IMF says Haiti staff-monitored program could lead to loan deal

Women walk along the road as they head to a market in Fermate, Haiti, October 26, 2021. REUTERS/Claudia Daut

Join now for FREE unlimited access to Reuters.com

Register

WASHINGTON, June 29 (Reuters) – The International Monetary Fund said on Wednesday its management had approved a staff-monitored program for Haiti to establish a track record of policy implementation that could lead to a sustained lending program by the IMF.

The surveillance program, which does not include financial assistance and does not require Board approval, runs until May 31, 2023, the IMF said.

The IMF said in a statement that shocks to the Caribbean country, including the assassination of its president in 2021, the COVID-19 pandemic, an earthquake and an upsurge in gang violence have weakened executives. institutional and administrative capacity of government.

Join now for FREE unlimited access to Reuters.com

Register

The surveillance program aims to improve governance in Haiti, the poorest country in the Western Hemisphere, and strengthen its public finances and anti-corruption measures, the IMF said.

He added that fuel subsidies have eaten up at least a third of Haiti’s domestic revenue, crowding out investment, health and education spending.

The staff-monitored program (SMP) aims to rectify this situation and end central bank financing of budget deficits that fuel inflation.

“Satisfactory performance under the SMP could lead to an IMF-supported program under a multi-year arrangement that would require IMF Executive Board approval,” the IMF said in a statement on the program. .

Join now for FREE unlimited access to Reuters.com

Register

Reporting by David Lawder Editing by Chris Reese and Sandra Maler

Our standards: The Thomson Reuters Trust Principles.

Dorothy H. Lewis