Haiti: Staff-Monitored Program-Press Release; and Staff Report

This paper highlights Haiti’s Staff-Monitored Program (SMP) and report proceedings. It is not feasible for Haiti to implement an upper credit tranche (UCT) IMF-supported program at this time due to the weakened policy frameworks and erosion in administrative capacity during the protracted crisis. The proposed SMP ending May 31, 2023 would help build capacity, support efforts to reduce inflation and raise growth, strengthen fiscal and monetary policy frameworks, address governance weaknesses and combat corruption, and take concrete steps to strengthen social assistance. A successful SMP is needed to build a track record of policy implementation that would improve Haiti’s prospects for a UCT program. It is recommended to mobilize revenues and strengthen public finance management, notably with higher tobacco, alcohol, and car excises, expansion and simplification of the tax base, and measures to strengthen expenditure management and controls. The program also recommends to strengthen the framework for monetary and exchange rate policies by clarifying the objectives and modalities for liquidity and foreign exchange rate operations.