13067: Chamberlain (news item): Haiti-Aid (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Greg Chamberlain <GregChamberlain@compuserve.com>

   By GEORGE GEDDA

   WASHINGTON, Sept 5 (AP) -- The climate for renewing international aid to
Haiti has improved following action by the Organization of American States,
but numerous obstacles still remain.
   If all goes well, $146 million worth of Inter-American Development Bank
loans, all blocked for years, could be released to the economically
stricken country. Also pending are six other IDB loans totaling $230
million, which are still in the preliminary stage, bank officials said
Thursday.
   Potential obstacles to a resumption of normal IDB ties to Haiti include
arrearages on loans dating from the 1990s and on Haiti's ability to absorb
new loans, officials said.
   There are no pending World Bank loans to Haiti. A bank official said
that before any new loan commitments can be made, Haiti must deal with $18
million in arrearages from earlier loans.
   The World Bank has been operating with a skeleton staff in Haiti for
more than a year. The IDB office has continued to function normally.
   U.S. assistance to Haiti has been limited to humanitarian aid
distributed through private charitable organizations. About $52 million has
been budgeted for this year.
   The OAS decided to ease the constraints on international lending to
Haiti out of concern about a possible humanitarian disaster there.
   An OAS resolution approved Wednesday backed the "normalization of
economic cooperation between the government of Haiti and the international
financial institutions."
   The loans were blocked following evidence that elections in 2000 were
rigged by the ruling party in Haiti. A lack of trust between the ruling
party and a coalition of opposition parties has blocked resolution of the
dispute. In effect, the OAS dropped its insistence on a negotiated end to
the election dispute in exchange for a freeing up of international
assistance.
   The 34 members of the OAS Permanent Council unanimously urged Haiti and
foreign donors to "resolve the technical and financial obstacles" to the
restoration of aid.
   They cited "the continuing deterioration of the socio-economic situation
in Haiti ... and its potential for humanitarian disaster."
   The OAS also urged the holding of new elections next year, and called
for "the restoration of a climate of security."