WASHINGTON, CMC—The International Monetary Fund (IMF) has approved a Staff-Monitored Program (SMP) with Haiti through December 19, 2025.
The Washington-based financial institution said that the new 12-month SMP was designed by the Haitian authorities and IMF staff, considering the country’s fragility and capacity constraints while supporting the authorities’ economic policy objectives.
SMPs are arrangements between country authorities and the IMF to monitor the implementation of the authorities’ economic program and to establish a track record of policy implementation that could pave the way for financial assistance from the Fund under the Upper Credit Tranche (UCT).
Haiti faces a multidimensional crisis, a political transition, with a challenging outlook. The country is beset by global and country-specific shocks, which have heightened its fragility. In addition to causing terrible human suffering, escalating gang violence has blocked the flow of goods and services.
These events have further fueled inflation and left half the population suffering acute food insecurity. The supply-side shock caused by the security crisis will continue to suppress growth and feed inflation unless the security outlook improves.
The IMF said the top priority is to restore security and that the SMP is a prerequisite for macroeconomic stability and for allowing growth to materialize.
It said that despite domestic and global difficulties, the Haitian authorities are firmly committed to negotiating a new SMP and have managed to contain the impact of the various shocks somewhat, thereby averting even worse macroeconomic outcomes.
At the end of September 2024, Haiti’s net international reserves were valued at nearly one billion US dollars. Haiti’s two key economic institutions, the Ministry of Economy and Finance and the Central Bank of Haiti have continuously engaged with the Fund despite the political instability.
“They have consistently attempted to adopt feasible measures to limit macroeconomic imbalances and ensure a reasonable level of economic activity in the country. They have also continued to provide data and information on previously agreed benchmarks, even when the previous SMP had lapsed,” the IMF said.
It noted that the SMP is an important anchor for signaling the Haitian authorities’ commitment to continue making progress toward macroeconomic stabilization, strengthening governance, and locking in macroeconomic gains accumulated over recent years despite the many headwinds.
“Despite the delicate political context, and thanks to a highly inclusive consultative process, the authorities have demonstrated full ownership and support for the SMP through the high-level Program Monitoring Committee (Comite du Suvie).”
The IMF said Haitian authorities have a narrow but essential window of opportunity to implement reforms that will help Haiti build resilience and restore its medium—and long-term potential.
“An urgent government priority is re-starting revenue mobilization to support the country’s massive development needs and boost well-targeted spending. The measures under the new SMP should help achieve these goals.
“Continued strengthening of the social safety net is essential to cushion the impact of the shocks on the population and alleviate widespread poverty. The spending commitments previously indicated by the authorities using Food Shock Window resources should be audited per SMP commitments.”
The IMF said the fiscal and monetary authorities’ commitment to keeping monetary financing of the deficit at zero is commendable and should continue.
It said the BRH’s financial audit for 2023 is urgent, and its eventual publication by June 2025 would be necessary for demonstrating transparency. The authorities’ careful pace of monetary tightening has been appropriate and consistent in fighting inflation.
The IMF said advancing governance reforms is paramount to help Haiti exit from fragility, ensure inclusive growth, and build trust with the private sector and development partners.
“In this vein, the authorities’ commitment to publish the Governance Diagnostic Report is commendable. It should provide a road map for reforms to enhance governance and will require capacity development support from the Fund and development partners.”
It said a government-led strategy to continue strengthening the economy’s resilience to multiple shocks requires the international community’s financial support. This assistance is indispensable to allowing quality spending over the short, medium, and long term.
“Without it, Haiti will continue to suffer large import compression. External assistance should take the form of grants. The authorities should avoid contracting non-concessional loans to ensure consistency with the SMP commitments. Non-concessional loans would not only be against SMP commitment. It would also undermine debt sustainability.”
The IMF said that in line with the Fund Strategy for Fragile and Conflict-Affected States, IMF staff will also continue to coordinate closely with Haiti’s main development partners, particularly on governance and capacity development.
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