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PRESS: 8TH FEBRUARY 2010
Justice campaigners today highlighted that despite the promises of the G7 countries, the majority of Haiti's debt still remains to be cancelled. This is because most of Haiti's debt - over $ 650 million - is owed to international financial institutions such as the Inter-American Development Bank, the IMF and the World Bank. The campaigners indicated that the G7 have taken a positive step towards debt cancellation for Haiti but that the pressure for full debt cancellation from international financial institutions must continue.
At a meeting at the weekend of the G7 finance ministers in Iqaluit, Canada, the Canadian Minister for Finance Jim Flaherty said:
“We are committed in the G7 to the forgiveness of debt. In fact, all bilateral debt has been forgiven by G7 countries vis- á -vis Haiti. The debt to multilateral institutions should be forgiven and we'll work with these institutions and other partners to make this happen as soon as possible”.
Nessa Ní Chasaide, of Debt and Development Coalition Ireland commented:
“Haiti's debts to the G7 are a minor element of its overall debt package - not more than $ 122 million. The largest amount of the debt - over $ 650 million - is owed to international financial institutions primarily to the Inter-American Development Bank, the IMF and World Bank. The boards of these institutions must urgently meet and take the decision to cancel all of Haiti's debt, including the IMF's most recent loan of $ 102 million extended to Haiti only two weeks ago.”
Sorley Mc Caughey of Christian Aid Ireland added:
“The G7 have taken the first - long overdue - step towards ensuring debt cancellation for Haiti. Now we must see it happen in reality.”
Colin Roche of Oxfam Ireland continued:
“It is critical that Haiti's reconstruction period is debt-free. This means that the reconstruction must be led by Haiti with the support of scaled up grants from donor countries and anti-poverty institutions. The IMF should not extend any further loans with policy conditions attached which have wrecked havoc on Haiti's economy in the past.”
For interviews contact:
Nessa Ní Chasaide, Co-ordinator, Debt and Development Coalition Ireland: 01 6174835 / 087 7507001
Notes to the Editor:
For the full statement of the Chair of the G7 see here
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: ึ.8 million
Others: ๆ.9
Bi-lateral Lenders / Governments:
Venezuela: $ 295 million (cancellation announced)
Taiwan: $ 89.7 million
Others: 122.1 million
IMF Policy Conditions in Haiti:
Oxfam International highlighted in their report, “Kicking down the Door: How Upcoming WTO Talks are Threaten Farmers in Poor Countries”, 2005, p. 3:
“In 1995 the IMF forced Haiti to cut its rice tariff from 35 per cent to 3 per cent, with the result that imports increased by more than 150 per cent between 1994 and 2003. Today, three out of every four plates of rice eaten in Haiti come from the USA. This is good news for Riceland Foods of Arkansas, the biggest rice mill in the world. Riceland's profits jumped by $ 123m form 2002 to 2003, thanks, in large part, to a 50 per cent increase in exports, primarily to Haiti and Cuba. But it has devastated farmers in Haiti, where rice-growing areas now have some of the highest levels of malnutrition and poverty. ”
The European Network on Debt and Development highlight that Haiti's current loan agreement Haiti obliges it to raise prices for electricity, refuse pay rises for public sector employees, except those making the minimum wage, and keep inflation as low as possible.
Nessa Ní Chasaide
Co-ordinator
Ph: + 353 1 6174835Skype: nessani
Debt and Development Coalition Ireland
Unit F5
Spade Enterprise centre
North King Street
Dublin 7
Ireland
Ph: + 353 1 6174835
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