Debt Relief A Silver Lining

In a move aimed at bolstering underlying economic stability and unlocking additional financial support from international donors, the IMF announced on July 21 that it had approved the full cancellation of Haiti's external debt, equivalent to US$268mn. The Executive Board of the Fund also agreed to a new three-year arrangement for the country under the Extended Credit Facility (ECF), which will provide US$60mn over the next three years to help bolster the central bank's stock of foreign reserves, which should allow the authorities to manage volatile currency fluctuations amidst an expected surge in foreign capital inflows.

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