IMF help to shore up Haiti’s economy

22 May 15

The International Monetary Fund has approved a $69.7m three-year loan programme for Haiti to help the Caribbean island maintain economic stability after it was hit by the devastating 2010 earthquake.

The approval allows the immediate disbursement of $10m to help the country boost economic growth and reduce vulnerabilities to shock. Subsequent payments will be phased in, the fund said, as it depended on whether Haiti could show its fulfilment to the conditions of the programme, which include reducing its fiscal deficit from 7.5% of its gross domestic product last year to 3.25% in 2015.

Meanwhile, while per-capita GDP – the most useful measure of living standards – has been positive, it has been insufficient to significantly reduce poverty, the fund said.

Haiti’s pursuit of macroeconomic stability in the aftermath of the 2010 earthquake was ‘commendable’, said IMF deputy managing director and acting chair Min Zhu.

‘Going forward, continued efforts are needed to support sustained and inclusive growth, strengthen institutions and the policy framework, and maintain adequate buffers to absorb shocks,’ he said

‘The programme’s structural reform agenda focuses on strengthening competitiveness to foster growth. It tackles deep-seated problems in the electricity sector; supports the authorities’ efforts to strengthen property rights; and includes actions to increase policy effectiveness through reforms in tax administration, tax policy and public financial management, as well as improvements in the monetary framework and economic statistics.’

  • Judith Ugwumadu
    Judith Ugwumadu

    Judith writes about public finance, public services and economics across Public Finance International and Public Finance. She previously undertook reporting stints at Financial Adviser, Global Security Finance and The Sunday Express.

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