ARTICLE - IMF SAYS HAITIAN ECONOMY IMPROVING

IMF SAYS HAITIAN ECONOMY IMPROVING
(Jamaica Observer) - CMC

WASHINGTON — The International Monetary Fund (IMF) says the Haitian economy is improving one year after a devastating earthquake killed an estimated 300,000 people and left more than a million others homeless.

The Washington-based financial institution said it is also providing Haiti with US$13.1 million following the completion of the country’s performance under the Extended Credit Facility (ECF) arrangement.

The IMF said that to date, Haiti has received US$26.2 million under the programme.

Haiti’s ECF arrangement was approved in July last year together with the full relief of the country’s outstanding debt to the Fund of US$268 million.

The IMF said that ECF and the debt relief package formed part of a broad strategy to support Haiti’s longer term reconstruction plans, following the devastating earthquake of January 12, last year.

“The authorities are to be commended for their good policy implementation, despite the challenging international and domestic environments.

“The Haitian economy is recovering, and just over a year after the devastating earthquake, essential state functions have been reinstated and prudent macroeconomic policies have helped support growth and contain inflation to single digit levels,” said IMF deputy managing director Naoyuki Shinohara.

He described the economic outlook for the French-speaking country as “favourable”, providing that the authorities and the international community make concerted efforts to accelerate the reconstruction and facilitate the transition from disaster recovery to policies aimed at ensuring high and sustained growth and poverty reduction.

“In this context, the disbursement of donor pledges together with the authorities’ timely implementation of structural reforms, notably in the areas of economic governance and the business environment are equally important.”

Shinohara said that the government’s programme for the fiscal year is aimed at consolidating the recovery and reconstruction efforts.

“The key fiscal objectives are to raise domestic revenue, contain current expenditure, and align the budget to support the reconstruction priorities and poverty-reduction spending in the context of sustainable public financing.

“These fiscal commitments will need to be complemented by further improvements in public financial management and economic governance. Monetary and exchange rate policies aim at containing inflation to single digit levels, and appropriately absorbing capital inflows.”

The IMF official said that the programme continues to be supported by a comprehensive medium-term technical assistance strategy, in close coordination with Haiti’s development partners.