Haiti: Haiti’s Bank of the Republic is reducing the credit risk of microfinance institutions that will further enable financial institutions to provide more microloans to the small businesses and individuals as the nation examines various long-term recovery options.
The impoverished nation’s Republic Bank has taken this decision in order to assist the country in a speedy recovery from the destruction caused by the 7.2 magnitudes of the earthquake.
This ‘shock mitigation’ measure will be applied to post-earthquake reconstruction projects, support microfinance institutions affected by the disaster and will also assist in raising capitalization for these institutions.
Besides this, a reconstruction fund is also planned to
oversee financial institutions such as – banks, microfinance institutions and other credit institutions, who are giving loans for housing or businesses at a cheaper cost to households, and earthquake struck companies.
More about reconstruction Fund –
This fund is also stated as a Reconstruction 5-10-20. This fund will also authorize the homebuyers to provide 5 per cent as a down payment on a loan at 10 per cent interest, payable more than 20 years. Families in all regions of the country are eligible to buy a decent house with a 10 per cent contribution under the program.
Haiti’s current situation –
After the 7.2 magnitudes of earthquake hit the island country on 14 August 2021, many people lost their livelihoods and feeling unsafe, after which tens of thousands of Haitian migrants were bivouacked in a squalid camp under a bridge in southern Texas on Friday.
The United States is repatriating the Haitian migrants to which they have allotted daily flights to the Caribbean island. People in Haiti are feeling helpless as they suffer poverty and are unable to afford a one time meal for their families.
The earthquake has destroyed more than 53,000 buildings, including churches, schools, houses, offices, and other infrastructure, and has killed more than 2,200 individuals.
The situation is so worsened by the quake while simultaneously bringing heavy rains by the tropical storm, which hindered the evacuation process after the earthquake.