21 November 2006
Debt relief for Bolivia, Guyana, Haiti, Honduras and Nicaragua will total between $2.1 and $3.5 billion.
The Inter-American Development Bank announced on Friday that it will join the World Bank, IMF and African Development Bank, in cancelling the debts of some low-income countries to their institutions.
The Bank has not yet decided when the relief will take effect, which will ultimately determine the total value of the cancellation. The agreement will be finalized in January 2007.
Some have taken issue with the expectation that Haiti adopt controversial IMF measures before becoming eligible for the relief. "Under the terms of Friday's agreement, Haiti will not benefit from IDB debt cancellation until it implements a series of harmful economic reforms mandated by international financial institutions, led by the International Monetary Fund (IMF) and World Bank. Given that more than half of Haiti's $1.3 billion in debt was contracted by the brutal dictatorships of Francois and Jean-Claude Duvalier, it is unjust that Haiti is being asked to comply with economic policies such as privatization of basic services or increased trade liberalization before obtaining full debt cancellation," Debayani Kar of Jubilee USA stated on Monday.
The United States has been a major backer of the cancellations, in spite of some resistance from other IDB member governments. Some claim that the move will benefit the Bush administration's image in the region.
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