WASHINGTON (Reuters) - President Bush announced on Friday he has appointed former Secretary of State James Baker, a close family friend, as his personal envoy to seek a restructuring of Iraq's $120 billion debt."Secretary Baker will report directly to me and will lead an effort to work with the world's governments at the highest levels, with international organizations and with the Iraqis in seeking the restructuring and reduction of Iraq's official debt," Bush said in a statement.
Bush said the appointment was made in response to a request by the Iraqi Governing Council for help with debt relief, and that Baker was chosen due to his past government connections and experience as secretary of state during the first Gulf War.
World Bank President James Wolfensohn has said that at least two-thirds of Iraq's estimated $120 billion foreign debt will need to be written off to rebuild the country properly.
"The future of the Iraqi people should not be mortgaged to the enormous burden of debt incurred to enrich Saddam Hussein's regime," Bush said.
