Reprinted from Caribbean Net News
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Haiti qualifies for debt relief, says World Bank
11-23-2006

WASHINGTON, USA: The World Bank's International Development Association (IDA) and the International Monetary Fund (IMF) have determined that Haiti qualifies for debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative by reaching the decision point under the Initiative. Haiti becomes the 30th country to reach its decision point under the Initiative.

Haiti will receive interim debt relief from certain creditors, but in order to qualify for irrevocable debt relief at the completion point, Haiti will be implementing a broad set of reforms. In particular, Haiti has launched and is expected to implement an economic program supported by the IMF's Poverty Reduction and Growth Facility (PGRF), prepare and implement a Poverty Reduction Strategy for at least one year, and implement key structural and social reforms, including in the areas of economic governance and debt management.

In addition to HIPC debt relief, the Republic of Haiti will be eligible for Multilateral Debt Relief Initiative (MDRI) assistance when it reaches the HIPC completion point. This will further increase the resources available to the Government in order to reduce poverty.

Takatoshi Kato, Deputy Managing Director of the IMF, said: "Haiti has made good progress in strengthening macroeconomic performance and introducing key structural reforms. Together with the recent successful elections, the progress achieved so far provides an opportunity for a reversal of the trends of the past decades and sustained pro-poor growth. Haiti's external debt situation will remain difficult even after HIPC debt relief, and strong economic policies, prudent debt management, and continued donor support on highly concessional terms will be needed to ensure a sustainable external debt in the medium term."

Caroline Anstey, the World Bank Country Director for the Republic of Haiti, said: "The objective of debt relief is to free up resources to reduce poverty. The Haitian authorities have recently introduced important reforms in economic governance. Sustaining and building on those improvements will be needed to ensure that resources are used effectively, efficiently and transparently to improve the delivery of education, health and basic services for poor people. How donors can support Haiti in these areas will be central themes at the Haiti Donor's Conference to be held in Madrid, Spain on November 30."