IMF Management Approves the Third Review and Extends the Staff-Monitored Program with Haiti
IMF News, May 21, 2026
Source details
- Canonical URL
- IMF Management Approves the Third Review and Extends the Staff-Monitored Program with Haiti
Other formats
Bibliographic details
- Published: May 21, 2026
Program decision and timeline
- Management approved the third review of the Staff‑Monitored Program (SMP) with Haiti and the authorities’ request to extend the SMP through June 19, 2027.
- The third review was approved on May 5, 2026.
- All program targets were met as of end-December 2025.
- The SMP is an informal agreement between the IMF and the authorities; SMP staff reports are issued to the Board for information and do not entail endorsement by the IMF Executive Board.
Current humanitarian, security, and political context
- Haiti faces a severe humanitarian and security crisis, compounded by recurrent shocks and a fragile political transition.
- Approximately 5.7 million people face food insecurity.
- 1.45 million people are internally displaced.
- Hurricane Melissa in October 2025 disrupted economic activity and exacerbated humanitarian needs.
- The UN-supported Gang Suppression Force began arriving in April 2026 and is expected to be fully deployed by October 2026.
- The political transition is expected to culminate in general elections later this year—the first in a decade.
Macroeconomic conditions and outlook
- Real GDP contracted for a seventh consecutive year in FY2025; a further contraction is expected in FY2026.
- Inflation has eased recently but remains elevated.
- Financial intermediation continues to contract; bank lending retrenchment and financial disintermediation have contributed to improvements in non‑performing loan ratios.
- Capital adequacy ratios remain well above regulatory minimums.
- Gross international reserves are projected at US$3.4 billion at end FY2026—over seven months of prospective imports of goods and services.
- Net international reserves reached USD 1.76 billion in December 2025.
- The current account is expected to weaken in FY2026 but will remain broadly balanced.
- The nominal exchange rate has remained stable.
External and commodity pressures
- The oil price shock stemming from the war in the Middle East has significantly raised the fuel import bill and implicit subsidy cost, aggravating an already weak fiscal position.
- Higher international oil prices are weighing on the external position; strong remittances partly offset these pressures.
- Risks include persistently higher global oil prices and potential shifts in foreign immigration policies that could slow remittance inflows.
Fiscal position and public finance execution
- Fiscal policy remains constrained by persistent security challenges, institutional weaknesses, and limited policy space.
- Revenue performance in FY2026 has been weak due to disruptions to economic activity, administrative fragilities, and institutional paralysis triggered by the termination of the Transitional Presidential Council’s mandate.
- The authorities increased domestic fuel prices in April (2026), which will help reduce foregone revenues from the oil price shock.
- Budget execution has remained uneven; priority actions include stronger cash management, tighter commitment controls, and better preparation and prioritization of public investment projects.
- The revenue, primary balance, and social spending targets all remained on track as of end-December 2025.
- The monetary financing target was met despite increasingly constrained fiscal space.
Program performance and specific statistics
- All program targets were met at end-December 2025.
- Reserve accumulation has been strong with net international reserves reaching USD 1.76 billion in December 2025.
- Gross international reserves are projected at US$3.4 billion at end FY2026—over seven months of prospective imports of goods and services.
Reform priorities emphasized under the SMP
- Strengthening governance and reducing corruption, anchored in the Governance Diagnostic Report, including:
- More transparent management of public finances.
- Stronger safeguards in revenue administration.
- More effective mechanisms to deter and address corruption, organized crime, and illicit financial activities.
- Strengthening the anti‑money laundering and combating the financing of terrorism framework, including publication of the national risk assessment and closing remaining gaps to support Haiti’s exit from the Financial Action Task Force grey list.
- Stepping up revenue mobilization by accelerating tax and customs administration reforms, operationalizing the new tax code, strengthening digital infrastructure, and improving compliance—particularly among large taxpayers.
- Protecting the most vulnerable by complementing fuel price adjustments with measures that leverage remaining resources from the IMF 2023 Food Shock Window.
- Improving budget execution to direct limited public resources toward priority social, humanitarian, and security spending and to ensure timely delivery of public assistance.
- Consolidating the central bank’s policy framework and credibility, including:
- Preserving reserve adequacy while using available buffers temporarily and carefully.
- Fully operationalizing the new reserve management framework, including updated investment policies and guidelines.
- Enhancing regulatory and supervisory frameworks in the financial system by:
- Strengthening risk‑based banking supervision through on‑site inspections and enhanced off‑site monitoring.
- Operationalizing the new supervisory framework, integrating risk‑assessment tools into the BRH’s supervisory architecture, and finalizing a new chart of accounts for financial institutions.
- Improving data quality and timeliness:
- The Bank of the Republic of Haiti completed the FY2023 audit and financial statements and has initiated the FY2024 audit.
- Continued implementation of safeguards assessment recommendations and strengthening data reporting frameworks, including the International Reserves and Foreign Currency Liquidity template, external sector and government finance statistics, and financial soundness indicators.
Policy recommendations and international support
- Authorities are encouraged to use available buffers to mitigate shocks, protect the most vulnerable, and adapt policy implementation as conditions evolve.
- External support should be provided primarily in the form of grants rather than non‑concessional borrowing to avoid domestic debt accumulation that would undermine the public sector balance sheet.
- Rigorous appraisal and transparency requirements are recommended for donor‑financed operations.
- IMF staff will continue to collaborate closely with Haiti’s main development partners, particularly on governance and strengthening institutional capacity, in line with the Fund Strategy for Fragile and Conflict-Affected States.
IMF Press Release No. 26/164 — May 21, 2026.