(2024-05) Haiti Staff-Monitored Program — Extension and Modification of Performance Criteria — Press Release and Staff Report
Summary — IMF Management approved a nine-month extension of Haiti's Staff-Monitored Program through September 2024, focusing on strengthening governance, fighting corruption, and enhancing transparency in public spending. The extension was necessary due to deteriorating security conditions and modified economic outlook.
Key Findings
- Haiti's security situation has deteriorated significantly since June 2023, with gangs controlling large parts of the capital and disrupting economic activity.
- The UN Security Council authorized Kenya to lead a Multinational Security Support mission to combat gang warfare, expected to start in Q1 2024.
- Revenue performance underperformed relative to SMP performance criteria due to deteriorating security conditions.
- New structural benchmarks include publication of IMF governance diagnostics report and enhanced data transparency measures.
- The extension allows Haiti to establish a solid track record of policy implementation that could pave the way for Upper Credit Tranche financing.
Full Description
The International Monetary Fund approved a nine-month extension of Haiti's Staff-Monitored Program (SMP) through September 30, 2024, building on progress from the previous SMP that ended in May 2023. The current program, originally scheduled from June 2023 to March 2024, focuses on strengthening governance, fighting corruption, and enhancing transparency and accountability in public spending through improved data transparency.
Since the SMP's approval, Haiti's security situation has significantly deteriorated, with gangs controlling large parts of the capital and disrupting economic activity, supply chains, and service distribution. This deterioration has led to increased displacement, worsening brain drain, and capacity constraints. The UN Security Council authorized Kenya to lead a Multinational Security Support mission to combat gang warfare, expected to begin in the first quarter of 2024.
The extension includes new quantitative targets and additional structural conditionality monitored through a Third Review with a test date at the end of June 2024. New benchmarks include publishing the IMF governance diagnostics report with an action plan, providing granular monetary data, publishing macroeconomic indicators according to Enhanced General Data Dissemination System standards, and releasing the central bank's annual audit for FY2023.
The modification of performance criteria was warranted due to the deteriorated outlook compared to June 2023, affecting revenues and reserves. The authorities have committed to holding 2024 Article IV consultation discussions remotely, with an updated Country Engagement Strategy to enhance collaboration with development partners in line with the Fund's Strategy for Fragile and Conflict-Affected States.