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PRESS: 4TH FEBRUARY 2010
As G7 finance ministers prepare to meet in Canada tomorrow, campaigners in Europe and Haiti voiced their dismay that the G7 countries have not pushed the International Monetary Fund (IMF) to cancel Haiti's debt. Instead, the IMF has plunged Haiti further into debt by approving a new loan of US$102 million.
Nessa Ní Chasaide from Debt and Development Coalition Ireland commented, “The IMF's new loan to Haiti serves to compound Haiti's financial nightmare. Ireland must ensure that Canada - the country that represents Ireland on the board of the IMF and a member of the G7 - supports immediate, unconditional debt cancellation for Haiti”.
While IMF Managing Director Dominique Strauss-Kahn this week voiced some support for debt cancellation for Haiti, the board of directors of the IMF have failed to act.
Sorley McCaughey from Christian Aid Ireland commented, “Even a developing country such as Venezuela has cancelled US$ 295 million owed to it by Haiti, yet the IMF disgracefully continues to drag its heels on this life-threatening issue”.
Camille Chalmers of the Haitian Advocacy Platform for Development (PAPDA) based in Haiti said: “The debts imposed by the international financial institutions and the major world powers have contributed to destroying our country. It's the equivalent of an earthquake which has lasted from late in 1983 when we signed the first standby agreement with the IMF. These loans have caused earthquakes, aftershocks and tremors which have undermined our institutions and our capacity to respond to a crisis of this magnitude.”
The debt cancellation movement released a statement [below] demanding the immediate and unconditional cancellation of Haiti's entire debt. The European Network on Debt and Development also highlighted that Haiti owes as much now as was cancelled by the international community only 9 months ago: $1.2 billion. They highlighted that in the coming 9 years the IMF will expect Haiti to repay at least $104 million - and over $500million to all creditors combined.
The Joint Foreign Affairs Oireachtas Committee last week called for the total cancellation of Haiti's debts and for all financial support to Haiti to be grant based and non-debt creating.
Notes to the Editor:
For interviews contact:
Nessa Ní Chasaide, Co-ordinator, Debt and Development Coalition Ireland: 01 6174835 / 087 7507001
See IMF announcement: here or more
An June 2009, Haiti secured $1.2 billion in debt cancellation from its major creditors. However, Haiti remains burdened with a debt of over US$ 800 million owed to lenders including to the IMF, World Bank and the Inter-American Development Bank. Governmental creditors to Haiti include Taiwan and Venezuela but Venezuela cancelled all debt owed to it by Haiti last week.
Haiti's major external debts are as follows:
Multi-lateral Lenders:
IMF: $ 268 million
Inter-American Development Bank (IADB): $ 417.5 million
World Bank: $ 38.8 million
Others: $ 54.9
Bi-lateral Lenders / Governments:
Venezuela: $ 295 million (cancellation announced)
Taiwan: $ 89.7 million
Others: 122.1 million
Statement From the Global Debt Cancellation Movement: Campaigners express dismay at IMF's new debts to Haiti
We express our serious disappointment that the International Monetary Fund has extended $102million loan to Haiti, with no mention of debt cancellation. Haiti will now owe the IMF over $250million.
Hundreds of thousands of activists have called on their governments in recent days to ensure that substantial grant aid, rather than loans, is given to Haiti and that all of Haiti's debts are wiped out.
Only two days after a developing country - Venezuela - announced it's intention to cancel Haiti's debt outright, we find in unconscionable that the IMF, run by the richest countries in the world, cannot do the same. We are concerned that the Haitian disaster - like the financial and economic crisis last year - has become another opportunity for the IMF to extend its operations. This is further proof of why the IMF should not be involved in development.
Moreover, the IMF communication is misleading in announcing loans as part of the relief effort that the international community has mobilised for Haiti. Actually the IMF loan will have to be spent as part of Haiti's current programme with the Fund, which includes harmful economic and policy conditions which undemocratically force Haiti, amongst other things, to raise electricity tariffs and freeze public sector pay. We call on the IMF and its Board to lift them immediately.
We support the views of Haitian civil society groups like PAPDA: the Haitian Advocacy Platform for Development:
“The debts imposed by the IFIs and the major world powers have contributed to destroying our country. It's the equivalent of an earthquake which has lasted from late in 1983 when we signed the first standby agreement with the IMF. These loans have caused earthquakes, aftershocks and tremors which have undermined our institutions and our capacity to respond to a crisis of this magnitude.”
We call on the IMF to immediately and unconditionally cancel all of Haiti's debt, including its new loan, and for rich countries to make large grant aid available to Haiti as restitution for centuries of damage inflicted on that country.
Signed:
Jubilee Debt Campaign, UK
Debt and Development Coalition Ireland
11.11.11- Coalition of the Flemish North-South Movement
Plate-forme Dette & Développement
CCFD-Terre Solidaire
Jubilee Scotland
Campagna per la Riforma della Banca Mondiale
Observatorio de la Deuda en la Globalización
European Network on Debt and Development
Both ENDS
Share the World's Resources
Ekvilib Institute
Diakonia
Committee for the Abolition of Third World Debt
The Norwegian Coalition for Debt Cancellation
Norwegian Church Aid
Attac Norway
The Norwegian Solidarity Committee for Latin America
Latin American Solidarity Centre Ireland
KOO- Koordinierungsstelle der Osterr. Bischofskonferenz f. internationale Entwicklung und Mission
World Development Movement UK
Aktion Finanzplatz Schweiznew economics foundation uk
Forum Syd
Ecologistas en Acción (Spain)
CNCD (Belgium)
Attac España
erlassjahr.de
The Development Research Center (Bulgaria)
Nessa N’ Chasaide
Co-ordinator
Debt and Development Coalition Ireland
Unit F5
Spade Enterprise centre
North King Street
Dublin 7
Ireland
Ph: + 353 1 6174835
Skype: nessani
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