Press Release No. 06/206

Press Release: IMF Executive Board Deems Haiti Eligible for Assistance Under the HIPC Initiative

September 18, 2006

Mr. Takatoshi Kato, Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement today:

"On September 06, the IMF Executive Board considered the preliminary assessment of Haiti's eligibility under the enhanced HIPC (Highly Indebted Poor Countries) Initiative. The debt sustainability analysis, conducted jointly by the staff of the IMF and the World Bank in close collaboration with the authorities, shows that Haiti's external debt as of end-September 2005 exceeded the sustainability threshold established under the enhanced HIPC Initiative. The Fund therefore considers that Haiti is eligible for assistance under the enhanced HIPC Initiative. (see IMF Statement on Haiti on July 25, 2006 for more details)

"Executive Directors noted Haiti's satisfactory track record under the Emergency Post-Conflict Assistance (EPCA) programs during 2004-06. They welcomed the new government's commitment to policies aimed at sustaining macroeconomic stability and creating conditions for sustainable growth.

"Looking ahead, Directors cautioned that Haiti continues to face daunting challenges, particularly in the areas of security, social conditions, and sustained income growth, and emphasized the need for continued financial support from and engagement with the international community. Directors stressed that Haiti should continue its efforts to enhance governance, strengthen public institutions, promote private-sector led growth, and to orient public expenditure and the budget toward poverty-reducing activities. Directors stressed the importance of employing mechanisms that are in place to monitor the use of resources made available by the HIPC Initiative and encouraged maximum transparency in the use of those resources. Continued reforms in macroeconomic, structural, and social areas and close attention to improving the security situation will be essential in enabling Haiti to reach its floating completion point," Mr. Kato said.