Paris Club agrees to restructure $69 million of Haiti's external debt

By Jennifer Chiou

New York, Dec. 12 - The Paris Club said it has reached an agreement with the Republic of Haiti to restructure $69 million of the country's external debt.

Of the $69 million, $45 million is made up of late interest.

The agreement will lead to the immediate cancellation of $7.2 million and also defers 100% of the moratorium interest due over the consolidation period under the rescheduling.

Repayment of the moratorium interest will be made after November 2010, the Paris Club added.

Due to its track record of reforms as well as the burden of its external indebtedness, Haiti reached the decision point under the Heavily Indebted Poor Countries initiative in November.

This agreement is concluded under "Cologne terms" designed by Paris Club for the implementation of the Heavily Indebted Poor Countries initiative interim debt relief.

Participants in the reorganization of Haiti's debt included representatives of Belgium, Canada, Denmark, France, Germany, Italy, the Netherlands, Spain, the United Kingdom and the United States.

As of Oct. 1, Haiti's stock of debt owed to Paris Club was about $199 million.

Formed in 1956, the Paris Club is an informal group of creditor governments from major industrialized countries.

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