Statement by the IMF Staff Representative on Haiti Executive Board Meeting 11/46

The economy of Haiti is recovering despite the challenging international and domestic environments. The FY2011 budget appropriately supports the reconstruction objectives in a context of sustainable public financing. Monetary policy remains geared toward keeping inflation in the single digits. The structural reform agenda continues to focus on improving the business climate and promoting private sector-led growth. International assistance is critical to recovering from the 2010 earthquake in Haiti. Reconstruction is under way, albeit at a slower pace than envisaged. The humanitarian response from donors to the earthquake was quick and sizable.

Abstract

The economy of Haiti is recovering despite the challenging international and domestic environments. The FY2011 budget appropriately supports the reconstruction objectives in a context of sustainable public financing. Monetary policy remains geared toward keeping inflation in the single digits. The structural reform agenda continues to focus on improving the business climate and promoting private sector-led growth. International assistance is critical to recovering from the 2010 earthquake in Haiti. Reconstruction is under way, albeit at a slower pace than envisaged. The humanitarian response from donors to the earthquake was quick and sizable.

This statement provides additional information on developments since the issuance of the staff report for the First Review Under the Extended Credit Facility arrangement for Haiti (EBS/11/63). This additional information does not change the thrust of the staff report.

  • Presidential elections. The final results of the second round presidential election were released on April 21, confirming Mr. Michel Martelly as the winner. His inauguration ceremony is scheduled to take place on May 14.

  • Legislative elections. The composition of Parliament has not been finalized, as the results of the second round legislative elections were contested for 19 candidates (17 deputies in the 99-seat Chamber of Deputies and two senators in the 30-seat Senate). At the request of President-elect Martelly, the Organization of American States (OAS) reviewed the final results. OAS found that the final count was incorrect and recommended reinstatement of the preliminary results. Although this issue may not be promptly resolved, it will not prevent Parliament from being in session, given that the remaining parliamentarians were sworn in on April 27.

  • Constitution. Parliament is expected to adopt amendments to the Constitution by May 9. These amendments aim at reducing the number of elections and ensuring that presidential, senatorial, congressional, and local elections are held at the same time. Constitutional amendments also aim at strengthening the judiciary, promoting gender equality, allowing for dual citizenship, and helping better protect the environment.

  • Foreign reserves audit. The final audit report of the net international reserves (NIRs) review, released on May 6, indicates that NIRs for end-September 2009 should be lower than reported by the central bank by US$2.2 million instead of the initial estimate of US$64 million mentioned in the staff report (paragraph 19). The discrepancies in the reported NIR were due to the capacity constraints of the authorities.

Haiti: First Review Under the Extended Credit Facility Arrangement-Staff Report; Staff Statement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Haiti.
Author: International Monetary Fund