The government of the United States of America has taken another bold and partnership steps by canceling Liberia's bilateral debt of US$400m. The cancellation is the result of a "debt reduction agreement" signed between the Liberian and US governments.

The signing ceremony took place yesterday at the Finance Ministry witnessed United States Ambassador Donald E. Booth and Liberia's Finance Dr. Antoinette M. Sayeh signing for their respective countries.

The debt reduction agreement' is reached by the United States and Liberia is christened as an important millstone toward eliminating Liberia's substantial debt burden.

The agreement implements the Paris Club multilateral accord that Liberia signed on April 17 of this year with the United States and with Liberia's other Paris Club creditors. The Paris Club agreed to restructure more than US$1.3 billion of Liberia's public external debt, including an immediate cancellation of debt totaling nearly US$254 million.

As of the end of December 2007, Liberia debt to the United States totaled approximately US$423 million. The agreement signed yesterday goes beyond the terms of the Paris Club debt relief deal by canceling 100 % arrears and payments coming due while Liberia is continuing to perform well on its poverty reduction program supported by the International Monetary Fund.

As a result, more than US$394 million of debt to the U. S. will be forgiven immediately. If Liberia reaches completion point under enhanced Heavily Indebted Poor Countries (HIPC) initiatives, the United States intends to cancel the outstanding stock of Liberia's remaining debt to the U. S.

The United States also calls on Liberia's creditors outside the Paris Club to provide timely, comparably debt relief. The U. S. strongly supports the efforts of the Liberian people and government of President Johnson Sirleaf to over come years of conflict and instability and to implement reform that are putting Liberia back on the path of growth and development.

Liberia's Finance Minister Dr. Sayeh applauded the United States government through their out going Ambassador Donald E. Booth for the excellent contribution it continues toward Liberia's recovery initiatives. She said the clearing of the debt created room for Liberia to seek more loan assistance from friendly nations and organizations.

Dr. Sayeh used the time to call on other nations to reason to cancel Liberia's debt. In his words, outgoing US Ambassador Donald Booth said the cancellation of the amount is a show of US continuous goodwill toward the Liberian government and its people.

He further said in addition to bilateral debt forgiving, the United States has provided over US$1.7 billion to support Liberia since the civil war ended there in 2003, including US$750 million in direct bilateral support.

Over US$211 million for the clearance of Liberia's arrears to the IMF and the African Development Bank, and US$775 million is assessed contributions to the United Nations Mission In Liberia, he said.