- Management of the International Monetary Fund (IMF) has approved the third review of the Staff-Monitored Program (SMP) with Haiti, together with the authorities’ request for an extension of the program through June 19, 2027. All program targets were met as of end-December 2025. Reform progress continues, albeit at a slower pace than anticipated in some areas due to security conditions, capacity constraints, and political uncertainty.
- The SMP extension will help anchor macroeconomic stability and sustain reforms during the political transition. The authorities continue to demonstrate ownership of the program and continue engaging with IMF staff through the high-level SMP Monitoring Committee.
- Persistent insecurity, political fragility, and the recent increase in international oil prices are compounding the dire humanitarian and economic situation. The authorities are encouraged to use available buffers to mitigate shocks, protect the most vulnerable, and adapt policy implementation as conditions evolve
Washington, DC: Management of the International Monetary Fund (IMF) approved on May 5, 2026, the third review of Haiti’s Staff-Monitored Program (SMP), including the authorities’ request for an extension of the SMP through June 19, 2027. SMPs are informal agreements between country authorities and the IMF to monitor the implementation of the authorities’ economic program and build a track record of policy implementation that could pave the way for financial assistance from the IMF’s upper credit tranche (UCT). Haiti’s SMP is tailored to its context of acute security challenges, institutional fragility, and capacity constraints. It supports the authorities’ priorities of economic stabilization, improved governance, anticorruption, and strengthening the social safety net.
Haiti continues to face a severe humanitarian and security crisis, compounded by recurrent shocks and a fragile political transition. Gangs continue to undermine state authority, leaving approximately 5.7 million people facing food insecurity and 1.45 million people internally displaced. The oil price shock stemming from the war in the Middle East has emerged as a major headwind, significantly raising the fuel import bill and implicit subsidy cost, and aggravating an already weak fiscal position. These pressures add to the impact of Hurricane Melissa in October 2025, which disrupted economic activity and exacerbated humanitarian needs. Haiti is also navigating a fragile political transition that is expected to culminate in
general elections later this year—the first in a decade. The UN-supported Gang Suppression Force began arriving in April 2026 and is expected to be fully deployed by October 2026, which could help restore security and support recovery.
Economic conditions remain dire. Real GDP contracted for a seventh consecutive year in FY2025 and a further contraction is expected in FY2026. Inflation has eased recently but remains elevated. Against the backdrop of weak economic activity and heightened uncertainty, financial intermediation has continued to contract. Retrenchment in bank lending and financial disintermediation have contributed to improvements in non‑performing loan ratios, while capital adequacy ratios remain well above regulatory minimums.
Despite a deteriorating external environment, international reserve buffers remain adequate. Higher international oil prices are weighing on the external position, but strong remittance partly offset these pressures. The current account is expected to weaken in FY2026 but will remain broadly balanced. Gross international reserves are projected at US$3.4 billion at end FY2026—over seven months of prospective imports of goods and services. The nominal exchange rate has remained stable.
Fiscal policy remains constrained by persistent security challenges, institutional weaknesses, and limited policy space. Revenue performance in FY2026 has been weak, due to disruptions to economic activity, administrative fragilities, and institutional paralysis triggered by the termination of the Transitional Presidential Council’s mandate. Higher international oil prices are expected to add further pressure through higher implicit subsidy costs, despite the authorities’ decision to increase domestic fuel prices in April. Budget execution has remained uneven, underscoring the importance of prioritizing spending while safeguarding support for the most vulnerable.
Risks to the outlook are tilted to the downside. A further deterioration in security conditions, together with persistently higher global oil prices, could further strain economic activity, aggravate humanitarian conditions through higher food prices, and intensify fiscal pressures. Potential shifts in foreign immigration policies could slow remittance inflows, with adverse implications for the external position.
All program targets were met at end-December 2025. Reserve accumulation has been strong with net international reserves reaching USD 1.76 billion in December 2025. The revenue, primary balance, and social spending targets all remained on track. The monetary financing target was also met despite an increasingly constrained fiscal space. The reform agenda—covering governance, public financial management, safeguards, and data provision—continues to advance, albeit with delays in some areas.
While security remains the top priority, the SMP will continue emphasizing:
Strengthening governance and reducing corruption are critical to rebuilding trust in public institutions and overcoming fragility. Reforms anchored in the Governance Diagnostic Report aim to improve the integrity and effectiveness of public institutions, including more transparent management of public finances, stronger safeguards in revenue administration, and more effective mechanisms to deter and address corruption, organized crime, and illicit financial activities. Efforts to further strengthen the anti‑money laundering and combating the financing of terrorism framework—including through the publication of the recently concluded national risk assessment and closing remaining gaps—are also critical to reinforcing financial integrity and supporting Haiti’s exit from the Financial Action Task Force grey list.
Stepping up revenue mobilization efforts given Haiti’s low revenue base and large security and development needs. Higher international oil prices are straining fiscal space, reinforcing the importance of accelerating tax and customs administration reforms, including operationalizing the new tax code, strengthening the digital infrastructure, and improving compliance—particularly among large taxpayers. The fuel price adjustment will reduce foregone revenues resulting from the oil price shock. However, it is critical to complement these decisions with measures to protect the most vulnerable, including by leveraging the remaining resources from the IMF 2023 Food Shock Window.
Improving budget execution to ensure that limited public resources are effectively directed toward priority social, humanitarian, and security spending amid rising needs. This requires stronger cash management, tighter commitment controls, and better preparation and prioritization of public investment projects. It is also critical to ensure the timely and effective delivery of public assistance, strengthen social spending execution, and safeguard support to vulnerable households. Together, these steps will help improve spending efficiency, strengthen the management of fiscal risks, and enable public spending to better support development and reconstruction efforts.
Consolidating the central bank’s policy framework and credibility. Exchange rate stability has provided an important nominal anchor for the economy. In the face of the oil shock, preserving reserve adequacy while using available buffers in a temporary and carefully calibrated manner will be critical to managing external pressures. Fully operationalizing the new reserve management framework, including updated investment policies and guidelines will help strengthen governance at the central bank.
Enhancing the regulatory and supervisory frameworks in the financial system. The authorities are making progress in strengthening risk‑based banking supervision, including through the continued rollout of on‑site inspections and enhancements to off‑site monitoring of banks’ risk profiles. Efforts are underway to operationalize the new
supervisory framework, integrate risk‑assessment tools into the BRH’s supervisory architecture, and finalize a new chart of accounts for financial institutions. These reforms will safeguard financial stability and reinforce the resilience of the banking system.
Improving data quality and timeliness. The Bank of the Republic of Haiti completed the FY2023 audit and financial statements and has initiated the FY2024 audit. Continued implementation of the safeguards assessment recommendations will strengthen central bank governance and risk management. Efforts continue to strengthen data reporting frameworks, including the International Reserves and Foreign Currency Liquidity template, external sector and government finance statistics, and the reporting of financial soundness indicators.
Collaborating with development partners to manage elevated fiscal risks and preserve macroeconomic stability, and the reform agenda. Amid heightened oil price pressures, there is an increasing risk that financing gaps could translate into domestic debt accumulation, undermining the public sector’s balance sheet. External support should be provided primarily in the form of grants rather than non‑concessional borrowing. Together with rigorous appraisal and transparency requirements for donor‑financed operations, this support would help safeguard the public sector balance sheet, consolidate progress achieved under the program, and support a durable recovery that improves living conditions for the Haitian people.
In line with the Fund Strategy for Fragile and Conflict-Affected States, IMF staff will continue to collaborate closely with Haiti’s main development partners, particularly on governance and strengthening institutional capacity.
read more: https://www.imf.org/en/news/articles/2026/05/21/pr26164-haiti-imf-management-approves-3rd-review-and-extends-smp
