(2023) Haiti: Request for Disbursement Under the Rapid Credit Facility - Press Release; Staff Report; and Statement by the Executive Director for Haiti
Summary — The IMF approved $105 million emergency financing to Haiti under the Food Shock Window to address urgent balance of payments needs caused by the global food crisis. Haiti faces a dire humanitarian crisis with record food price inflation compounding existing poverty and malnutrition.
Key Findings
- Haiti faces a dire humanitarian crisis with food inflation reaching 44% in September 2022 and rice inflation nearly 70%.
- More than half of Haiti's population lives below the poverty line, making them extremely vulnerable to food price shocks.
- The financing gap for FY2023 is estimated at $105 million (0.5% of GDP) due to the global food crisis.
- Economic spillovers from Russia's invasion of Ukraine severely impacted Haiti through high pass-through of global food prices.
- The authorities are implementing a Staff Monitored Program with meaningful efforts to overcome multiple challenges facing the country.
Full Description
The IMF Executive Board approved SDR 81.9 million ($105 million) emergency financing for Haiti under the Food Shock Window of the Rapid Credit Facility in January 2023. This support addresses urgent balance of payments needs related to the global food crisis that severely impacted Haiti. Food inflation reached 44% in September 2022, with rice inflation nearly 70%, affecting a population where more than half already live below the poverty line.
The financing gap for FY2023 is estimated at $105 million (0.5% of GDP), compounding hardships in an already fragile country suffering from public health emergencies including cholera and serious security risks. The food price shock resulted from economic spillovers of Russia's invasion of Ukraine, worsening Haiti's fragility due to high pass-through from global to domestic food prices and food supply shortages.
The authorities committed to transparency and accountability measures including careful tracking and publishing of emergency spending, internal audits by line ministries through the General Inspectorate of Finance, and communication of audits to the Supreme Audit Court. Emergency financing will support feeding programs, cash and in-kind transfers to vulnerable households, waiving school fees, and expanding social safety nets.
The support is provided alongside a Staff Monitored Program (SMP) that was approved for first review in December 2022, aimed at restoring macroeconomic stability, strengthening social safety nets, and tackling governance weaknesses and corruption. The authorities have adopted strategies to enhance social safety nets and use emergency financing for budget allocations to mitigate food price shock impacts on the population.