This statement provides additional information on developments since the issuance of the staff report for the second and third reviews under the Extended Credit Facility arrangement for Haiti (EBS/12/22; February 24, 2012). This additional information does not change the thrust of the staff report.

Abstract

This statement provides additional information on developments since the issuance of the staff report for the second and third reviews under the Extended Credit Facility arrangement for Haiti (EBS/12/22; February 24, 2012). This additional information does not change the thrust of the staff report.

This statement provides additional information on developments since the issuance of the staff report for the second and third reviews under the Extended Credit Facility arrangement for Haiti (EBS/12/22; February 24, 2012). This additional information does not change the thrust of the staff report.

1. Recent political development. Haiti Prime Minister Garry Conille, who was appointed on October 5, 2011 after five months of protracted negotiations between the president and parliament, tendered his resignation on Friday, February 24. Prime Minister Conille is remaining in office until a successor has been approved by parliament. President Martelly has proposed the appointment of Mr. Lamothe, the current Minister of Foreign Affairs and co-chairman of the Advisory Board on EconomicGrowth and Investment, to the position of Prime Minister. However, the completion of this process by parliament could be lengthy.

2. Recent economic developments. Preliminary information suggests that economic activity is broadly as anticipated under the program. Twelve-month inflation has continued to ease, at 7. 7 percent in January. Preliminary fiscal data through February indicate that fiscal performance is in line with the program targets. Official reserves remain relatively high at US$2.0 billion (5.2 months of imports of goods and services) at end-February 2012.

3. Structural reform agenda. The caretaker government is implementing the reform agenda, sending an unequivocal signal about the authorities commitment to institutional continuity and ability to implement the ECF-supported program. In particular, the authorities have: (i) submitted the FY 2012 budget to parliament; (ii) finalized the selection of an international firm to conduct an external audit of the Central Bank; and (iii) signed the contract with an international firm to oversee and improve the management of the electricity company (EDH).

Haiti: Second and Third Reviews Under the Extended Credit Facility: Staff Report; Staff Statement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Haiti.
Author: International Monetary Fund