Haiti debt 'cruel and unnecessary'

Monday, 25 January 2010

Oxfam has provided aid for Haiti, but has called on governments to cancel the country's debt

Oxfam has provided aid for Haiti, but has called on governments to cancel the country's debt

Oxfam has urged foreign ministers to cancel Haiti's debt, saying insisting upon repayment would be "both cruel and unnecessary".

The charity's call for cancellation of Haiti's outstanding 890 million dollars (£552 million) of international debt comes as foreign ministers meet in Montreal to focus on Haiti's needs in the wake of this month's earthquake.

Oxfam also urged ministers to turn a 100 million US dollar (£62 million) emergency loan into a grant and to help ensure the country's poor areas do not miss out on reconstruction opportunities.

Jeremy Hobbs, Oxfam International executive director, said: "Expecting Haiti to repay billions of dollars as the country struggles to overcome one of the worst natural disasters in recent memory would be both cruel and unnecessary.

"Immediate cancellation of foreign debt must be accompanied by urgent action to support farmers and prevent a man-made food crisis exacerbating the hardship faced by the people of Haiti.

"This should take place alongside steps to speed the recovery of local markets such as cash grants to pay earthquake survivors to clear rubble and undertake other jobs linked to reconstruction."

He went on: "Haiti is a divided and highly unequal society so there is a real risk that, in the weeks and months after the earthquake, politically influential and richer Haitians will secure reconstruction resources at the expense of Port-au-Prince's poorest."

Along with debt cancellation and cash grants for poor areas, Oxfam also called for support for Haitian farmers and small businesses, support for civil society and the Haitian government, and earthquake-proof buildings in the future.

It warned Haiti was now dependent on imports for 40% of its food, with the planting season just two weeks away.

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