There’s been so much going on in recent weeks and months that it’s easy to forget that over the last 5 months, Haiti has been trying to rebuild.
But SuperBadger was delighted to hear recently that more of Haiti’s debts have been cancelled! Both the Inter-American Development Bank (IADB) and the World Bank have cancelled large chunks of debt owed to them by Haiti and made further funding available as grants, rather than loans, to aid the recovery.
On 22 March, the IADB cancelled debts of $441 million owed to by Haiti. The IADB is the largest source of development financing in Latin America, and was the largest creditor to Haiti. This cancellation will clearly make a huge impact on Haiti’s ability to recover in the coming years. On top of this, the IADB have also pledged over $2 billion in grants to Haiti over the next decade!
A week later, the international community came together at the donor’s conference and pledged $5.3 billion to fund the initial phase of Haiti’s reconstruction over the next 18 months. As part of this, the World Bank cancelled Haiti’s remaining debt of $39 million.
SuperBadger hopes these will be precedents for highly indebted countries hit by disasters in future – many of them are prone to disasters, so this is a situation that’s highly likely to happen again.
All of this is fantastic news, and SuperBadger is hopeful that Haiti’s other creditors will follow the lead of the IADB and World Bank, to ensure that the country’s recovery and reconstruction isn’t hampered by crippling debt repayments. You might remember that back in January, in the immediate aftermath of the earthquake, we badgered the International Monetary Fund (IMF) to Tear Up the IOU and release Haiti from their crippling debts of $890 million, as well as also urging the UK government to cancel all outstanding debts. The IMF has agreed to cancel these debts, but we still haven’t heard the details of the deal. As soon as details are released, SuperBadger will let you all know. Hopefully it will be more good news!