Main foreign lenders forgive Haiti's debt

A group of 19 of the world's major lenders has pledged to forgive Haiti's foreign debt obligations, and has urged others to do the same.

The Paris Club of creditor nations, including Canada,urged all of Haiti's lenders on Tuesday to cancel the earthquake-stricken nation's debt.

An informal group of nations founded in the 1956 Argentine debt crisis, the group said Tuesday that its members will cancelthe Caribbean country's debt. Among Paris Club members, Haiti owes a total of $214 million toBelgium,Denmark, France, Germany, Italy, the Netherlands, Spain, Britain and the U.S.

Canada had already forgiven all of the$2.3 million it was owed by the Haitian government, as part of a moveby Ottawa last summer to helpmore than a dozen heavily indebted poor countries.

The Paris Club meets every six weeks and makes non-binding recommendations, but in Haiti's case, individual members have independently moved to officially forgive Haiti's foreign debt, the group said.

"Bilateral agreements to legally implement this commitment have either already been completed or are currently being finalized," the group said in a statement. "For those creditors that are still in the process of finalizing their agreement, the commitment has been taken to expedite the process.In any case, Haiti will not have to make any payment in the meantime."

The International Monetary Fundestimated Haiti's total public external debtat $1.8 billion US as of Sept. 2008.

Within that figure is $91 million owed to Taiwan. Taiwanese President Ma Ying-jeou said Tuesday that Taiwan will consider cancelling debts owed byearthquake-ravaged Haiti, a move that could add to Taipei's cachet in a region where rival China is making inroads.

"I have already asked the Foreign Ministry to conduct the necessary reviews to help Haiti to pass through this difficult time," he said in Taipei.