November 26, 2025
PRESS OFFICER: Fernando Puchol
Phone: +1 202 623-7100Email: MEDIA@IMF.org
Washington, DC: Management of the International Monetary Fund (IMF) approved on November 25, 2025 the second review of Haiti’s Staff-Monitored Program (SMP), including the authorities’ request for a nine-month extension of the SMP through September 19, 2026. SMPs are informal agreements between country authorities and the IMF to monitor the implementation of the authorities’ economic program and build a track record of policy implementation that could pave the way for financial assistance from the IMF’s upper credit tranche (UCT). Haiti’s SMP is tailored to its context of acute security challenges, institutional fragility, and capacity constraints. It supports the authorities’ priorities of economic stabilization, improved governance, anticorruption, and strengthening the social safety net.
Economic conditions in Haiti remain fragile amid persistent domestic and external shocks, and rising uncertainty. Against the backdrop of intensifying gang violence, Real GDP contracted in FY2025 for the seventh consecutive year, while annual inflation remained high at around 32 percent. The expiration of the TPS for Haitians in the United States in February 2026, the non-renewal of the HOPE/HELP preferential trade agreement which ended in September 2025, and the impact of Hurricane Melissa in late October 2025—which caused significant loss of life and widespread damage to infrastructure and agricultural areas, exacerbating humanitarian needs and further constraining resources— are expected to further strain the Haitian economy.
Despite the challenging conditions, program implementation has been encouraging. All quantitative and indicative targets for the end-June test date were met. Monetary financing of the fiscal deficit has been maintained at zero, social spending reached the program’s targets, and revenue performance stayed on track. International reserves continued to accumulate, supported by strong remittance inflows and foreign exchange purchases. Net international reserves reached almost US$ 1.5 billion by end July 2025. The reform agenda—covering governance, public financial management, safeguards, and data provision—continues to advance, although with delays in some areas. The authorities continue to demonstrate strong ownership and engagement, including through the high-level SMP Monitoring Committee.
The nine-month extension of the SMP through September 2026 will help support macroeconomic stability, preserve reform momentum, and allow for political and security conditions to stabilize. The extension will consolidate recent achievements and advance key priorities, including strengthening governance and institutional safeguards, enhancing revenue mobilization, and improving the efficiency of public financial management. The additional time will also allow for a more thorough assessment of the impact of ongoing international initiatives, including the United Nations’ Gang Suppression Force and the Organization of American States’ ‘Haitian Led Road Roadmap for Recovery and Peace’.
While security remains the top priority, the SMP will continue to focus on key policy areas and reforms critical to Haiti, mainly:
Advancing governance reforms to overcome fragility. Reform efforts should be coordinated and anchored in the Governance Diagnostic Report, including (i) enhancing transparency and accountability in public financial management; (ii) mitigating corruption risks in revenue administration; and (iii) ensuring accountability for serious corruption, organized crime, and money laundering. The authorities are encouraged to complete the national assessment for money laundering and terrorist financing, and to continue addressing strategic deficiencies in Haiti’s anti-money laundering/combating the financing of terrorism (AML/CFT) framework to support its exit from the Financial Action Task Force (FATF) grey list.
Mobilizing revenue and improving budget execution. Fiscal policy remains constrained by institutional weaknesses that hinder revenue mobilization and spending efficiency. Immediate priorities include operationalizing automated monthly data exchanges between the tax and customs systems and completing the rollout of tax declarations and payments services for all large taxpayers across all commercial banks. Strengthening budget execution—especially for social and security spending—is essential to adequately support vulnerable populations and advance critical infrastructure. This requires improved treasury cash management and robust project appraisal and budget prioritization, in line with the 2022 IMF Public Investment Management Assessment.
Strengthening the central bank’s policy frameworks. Monetary policy credibility has improved with the elimination of monetary financing of the budget deficit. Given the challenging and uncertain environment, foreign exchange interventions should remain focused on supporting the accumulation of international reserves and preserving exchange rate stability. Advancing the financial system’s regulatory and supervisory reform is essential, particularly by enhancing both on-site and off-site supervision.
Despite the authorities’ continued efforts, Haiti requires international financial support to address its significant development needs. To safeguard debt sustainability and build on progress under the SMP, this support should come as grants rather than non-concessional loans. Grant financing is essential to meet immediate humanitarian, social, and economic needs, and to place the economy on a steady and sustainable medium- and long-term growth path, which is essential for improving living conditions for the Haitian people.
In line with the Fund’s Strategy for Fragile and Conflict-Affected States, IMF staff will maintain close collaboration with Haiti’s main development partners, particularly on governance and capacity development.
