Haiti and Chile Earthquakes

World Bank Statement on Haiti Debt

WASHINGTON–(ENEWSPF)–January 21, 2010. The World Bank fully supports debt relief for Haiti. In June 2009, the World Bank, along with the IMF and other donors, granted Haiti $1.2 billion in debt relief through the Heavily Indebted Poor Countries initiative and the Multilateral Debt Relief Initiative. Since 2005, the World Bank’s financial support for Haiti ($363 million) has been carried out through grants. This does not include the $100 million in grants announced on January 13, 2010, in response to the earthquake.

Currently, Haiti’s debt to the World Bank, which is interest-free, is about $38 million—about 4% of Haiti’s total external debt. Due to the crisis caused by the earthquake, we are waiving any payments on this debt for the next five years and at the same time we are working to find a way forward to cancel the remaining debt.

About the World Bank Program in Haiti

The World Bank is a close partner of Haiti. There are 15 active World Bank projects in Haiti focusing on areas including disaster risk management, infrastructure, community-driven development, education, and economic governance. All current World Bank assistance to Haiti is in grant form.

Since January 2005, the International Development Association has provided a total of $308 million for Haiti. In addition, trust funds administered by the World Bank have given more than $55 million since 2003. These amounts do not include the $100 million in grants announced on January 13, 2010.

Source: worldbank.org