Press Release No. 19/70

IMF Staff Completes 2019 Article IV Mission to Haiti and Reaches Staff-Level Agreement on Three-year US$ 229 million Extended Credit Facility

March 7, 2019

• Social protection at the heart of the program with aid to most vulnerable. Money for measures including school feeding and help for head of households.
• Targets to tackle corruption and support good governance.
• Loans totaling more than US$ 229 million at 0% interest, paid across three years in return for reaching agreed goals.
• Reduction in budget deficit as part of strategy to achieve greater economic stability and sustainable debt.

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.”