Prime Minister confirms support for Iraqi debt reduction

January 23, 2004
Davos, Switzerland

NEWS RELEASE

Prime Minister Paul Martin today confirmed Canada’s support for a G-7-led international debt reduction program for Iraq. The announcement was made in Davos, Switzerland following a meeting with United Nations Secretary General Kofi Annan.

“Debt reduction is critical if we want the Iraqi people to have the opportunity to build a free, stable and prosperous country,” the Prime Minister said. “Canada therefore supports a reduction of the vast majority of Iraq’s debt. It is vital that this issue be dealt with quickly and effectively.”

The Prime Minister explained that Canada’s actions on Iraqi debt would be done through what is known as the Paris Club, an international group of creditor governments from industrialized countries that works with debtor nations on restructuring their debts. In their September 2003 meeting in Dubai, United Arab Emirates, Finance Ministers from all G-7 nations including Canada called on the Paris Club to complete the restructuring of Iraq’s debt.

As with all Paris Club arrangements, the final amount of debt relief will be officially approved by all of Iraq’s major creditors. Iraq’s debt to Canada is approximately C$750 million.

The Prime Minister also reiterated Canada’s ongoing financial commitment to Iraq. “Canada will provide up to $300 million in humanitarian and reconstruction efforts over the next five years. Our participation in Iraqi debt relief is one more sign of our continued efforts to ensure a brighter future for Iraqis.”

The reconstruction of Iraq is expected to be discussed at the G-7 Finance Ministers meeting February 6-7 in Boca Raton, Florida.

Return to regular web page:
http://www.pco-bcp.gc.ca/default.asp?Language=E&Page=archivemartin&Sub=newscommuniques&Doc=news_release_20040123_32_e.htm