U.S. Says It Will Forgive Afghan Debt

From the Washington Post:

The Bush administration said Tuesday it will forgive the entire $108 million that Afghanistan owes to the United States, and larger creditors also plan to erase Afghan debt.
"The government and people of Afghanistan are working diligently to build a sustainable market economy despite many challenges," State Department spokesman Sean McCormack said. In Afghanistan, the government of President Hamid Karzai welcomed the decision.
"After 30 years of devastation, we are starting from nothing and any move such as this helps the reconstruction of Afghanistan," said Khaleeq Ahmed, a Karzai spokesman.
The announcement came a week after nearly 70 nations and international bodies pledged $10.5 billion to help Afghanistan fight poverty, improve security and crack down on the drug trade. The pledges were intended to fund the goals set out in a five-year plan delegates signed Tuesday for redevelopment in Afghanistan, which has been devastated by decades of war.


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--Tom Hayes