Iraq is a development partner, U.S. says

STOCKHOLM, Sweden, May 30 (UPI) -- A top U.S. Treasury Department official said at a conference in Sweden that Iraq has moved from being an aid recipient to a development partner.

U.S. Deputy Treasury Secretary Robert Kimmitt, at the Iraq Compact Summit in Sweden, gave an "in-progress" briefing to reporters following the opening day of the summit.

"Effectively, Iraq, as of today, is moving from being a significant aid recipient to a significant development partner," Kimmitt said.

The secretary said at a news conference that his department planned to double its presence in Iraq in order to help the country utilize assistance from the international community to unlock the potential of the Iraqi economy.

"Specifically you heard people today not talking about new financial assistance but rather technical assistance, trade, investment and debt relief," he said.

On the issue of debt relief, Kimmitt noted, "You have to pay back your debts," adding that although Iraq has a budget surplus, keeping foreign debt on the balance sheet is not attractive to investors.

Finally, Kimmitt noted that with the increase in Iraq's budget, Iraq would spend at least $13 billion of its own money on investment spending, up 32 percent from the previous year.