INDEPENDENT NEWS

Cablegate: Slovakia Forgives 100 Percent of Iraqi Debt

Published: Wed 21 Dec 2005 02:49 PM
This record is a partial extract of the original cable. The full text of the original cable is not available.
211449Z Dec 05
UNCLAS BRATISLAVA 001001
SIPDIS
DEPT FOR EB/IFD/OMA TFORSYTH, NEA/I LBYERGO
PARIS FOR VAN MAERRSEN
TREASURY FOR ANTHONY MARCUS
E.O. 12958: N/A
TAGS: EFIN ECON PREL LO IZ
SUBJECT: SLOVAKIA FORGIVES 100 PERCENT OF IRAQI DEBT
REF: SECSTATE 222090
1. (SBU) The Slovak cabinet decided December 21 to forgive
100 percent of Iraq's outstanding debt by December 31, 2005.
Total debt as of October 31 was approximately USD 145
million. According to a Ministry of Finance source involved
in the discussions, the GOS determined that the
administrative costs of the Paris Club arrangement exceeded
the relatively small stream of repayment income that the GOS
would receive over 30 years on the remaining 20 percent of
the debt.
2. Slovakia had orginally considered a proposal to offer Iraq
terms that would have fallen short of the Paris Club
arrangement. Ambassador raised reftel concerns with the
Minister of Finance and top officials in the Ministry of
Foreign Affairs prior to last week's cabinet meeting (12/15),
and received assurances that Slovakia would follow the Paris
Club arrangement. Post followed up with officials from both
ministries after the government put off taking a decision
last week.
3. The translated text of the GOS communique issued after
today's cabinet meeting is as follows:
Begin text: In harmony with the existing line of support of
the Slovak Government for the international coalition led by
the U.S. as well as the democratization process in Iraq, it's
necessary to amend the political will with practical steps in
individual areas and to create space for active participation
in the post-war rebuilding of Iraq, thus creating favorable
conditions for the restoration of bilateral economic and
cultural cooperation between Iraq and the Slovak Republic.
This step by the Slovak Republic is a gesture of support for
the efforts of the Iraqi people and a precondition for not
only successful implementation of projects of economic and
social resoration, but also for future political, economic,
military and cultural cooperation. In respect to the above,
the Ministry of Finance recommends forgiving the total amount
of the Iraq's special debt. End Text.
SILVERMAN
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