Monetary Affairs

Office of Monetary Affairs (OMA): OMA monitors global macroeconomic developments and works to prevent and resolve financial crises in countries where US interests are at risk. It seeks to increase the financial security of the United States and its key partners. OMA also works to expand global economic growth and development by advocating sound macroeconomic policies that foster economic stability and expand opportunities for U.S. trade and investment worldwide.

OMA provides the Secretary of State with expertise on global financial and macroeconomic issues, working in close cooperation with the Treasury Department's Office of International Affairs. OMA is also the Department's liaison with the International Monetary Fund (IMF). In addition, OMA interacts with a wide range of foreign government officials and representatives of other international and non-governmental organizations. It also consults with representatives of private financial institutions to ensure that US financial interests abroad are accurately and effectively reflected in US foreign economic policy.

To help poorer countries overcome unsustainable debt burdens and improve their chances for economic growth and development, OMA promotes debt relief through the Paris Club, representing the Secretary of State as Head of the U.S. delegation. The Paris Club is the forum for coordinating debt relief policy among sovereign creditors and negotiating individual country debt treatments. Paris Club agreements can also affect non-member country and private sector creditors when debtor countries are required to seek comparable treatment. OMA also coordinates with the Treasury Department to formulate U.S. debt-relief policies more broadly and to promote initiatives through multilateral institutions.

Recent Debt Relief Negotiations:

Featured Country
Haiti: In April 2007, the United States, as Haiti’s largest trade partner and single-country donor, signed a bilateral debt relief agreement under the enhanced Heavily-Indebted Poor Countries (HIPC) initiative that forgives approximately $3.7 million of Haiti’s debt to the U.S. over three years. This agreement implements the multilateral Paris Club accord signed in December 2006, which set the terms for canceling $7.2 million and rescheduling $62 million of Haiti’s estimated $200 million debt to Paris Club members. The cancellation of Haiti’s debts occurs in phases and is conditioned upon progress toward implementing Haiti’s goals under its economic reform program with the International Monetary Fund (IMF).

Afghanistan: Afghanistan faces an unsustainable external debt burden of more than $11 billion. Within the Paris Club, this debt is held by Russia, the United States and Germany. In July 2006, OMA led the U.S. delegation that reached an agreement among the Paris Club creditors to provide debt relief to Afghanistan to enable it to enter into a Poverty Reduction and Growth Facility program with the IMF -- an integral part of the Heavily Indebted Poor Country (HIPC) debt relief process. Creditors also pledged their intention to forgive 100% of Afghanistan's Paris Club debt when Afghanistan reaches the HIPC Completion Point (i.e., completes its reform program). Afghanistan will make no payments to the Paris Club while it is performing on its IMF reform program.

Iraq: Iraq's ability to re-build its economy from years of misrule by Saddam Hussein was immensely bolstered by an historic debt reduction agreement reached with Paris Club creditors in November 2004. Iraq had an enormous external debt burden of over $120 billion, with Paris Club creditors holding roughly one-third of that amount. The U.S. delegation achieved an unprecedented accord that grants Iraq 80% debt reduction in phases as the country takes steps to reconstruct and reform its economy. The agreement also calls on non-Paris Club creditors to provide similar debt relief. Since then, nine countries have joined the Paris Club members in signing debt relief agreements with Iraq. Additional pledges of debt relief were made at the May 3, 2007 International Compact with Iraq, held in Sharm el-Sheikh, Egypt. The U.S. has already exceeded its Paris Club commitment in providing 100% debt relief to Iraq under an agreement signed in 2004 by Secretaries Powell and Snow (at left).