## IMF Executive Board Approves US$41.6 Million Disbursement under the Rapid Credit Facility for Haiti

_IMF News, November 18, 2016_

## Source details

**Canonical URL:** [IMF Executive Board Approves US$41.6 Million Disbursement under the Rapid Credit Facility for Haiti](https://www.imf.org/en/news/articles/2016/11/18/pr16517-haiti-imf-executive-board-approves-disbursement-under-rcf)

## Other formats

- [Markdown version](/en/news/articles/2016/11/18/pr16517-haiti-imf-executive-board-approves-disbursement-under-rcf/index.md)
- [Structured JSON version](/en/news/articles/2016/11/18/pr16517-haiti-imf-executive-board-approves-disbursement-under-rcf/index.json)
- [Bundle manifest](/en/news/articles/2016/11/18/pr16517-haiti-imf-executive-board-approves-disbursement-under-rcf/bundle-manifest.json)

## Bibliographic details
- Published: November 18, 2016

---

### Approved financial assistance and purpose
- The Executive Board approved SDR 30.7125 million (about US$41.6 million) in financial assistance for the Republic of Haiti under the Rapid Credit Facility (RCF).
- The assistance is to help the authorities meet urgent balance of payments needs arising from the effects of Hurricane Matthew.
- The funds will be made available immediately.

### Humanitarian and economic impact of Hurricane Matthew
- The hurricane was a strong category 4 storm that hit the country in early October.
- Casualties and displacement:
  - killed more than 500 people
  - displaced more than 175,000 into temporary shelters
  - put over 1.4 million in immediate need of humanitarian assistance
- Geographic impact: widespread destruction of buildings and infrastructure in the southwestern départements of Grand Anse, Sud and Nippes.
- Preliminary estimates of damage and loss: US$1.9 billion, about 23 percent of Haiti’s GDP.

### Features of the Rapid Credit Facility (RCF)
- The RCF provides immediate financial assistance with limited conditionality to low-income countries with an urgent balance of payments need.
- Financing under the RCF:
  - carries a zero interest rate
  - has a grace period of 5.5 years
  - has a final maturity of 10 years
- The economic policies of a member receiving RCF financing are expected to address the underlying balance of payments difficulties and support policy objectives including macroeconomic stability and poverty reduction.
- The Fund reviews the level of interest rates for all concessional facilities every two years.

### Fiscal and external outlook and authorities’ commitments
- Emergency relief and reconstruction costs will significantly raise the overall fiscal deficit.
- The increase in imports of goods and services will widen the external current account deficit over the next few years.
- Authorities’ fiscal commitments:
  - limit the non-hurricane budget deficit to approximately 2.3 percent of GDP in fiscal year 2016/17
  - sustain prudent financing of the deficit
  - not enter into any non-concessional loan contracts during fiscal year 2016/17
  - avoid the accumulation of public sector arrears
- Monetary and external sector commitments:
  - gross reserves are anticipated to remain adequate
  - the central bank will maintain exchange rate flexibility

### IMF role, policy support, and next steps
- IMF financing through the RCF will help meet urgent foreign exchange needs and ease pressure on the balance of payments.
- The IMF will:
  - continue to play a key role in coordinating and catalyzing international support for Haiti’s reconstruction and development efforts
  - mobilize the assistance of the donor community, which will be crucial to achieving disaster recovery and longer-term development objectives
  - consult with the authorities in laying out a medium-term economic plan and ensuring sustainability of the balance of payments
- The authorities are committed to revising their strategy for growth and social protection so rebuilding and recovery efforts support long-term goals of poverty reduction and stronger growth.

### Contact and media relations
- IMF Communications Department, MEDIA RELATIONS, PRESS OFFICER:
  - Phone: +1 202 623-7100
  - Email: MEDIA@IMF.org

*Source: IMF Press Release No. 16/517, November 18, 2016.*

---


## References

- [Tao Zhang](https://www.imf.org/en/About/senior-officials/Bios/tao-zhang)
- [Haiti and the IMF](http://www.imf.org/external/country/HTI/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [http://www.imf.org/external/np/exr/facts/rcf.htm](http://www.imf.org/external/np/exr/facts/rcf.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2016/11/18/pr16517-haiti-imf-executive-board-approves-disbursement-under-rcf_