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Week Ending March 12, 2010

H.R.4573 To direct the Secretary of the Treasury to instruct the United States Executive Directors at the International Monetary Fund, the World Bank, the Inter-American Development Bank, and other multilateral development institutions to use the voice, vote, and influence of the United States to cancel immediately and completely Haiti's debts to such institutions, and for other purposes.

According to congressional findings Haiti, in the aftermath of the January 2010 earthquake, continues to owe $709 million to the International Monetary Fund the World Bank and other multilateral financial institutions to which the US donates money. Haiti owes Venezuela $167 million and Taiwan $92 million.

The bill holds that canceling the multilateral debts will allow Haiti to use its own resources for reconstruction and development.

The bill would direct the US executive directors at the multilateral institutions to use their voice, vote, and influence to ‘cancel immediately and completely all debts owed by Haiti to those institutions, suspend Haiti’s debt service until the debts are completely canceled and provide additional assistance to Haiti through grants so that Haiti does not have to accumulate additional debt.

The directors are directed to immediately commence efforts to persuade other multinational and private creditors to immediately cancel all debts.

Sponsor:  Rep. Maxine Waters (D-CA-35^th)

Vote:

Cost to the taxpayers:

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MORE INFORMATION

The Congress finds the following:

(1) On January 12, 2010, a 7.0 magnitude earthquake struck the country of Haiti.

(2) Casualty estimates, still being compiled, as well as infrastructure damage, including to roads, ports, hospitals, and residential dwellings, place this earthquake as the worst cataclysm to hit Haiti in over two centuries.

(3) An estimated 3,000,000 people have been directly affected by the disaster in Haiti, nearly one-third of the country's population, who are currently at risk of long-term displacement and vulnerability.

(4) The destruction of infrastructure, particularly to the port, airport, roads, and telecommunications, continues to hinder the immediate delivery of humanitarian assistance in Haiti.

(5) Haiti is the poorest, least developed country in the Western Hemisphere, and prior to the earthquake was ranked 149 out of 182 countries on the United Nations Human Development Index.

(6) Prior to the earthquake, Haiti was still in the process of recovering from a ruinous recent series of hurricanes and tropical storms, food shortages and rising commodity prices, and political instability, but was showing encouraging signs of improvement.

(7) President Obama vowed the `unwavering support' of the United States and pledged a `swift, coordinated and aggressive effort to save lives and support the recovery in Haiti'.

(8) The response to the tragedy from the global community has been overwhelmingly positive.

(9) The initial emergency response of the men and women of the United States Government, led by the United States Agency for International Development and United States Southern Command, has been swift and resolute.

(10) Individuals, businesses, and philanthropic organizations across the United States and throughout the international community have responded in support of Haiti and its populace during this time of crisis.

(11) Throughout this terrible calamity, the Haitian people continue to demonstrate unwavering resilience, dignity, and courage.

(12) Once proper surveys and assessments are conducted, the initial and crucial emergency relief response will likely move to a comprehensive mission requiring sustained assistance from the United States and the international community for reconstruction and development efforts.

(13) The Government of Haiti cannot afford to invest in reconstruction and development efforts, while continuing to make payments on debts owed to multilateral financial institutions like the International Monetary Fund (IMF), the World Bank, and the Inter-American Development Bank and to other international creditors.

(14) Prior to the earthquake, debt service payments to multilateral financial institutions and other international creditors already were a tremendous burden that interfered with the ability of the Government of Haiti to meet the needs of its people.

(15) On June 30, 2009, the World Bank announced that Haiti qualified for and received $1.2 billion in debt relief from the IMF, the World Bank, and other multilateral financial institutions.

(16) In order to qualify for debt relief, the Government of Haiti successfully developed and implemented a comprehensive Poverty Reduction Strategy Paper, under the direction of the IMF and the World Bank.

(17) According to the U.S. Department of the Treasury, despite previous debt relief, Haiti still owes a total of $709 million in debts to multilateral financial institutions, including $447 million to the Inter-American Development Bank, $165 million to the IMF, $39 million to the World Bank, and $58 million to the International Fund for Agricultural Development.

(18) According to the IMF, Haiti owed Venezuela $167 million and Taiwan $92 million at the end of September, 2008; furthermore, the amounts of these debts may have grown since that time.

(19) The cancellation of Haiti's debts to multilateral financial institutions and other international creditors will allow the Government of Haiti to use its meager resources for essential reconstruction and development efforts.

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