The Jubilee Blog

IMF Puts Haiti $102 Million More in Debt

Yesterday afternoon the International Monetary Fund voted to give Haiti a $102 million loan. 

This might come as a surprise - we’ve been following this story closely and just last week Dominique Strauss-Kahn announced he was working with donors to cancel Haiti’s current debt and debt on the future loan, effectively turning it into a grant. 

Unfortunately, this hasn’t happened yet. The IMF’s press release had no mention of debt cancellation. 

Yet we’re still hopeful. World leaders and executives in the financial institutions are discussing debt cancellation right now. The worldwide support for Haiti’s debt cancellation is incredible. Last week over 80 religious denominations, human rights, development and labor groups including Jubilee USA Network sent a letter to Treasury Secretary Geithner urged Haiti’s immediate debt cancellation. He has the power to work with Ministers of Finance in other countries and use the US’s vote in the international financial institutions to cancel Haiti’s debt quickly.  

We have to make sure we hold our leaders accountable to their commitments and to the critical reconstruction of Haiti in a just and inclusive way. 

Congressional leaders are taking action, urging the Treasury Secretary to negotiate debt cancellation. Take action by asking your Member of Congress to join this call and make sure you sign our petition to the Secretary.

Haiti’s New Debt Struggle: Working for Debt Cancellation Amidst the Crisis

(Photo of hospital in Haiti taken on January 18th by Catherine Laine)

By Hayley Hathaway

Here I have attempted to map out the recent progression of events related to Haiti's debt cancellation amidst the earthquake. Thanks to everyone who has called, written letters, and spread the important word about a just and fair response to the crisis.

In the wake of the tragedy in Haiti, Jubilee USA Network members have been joined by the ONE Campaign, Oxfam, Christian Aid and others in calling for the immediate cancellation of Haiti's more than $1 billion debt. To many, debt cancellation is an obvious and simple response to the disaster.

Without debt cancellation, Haiti will pay more than $100 million over the next five years to the international financial institutions, including the International Monetary Fund, the Inter-American Development Bank and the World Bank. This money could be used for Haiti’s rescue and recovery.

Jubilee's Neil Watkins Discusses Haiti on The Rachel Maddow Show

Check out Jubilee USA Executive Director Neil Watkins as he joins Rachel Maddow on MSNBC to discuss the International Monetary Fund's proposal to give Haiti at $100 million loan. Nice work, Neil! 

 

Visit msnbc.com for breaking news, world news, and news about the economy

"Grants, not loans," Maddow repeats, and the International Monetary Fund heard this call today as it announced that it would work cancel Haiti's current debt and work to make sure the new loan would not put Haiti into more debt. Read Jubilee's press release to learn more.

The Nation: IMF to Haiti Update

 (A Haitian woman looks on, in front of a destroyed cathedral on January 17, 2010 in Port-au-Prince, Haiti. Haiti is trying to recover from a powerful 7.0-strong earthquake on January 12.)

UPDATE (JANUARY 20th): See Richard's new blog with updated info "IMF Clarifies Terms of Haiti's Loan"

IMF to Haiti: Freeze Public Wages
by Richard Kim, The NOTION
January 15, 2010

Since a devastating earthquake rocked Haiti on Tuesday — killing tens of thousands of people — there's been a lot of well-intentioned chatter and twitter about how to help Haiti. Folks have been donating millions of dollars to Wyclef Jean's Yele Haiti (by texting "YELE" to 501501) or to the Red Cross (by texting "HAITI" to 90999) or to Paul Farmer's extraordinary Partners in Health, among other organizations. I hope these donations continue to pour in, along with more money, food, water, medicine, equipment and doctors and nurses from nations around the world. The Obama administration has pledged at least $100 million in aid and has already sent thousands of soldiers and relief workers. That's a decent start.

But it's also time to stop having a conversation about charity and start having a conversation about justice — about recovery, responsibility and fairness. What the world should be pondering instead is: What is Haiti owed?

Our Hearts & Voices for Haiti

 By Hayley Hathaway

With a heavy heart  I watch the news, read the stories and see the photographs. My prayers go out to the people of Haiti and Port-au Prince suffering from the devastation of Tuesday’s earthquake. Many of us at Jubilee have strong connections with the country - Jubilee has worked in solidarity with partners there for many years -  and some are still waiting to hear the fate of friends and allies. 

The destruction is unimaginable, for me at least. I can’t help but think how this isn’t just a natural disaster, but a disaster caused by global economics and politics that have caused much of Haiti’s poverty and environmental damage for years and years.

In this small Caribbean country, eighty percent of the population lives in abject poverty. One out of nine children dies before reaching her fifth birthday. 

In June, 2009, Haiti celebrated the cancellation of $1.2 billion of its debts owed to the IMF, World Bank, and US governments. 

Many Mourn the Loss of Artist & Activist Dennis Brutus

"World-renowned political organizer and one of Africa's most celebrated poets, Dennis Brutus, died early on December 26 in Cape Town, in his sleep, aged 85..."

Jubilee USA Network and friends mourn the loss of a great friend, artist, and activist.

We had the honor of working with Dennis for many years. In 2008, Dennis discussed his perspective for Jubilee on the role of the U.S. Treasury Secretary and what should top the agenda of the new Treasury Secretary.

Below are highlights from Jubilee Network Council member Africa Action’s meaningful statement:

Sunday, December 27, 2009 (Washington, DC) – Dennis Brutus, renowned South African poet, educator, and activist, died at age 85 early Saturday morning, December 26th. He is survived by his wife May, his sisters Helen and Dolly, eight children, nine grandchildren and four great-grandchildren in Hong Kong, England, the USA and Cape Town.