations to forgive 80 percent of the Iraqi debt owed to its members, and is urging other countries to follow suit.

"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," Bush said in a November 21 statement from Santiago, Chile, where he participated in the Asia-Pacific Economic Cooperation (APEC) forum.

The Paris Club's 19 permanent members are Austria, Australia, Belgium, Britain, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, Norway, Russia, Spain, Sweden, Switzerland and the United States.

The agreement reduces Iraq's debt to Paris Club members from $38.9 billion to $7.8 billion in a three-phase process over the next four years. Prior to the agreement, Iraq's overall sovereign debt stood at $120 billion.

Bush, who has repeatedly urged creditors to help forgive Iraq's debt as the country rebuilds after years of repression and conflict, called the Paris Club agreement "a major international contribution to Iraq's continued political and economic reconstruction."

The president called on non-Paris Club creditor nations to approve "comparable" debt reduction 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)

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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