Debt Dynamics and Over-Indebtedness Risk Management (RDCCF Vol. V)

This BRH publication (Revue Developpement de Connaissances et Competences Financieres, Vol. V, June 2026), issued under the National Financial Education Plan (PNEF), offers a broad review of debt mechanics at the national, household, and enterprise levels in Haiti, with a focus on preventing and managing over-indebtedness. It classifies debt instruments (sovereign bonds/treasury bills, concessional and bilateral loans, household mortgages and consumer credit, and enterprise financing), and presents financial solvency indicators (overall financial situation, debt-servicing capacity, and global risk exposure). On public debt, it cites the World Bank (2025) finding that low- and middle-income countries' total external debt has more than doubled since 2010 to about USD 8,900 billion, of which USD 415 billion is interest payments alone, and situates Haiti's own debt-to-GDP ratio, which fell from close to 39% in 2004 to 12.4% of GDP in 2024 per the IMF's 2025 country report, aided by HIPC/MDRI debt relief and USD 828 million in post-earthquake debt cancellation (OCHA-UN, 2011). It reports Haiti's 2024 external trade imbalance (exports of USD 767 million versus imports of USD 4,240 million, per the BRH/IMF 2024 review) and BRH gross foreign reserves exceeding USD 3.1 billion as of July 2025.

On over-indebtedness, the review distinguishes 'passive' over-indebtedness (driven by exogenous shocks such as displacement, job loss, illness, or adverse economic conditions) from 'active' over-indebtedness (driven by household decisions and behavioral factors such as impulsive consumption, weak financial literacy, or social pressure), drawing on Gathergood (2011), Servet (2006), and Kahneman (2011). It cites Haiti-specific survey evidence: the FinScope 2018 survey found 44% of households did not effectively manage their expenses and 33% regularly faced financial-management difficulties, while the FinScope MPME 2023 survey found 89% of Haiti's estimated 660,000 micro, small and medium enterprises operate informally, 83% do not borrow formally, and 97% use no insurance product. It also notes that 250 enterprises were found in financial distress in BRH's Q4 2024 security-crisis impact analysis. The document closes with a catalog of BRH preventive measures (cash-management protocol with the Ministry of Economy and Finance, macroprudential circulars 88-1, 89-3, 92-1, 81-6, 83-5, 87, 93 and 109-1, restructuring/moratorium mechanisms under Circular 115-6, a strengthened Credit Information Bureau (BIC), and financial-education outreach) alongside decisional case studies illustrating credit restructuring and over-inclusion risk.