LATEST TWEET:
RT @Debt_Ireland: The New Debt Crisis - A free event from DDCI on the looming debt crisis in the Global South, and the impacts it is alread…
UK audit office finds #PPPs in the UK cost 40% more than alternatives https://t.co/aEAScWJeUv Yet the UK continues… https://t.co/ZdVuizILhu
The #Carillion collapse has put bad value PFI deals, and the debts they can create, back in the spotlight https://t.co/aEAScWJeUv
RT @openDemocracyUK: How to stop the next Carillion - 7 steps to public ownership | by Cat Hobbs of @We_OwnIt https://t.co/N3oqpequhZ #PMQs
Jordan unveils major IMF-guided tax hikes in response to debt crisis https://t.co/iViWndd7XA
Join the movement

IMF refuse to cancel Haiti debt as hurricane not ‘catastrophic’

The damage caused by Hurricane Matthew in October has led the IMF and World Bank to assess Haiti as being at high risk of not being able to pay its debt, up from their previous moderate risk assessment. However, the two institutions have refused to cancel any debt owed to them in response to the devastation caused by the hurricane.

Hurricane Matthew destroyed an estimated 90% of homes in Haiti's Grande Anse department. (Flickr / European Commission)

Hurricane Matthew destroyed an estimated 90% of homes in Haiti’s Grande Anse department. (Flickr / European Commission)

The IMF have estimated that Hurricane Matthew caused $1.9 billion of economic damage – 23% of GDP – and say:

“Reconstruction following the hurricane is expected to require large increases in public spending, with budget revenues remaining broadly flat.”

Haiti’s government external debt payments are now expected to be 9.2% of government revenue in 2017 ($106 million) and 9.6% ($118 million) in 2018. This is up from averaging 0.9% between 2011 and 2015.

Following global campaigning, significant amounts of Haiti’s debt were cancelled through the Heavily Indebted Poor Countries initiative in 2009, and then following the 2010 earthquake. However, the IMF have refused to cancel any debt after Hurricane Matthew because they do not regard economic damage of 23% of GDP as ‘catastrophic’. In the UK, 23% of GDP would be the equivalent of $530 billion, or over $8,000 per person.

If that’s not catastrophic, I don’t know what is.


Countries

Haiti
Jubilee Debt Campaign is a company limited by guarantee, number 3201959
Jubilee Debt Campaign's registered charity number is 1055675