Haiti, the poorest country in the western hemisphere, is to benefit from a number of loans granted by the Inter-American Development Bank (IDB) valued at US$161 million.

The loans are earmarked to finance urban rehabilitation, rural roads, damage caused by floods, agriculture and economic governance.

At the official signing at the National Palace, Port-au-Prince, IDB's President Enrique Iglesias said: "We have signed contracts for six loans to finance major projects that should assist Haiti in its economic development. These projects are a demonstration of the IDB's commitment to support not only urgent social and economic development needs but also Haiti's efforts to strengthen core institutions. The projects will help create the basis for long-term economic progress and social justice for the people of Haiti."

These new loans now mean that the IDB's total loan package to Haiti now stands at US$532 million. Since 1961 the IDB has made 50 loans totalling $984 million with disbursements of $661 million. Its loans to Haiti are for 40-year terms with 10-year grace periods. The annual interest rate is one per cent during the first decade and two per cent thereafter.

Haiti's roads are in need of major reconstruction and modern transportation is vital to its economic ambitions. To that end, the IDB has identified the country's roadways as one of the priority areas for immediate rehabilitation and has granted the country a loan of US$50 million to improve approximately 170 kilometres of highways and bridges and 300 kilometres of secondary and tertiary roads.

The country's poor living standards are a particular cause for concern. Here a loan of $US50 million has been granted to finance an urban rehabilitation programme and access to government services . The aim here among other things is to build administrative and civic centres in urban communities to house government offices.

The agricultural sector ravaged by hurricanes requires some immediate attention. Rural farmers stand to benefit from a US$27-million loan to assist them with diversifying their farming practices, irrigation and modern agricultural technologies.

Haiti is particularly susceptible to flooding, and the recent spate of hurricanes caused major damage mainly because there were inadequate flood warnings. A US$5-million loan will finance a national programme that will establish a flood early warning system in communities in high-risk areas.

A US$25-million fast-disbursing loan and a US$5-million investment loan will support Haiti's efforts to carry out reforms to strengthen economic governance and improve effective transparency. In order to increase public sector revenues, the IDB-assisted initiatives will help in improving the country's tax bureau and customs administration by providing resources to improve their legal frameworks, train officials and modernise information technology systems.

CARIBBEAN BUSINESS REPORT FACT FILE ON HAITI.

Prime Minister: Gerard Latortue

Population: 8.5 million
Annual population growth: 2 per cent
Life expectancy: 52 years

GDP: 2.8 (US$ billion)

GDP annual growth average: 0.0 per cent

GDP per capita average annual growth: -1.8

Source: World Bank

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