WASHINGTON, USA The executive board of the International Monetary Fund (IMF) yesterday approved the full cancellation of Haitis outstanding liabilities to the fund to the tune of US$268 million.

The Washington-based financial institution said it also approved a new three-year arrangement for Haiti under the Extended Credit Facility (ECF) requested by the Haitian government to support the countrys reconstruction and growth programme.

The IMF said both decisions form part of a broad strategy to support Haitis longer-term reconstruction plans, following the January 12 devastating earthquake.

The cancellation of existing debt was advocated by IMF managing director Dominique Strauss-Kahn in the days following the disaster, as part of a concerted international effort to launch a Marshall Plan for the reconstruction of the French-speaking Caricom country.

The new programme provides a strong and forward-looking framework to support economic stability and reconstruction in the country, and will also help catalyse donors contributions, the IMF said.