IMF Staff Reaches a Staff-Level Agreement with Haiti on a New Staff-Monitored Program

IMF News, June 30, 2023

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Canonical URL: IMF Staff Reaches a Staff-Level Agreement with Haiti on a New Staff-Monitored Program

The Haitian authorities and IMF staff reached a staff-level agreement on a new 9-month Staff-Monitored Program (SMP) covering the period June 2023-March 2024.
The agreement is subject to the approval of IMF Management.
SMPs are informal arrangements between national authorities and IMF staff to monitor the authorities’ economic program; they do not entail endorsement by the IMF Executive Board. SMP Staff reports are issued to the Board for information.

IMF team led by Patrizia Tumbarello held discussions with Haitian senior officials during April 10-17 in Washington, D.C.; discussions continued remotely thereafter, with the final meeting held on June 27.
The previous SMP concluded in May 2023 and was described as satisfactorily concluded.

Haiti faces a challenging macroeconomic outlook amid a dire humanitarian crisis.
External and domestic shocks noted:
- Economic spillovers from Russia’s invasion of Ukraine contributed to food price inflation that triggered a hunger crisis.
- A highly volatile security situation has heightened the economy’s fragility.
Signs of resilience identified by IMF staff:
- Net international reserves have been rebuilt, although from a low base.
- Custom duties helped boost fiscal revenue by almost 50 percent in the first six months of FY2023.
- Monetary financing of the budget has declined.
- The exchange rate has recently stabilized.

SMP policies are designed to support the authorities’ economic policy objectives and build a track record of reform implementation, and provide short extensions, if needed.
Core areas of focus under the new SMP:
- Strengthen Haiti’s domestic revenue mobilization and raise taxes by supporting the implementation of the tax code.
- Continue lowering the monetary financing of the budget.
- Further enhance transparency and accountability in the use of public spending.
- Continue to enhance the AML/CFT framework.
- Build administrative and institutional capacity through capacity development.

The authorities requested a governance diagnostic.
The forthcoming Governance Diagnostic will identify priorities for future reforms and its recommendations will help inform governance and anti-corruption strategy going forward.

During the mission, the IMF team met with:
- Mr. Michel Patrick Boisvert, Minister of Economy and Finance
- Mr. Jean Baden Dubois, Governor of the Bank of the Republic of Haiti
- Mr. Pierre Ricot Odney, Minister of Social Affairs and Labor
- Other senior officials, the private sector (civil society, association of industries, and banking association)
The IMF team closely coordinated with development partners, in line with the Fund’s Strategy for Fragile and Conflict-Affected States.
The IMF team expressed appreciation for the authorities’ excellent cooperation and continued productive dialogue, including with the Comité de Suivi (SMP high-level Monitoring Committee).

SMP duration: 9-month
Coverage period: June 2023-March 2024
Mission in-person meetings: April 10-17
Final meeting: June 27
Previous SMP concluded: May 2023
Fiscal revenue boost from custom duties: almost 50 percent in the first six months of FY2023

IMF Communications Department, June 30, 2023