Wednesday, April 15, 2009
Jubilee-Grassroots: Obama Administration Pledges to Cover Remaining Debt Payments from Haiti!
Dear Jubilee members and friends,
Yesterday at the Haiti Donors Conference Secretary of State Clinton announced a US pledge of $20 million to cover Haiti ’s remaining debt payments to the World Bank and Inter-American Development Bank. Not only is this a victory for the people of Haiti , it is also an inspiring demonstration of the power of your solidarity and advocacy.
While this is exciting news, we are not entirely out of the woods yet. Congress may need to authorize and appropriate $50 million to fund the entire package of US emergency aid to Haiti (including the debt relief money). And Haiti has not yet received permanent debt stock cancellation. The projected date for this has been pushed back more than once and it could happen again.
That said, yesterday’s announcement is cause for celebration. Many thanks to everyone for the years of hard work that helped to bring about yesterday’s announcement!
Jubilee’s press statement & links to coverage and video of the announcement follow.
AFP – “ Clinton pledges more than $50 million in aid for Haiti ”
Secretary of State Clinton’s Remarks at Haiti Donors Conference – transcript and video
JUBILEE USA NETWORK
FOR IMMEDIATE RELEASE
APRIL 15, 2009
CONTACT: Kristin Sundell, Jubilee USA, 202-783-0215 direct; 443-845-4461 cell
Brian Concannon Jr, Institute for Justice & Democracy in Haiti , 541-432-0597
Jubilee USA Welcomes Obama Administration Pledge to Relieve Haiti’s Debt
Debt Relief to Support Haiti’s Fragile Democracy in Advance of Critical Senate Election
Washington DC – Jubilee USA Network today enthusiastically welcomed yesterday’s announcement by Secretary of State Hillary Clinton that the US would pledge $20 million to cover Haiti’s 2009 debt payments to its multilateral creditors as part of an over $50 million aid package to the country.
Haiti is currently sending $1.6 million to the World Bank every month while thousands of Haitians starve and funding shortages threaten the nation’s stability.
“Today’s announcement is a victory for the people of Haiti . The US pledge to cover Haiti ’s debt service obligations will free $20 million for basic infrastructure, healthcare, and education and will help Haiti to recover from last year’s devastating storms. We are especially grateful for the leadership shown by the Treasury and State Departments in achieving this commitment.” said Kristin Sundell, Deputy Director of the Jubilee USA Network, a coalition of faith-based, development, human rights and community organizations working for debt relief for impoverished countries.
“This is change that Haitians can believe in,” said Brian Concannon Jr., Director of the Institute for Justice & Democracy in Haiti . “It provides much-needed tangible support while righting a historical wrong by removing the burden of Haiti ’s unjust and unbearable multilateral debt.”
In February, a bipartisan group of 72 US Representatives called on World Bank President Robert Zoellick to immediately suspend all scheduled debt repayments from Haiti and grant complete debt cancellation to the impoverished nation. The letter was circulated by Representative Maxine Waters (D-CA).
Haiti is projected to complete the IMF’s Heavily Indebted Poor Country (HIPC) Initiative by July. Completion of the program will result in the permanent cancellation of a substantial portion of Haiti ’s debt to the United States, World Bank, and Inter-American Development Bank. Haiti was improperly left out of the original HIPC for political reasons. The country was accepted into the program in 2006, but its efforts to catch up have been hindered by economic policy conditions imposed by the IMF and a string of natural disasters, economic shocks and political unrest.
Earlier this month Haitian President René Préval appealed to Secretary of State Clinton for immediate financial assistance, describing a $100 million budget gap that he said could throw Haiti into anarchy.
The US pledge of $20 million in debt relief is a substantial step toward filling the budget gap, but the date by which Haiti is projected to complete the HIPC program and receive permanent debt cancellation has already been pushed back a number of times by the IMF. Haiti ’s debt must still be cancelled outright without further delays.
Kristin Sundell, M.Div.
Jubilee USA Network
Check out the Jubilee blog:http://jubileeusa.typepad.com/