World Bank cancels remaining Haiti debt

[Judi Lynn]

World Bank cancels remaining Haiti debt
Fri May 28, 2010 12:13pm EDT

WASHINGTON May 28 (Reuters) - The World Bank said on Friday it has written off $36 million of Haiti's remaining debts to the lender with the help of contributions from 13 countries.

With the decision, Haiti has nothing further to pay to the World Bank, the institution said. The debt was owed to the World Bank's fund for its poorest borrowers, the International Development Association, or IDA.

Canceling the debt will free up funds -- which would have been spent on servicing the IDA debt -- for rebuilding after Haiti's devastating Jan. 12 earthquake.

The Bank said funding to write off the debt was received from Belgium, Canada, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, Norway, Spain, Sweden and Switzerland.

"Relieving Haiti's remaining debt is part of our effort to pursue every avenue to help Haiti's reconstruction efforts," World Bank President Robert Zoellick said.

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http://www.reuters.com/article/idUSN2818522520100528?type=marketsNews