September 26, 2006
HP-115

Statement by Treasury Deputy Secretary Robert Kimmitt
on the Signing of the U.S.–Afghan Bilateral Debt
Agreement
Treasury Department – Diplomatic Room
Washington, D.C.

I was pleased and honored to welcome Afghan Finance Minister Ahady to the Treasury Department today to sign the U.S.-Afghan bilateral debt rescheduling agreement.

By signing this bilateral agreement, the United States implements the terms of the Paris Club agreement of July 19, 2006, which reduces Afghanistan's debts to its three Paris Club creditors -- the United States, Russia and Germany -- by approximately $10.4 billion, or 92 percent.

The Paris Club agreement and the U.S.-Afghan bilateral agreement are the first steps towards 100 percent forgiveness of Afghanistan's debts, which we expect will be granted within the framework of the enhanced Heavily Indebted Poor Countries Initiative.

Today's action is another step in Afghanistan's road toward creating the conditions for more sustainable economic growth. We urge Afghanistan's other bilateral creditors to join us by committing to 100 percent debt reduction.