The Selected Issues paper analyzes the determinants of growth in Albania, the macroeconomic underpinnings for growth, the role of remittances in the economy, and the policy response to rapid credit growth. It also analyzes the official estimates with estimates from various macroeconomic surveys, and discusses the implications for the structure of the balance of payments. It also provides a framework for analyzing the budgetary impact of remittances in Albania, and examines the acceleration of credit growth and the policy options available to address the resulting macroeconomic and prudential concerns.
International Monetary Fund. External Relations Dept.
This paper highlights that IMF activities in the first three months of 1977 were marked by a number of “firsts.” In addition to approving the largest stand-by arrangement in its history—the SDR 3.36 billion for the United Kingdom—the IMF welcomed its first new member of the year: Guinea-Bissau; held its first gold auction on behalf of the Trust Fund under the new schedule of monthly auctions; made its first loan disbursements as a Trustee of the Trust Fund; and held the first sale of gold for “restitution.”
The January 2010 earthquake represented a major setback for Haiti, after several years of improved economic performance. Executive Directors commended the authorities for quickly restoring basic government functions and maintaining sound policies during the crisis. Directors welcomed the National Action Plan for Recovery and Development and also the Partial Credit Guarantee scheme. They also stressed the need to strengthen revenue administration, monetary framework, and tax policy reforms. Directors agreed that Haiti met the eligibility and qualification criteria for debt stock relief under the Post-Catastrophe Debt Relief (PCDR) Trust Fund.
Based on Haiti’s overall satisfactory track record and the strength of the program, IMF staff supports the authorities’ request for a new three-year arrangement under the Poverty Reduction and Growth Facility (PRGF). The authorities’ demonstrated political commitment and high degree of ownership will be critical to secure durable success of Haiti’s economic reform strategy. Haiti’s requirements are expected to remain substantial, but the already identified assistance appears adequate to close the gap over the first year of the program. The strategy should include an independent assessment of the financial condition.
This paper focuses on the 2005 Article IV Consultation and Review of the Program Supported by Emergency Post-Conflict Assistance for Haiti. Economic and social conditions in Haiti deteriorated significantly during the early 2000, as the continued political stalemate undermined external financial support and private investment, and structural reforms came to a halt. This resulted in economic stagnation, high inflation, and widespread unemployment. The political turmoil in early 2004 and the devastating floods in May and September compounded these difficulties and led to a contraction of real GDP by 3¾ percent in 2003/04.
This paper discusses the Use of IMF Resources in Haiti and Request for Emergency Post-Conflict Assistance (EPCA). The EPCA-supported program was on track until May 2005. All end-December and end-March targets were observed, inflation declined, the exchange rate stabilized, and net international reserves were increased. However, following expansionary fiscal and monetary policies during May–June, most end-June targets were missed. Also, while many structural measures were implemented as envisaged, progress on key structural measures, including the census of public employment and domestic arrears, was delayed.
This paper reviews economic developments in Haiti during 1990–94. In the public finances, the current account of the nonfinancial public sector (before grants) shifted from balance in 1991 to a deficit of 3.8 percent of GDP in 1994. With the lack of foreign financing, capital investment fell to low levels over the period, and the overall deficit (before grants) declined from 4.5 percent of GDP to 4.2 percent of GDP; the deficit was financed mainly by recourse to central bank credit and the accumulation of arrears.
Falling international prices have helped lower Haiti’s inflation, but base money growth has continued to be higher than targeted in the program. The paper discusses Haiti’s Annual Progress Report on Implementation of the Poverty Reduction Strategy Paper. In the area of economic governance, recent advances have been made to increase transparency and efficiency in the use of public resources and external assistance. These include changes in the legal framework for budget formulation and execution, the setting up of critical institutions and agencies, and efforts to disseminate basic information.