WASHINGTON,�USA (Bloomberg): The Inter-American Development Bank plans to forgive as much as $3.5 billion of debt owed by the five poorest countries in the Caribbean and Latin America, including Guyana and Haiti, the US Treasury said.
The bank’s governors agreed at a meeting on Friday in Washington to cancel the debts of Bolivia, Guyana, Haiti, Honduras and Nicaragua, the Treasury said in a statement. Officials will begin talks on implementing the pledge in January, the release said.
At the IDB’s annual meeting in April in Brazil, Clay Lowery, the US Treasury’s assistant secretary for international affairs, said debt relief would free up more spending to invest in infrastructure projects and boost growth.
“Debt relief to the poorest countries in the Western Hemisphere is critical to reducing poverty and stimulating economic growth,” Lowery, who oversees Latin American issues for the Treasury, said on Friday in a statement.
The IDB, set up in 1959 to provide financing to Latin American countries, is owned by its 47 members, with borrowing members holding about 50 percent of total votes and non-borrowing members holding the other half. The US, with a third of the votes, is the biggest member