9698: IMF contact weighs in on IDB loan monies (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Lance Durban <lpdurban@yahoo.com>

Hello Corbetters:

Further to Guy Antoine's request for confirmation on whether
Haiti is obliged to pay interest on loans for which it has not
yet received funds.  I asked a friend who works at the IMF and
here is what he e-mailed back:

Quote:

   I had the opportunity to check out the details. The
   commitment fee on undisbursed idb loans is .5 of one
   percent.  the undisbursed idb loan amounts on which
   this fee is currently being charged is about US$200
   million.  

Unquote.

Personally, I think Haiti would be nuts to pay interest, fees or
anything on loan money for which it has requested disbursement
but which has not been released for whatever reason. 
Conceivably, if Haiti has budgeted the proceeds of such loan
monies and failure to receive same results in increased or
unforeseen costs elsewhere, then it would seem that the Haitian
Government might even be able to make a legal case that the IDB
should bear some of this extra unforeseen cost.  Unless, of
course, the loan document specifically prohibits this type of
counterclaim.

Regards,
Lance Durban 



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