(2025-12) Haiti: Second Review Under the Staff-Monitored Program and Request for Extension — Press Release and Staff Report
Summary — The IMF approved Haiti's second review under the Staff-Monitored Program and granted a nine-month extension through September 2026. Despite challenging security conditions, Haiti met all quantitative targets with zero monetary financing and strong reserve accumulation.
Key Findings
- All quantitative and indicative targets for end-June were met, with monetary financing maintained at zero.
- International reserves reached almost US$1.5 billion by July 2025, exceeding program targets.
- Real GDP contracted for the seventh consecutive year in FY2025, with annual inflation remaining high at 32%.
- Gang violence has intensified, undermining state authority and disrupting economic activity.
- External pressures are mounting from TPS expiration, trade preference termination, and Hurricane Melissa impacts.
Full Description
The International Monetary Fund approved Haiti's second review under the Staff-Monitored Program (SMP) and granted a nine-month extension through September 19, 2026. The SMP is designed to help Haiti build a track record of policy implementation in the context of acute security challenges, institutional fragility, and capacity constraints.
Despite the deteriorating security environment with intensifying gang violence, Haiti's program implementation has been encouraging. All quantitative and indicative targets for the end-June test date were met, with monetary financing kept at zero and international reserves reaching almost $1.5 billion by July 2025. Real GDP contracted for the seventh consecutive year in FY2025, while inflation remained high at around 32 percent.
The extension aims to support macroeconomic stability and preserve reform momentum while allowing time for political and security conditions to stabilize. Key focus areas include advancing governance reforms, mobilizing revenue and improving budget execution, and strengthening the central bank's policy frameworks. The program emphasizes the need for grant financing rather than non-concessional loans to safeguard debt sustainability.
External pressures are mounting with the expiration of Temporary Protected Status for Haitians in the US, termination of textile trade preferences, and the impact of Hurricane Melissa in October 2025, which caused significant damage to infrastructure and agricultural areas.