WASHINGTON, CMC—The Worldwide Financial Fund (IMF) has authorized a Employees-Monitored Program (SMP) with Haiti by way of December 19, 2025.
The Washington-based monetary establishment stated that the brand new 12-month SMP was designed by the Haitian authorities and IMF employees, contemplating the nation’s fragility and capability constraints whereas supporting the authorities’ financial coverage aims.
SMPs are preparations between nation authorities and the IMF to watch the implementation of the authorities’ financial program and to determine a monitor file of coverage implementation that might pave the way in which for monetary help from the Fund below the Higher Credit score Tranche (UCT).
Haiti faces a multidimensional disaster, a political transition, with a difficult outlook. The nation is beset by international and country-specific shocks, which have heightened its fragility. Along with inflicting horrible human struggling, escalating gang violence has blocked the stream of products and companies.
These occasions have additional fueled inflation and left half the inhabitants struggling acute meals insecurity. The availability-side shock attributable to the safety disaster will proceed to suppress progress and feed inflation except the safety outlook improves.
The IMF stated the highest precedence is to revive safety and that the SMP is a prerequisite for macroeconomic stability and for permitting progress to materialize.
It stated that regardless of home and international difficulties, the Haitian authorities are firmly dedicated to negotiating a brand new SMP and have managed to include the impression of the assorted shocks considerably, thereby averting even worse macroeconomic outcomes.
On the finish of September 2024, Haiti’s internet worldwide reserves have been valued at almost one billion US {dollars}. Haiti’s two key financial establishments, the Ministry of Financial system and Finance and the Central Financial institution of Haiti have constantly engaged with the Fund regardless of the political instability.
“They’ve constantly tried to undertake possible measures to restrict macroeconomic imbalances and guarantee an inexpensive degree of financial exercise within the nation. They’ve additionally continued to supply information and knowledge on beforehand agreed benchmarks, even when the earlier SMP had lapsed,” the IMF stated.
It famous that the SMP is a crucial anchor for signaling the Haitian authorities’ dedication to proceed making progress towards macroeconomic stabilization, strengthening governance, and locking in macroeconomic positive aspects gathered over latest years regardless of the various headwinds.
“Regardless of the fragile political context, and because of a extremely inclusive consultative course of, the authorities have demonstrated full possession and help for the SMP by way of the high-level Program Monitoring Committee (Comite du Suvie).”
The IMF stated Haitian authorities have a slim however important window of alternative to implement reforms that can assist Haiti construct resilience and restore its medium—and long-term potential.
“An pressing authorities precedence is re-starting income mobilization to help the nation’s large improvement wants and enhance well-targeted spending. The measures below the brand new SMP ought to assist obtain these targets.
“Continued strengthening of the social security internet is important to cushion the impression of the shocks on the inhabitants and alleviate widespread poverty. The spending commitments beforehand indicated by the authorities utilizing Meals Shock Window sources needs to be audited per SMP commitments.”
The IMF stated the fiscal and financial authorities’ dedication to maintaining financial financing of the deficit at zero is commendable and may proceed.
It stated the BRH’s monetary audit for 2023 is pressing, and its eventual publication by June 2025 could be needed for demonstrating transparency. The authorities’ cautious tempo of financial tightening has been applicable and constant in preventing inflation.
The IMF stated advancing governance reforms is paramount to assist Haiti exit from fragility, guarantee inclusive progress, and construct belief with the personal sector and improvement companions.
“On this vein, the authorities’ dedication to publish the Governance Diagnostic Report is commendable. It ought to present a street map for reforms to reinforce governance and would require capability improvement help from the Fund and improvement companions.”
It stated a government-led technique to proceed strengthening the economic system’s resilience to a number of shocks requires the worldwide group’s monetary help. This help is indispensable to permitting high quality spending over the quick, medium, and long run.
“With out it, Haiti will proceed to undergo giant import compression. Exterior help ought to take the type of grants. The authorities ought to keep away from contracting non-concessional loans to make sure consistency with the SMP commitments. Non-concessional loans wouldn’t solely be towards SMP dedication. It could additionally undermine debt sustainability.”
The IMF stated that according to the Fund Technique for Fragile and Battle-Affected States, IMF employees may even proceed to coordinate carefully with Haiti’s principal improvement companions, notably on governance and capability improvement.
