Debt Forgiveness

“So you see my friend, they take with one hand and give with another!”

“Who?”

“Those guys in suits….a mob…they call it the Paris Club, a bunch of mobsters who take our goods – the diamonds, oil and other natural resources in Africa, make money from them and then lend it back to us again. The interest rates are sky high of course, so we can’t pay back and then we owe them and when they have bled us dry dry collecting three times more than they gave us…they then forgive us the debt!!…….All over Africa the same story! ”

“Na Wa!! My Brotha!! Something wrong with that story!!

Haiti

Paris Club creditors call upon Haiti’s other bilateral creditors to cancel Haiti’s debt

January 19, 2010

After the devastating earthquake that struck Haiti, Paris Club members want to express their deepest sympathy to the people of Haiti. They recall that on 8 July 2009, following Haiti’s reaching its completion point under the HIPC initiative they committed to cancel all their claims on Haiti, which amounted at that time to USD 214 millions. Bilateral agreements to legally implement this commitment have either already been completed or are currently being finalized. For those creditors that are still in the process of finalizing their agreement, the commitment has been taken to expedite the process. Those creditors also recalled that in any case, Haiti will not have to make any payment in the meantime.

Considering the financing needs that Haiti will face in reconstructing the country, Paris Club creditors call upon other bilateral creditors also to urgently provide full debt cancellation to Haiti.

Background notes

The Paris Club was formed in 1956. It is an informal group of creditor governments from major industrialized countries. It meets on a monthly basis in Paris with debtor countries in order to agree with them on restructuring their

Source: http://www.clubdeparis.org/sections/actualites/haiti-20100119/viewLanguage/en

Photo Credit:Joshua Wanyama;  A man listens to his friend while leaning on a bicycle in Eldoret North constituency near Soy.

Creative Writer: Sheila Ochugboju