$100-M loan, no firm aid plan

PAUL CHIASSON / THE CANADIAN PRESS Enlarge Image

Prime Minister Stephen Harper, flanked by Haitian Prime Minister Jean-Max Bel­lerive and United States Secretary of State Hillary Clinton, addresses conference.

MONTREAL -- Haitian relief should be carefully tracked so it's not squandered or stolen, Canada and the United States warned, but no firm plan emerged from Monday's international meeting on how to follow the money.

As expected, no financial commitments were made at the international talks hosted by Canada as major players, including U.S. Secretary of State Hillary Clinton and French Foreign Minister Bernard Kouchner, bristled at suggestions their hastily called summit achieved nothing.

The International Monetary Fund, however, said it plans to inject $100 million into Haiti's treasury later this week -- an emergency, no-interest loan -- but dismissed calls for immediate debt relief.

"Debt relief is not a today issue, it's a tomorrow issue," said IMF spokeswoman Caroline Atkinson.

She said Haiti would receive "emergency cash" directly into its central bank, and that the country will be given a five-year grace period before its first payment is due.

The decision rejected calls by international development groups to forgive Haiti's debt, which they say amounts to almost $900 million, and to transform the $100 million IMF loan into a grant.

"Anything other than a grant is unacceptable," said Oxfam Canada Executive Director Robert Fox. "If someone drags you alive from your collapsed home, you don't expect a bill, interest free or not, a week or so later."

Foreign Affairs Minister Lawrence Cannon hosted the one-day conference involving more than a dozen foreign ministers, who made a 10-year commitment to rebuild the country decimated by the Jan. 12 earthquake. They also agreed to convene a major donors' conference in March at the United Nations headquarters in New York.

Clinton and Prime Minister Stephen Harper emphasized the importance of accountability when the international funds for long-term Haitian reconstruction begin flowing.

"We bear a responsibility to our taxpayers to ensure that the money that our governments commit will be well spent, transparently, and with results on the ground for the Haitian people," Clinton said.

Harper told the gathering that it would likely take a decade to rebuild Haiti. He stressed that the money pledged by the international community should be spent properly.

"It is not an exaggeration to say that 10 years of hard work, at least, awaits the world in Haiti," Harper said after participants observed a minute's silence for quake victims.

"We must ensure that every resource committed -- every relief worker, every vehicle, every dollar -- is used as effectively as possible," Harper said. "We need to focus on effectiveness. The Haitian people deserve that. Our own taxpayers expect it."

Offering a long list of thank yous to the international community, Haitian Prime Minister Jean-Max Bellerive said his country will need "more and more and more aid" to complete the reconstruction.

Bellerive denied published reports that his government came to Montreal to ask for as much as $3 billion in extra funds, saying they are still making assessments.

"What we are speaking about is re-launching our country on a path of development. It is not a question of going back to the status quo."

Cannon applauded the new set of principles and objectives that will guide Haiti's reconstruction. A key one affirmed Haiti's sovereignty as an equal partner with its international donors.

Bellerive said his government has set up six committees to deal with the crisis, including ones on sanitation and energy. Each is headed by a Haitian and an international partner, he said.

Haiti is anxious to begin a long-term economic recovery after reopening banks this past week.

"We have to do more with less," Bellerive said. "Throughout history our people have been marked by tragedy and catastrophe. Each and every time, it got back on its feet and made an attempt at reconstruction and this is what we will do now."

Some 200,000 are believed to have been killed in the quake, including at least 21 Canadians. Another 171 Canadians were listed as missing by Monday afternoon.

Ottawa said Canadian aircraft had evacuated 2,424 people aboard 27 flights.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition January 26, 2010 A9