IMF Releases Report on Haiti’s Rapid Credit Facility

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The FINANCIAL — The International Monetary Fund (IMF) on February 6 released the staff report prepared in connection with the approval of the Rapid Credit Facility (RCF) for Haiti in the wake of Hurricane Matthew.

On November 18, 2016, the Board approved Haiti’s request for a disbursement of 30.7125 million SDR (about US$41.6 million) in financial assistance under the RCF, to help with urgent balance of payments needs in the aftermath of the Category 4 hurricane that struck the nation on October 4, according to IMF.

Since the approval of the RCF two months ago, Haiti has peacefully elected a new president, Jovenel Moise, who is due to be inaugurated February 7. During this period, and with the support of the RCF disbursement, the Banque de la République d’Haïti (BRH) has continued to rebuild its net international reserves. At the same time, the pace of currency depreciation has slowed, from 25 percent year-on-year through September 2016, to 17 percent year-on-year in December (10.5 percent quarter-on-quarter annualized rate). Despite the favorable impact of the slowdown in depreciation, increases in food prices – due in part to the hurricane – have pushed CPI inflation from 12.5 percent in September 2016 to 14.3 percent in December 2016.

As a country with widespread development needs, Haiti continues to face substantial challenges. The successful conclusion of the recent presidential election provides Haiti with an opportunity to rebuild from the storm and to advance its reform agenda. The IMF looks forward to continuing to work together with the Haitian authorities in designing policies to support macroeconomic stability needed to boost economic growth.

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