The Inter-American Development Bank today announced the cancellation of Haiti’s outstanding debt of $484 million with the IDB, after receiving a $204 million advance contribution from the United States to the Bank’s soft loan window, the Fund for Special Operations (FSO).
“We are grateful for this contribution by the United States, which will allow us to relieve Haiti of all its debt obligations to us,” said IDB President Luis Alberto Moreno. “This will free up millions in assistance for Haiti for development, without creating any future burden for a country that faces enormous challenges. This is an important reaffirmation of the commitment by the region and the international community to a better future for Haiti.”
The IDB is Haiti’s leading multilateral donor. In response to the devastation caused by the Jan. 12 earthquake, in March the Bank’s Board of Governors agreed to provide Haiti $200 million a year in grants over the course of the next decade, subject to annual approvals.
U.S. Department of Treasury Under Secretary for International Affairs Lael Brainard said: “In the days following the earthquake, President Obama pledged the full and continued commitment of the United States in the recovery and reconstruction of Haiti,” said Under Secretary Brainard. “Today marks an important milestone in that effort. Thanks to the steadfast support from Congress, the U.S. is today providing essential cash assistance to lift the lives of the Haitian people.”