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U.S Cancels Haiti’s Debt

The United States has cancelled the entire debt owed to it by Haiti. The deal signed last week by the American Ambassador, Kenneth H. Merten, and the Haitian Finance Minister, Daniel Dorsainville, erases the $12.6 million owed by Haiti.

“I wish to congratulate Minister Dorsainville and the entire Haitian government for their efforts in favor of fiscal responsibility,” said Ambassador Merten.

The agreement comes as Haiti has completed the requirements of the Heavily Indebted Poor Countries (HIPC) Initiative. The World Bank and IMF program provides debt relief to participating nations that have implemented economic and financial reforms. The agreement is part of a series of debt cancellation agreements signed this year between Haiti and its creditors.

Friday’ s deal represents the U.S. portion of a wider multilateral debt cancellation accord between Haiti and the Paris Club, which represents a number of creditors including Canada, the United States and several European nations. Under the terms of the agreement signed on July 8 of this year, Haiti’s entire debt to Paris Club members, estimated at $214 million, will be fully cancelled.

On July 1, The IMF and World Bank granted Haiti $1.2 billion of debt relief. Prior to these agreements, Haiti’s public debt amounted to 36 percent of GDP.

Haitian Times

Haitian Times

The Haitian Times was founded in 1999 as a weekly English language newspaper based in Brooklyn, NY.The newspaper is widely regarded as the most authoritative voice for Haitian Diaspora.
Haitian Times
May. 05, 2012

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