Alcee Hastings Bill to forgive Haiti's debts OK'd by U.S. House

From the Miami Herald
By TRENTON DANIEL

The full cancellation of Haiti's debts to international financial institutions such as the International Monetary Fund and the World Bank could be expedited thanks to a bill amendment approved by the U.S. House of Representatives Wednesday.

''This is an important initial step toward finally freeing Haiti from its onerous debt,'' the amendment's sponsor, U.S. Rep. Alcee Hastings of Miramar, wrote in a news release.

The amendment was attached to a bill called the Jubilee Act, which aims to improve lending practices and cancel debt for up to two dozen ''low-income countries'' -- many of which incurred millions of dollars in debt during years of lax lending oversight and despotic domestic rule.

To take effect, a matching bill must pass the Senate, and President Bush would have to sign it. Upon his approval, the legislation would go before the boards of the international financial institutions, and then back to Congress for final approval.

Hastings' proposal comes as Haiti struggles with rocketing food pricesthat have triggered violent riots, as well as the recent ouster of the prime minister.

Haiti is among a list of countries called ''heavily indebted poor countries'' that are in the process of having 60 percent of their debts canceled, and is already receiving relief on the service of its debt, an IMF spokesman said.

Haitian-American activists in South Florida applauded the approval, saying the money saved could be used to develop Haiti.

''There is reason to believe that there is a little light at the end of the tunnel,'' said Jean-Robert Lafortune, chairman of the Haitian-American Grassroots Coalition. ``Our hope is that the Haitian government will use that relief to promote agriculture production in the countryside and build infrastructure.''

Other Jubilee Act supporters remain sanguine.

''We're optimistic that the multilateral negotiations will go pretty quickly,'' said Neil Watkins, National Coordinator of the D.C.-based nonprofit, Jubilee USA Network.

The countries that stand to benefit because they meet poverty, human rights and financial oversight standards include Cape Verde, Georgia, Kenya, Lesotho, Moldova, Mongolia, Samoa, Vanuatu, and Vietnam.