Haiti Staff-Monitored Program - Press Release and Staff Report

The International Monetary Fund approved a new 12-month Staff-Monitored Program (SMP) with Haiti covering December 2024 through December 2025, aimed at strengthening macroeconomic stability and governance. Haiti faces a multidimensional crisis with escalating gang violence that has disrupted supply chains, fueled inflation, and left half the population in acute food insecurity. Despite these challenges, Haiti's economic institutions have remained engaged with the Fund.

The SMP serves as an anchor for the authorities' commitment to macroeconomic stabilization and governance reforms, including publication of a Governance Diagnostic Report. Key priorities include maintaining zero monetary financing of the budget, strengthening revenue mobilization, and enhancing social spending. The program emphasizes the need for continued international support through grants rather than non-concessional loans to ensure debt sustainability.

The authorities have a narrow window of opportunity to implement reforms that could help restore Haiti's medium and long-term potential. Success depends heavily on improving the security situation, which is prerequisite for macroeconomic stability and growth. The program includes two reviews with test dates in December 2024 and June 2025, with implementation risks tied to the prevailing security and political environment.