BASSETERRE, St. Kitts –TWELVE weeks after Haiti was ravaged by a 7.0 magnitude earthquake both the World Bank and the International Monetary Fund (IMF) have pledged significant financial support and debt relief for the country.
The World Bank Group announced yesterday (Mar. 31) that US$479 million will be available to support Haiti’s recovery and development through June 2011, including the total cancellation of the remaining World Bank debt.
The total US $479 million figure includes US $151 million in grants, a US $39 million write-off from cancelling Haiti’s remaining debt to the Bank and US $60 million in investments from the Bank’s private sector arm, the International Finance Corporation (IFC). This is according to a press statement made by that international financial body.
“This is a chance to do things differently. We can create a better future for Haiti but we need long-term commitment and a new partnership. It's not just about how much money is raised, it's about delivering real results on the ground for the Haitian people through good governance and effective cooperation by donors,” said World Bank Group President Robert Zoellick.
The Bank also confirmed that it will be responsible for the fiscal management of the multi-donor Haitian Reconstruction Fund. In fact, fourteen donor countries – Belgium, Canada, Germany, Finland, France, Ireland, Italy, Japan, the Netherlands, Norway, Spain, Sweden, Switzerland and the United States – have pledged to provide an additional US$39 million to cancel Haiti's remaining debt to the Bank.
Zoellick noted that these “quick and generous” efforts by the 14 donor countries will allow the World Bank to focus fully on supporting Haiti’s reconstruction needs.
Support for Haiti was also revealed by IMF’s Managing Director Dominique Strauss-Kahn in delivering his address at yesterday’s International Donors Conference Towards a New Future for Haiti. He described debt relief for the Caribbean country as “absolutely necessary” and emphasized that the international community must continue support to the quake-stricken country.
The outstanding debt to the Fund is currently US $271 million, including the US$114 million that was disbursed immediately after the earthquake. The IMF official assured that more will be done to offer further relief for Haiti.
“We are in a situation now that there are no payments due to the IMF by Haiti before 2012, and zero interest rates. We are also prepared to present, rather rapidly, for the approval of IMF Executive Board a proposal to organize debt relief for the total outstanding debt,” Strauss-Kahn said.
The new funding fits well into the Haitian Government’s priorities of rebuilding infrastructure, reducing vulnerability to future disasters, creating economic opportunity outside of Port-au-Prince and strengthening the Haitian state.
