Press Release No. 14/525

Press Release: IMF Staff Concludes Visit to Haiti

November 18, 2014

A mission from the International Monetary Fund (IMF) led by Mr. Gabriel Di Bella visited Port-au-Prince, Haiti during November 3–7, 2014, to complete discussions for the eighth and final review under the 2010 Extended Credit Facility (ECF) arrangement.¹ The mission met with Minister of Economy and Finance Marie Carmelle Jean-Marie, Governor of the Bank of the Republic of Haiti (BRH) Charles Castel, other senior government officials, representatives of the private sector, and development partners. At the end of the visit, Mr. Di Bella issued the following statement:

“Preliminary data for fiscal year 2014 (i.e. October 2013–September 2014) suggest that economic activity (as measured by gross domestic product, GDP), advanced in line with projections, at a pace of about 3½–4 percent. Inflation remained low, at around 5 percent. The fiscal deficit was lower than programmed but remained high, in part due to costly fuel subsidies. Monetary policy was adequately geared towards protecting reserves while ensuring a low and stable inflation.

“For fiscal year 2015, growth is expected to be in the 3–3½ percent range, while inflation will remain contained. Reductions in fuel subsidies (implemented together with programs to protect the most vulnerable), and increased billing and collection in the electricity sector should enable the authorities to reduce the fiscal deficit towards sustainable levels. Although the recent decrease in international oil prices would reduce the oil bill, it also increases financing risks. The mission discussed deficit reduction measures to mitigate this downside risk.

“The completion of remaining program measures, including with respect to the operation of accounting centers, should permit the Executive Board to consider this final ECF review in mid-December. The authorities expressed their intention to request a successor IMF arrangement.

“As we move to a successful conclusion of the ECF program, the mission would like to commend the authorities for maintaining sound macroeconomic policies in the difficult years following the 2010 earthquake. The hospitality and open discussions that prevailed throughout this period continued during this visit”.

¹ The Extended Credit Facility (ECF) replaced the Poverty Reduction and Growth Facility (PRGF) as the Fund’s main tool for medium-term financial support to low-income countries. Financing under the ECF currently carries a zero interest rate, with a grace period of 5½ years, and a final maturity of 10 years. The Fund reviews the level of interest rates for all concessional facilities every two years.