Senate Backs Converting Some Iraq Aid to Loans

17/10/2003| IslamWeb

WASHINGTON -- In a setback to President Bush, the US Senate on Thursday voted to convert half of a 20 billion dollars aid package Bush sought to rebuild Iraq into a loan. The Senate voted 51-47 to make 10 billion dollars a loan to Iraq that Bush could forgive if other creditor countries waive repayment of at least 90 percent of debts they hold from Saddam Hussein's regime. The House of Representatives, also plowing through amendments to Bush's 87 billion dollars request for military operations and rebuilding in Iraq and Afghanistan, rejected an effort to convert some of the reconstruction aid into loans by a 226-200 vote. That means the issue will have to be settled when lawmakers reconcile the two bills to send Bush a final measure, which he wants on his desk before an Oct. 23-24 international donors conference for Iraq to be held in Madrid. Bush has a major political stake in the issue, having personally lobbied lawmakers against seeking repayment of the money to rebuild Iraq which he said would hinder efforts to stabilize the country and undermine the donors conference for it. "The Iraqi people shouldn't be saddled with more debt," a senior administration official told reporters aboard Air Force One as the Bush traveled to Asia. We're going to have to come to some understanding about the state of the current Iraqi debt. It's needs are immediate." Both the Senate and the House were expected to vote by Friday on the emergency spending measure, which also provides 67 billion dollars for military operations in Iraq and Afghanistan.