9645: Fw: Interests on Debt. RE: 9631 (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Dr Allen <drallen@periogroup.com>


Guy Antoine in his posting # 9631 raises important questions.  I am curious
about the point he makes on the payment of interests for money not yet
received.  I am hearing this more and more in Haiti.
    G. Antoine:    "If Haiti is the poorest nation of the western
hemosphere, why then does she have to pay interest to the richest nations on
funds promised and not received."
    My understanding of the situation (I may be wrong) is the following;
    -we are currently not paying interests on undisbursed funds.
    -  For the first time in its history, Haiti is in arrears for  principal
repayment both at the World Bank (WB) and the Interamerican Development Bank
(IDB).  The only exception, which was understandable, was during the
embargo, and our international partners understood that unsusual situation
and were more flexible on arrears.  The debts we are defaulting on were
contracted under the Duvaliers.  We are in arrears for about 6 million
Dollars at the WB and 12 million for the IDB.Not much money even for us.
    -There are about 150 million dollars of loans approved and not disbursed
for reasons ranging from financial to political.  At the IDB Haiti was
charged about 1.9million dollars in administrative cost for those funds, not
interest.  This will likely be deducted from the loan when and if it is
disbursed.
    The important point is that contrary to what the Lavalas want us to
believe we have not paid our debt in a year.  We can make a point for the
administrative cost but after being current on repayment of debt scheduled
decades ago.
        This behavior of "marronnage" will get us nowhere; despite our
destitute ways, we could certainly afford to pay 12 million dollars to get
out of the bad debtors list.  Since this is not a pure financial issue but a
political one, we are alone in our defiance of the international financial
institutions, therefore we will at some point comply and the tough talk of
Aristide about "financial terrorism"will not change that; it only makes it
worse because we are dealing in bad faith.  There were conditions attached
to the loans and we signed under the dotted line.  Even under the worst
governments we have had paid our debt.  Until Aristide we prided ourselves
of not defaulted on our obligations.  Eventually, if we get our act
together, the debt will be forgiven but the humility of the beggar is a
"sine qua non" condition.
    If I got my facts wrong, can the dissenters help with some precision as
to what we are paying, to whom, and towards what accounts.

Joseph A. Allen DDS
Miami, FL