- International Monetary Fund (IMF) staff and the Haitian authorities have reached staff-level agreement on the Fourth Review of the Staff-Monitored Program (SMP), subject to approval by IMF Management.
- Program implementation has continued under exceptionally challenging conditions. At end-June 2026, all quantitative and indicative targets were met except the continuous target on external arrears. Temporary external arrears emerged due to administrative and capacity constraints but were promptly cleared. The structural reform agenda is advancing, albeit with some delays.
- Insecurity continues to weigh on economic activity and the provision of basic services, further aggravating already dire humanitarian conditions. The political transition remains fragile, and a successful electoral process depends on improved security conditions, adequate financing, and continued international support.
- The economy remains fragile, with real GDP declining for an eighth consecutive year, although inflation has eased significantly and international reserve buffers remain adequate. The deployment of the Gang Suppression Force has raised the prospects for a gradual improvement in security conditions. Against this backdrop, the authorities remain committed to policy implementation and advancing the reform agenda.
Washington, DC: A staff team from the International Monetary Fund (IMF) led by Mr. Camilo E. Tovar, conducted a virtual mission during September 14-25, 2026, to assess progress under Haiti’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 program with access to upper credit tranche (UCT) resources. The SMP is tailored to Haiti’s context of acute security challenges, institutional fragility, and capacity constraints. It supports the authorities’ economic policy priorities, including stabilizing the economy, strengthening governance, and reinforcing the social safety net.
At the conclusion of the mission, Mr. Tovar issued the following statement:
“Haiti faces an exceptionally challenging macroeconomic environment shaped by persistent insecurity, dire humanitarian and social conditions, and multiple adverse shocks. 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.
“Economic activity is expected to contract for an eighth consecutive year in FY2026. Persistent insecurity, higher oil prices, and weak prospects for textile and apparel exports continued to weigh on activity. Inflation is projected at about 16 percent year-on-year in FY2026, significantly below its peak of over 32 percent in October 2025, supported by a stable exchange rate. 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.
“Fiscal policy faces growing pressure from exceptionally low revenue, higher international oil prices, and Haiti’s pressing security, humanitarian, and development needs. 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.
“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.
“Program 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. External arrears accumulated temporarily due to administrative and capacity constraints and were promptly cleared. Net international reserves increased to about USD 1.9 billion by end-June 2026, well above the program floor. 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 authorities have also reported progress in areas covered by forthcoming structural benchmarks and remain committed to continuing the implementation of the reform agenda.
The SMP will continue to emphasize the following priorities:
“Strengthening governance and financial integrity to reinforce confidence in public institutions and the rule of law. Operationalizing the recently established specialized 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 mobilization 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. Effective implementation of the new tax code, continued modernization 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.
“Making more effective use of public resources. Strengthening cash and public investment management and commitment controls, and implementing Treasury Single 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.
“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.
“Strengthening financial sector oversight to safeguard financial stability. Progress in risk-based supervision continues, including through the testing of risk assessment grids and rating matrices, as well as work to finalize a new chart of accounts for financial institutions. These reforms will strengthen supervisory effectiveness, improve financial reporting, and support prudent risk management.
“Improving data quality and timeliness. The BRH has completed the publication of the FY2024 audit and financial statements, and work is ongoing to address the audit qualifications and recommendations for FY2023. Timely publication of the FY2025 and FY2026 financial statements and audit reports will help maintain a regular audit cycle and reinforce transparency, accountability, and policy credibility. Continued strengthening of economic and financial statistics, including external sector statistics—through the transition to BPM6 and enhanced reserve reporting—and fiscal monitoring, will support transparency and policy formulation. IMF technical assistance, including through the Caribbean Regional Technical Assistance Centre (CARTAC), will continue to support efforts in these and other areas.
“Mobilizing development partner support to advance reforms and manage fiscal risks. Timely and predictable external support—in the form of grant financing and concessional debt to ensure debt sustainability—together with continued capacity development, will help address urgent humanitarian, security, and development needs, strengthen policy implementation, and support institutional reforms. Together with rigorous appraisal, transparency requirements, and effective monitoring of donor-financed operations, such support can 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 key development partners on governance and capacity development, including through the recently launched “Compact for Recovery and Prevention” prepared by the Government of Haiti in collaboration with the World Bank and other international partners.
The IMF staff team met with the Minister of Economy and Finance, Mr. Serge Gabriel Collin, the Governor of the Banque de la République d’Haïti, Mr. Ronald Gabriel, and other senior officials. The mission is grateful to the Haitian authorities for their strong cooperation and the open and constructive discussions throughout the engagement.
