Taxpayers Liable for $2.5 Billion in Loans to Iraq
Iraq has defaulted on at least $2.5 billion in loans guaranteed by the U.S. government and taxpayers will have to pick up Baghdad’s debts, it was reported Wednesday.
The San Francisco Examiner cited congressional sources saying the Justice Department is also investigating the possibility that the agricultural products loan program was used to funnel money and equipment to Iraq as bribes.
“The Administration decided to funnel aid to Iraq through a quiet little sleepy loan program in the Agriculture Department because they thought it wouldn’t attract too much attention,” said Rep. Charlie Rose (D-N.C.). “And now that the whole thing has blown up in their face, they are petrified about people finding out how we got into this mess.”
The newspaper said a Bush Administration source confirmed the USDA guaranteed the bank loans to Baghdad to enable Iraq to purchase American-grown food.
The credit guarantees totaled $5.5 billion during 1982-1990. Iraq halted loan payments when the U.S. suspended trade with Baghdad when Saddam Hussein invaded Kuwait on Aug. 2.
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