The United States will cancel all the debt owed to it by Afghanistan, approximately 108 million U.S. dollars, U.S. embassy to Afghanistan said Wednesday.

"The United States intends to cancel all of the debt owed to it by Afghanistan, approximately 108 million U.S. dollars, subject to domestic legal requirements," it said in a press release.

"The U.S. action will be done through normal Paris Club procedures. Russia and Germany, Afghanistan's other Paris Club creditors, also intend to provide 100 percent cancellation," it added.

"The solution of the debt problem through the Paris Club process will strongly contribute to the development of Afghanistan's trade, investment, and other economic ties with its major creditors and with the rest of the world. The United States calls on other bilateral creditors of Afghanistan to provide the same 100 percent relief," it said.

Afghan government greatly welcomed the decision Wednesday, and one of the presidential spokespersons praised this kind of action a big help to the reconstruction of the war-torn country.

The warmly-welcomed decision announced a week after nearly 70 countries and international organizations in London's donors conference pledged about 10.5 billion U.S. dollars to help Afghanistan's reconstruction including reducing poverty, improving security and fighting with the drug trade.

Source: Xinhua