16195: (Chamberlain) Haiti-Loans (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Greg Chamberlain <GregChamberlain@compuserve.com>

   By MICHAEL NORTON

   PORT-AU-PRINCE, July 25 (AP) -- The Inter-American Development Bank said
it will start releasing nearly $200 million in loans withheld since 2000,
allowing Haiti to move forward with projects to improve health care,
education and improved roads.
   The decision announced by the bank Thursday means that loans withheld
because of unpaid arrears will begin to be released in the coming days,
Haitian officials said. The loans come at a crucial time for the Caribbean
country, which has seen increasing poverty and unrest since President
Jean-Bertrand Aristide's party swept disputed legislative elections in
2000.
   Since then, international lenders and donors have suspended more than
$500 million in loans and grants, with some like the development bank
needing loan repayments but others demanding democratic reforms and greater
stability.
   Earlier this month, Haiti dipped into its dollar reserves to pay off $32
million in arrears to the development bank. The announcement came a day
before a scheduled visit by the Washington-based bank's president, Enrique
Iglesias, on Friday.
   The $196 million in loans includes some $146 million for specific
projects and $50 million to support the government budget.
   The Finance Ministry said it expected the first $35 million of the
budget-support loan to arrive in the coming days. Further installments are
to be released as the government proceeds with planning on projects.
   The loans are to help improve Haitians' access to potable water, reform
education, improve roads and pay for medical supplies and clinics.
   The government, however, still must achieve greater stability and end
political violence before other international groups will release withheld
funds.
   Aristide supporters attacked members of civil society groups on July 12
as they gathered for a meeting in the seaside slum of Cite Soleil, injuring
dozens, witnesses said. No one has been arrested.
   The government and opposition have been locked in a stalemate since the
2000 elections, which observers said were flawed.
   Aristide has pledged new legislative elections this year, but civil
society groups say they won't participate in a new electoral council until
the government ensures security.
   Meanwhile, the European Union has pulled back $15.9 million in loans to
support Haiti's budget until the political crisis is resolved.
   The World Bank has demanded greater stability and the payment of more
than $30 million in arrears before it approves new loans.
   Haiti is the poorest country in the Western Hemisphere, and most of its
8.8 million people live on less than $1 a day.