WASHINGTON, Sept 28, CMC – The International Monetary Fund (IMF) Monday said it had conducted a virtual mission in Haiti to assess progress under the country’s staff-monitored program (SMP).
SMPs are informal agreements between country authorities and the IMF to monitor implementation of the authorities’ economic program and build a track record that could pave the way for financial assistance under an IMF-supported programme with access to upper credit tranche (UCT) resources.
It is tailored to Haiti’s context of acute security challenges, institutional fragility, and capacity constraints. It supports the authorities’ economic policy priorities, including stabilising the economy, strengthening governance, and reinforcing the social safety net.
The mission was headed by Camilo E. Tovar, who in a statement, said Haiti faces an “exceptionally challenging macroeconomic environment” shaped by persistent insecurity, dire humanitarian and social conditions, and multiple adverse shocks.
He said higher oil prices are weighing on the fiscal and external positions and have contributed to higher living costs, while the end of Temporary Protected Status (TPS) for Haitians in the United States could reduce remittance inflows and aggravate economic and humanitarian vulnerabilities.
“These challenges are unfolding amid a fragile political transition and preparations for elections. Despite these headwinds and challenging conditions, the authorities have continued to implement their economic program and safeguard macroeconomic stability.”
Tovar said economic activity is expected to contract for an eighth consecutive year this financial year.
He said persistent insecurity, higher oil prices, and weak prospects for textile and apparel exports continued to weigh on activity. Inflation is projected at about 16 per cent year-on-year in this financial year, significantly below its peak of over 32 per cent in October 2025, supported by a stable exchange rate.
The IMF official said financial intermediation remains subdued against the backdrop of weak activity and heightened uncertainty.
“The external position continues to be supported by strong remittance inflows and adequate reserve buffers. The current account is expected to remain in surplus despite a weak trade balance, while gross international reserves remain adequate at about seven months of prospective imports. However, sustained increases in fuel import costs remain a source of vulnerability for the external sector.”
Tovar said fiscal policy faces growing pressure from exceptionally low revenue, higher international oil prices, and Haiti’s pressing security, humanitarian, and development needs.
He said creating space for these priorities, while protecting the most vulnerable and preserving macroeconomic stability, will require stronger revenue mobilization, continued efforts to strengthen tax and customs administration, realistic expenditure planning and prioritization, and prudent financing without recourse to non-concessional loans.
“Strengthening budget execution, cash management, and payroll integrity would improve spending quality, and enhance control over the wage bill, thereby helping create room for priority spending,” Tovar added.
He said risks to the outlook are tilted to the downside. Renewed security setbacks, higher oil prices, and delayed pass-through of fuel-price and minimum-wage increases could weigh on growth and keep inflation elevated.
“Weaker remittance inflows following TPS termination and possible El Niño-related drought add further downside risks. On the upside, lower oil prices, stronger security gains, and a smooth electoral process that reduces uncertainty and bolsters confidence could support a stronger recovery.
“Programme implementation has continued under exceptionally challenging conditions. At end-June, all quantitative and indicative targets were met except for the continuous target on the non-accumulation of external arrears.”
Tovar said that external arrears accumulated temporarily due to administrative and capacity constraints and were promptly cleared. Net international reserves increased to about US$1.9 billion by end-June 2026, well above the programme floor.
He said that the ceiling target on central bank financing of the nonfinancial public sector was met at end-June 2026. The implementation of the reform agenda is advancing, albeit with some delays reflecting capacity constraints and a very difficult operating environment.
The Haitian authorities have also reported progress in areas covered by forthcoming structural benchmarks and remain committed to continuing the implementation of the reform agenda.
Tovar said that the SMP will continue to emphasise several priorities including strengthening governance and financial integrity to reinforce confidence in public institutions and the rule of law.
He said operationalizing the recently established specialised judicial chambers for complex financial crimes and mass crimes will be critical to strengthening enforcement against corruption, money laundering, and organized crime.
Implementing the National Risk Assessment action plan and advancing Financial Action Task Force (FATF)-related reforms should remain priorities, including through a well-resourced Central Financial Intelligence Unit (UCREF), stronger beneficial ownership transparency, enhanced interagency coordination, and more effective asset tracking and recovery.
“Strengthening revenue mobilisation to support priority spending needs. The entry into force of the new tax code on October 1st will mark an important milestone in Haiti’s tax reform agenda, consolidating and modernizing the tax framework.”
Tovar said effective implementation of the new tax code, continued modernisation of the tax and customs administration, stronger tax-customs interoperability, and maintenance of a transparent, rules-based fuel pricing framework will be essential to improve compliance, reduce leakages, and support domestic revenue mobilization.
He said making more effective use of public resources. Strengthening cash and public investment management and commitment controls, and implementing Treasury Single Tovar said account consolidation remain critical to improve budget execution and reduce fiscal risks.
“Advancing ongoing efforts to strengthen payroll integrity and wage bill management could create room for priority spending needs. Better expenditure traceability, beneficiary identification, and targeting would help ensure that social assistance reaches intended beneficiaries.
“Effective use of the remaining resources from the IMF 2023 Food Shock Window, while addressing the findings from ongoing oversight and audit reports, will be important to support vulnerable households, strengthen social assistance delivery, and enhance accountability and transparency.
“Maintaining prudent debt management practices and securing adequate resources for timely debt service obligations remains critical to safeguard fiscal sustainability and reduce financing risks.”
Tovar said maintaining confidence in the monetary and exchange rate framework. The Banque de la République d’Haïti (BRH) remains committed to preserving price and exchange rate stability, which underpin policy credibility under the SMP.
“Preserving an adequate level of reserve buffers is essential to support confidence and enhance resilience to external shocks. At the same time, continued implementation of the reserve management strategy, including stronger internal controls, clearer risk-management practices, enhanced governance of investment decisions, and ongoing progress in information technology (IT) security and business continuity arrangements, will further strengthen governance, risk management, and operational resilience at the BRH.”
CMC/kj/ir/2026