Wednesday, July 1, 2009

Some very good news for Haiti!!

This just in!!   The money the Haitians were sending to pay off interest (and principal) on overseas loans can now be used instead for in-country expenses (build roads, schools, fund healthcare etc). About 50% of the debt was accrued during the brutal dictatorship of the Duvalier family (Papa Doc and Baby Doc) who swindled it.  That was from over 40 years ago.

Obviously this debt relief is not going to lift them out of poverty, but in my mind, this step makes all the sense in the world, and is very good for Haiti.  It's also a sign of confidence that Haiti is attempting to make good steps politically and economically.  

The World Bank and IMF have set up a process whereby they consider debt relief for certain countries that meet certain benchmarks.  Haiti has been going through that process for the past couple of years, and despite the 4 devastating hurricanes of last year, they've been able to maintain some political stability.


$1.2 billion in debt relief approved for Haiti

THE ASSOCIATED PRESS

The World Bank and the International Monetary Fund have approved $1.2 billion in debt relief for Haiti.

The bank announced the relief Tuesday after its board met in Washington.

The relief cancels Haiti's debts to the two multilateral organizations and the Inter-American Development Bank and amounts to nearly two-thirds of the Caribbean country's total debt.

As of April, Haiti's debt was more than $1.9 billion, according to the Washington-based Center for Economic and Policy Research.

The World Bank and the International Monetary Fund added Haiti in 2006 to their heavily indebted poor countries debt cancellation program. The Inter-American Development Bank previously approved debt relief for Haiti, pending its completion of that program.



For more on Haiti's debt, you can visit this wikipedia site.
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