Jubilee USA Welcomes US Government Support of Haiti Debt Cancellation
As G7 Finance Ministers Prepare to Meet, Treasury Secretary Geithner Announces Support to Cancel Debt and Provide Grants, Not Loans for Recovery
For Immediate Release February 5th
Jubilee USA Network
Jubilee USA Network, an alliance of more than 75 religious denominations and faith communities, human rights, environmental, labor, and community groups, welcomes today’s public statement from Treasury Secretary Geithner to work with global leaders to achieve full debt cancellation for Haiti and to ensure that additional support for the country be in the form of grants, not loans.
“We are gratified and motivated by Secretary Geithner’s commitment today, as achieving full debt cancellation for Haiti is a crucial step for the country’s long term recovery after the devastating earthquake,” said Melinda St. Louis, Deputy Director of Jubilee USA Network. “Secretary Geithner has heard the call for Haiti’s debt cancellation from organizations, activists, Congress, and the Haitian people - and has listened. This weekend in Canada, we can look forward to the US using its leadership to secure a broader commitment from G7 finance ministers.”
In a public statement released today, Treasury announced that the U.S. intends to seek a commitment with other donors for Haiti's debt relief to the international financial institutions “in a manner that provides direct and immediate grant support to Haiti.” The Treasury Secretary states, "Today, we are voicing our support for what Haiti needs and deserves – comprehensive multilateral debt relief."
In the days following the devastating earthquake on January 12th, Jubilee USA Network helped lead efforts by US civil society to achieve debt cancellation of the $709 million Haiti owes to the international financial institutions, including the International Monetary Fund and the Inter-American Development Bank. Last week, over 80 US faith, labor, and human rights organizations sent a letter urging Secretary Geithner to negotiate Haiti’s debt cancellation. This message was echoed in another letter sent yesterday by 94 Members of the House of Representatives. Legislative momentum also continues to build in both bodies of Congress.
Jubilee USA Network members have joined with ONE, Oxfam, and Avaaz to collect hundreds of thousands of petitions to deliver to the G7 ministers this weekend urging fast and comprehensive debt cancellation, so Haiti can begin its recovery without the burden of debt.
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FOR IMMEDIATE RELEASE: February 4, 2010
CONTACT: Natalie Wyeth, Treasury Public Affairs (202) 622-2960
SECRETARY GEITHNER VOICES SUPPORT FOR INTERNATIONAL DEBT RELIEF FOR HAITI, FINANCING OF RECOVERY THROUGH GRANTS
WASHINGTON – The U.S. Department of the Treasury today announced the United States will work with its partners around the world to relieve all debts owed by Haiti to international institutions and to ensure grant financing to support Haiti’s reconstruction and recovery from the devastating earthquake in January.
“The earthquake in Haiti was a catastrophic setback to the Haitian people who are now facing tremendous emergency humanitarian and reconstruction needs, and meeting Haiti’s financing needs will require a massive multilateral effort,” said Treasury Secretary Tim Geithner. “Today, we are voicing our support for what Haiti needs and deserves – comprehensive multilateral debt relief.”
Secretary Geithner also welcomed International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn's call to provide full relief for Haiti's outstanding IMF debt, including the $102 million emergency loan approved on January 27, 2010.
“We are committed to working quickly and closely with these institutions in a way that provides immediate grant assistance to help the Haitian people recover and rebuild,” Secretary Geithner continued. “I very much welcome the initiative taken on this issue by leaders in Congress, the IMF, and the MDBs and look forward to working with them to provide the critical support Haiti needs for recovery as well as to discussing this issue with my G-7 colleagues this weekend.”
Treasury announced that the U.S. intends to seek a commitment with other donors for the relief of Haiti’s debt to the Inter-American Development Bank (IDB), the International Fund for Agricultural Development (IFAD) and the International Development Association (IDA) in a manner that provides direct and immediate grant support to Haiti.
In September 2009, the U.S. concluded an agreement with Haiti that eliminated 100 percent of the Haitian Government’s outstanding debt to the U.S. This action was taken following Haiti’s successful completion of the Heavily Indebted Poor Country (HIPC) Initiative process in June 2009.
