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© 2005 International Monetary Fund
November 2005
IMF Country Report No. 05/404
Haiti: Use of Fund Resources—Request for Emergency Post-Conflict Assistance—Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Haiti
In the context of the Use of Fund resources—Request for Emergency Post-Conflict Assistance by Haiti, the following documents have been released and are included in this package:
the staff paper for the Use of Fund Resources—Request for Emergency Post-Conflict Assistance, prepared by a staff team of the IMF, following discussions that ended on September 25, 2005, with the officials of Haiti on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on October 5, 2005. The views expressed in the staff report are those of the staff team and do not necessarily reflect the views of the Executive Board of the IMF.
a staff supplement of October 14, 2005 updating information on recent developments.
a Press Release summarizing the views of the Executive Board as expressed during its October 18, 2005 discussion of the staff report that completed the request and/or review.
a statement by the Executive Director for Haiti.
The documents listed below have been or will be separately released.
Letter of Intent sent to the IMF by the authorities of Haiti*
Memorandum of Economic and Financial Policies by the authorities of Haiti*
Technical Memorandum of Understanding*
*May also be included in Staff Report
The policy of publication of staff reports and other documents allows for the deletion of market-sensitive information.
To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to publicationpolicy@imf.org.
Copies of this report are available to the public from
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Telephone: (202) 623-7430 • Telefax: (202) 623-7201
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Price: $15.00 a copy
International Monetary Fund
Washington, D.C.
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INTERNATIONAL MONETARY FUND
HAITI
Use of Fund Resources—Request for Emergency Post-Conflict Assistance
Prepared by the Western Hemisphere Department (In consultation with other departments)
Approved by Christopher Towe and Mark Plant
October 5, 2005
Haiti meets the conditions for further post-conflict financial assistance from the Fund. The political conflict and an armed rebellion that led to a change in government in March 2004 continue to affect the economic, social and political situation in Haiti. While financial stability has been basically restored, Haiti’s institutional and administrative capacity remains weak, hindering the rebuilding of the country’s economic and social infrastructure, and external position remains vulnerable.
The discussions on the authorities’ request for Emergency Post-Conflict Assistance (EPCA) took place at the Fund’s headquarters during June 6–11 and September 19–25, and in Montreal during June 17–18, 2005. The staff team comprised P. Gajdeczka (Head), L. Jaramillo, G. Everaert, C. Sancak (all WHD), and J. Mathisen (PDR). The team met with Economy and Finance Minister Bazin, BRH Governor Magloire, and other senior officials. M. Rached (Resident Representative) assisted the team from Port-au-Prince.
On January 10, 2005, the Executive Board approved SDR 10.23 million (12.5 percent of quota) in Emergency Post-Conflict Assistance to Haiti. All end-December 2004 and March 2005 quantitative targets were met. However, most end-June quantitative benchmarks were missed, and there were delays in implementing key structural measures.
The 2005 Article IV consultation was concluded in May 2005. Directors welcomed Haiti’s satisfactory performance under the EPCA-supported program and expressed their willingness to support a second EPCA purchase.
The authorities are requesting another purchase of 12.5 percent of quota under the EPCA policy. The authorities’ policy commitments are stipulated in the attached Letter of Intent and Memorandum of Economic and Financial Policies (LOI/MEFP).
Publication. The authorities intend to publish their LOI/MEFP and the staff report.
Contents
I. Background
II. Recent Economic Developments
III. Economic and Political Risks
IV. Policy Discussions
A. Key Macroeconomic Policy Issues
B. Governance and Transparency
C. External Sector
D. Program Issues
V. Staff Appraisal
Tables
1. Indicative Targets, September 2004–September 2005
2. Selected Economic and Financial Indicators
3a. Central Government Operations, 2004/05 (in million of gourdes)
3b. Central Government Operations, 2004/05 (in percent of GDP)
3c. Central Government Operations, 2003/04–2005/06 (in millions of gourdes)
3d. Central Government Operations, 2003/04–2005/06 (in percent of GDP)
4. Summary Accounts of the Banking System
5. Balance of Payments
6. Medium-Term Scenario
7. Indicators of Fund Credit
8. Stock of Arrears and Projected Debt Service
9. Donor Pledges and Disbursements
10. Budgetary Financing, by Donor and Type
11. Millennium Development Goals
Text Figures
1. Inflation
2. Exchange Rate and NIR.
3. Nominal and Real Effective Exchange Rate
4. BRH Bonds
5. Real Interest Rates
Attachments
I. Letter of Intent
II. Memorandum of Economic and Financial Policies
III. Technical Memorandum of Understanding
Annexes
I. Fund Relations
II. Relations with the World Bank Group
III. Relations with the IDB
IV. Statistical Issues
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INTERNATIONAL MONETARY FUND
HAITI
Use of Fund Resources-Request for Emergency Post-Conflict Assistance
Supplementary Information
Prepared by the Western Hemisphere Department
(In collaboration with other Departments)
Approved by Anoop Singh and Juha Kähkönen
October 18, 2005
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Press Release No. 05/234
FOR IMMEDIATE RELEASE
October 19, 2005
International Monetary Fund
Washington, D.C. 20431 USA
Telephone 202-623-7100
Fax 202-623-6772
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October 14, 2005
