SENATE APPROVES COLLINS'' AMENDMENT TO STRUCTURE PART OF IRAQ SUPPLEMENTAL AS A LOAN

WASHINGTON, DC -- The US Senate has approved a bipartisan amendment, coauthored by Senator Susan Collins, that will structure $10 billion of the $87 billion supplemental spending bill for Iraq as a loan and encourage other nations to forgive Iraqi debt. The supplemental, which was requested by President Bush, includes $15 billion for Iraqi reconstruction, $5 billion for security, and the remaining $66 billion to support our troops. Senator Collins's bipartisan amendment requires that $10 billion of the reconstruction dollars be provided to Iraq as a loan, to be repaid in the future when Iraq has a stable economy. Under the terms of the loan, if other nations to which Iraq is indebted forgive 90 percent of Iraq's debt, these loans would be converted to grants.

"I do not believe that it is unfair to ask the Iraqi people to invest in their own future by repaying the American taxpayer some of these dollars used to construct their infrastructure, particularly because they will clearly have the ability to do so one day," said Senator Collins. In a speech on the Senate floor, Senator Collins said that this spending request, the largest since the Marshall plan after World War II, is necessary to provide our troops with the support they need to be as safe and effective as possible. In addition, Iraq needs assistance in building a modern infrastructure and in rebuilding its security services.

"I believe, however," said Senator Collins in her speech, "there are ways to structure our reconstruction assistance to provide the Iraqis with the assistance they need while lessening the impact on the American taxpayer."

Senator Collins explained that during her visit to Iraq last July, she was struck by how little damage had been inflicted on the nation as a result of our military operations. She said she was also struck by the poor infrastructure of communities throughout the nation, which for decades was ignored by Saddam Hussein. Therefore, Iraq should be a "partner" with the United States in reconstruction efforts.

Senator Collins said, "Iraq is rich in natural resources, has the second largest oil reserves in the world, and has an educated population. It will one day be a prosperous nation with the ability to repay some of these funds to the American taxpayer.

"The American people are very generous and will give our troops the support they need as well as provide help to the Iraqi people, who have endured unimaginable hardships. But the American taxpayer deserves to be repaid for some of this generosity. And Iraq deserves to be treated as a country that has the enormous potential that I believe it has. Structuring our reconstruction assistance as a loan is a reasonable approach that satisfies both concerns," Senator Collins said.

In addition to Senator Collins, Senators Evan Bayh (D-IN), Ben Nelson (D-NE), Olympia Snowe (R-ME), Lindsey Graham (R-SC), and Saxby Chambliss (R-GA) are also lead sponsors of the amendment.