6660: Jubilee 2000 in Haiti, background (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: MKarshan@aol.com

Haiti In 1996, Haiti 
paid out 
$0.17 in debt 
service for every 
$1 received in 
aid grants 
 

Background 
The Stats 
Jubilee 2000 in Haiti 
Country of the week home page 
Background 

Haiti is a severely indebted low income country (SILIC), and joins Nigeria as 
one of only two countries in this World Bank classification which are not 
eligible for the HIPC initiative. This is clearly a major error, as the 
country has a debt to exports ratio of almost 300 per cent, far above what is 
considered sustainable, even by the IMF and World Bank. Its debt was $302 
million in 1980 and it has more than tripled since then. In 1997 it was $1.1 
billion, almost 40 per cent of GNP.

Figures for debt service paid in 1996 show that more resources went in 
repaying debt than were spent by the government on health. This despite the 
fact that Haiti, with GNP per person at $355 in 1996, is the poorest country 
in the western hemisphere.

Heavily Indebted Poor Countries Initiative

Haiti has never been considered a HIPC despite its severe debt problems. As a 
result it is not currently eligible for any HIPC assistance. However, there 
are some signs that the IMF and World Bank are waking up to the injustice of 
keeping Haiti off the HIPC list. The changes recommended at the Cologne G-8 
summit have increased the likelihood that Haiti might be added to the list. 

The stats

Key indicators   
    
Total debt 1996 (EDT) ($ million) 897 
Total debt service 1996 (TDS) ($ million) 27 
    
Debt per person 1996 ($) 122 
Debt service per person 1996 ($) 4 
GNP per person 1996 ($) 355 
    
Debt to exports ratio 1996 (EDT/XGS) 468 
Present value debt to exports ratio 94-96(PV/XGS) 297 
Debt to GNP ratio 1996 (EDT/GNP) 34 
Debt service to exports ratio 1996 (TDS/XGS) 14