G7 Nations to Cancel Haiti’s Debt

Published : February 07, 2010 :: 13:02:05 [ 772 views ]

The worlds leading nations are to write off the debts owed by Haiti following the devastating earthquake last month.

Canada 7^th February 2010 [PDN] At a two day gathering of finance ministers held in Iqualuit, Northern Canada by the group of seven countries, Canada’s Finance Minister Jim Flaherty, announced that a plan to cancel Haiti’s bilateral debt is in motion and he would encourage international lenders to do the same. Last year saw bi and multilateral lenders including international bodies cancel $1.2billion of Haiti’s debt.

“We are committed in the G7 to the forgiveness of debt, in fact all bilateral debt has been forgiven by G7 countries vis-à-vis Haiti” said Mr. Flaherty. “The debt to multilateral institutions should be forgiven and we will work with these institutions and other partners to make this happen as soon as possible” he added.

The earthquake that struck in mid January, killing more than 200.000 people, has left at least one million people in need of aid. The G7 group which consists of the US, UK, France, Germany, Italy and Japan, has been under pressure to help Haiti’s recovery since the quake by canceling the money owed by Haiti.

Haiti was rated the poorest nation in the western hemisphere before the earthquake and though the exact amount owed is difficult to obtain, it is thought the debt owed bilaterally to G7 countries is very small. Venezuela and Taiwan are Haiti’s other bilateral creditors.

British Prime Minister Gordon Brown said, “It is right that a nation buried in rubble must not also be buried in debt. The UK has already cancelled all debts owed by Haiti and I strongly welcome today’s G7 commitment to forgive Haiti’s remaining multilateral debt”. “We will work with others to make sure this is delivered,” he added.

The US voiced support for the plan to extend international debt relief for Haiti.

Comments

Maher Faruki

said :

Haiti's debt cancellation:

I have heard a lot of rhetoric on Web-sites and TV, that U.K.,Venezuela,and Taiwan declaring debt-cancellation. However, what I want to see is this: Countries declare that they have canceled the debt disclosing the amount owed.

Email : nanatejani@gmail.com Date : 2010-02-21 10:22:11

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