IMF approves almost $70 million for Haiti as earthquake recovery continues

WASHINGTON, United States, Thursday May 21, 2015 – The Executive Board of the International Monetary Fund (IMF) has approved a US$69.7 million three-year aid programme for Haiti to help its continued recovery from a devastating earthquake that claimed a quarter million lives five years ago.

About US$10 million has already been disbursed under the Extended Credit Facility (ECF) while the remainder will be phased in, subject to semi-annual programme reviews.

The IMF said while growth since the January 12, 2010 earthquake has been positive, it was not enough to significantly reduce poverty.

“Haiti’s pursuit of macroeconomic stability in the aftermath of the 2010 earthquake is commendable – growth has been positive, inflation has remained moderate, and international reserve levels adequate,” said the IMF’s deputy managing director Min Zhu.

“Going forward, continued efforts are needed to support sustained and inclusive growth, strengthen institutions and the policy framework, and maintain adequate buffers to absorb shocks.”

The IMF said the new three-year programme seeks to entrench macroeconomic stability, improve competitiveness to spur inclusive growth, and preserve buffers, through streamlined policies that have full country ownership.

The programme is targeting a reduction of the non-financial public sector deficit from 7.5 per cent last year to 3.25 per cent of GDP in 2015, and 2.5 per cent in the medium term to preserve sustainability.