G7 to cancel Haiti's debt

The world's seven most industrialised countries vowed they would each cancel their nation's remaining bilateral debt with quake-hit Haiti, Canadian Finance Minister Jim Flaherty said after two days of G7 talks in northern Canada.

Haiti's debt to Britain, Canada, France, Germany, Italy, Japan, and the United States is already relatively small after past relief efforts.

It's foreign debt, however, remains at about US$890 million ($1.2 billion), of which 41 per cent is owed to the InterAmerican Development Bank and a further 27 per cent to the World Bank.

The Paris Club in June agreed to cancel Haiti's total remaining debt to its members of about US$214 million.

France cancelled Haiti's debt following the January 12 earthquake.