The Inter-American Development Bank today announced the approval of a $12.5 million, fast-disbursing grant to support Haiti’s efforts to improve the management of public sector resources.
This is the first operation approved under a new grant financing facility established earlier this year after the IDB Board of Governors voted to provide deep debt relief to Haiti, Bolivia, Guyana, Honduras and Nicaragua.
The grant will provide the Haitian government with budgetary support as it implements its poverty reduction program and makes progress towards the goals of the initiative for Heavily Indebted Poor Countries (HIPC) and the Multilateral Debt Reduction Initiative (MDRI).
The IDB, in coordination with other international agencies and donor countries, is supporting Haiti’s reforms to make public sector financial management and economic governance more efficient and transparent.
This grant, which will be disbursed in a single tranche, could be followed by a similar grant in 2008. Haiti is expected to reach the HIPC “completion point” late next year, which will trigger deeper debt relief under the MDRI.
The IDB is financing a broad range of projects in Haiti, with emphasis on basic infrastructure, such as highways and rural roads.