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Haiti debt cancellation letter
The School Sisters of St. Francis joined other religious orders and organizations in writing a letter to Secretary of the Treasury, The Honorable Timothy Geither. The Jan. 26th letter is in support of cancelling Haiti’s remaining debt and ensuring that disaster relief assistance is provided in the form of grants and not loans. Please see the text of the letter below.
January 26, 2010
The Honorable Timothy Geithner
Secretary of the Treasury
Dear Mr. Secretary:
We are grateful for the US government’s efforts to date to mobilize emergency assistance
for disaster relief in Haiti.
We are writing today to bring to your attention two specific steps that we believe should be
a part of our government’s response to the Haiti crisis: (1) support for the cancellation of
Haiti’s remaining debts; and (2) ensuring that any disaster relief assistance be provided as
grants rather than loans.
First, as you know, in June 2009 Haiti secured $1.2 billion in debt cancellation from its
major creditors when it reached completion point in the Heavily Indebted Poor Countries
(HIPC) Initiative. This was a critical step forward. But even after this relief, Haiti remains
saddled with a debt of more than $1 billion.
More than half of Haiti’s outstanding debt is owed to the Inter American Development
Bank (IDB) ($442 million), the International Monetary Fund (IMF) ($165 million), and the
World Bank’s International Development Association (IDA) ($39 million) -- institutions
where our government has a significant voice on the Executive Board. Haiti is projected to
pay at least $100 million in debt payments to these institutions over the next five years
unless these debts are cancelled -- and the earthquake now has devastated Haiti’s capacity
to generate sufficient export revenue to be able to afford these payments.
We have welcomed statements from IMF and IDB officials of their intentions to consider
cancellation of Haiti’s remaining debt. We urge you to use your voice and vote on the
Executive Boards of the IDB, IMF, and World Bank to secure cancellation of Haiti’s
remaining debts to these institutions. While arrangements are worked out for cancellation,
we urge you to call for a moratorium for debt service payments from Haiti to these
institutions, without interest accruing.
Second, we welcome the pledges of additional financial assistance from international
governments and international financial institutions, as we acknowledge that all available
resources must be delivered to Haiti in as timely a manner as possible. However, we urge
that all support be in the form of grants instead of loans.
While we were initially concerned when the International Monetary Fund announced its
intention to provide $100 million in loan assistance as part of an existing loan agreement
that includes some onerous conditions, we welcomed IMF Managing Director Dominique
Strauss-Kahn’s recent promise that the IMF intends to work to cancel all of Haiti’s debt
including this new loan. We urge you to work with the IMF to ensure that all assistance,
including the new IMF loan, is provided on grant terms and without requirements of
existing loans.
We thank you for your consideration of our views on this critical issue.
Sincerely,
AFL-CIO
ONE
Jubilee USA Network
Oxfam America
Partners In Health
Bread for the World
United Methodist Church, General Board of Church and Society
American Jewish World Service
The Episcopal Church
Evangelical Lutheran Church in America
Presbyterian Church USA
Sojourners
United Church of Christ- Justice and Witness Ministries
Lutheran World Relief
Leadership Conference of Women Religious
Unitarian Universalist Association of Congregations
Global Exchange
Africa Action
TransAfrica Forum
CC: Dominique Strauss-Kahn, Managing Director, International Monetary Fund
Luis Alberto Moreno, President, Inter American Development Bank
Foreign Policy in Focus
Maryknoll Office for Global Concerns
Micah Challenge USA
NETWORK: National Catholic Social Justice Lobby
Gender Action
Friends of the Earth US
Just Foreign Policy
RESULTS
Witness for Peace
Health GAP
Columban Center for Advocacy and Outreach
Conference of Major Superiors of Men
Africa Faith and Justice Network
Jewish Council for Public Affairs
Union for Reform Judaism
United States Catholic Mission Association
Medical Mission Sisters
Medical Mission Sisters - Sector North America
Medical Mission Sisters Alliance for Justice
Center of Concern
Jubilee Montana Network
Jubilee Oregon
Jubilee San Diego
Florida Council of Churches
Nicaragua Network
Maryknoll Affiliates Global Concerns Committee
Maryknoll Sisters
Maryknoll Sisters of St. Dominic
CCIDD
Diocese of Toledo, Office of Global Concerns
Franciscan Sisters of the Atonement
InterReligious Task Force on Central America
Leadership of the Franciscan Sisters of Little Falls, Minnesota
Leadership Council of the Sisters, Servants of the Immaculate Heart of Mary of
Monroe,
MI
Institute Justice Team, Sisters of Mercy of the Americas
Adorers of the Blood of Christ, US Region
Brothers of the Sacred Heart, New England Province
Comboni Missionary Sisters
Missionary Sisters of O.L.of Africa
Missionary Sisters of the Immaculate Conception
Missionary Sisters of the Immaculate Heart of Mary
Missionary Sisters of the Immaculate Heart of Mary
Missionary Sisters of the Soc. of Mary
Our Lady Queen of Peace Catholic Church
Provincial Council, St. John the Baptist Province
School Sisters of Notre Dame Shalom North America Coordinating Committee
School Sisters of St. Francis, International and U.S. Province Leadership Teams
Sisters of St. Francis, Tiffin, Ohio
Sisters of St. Joseph
Sisters of the Holy Cross - Congregation Justice Committee
Sisters of the Most Precious Blood of O'Fallon, MO
Sisters of the Sacred Hearts of Jesus and Mary
Passionist Overseas Missions
Miramar Retreat Center
Medical Missionaries of Mary
Congregation of Sisters of St. Agnes, Fond du Lac, WI
Mission Resource Center
Society for the Propagation of the Faith
Springfield Dominican Leadership Team
Springfield Dominican Office of Justice
Redemptorists-Denver Province
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