IMF and Haiti Conclude Virtual Mission on the Second Review Staff-Monitored Program
IMF News, October 10, 2025
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- Published: October 10, 2025
Mission summary
- A staff team from the International Monetary Fund (IMF) led by Mr. Camilo E. Tovar conducted a virtual mission from September 30 to October 8, 2025, to assess progress under Haiti’s Staff-Monitored Program (SMP).
- The SMP is tailored to Haiti’s context of acute security challenges, institutional fragility, and capacity constraints, and supports the authorities’ priorities of stabilizing the economy, strengthening governance, and reinforcing the social safety net.
- Engagement with the authorities will continue over the coming weeks.
- The SMP Second Review is concluded pending approval by IMF Management.
Economic context and outlook
- The economy has contracted for a seventh consecutive year.
- Inflation remains high at around 32 percent year-on-year.
- Banking sector indicators:
- Nonperforming loan ratio above 13 percent in June 2025.
- Capital adequacy ratio (22 percent) exceeds the regulatory minimum of 12 percent.
- Remittance inflows have continued to increase, strengthening the current account balance, which is projected to record a moderate surplus in FY2025.
- Gross international reserves remain adequate—over US$3.1 billion, or about 7 months of prospectives imports, as of end-July 2025.
- Net international reserves reached US$ 1.5 billion by end July 2025, supported by strong remittance inflows and foreign exchange purchases.
- The nominal exchange rate remains stable, resulting in real exchange rate appreciation.
- Fiscal position:
- Fiscal policy constrained by security challenges, institutional weaknesses, and limited policy space.
- Fiscal position was broadly balanced in FY2025, reflecting improved nominal revenue collection and low spending execution.
- Social spending rose by about 34 percent, supported by the 2023 IMF’s Food Shock Window under the IMF’s Rapid Credit Facility.
- Public debt is projected at 12.4 percent of GDP by end FY2025—the lowest in the Latin America and Caribbean Region.
Program implementation and key statistics
- All quantitative and indicative targets for the end-June test date have been met.
- Monetary financing of the fiscal deficit has been maintained at zero for the second consecutive year.
- Social spending reached the program’s targets.
- Revenue performance stayed on track.
- International reserves continue to accumulate, supported by strong remittances.
- Reform agenda progress: advancing across governance, public financial management, safeguards, and data provision, albeit with delays in some areas.
Risks and scenarios
- Risks to the outlook remain tilted to the downside:
- Intensified gang-related disruptions, escalating violence, or social unrest could exacerbate social and economic vulnerabilities.
- Potential shifts in foreign immigration and trade policies could sharply reduce exports and remittance inflows.
- These developments could worsen the humanitarian and economic crisis and increase fiscal pressures.
- Upside scenario:
- The United Nations Security Council’s authorization to transition the Multinational Security Support mission in Haiti for a new multinational Gang Suppression Force—supported by the newly established United Nations Support Office for Haiti and the Organization of American States—could mark a turning point to restore security, rebuild institutions, and lay foundations for economic growth.
Policy priorities and recommendations under the SMP
- Advancing governance reforms to overcome fragility:
- Coordinate and anchor reforms in the Governance Diagnostic Report.
- Enhance transparency and accountability in public financial management.
- Mitigate corruption risks in revenue administration.
- Ensure accountability for serious corruption, organized crime, and money laundering.
- Complete the national assessment for money laundering and terrorist financing and address gaps in the AML/CFT framework to support Haiti’s exit from the FATF grey list.
- Mobilizing revenue and improving budget execution:
- Operationalize automated monthly data exchanges between the tax and customs systems.
- Complete the rollout of tax declarations and payments services for all large taxpayers across all commercial banks.
- Strengthen budget execution—especially for social and security spending—through improved treasury cash management and adequate project appraisal and budget prioritization, in line with the 2022 IMF Public Investment Management Assessment.
- Strengthening the central bank’s policy frameworks:
- Maintain elimination of monetary financing of the budget deficit to support monetary policy credibility.
- Continue foreign exchange interventions focused on preserving exchange rate stability and supporting accumulation of international reserves.
- Advancing financial system regulatory and supervisory reforms:
- Continue the annual on-site inspection program and enhance off-site supervision.
- Integrate the risk assessment grid framework into the BRH’s supervisory architecture.
- Finalize the new chart of accounts for financial institutions.
- Enhancing the quality and timeliness of data provision:
- Timely publication of the BRH audited financial statements, including completion of the FY2023 audit and initiating the FY2024 audit.
- Implement the recommendations of the 2024 safeguards assessment report.
- Advance data reporting through the International Reserves and Foreign Currency Liquidity template and strengthen external sector statistics per IMF technical assistance.
- Improve government finance statistics and align reporting of financial soundness indicators with international standards.
- Financing recommendation:
- Haiti requires international financial support to meet urgent and large development needs.
- To safeguard debt sustainability and consolidate progress under the SMP, support should be provided in the form of grants rather than non-concessional loans.
Engagement and next steps
- IMF staff will continue to collaborate closely with Haiti’s main development partners, particularly on governance and capacity development, in line with the Fund Strategy for Fragile and Conflict-Affected States.
- The IMF staff team met with the Minister of Economy and Finance, Mr. Alfred Métellus, the Governor of the Bank of the Republic of Haiti, Mr. Ronald Gabriel, and other senior government officials.
- The mission expressed gratitude to the Haitian authorities for their strong cooperation and open, constructive discussions throughout the engagement.
Press Release No. 25/342, October 10, 2025 — International Monetary Fund