IDB considers additional Haiti debt relief
http://www.caribbeanpressreleases.com/articles/6242/1/IDB-considers-additional-Haiti-debt-relief/Page1.html
S Coward
By S Coward
Published on 23-Jan-10
Jan. 23, 2010 -- The Inter-American Development Bank (IDB), the largest multilateral
source of assistance and debt relief for Haiti, is considering a
mechanism for the further alleviation of Haiti’s $441 million debt to
the IDB in the wake of the destruction caused by the Jan. 12
earthquake.
No outflow of funds from Haiti
Jan. 23, 2010 -- The Inter-American Development Bank (IDB), the largest multilateral
source of assistance and debt relief for Haiti, is considering a
mechanism for the further alleviation of Haiti’s $441 million debt to
the IDB in the wake of the destruction caused by the Jan. 12
earthquake.
Last year the IDB provided Haiti with $511 million in debt relief as part of an international agreement that included other multilateral lenders. This relief covered all of Haiti’s outstanding debt to the IDB at the end of 2004.
The total debt relief the IDB granted to Haiti and other eligible countries by 2009 amounted to $4.4 billion, which was funded with resources from the Bank’s concessional window – the Fund for Special Operations. Since 2007, the IDB has provided only grants to Haiti, totaling $222 million. Haiti is the only country that enjoys grant-only status at the IDB.
Between 2004 and 2009, the IDB continued to finance projects in Haiti using the undisbursed balance of loans approved before 2004, and of new loans approved in 2005 and 2006. These disbursements led to the accumulation of its current outstanding debt of $441 million.
Nonetheless, Haiti’s approximately $10 million in annual debt service payments to the IDB from 2009 through 2011 are covered by resources from a US-supported fund. Thus, Haiti’s debt to the IDB is not causing any outflow of funds from the country nor adversely affecting its ability to confront its emergency.
The IDB has provided financial and technical assistance to Haiti for 50 years in vital areas such as infrastructure, water and sanitation and agriculture. The Bank, working through its staff on the ground in Port-au-Prince, is coordinating closely with the international community and the Haitian government to assist the Haitian people in their time of need.
Last year the IDB provided Haiti with $511 million in debt relief as part of an international agreement that included other multilateral lenders. This relief covered all of Haiti’s outstanding debt to the IDB at the end of 2004.
The total debt relief the IDB granted to Haiti and other eligible countries by 2009 amounted to $4.4 billion, which was funded with resources from the Bank’s concessional window – the Fund for Special Operations. Since 2007, the IDB has provided only grants to Haiti, totaling $222 million. Haiti is the only country that enjoys grant-only status at the IDB.
Between 2004 and 2009, the IDB continued to finance projects in Haiti using the undisbursed balance of loans approved before 2004, and of new loans approved in 2005 and 2006. These disbursements led to the accumulation of its current outstanding debt of $441 million.
Nonetheless, Haiti’s approximately $10 million in annual debt service payments to the IDB from 2009 through 2011 are covered by resources from a US-supported fund. Thus, Haiti’s debt to the IDB is not causing any outflow of funds from the country nor adversely affecting its ability to confront its emergency.
The IDB has provided financial and technical assistance to Haiti for 50 years in vital areas such as infrastructure, water and sanitation and agriculture. The Bank, working through its staff on the ground in Port-au-Prince, is coordinating closely with the international community and the Haitian government to assist the Haitian people in their time of need.