IMF Management Approves an Extension of the Staff Monitored-Program with Haiti and the Modification of the Performance Criteria
IMF News, March 8, 2024
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- Published: March 8, 2024
Overview
- Management of the International Monetary Fund (IMF) approved on December 21, 2023, an extension of the Staff-Monitored Program (SMP) with Haiti through September 30, 2024.
- The extension is a nine-month extension of the SMP covering the period through September 2024.
- Original SMP approved in June 2023 for a nine-month period spanning from June 30 2023 through March 31, 2024, and has now been extended through September 2024.
- The SMP is an informal arrangement between national authorities and IMF staff to monitor the authorities’ economic program; SMP Staff reports are issued to the Board for information and do not entail endorsement by the IMF Executive Board.
Objectives and focus of the SMP
- Strengthening governance.
- Fighting corruption.
- Enhancing transparency and accountability in the use of public spending, including through data transparency to help ensure public funds are used appropriately.
- Supporting the authorities’ efforts to raise inclusive growth.
Modifications and additional conditionality introduced with the extension
- New quantitative targets and additional structural conditionality were added as a result of the extension; these will be monitored through a Third Review (in addition to First and Second reviews already envisaged) with test date at the end of June 2024.
- New additional benchmarks include:
- The publication of the IMF governance diagnostics report and an associated action plan agreed by the authorities.
- The provision of more granular monetary data, including detailed information on government deposits at the central bank.
- The publication of core macroeconomic and financial indicators according to timeliness and periodicity of the Enhanced General Data Dissemination System (e-GDDS).
- The publication of the upcoming annual audit of the central bank for FY2023, undertaken, as usual practice, by an independent international audit firm.
- Management approved the modification of quantitative targets from December 2023.
Rationale for modifications
- The modification of quantitative targets was warranted given the deterioration of the outlook relative to June 2023.
- The original letter of intent (LOI) in June 2023 had envisaged the possibility to request an extension if circumstances required to allow establishing a solid track record of policy implementation.
Reviews, consultations, and next steps
- The additional structural conditionality and targets will be monitored through a Third Review with test date at the end of June 2024.
- The authorities had agreed to start holding the 2024 Article IV consultation discussions remotely in February 2024, which are currently ongoing.
- An updated Country Engagement Strategy will be prepared in that context, including to enhance collaboration with development partners in line with the Fund Strategy for Fragile and Conflict-Affected States, particularly given the critical role of development partners on capacity development and financing.
Source: IMF press release, March 8, 2024.