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 
 
 
NNNN