The International Monetary Fund (IMF) concluded a year-long economic surveillance program with Haiti that could pave the way for a financial support agreement in the future, the institution said in a statement on Wednesday.
This so-called reference program is an agreement between the Haitian authorities and the IMF for the application of economic reforms but does not imply financial aid.
Both parties negotiated between March and May 2022 this program "taking into account the fragility and capacity constraints of Haiti, but supporting the economic policy objectives of the authorities"explains the IMF.
It will be in force until May 31, 2023 to help the authorities take stock of the implementation of the recommended policies, which "possibly open the way" to a credit program backed by the IMF, specifies the document.
After three years of economic contraction, the IMF forecasts a gradual and modest recovery in growth in Haiti during fiscal year 2022, reaching 1.4% in 2023.
In recent years, Haiti has suffered a political crisis and an upsurge in violence due to gangs.
The program overseen by IMF teams will focus "in governance (…), strengthening public finance management, revenue administration, transparency and anti-corruption measures".
It also aims to increase budget revenue. The authorities, for their part, undertake to implement measures such as the review of special tax regimes, the abolition of some exemptions and the publication of a new tax code.
The authorities also want to prepare the ground to address the problem of fuel subsidies that have absorbed a third of budget revenues, regrets the Fund.
The IMF considers that these subsidies are not equitable, since 90% of the amount benefits between 10% and 20% of the upper sections of the income scale in Haiti.