In response to a request from the Haitian authorities, an International
Monetary Fund (IMF) mission led by Mr. Chris Walker visited Port-au-Prince
from February 25 to March 8, 2019 to discuss IMF support for measures to
ease poverty, encourage good governance, raise growth and stabilize the
country’s economic situation. At the end of the visit, Mr. Walker issued
the following statement:
“I am pleased to announce that in support of the government and the people
of Haiti, we, the IMF, the Haitian government and the Central Bank of Haiti
(Banque de la République d’Haiti (BRH)) have reached an IMF staff-level
agreement on a concessional 0 percent, three-year loan of US$ 229 million
for Haiti. This agreement will have to be approved by the IMF’s Executive
Board, which is expected to consider Haiti’s request in the coming weeks.
“The agreement we have reached is aimed at helping Haiti overcome its
current fragile state, and alleviating the hardship of the most vulnerable.
We have placed social protection firmly at the center of the accord, and
once the agreed measures are successfully implemented, the poorest in Haiti
will be among the first to benefit in a tangible way. The program provides
money for a variety of social protection measures ranging from school
feeding, through targeted cash transfers, to money for social housing.
“Priority has also been given to the fight against corruption and
improvements in governance. The IMF backs the government’s aim of state
reform. In its agreement, it has drawn up measurable targets to boost this
fight with the goal of injecting greater transparency into the management
of public finances, tax and revenue administration, as well as expenditure
control.
“To enable Haiti to return to macroeconomic stability, the loan to Haiti
represents 100 percent of quota, and the money will be disbursed over the
three years of the program which is subject to regular Executive Board and
staff reviews.
“The loan is offered under the IMF’s Extended Credit Facility (ECF) which
allows lending at concessional rates and is aimed at stabilizing Haiti’s
economy by putting its budget deficit on a downward trajectory and managing
its debt, while protecting the poorest in the country.
“The visit also encompassed the IMF’s Article IV consultation, or its
regular check of the health of the country’s economy. Real growth remains
near its four-year average of 1.5 percent. The country has been facing
severe financing constraints while political turbulence has discouraged
private investment and limited action on needed fiscal reform.
“Under the program, we expect that financial constraints will be relaxed,
allowing for faster growth.
“We at the IMF are ready to partner with Haiti on its economic
revitalization. We will also encourage other multilateral agencies and
countries to support the country. We have talked to partner agencies and
they are willing to help. It would also be very helpful for Haiti’s
bilateral partners to step forward at this critical time.
“The mission would like to thank the authorities and all those with whom
they met for their warm welcome and the frank and constructive
discussions.”
