Bush thanks Algeria for meeting its debt obligations to Paris Club

[Al-khiyal]

ALGIERS, Oct 13 (KUNA) -- Algerian President Abdulaziz Bouteflika received Friday a written message from US President George Bush in which the latter thanked Algeria's willingness to pay in advance its debts to the Paris Club.

Bush said in his letter that the club, supervised by the United States, welcomed this gesture of paying the debts directly to the US Agriculture Department. He added that such a move was considered a guarantee for Algeria's commitment to development and social and economic reform.

The Paris Club is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor nations. Paris Club creditors agree to rescheduling debts owed to them.

Bush thanks Algeria for meeting its debt obligations to Paris Club

[Al-khiyal]

The USA approved Thursday the formula of prepayment of Algeria’s debts estimated at $600 million to the USA. The first part of the debts, $625 million, has already been paid off. The remaining part is under the form of transactions with the American department of agriculture, which supplied Algeria with cereals, and bilateral programs between the USA and Algeria.

American President Mr. Bush addressed a letter to his Algerian counterpart Mr. Bouteflika. He thanked him for the commitment of Algeria to prepay its debts towards Paris Club, currently presided by the U.S.A. The American president revealed his approval on the prepayment formula for the debts due to the State Department of Agriculture. In the same context, he pointed out “your will to prepay proves the good management of debts and guarantee to the commitment of Algeria on the development process and social and economical reform.”

Through such an agreement Algeria would have had finished a series of agreements on debts due to Paris Club, namely with 16 out of 19 debtor States forming Paris Club on 31 May 2006 and fixed the date 30 November as a deadline to settle the issue. Up to now, Algeria managed to prepay during less than two years more than $11 billion.

Washington accepts Algeria’s debts prepayment