--- Page 1 --- INTERNATIONAL MONETARY FUND IMF Country Report No. 23/230 HAITI SECOND REVIEW UNDER THE STAFF-MONITORED June 2023 PROGRAM-PRESS RELEASE; AND STAFF REPORT In the context of the First Review Under the Staff-Monitored Program (SMP), the following documents have been released and are included in the package: A Press Release The Staff Report prepared by a staff team of the IMF for the Executive Board's information following discussions that ended on April 28, 2023, with the officials of Haiti on economic developments and policies underpinning the First Review Under the Staff-Monitored Program. Based on information available at the time of these discussions, the staff report was completed on May 31, 2023. The IMF's transparency policy allows for the deletion of market-sensitive information and premature disclosure of the authorities' policy intentions in published staff reports and other documents. Copies of this report are available to the public from International Monetary Fund o Publication Services PO Box 92780 o Washington, D.C. 20090 Telephone: (202) 623-7430 o Fax: (202) 623-7201 E-mail: publications@imf.org Web: http./Awww.imf.corg Price: $18.00 per printed copy International Monetary Fund Washington, D.C. 0 2023 International Monetary Fund --- Page 2 --- PRESS RELEASE IMF PR23/213 Management Completes the Second Review of the Staff Monitoredl-Program with Haiti FOR IMMEDIATE RELEASE Staff Monitored staff to monitor the Programs authorities' (SMPS) are informal arrangements between national authorities IMF Executive Board. SMP economic program. As such, they do not entail and IMF Staff reports are issued to the Board for information endorsement by the Management of the International second and final review of Haiti's Monetary Fund (IMF) approved on May 30, 2023 the government restore macroeconomic Staff-Monitored Program (SMP). The SMP has helped the transparency. stability and strengthen governance and fiscal The SMP has played an important role in enhance accountabillty through advancing decisive governance reforms to stronger public finance administration, data provision, and management, revenue anti-corruption measures. The program has been designed to take into account and has helped the authorities build a track Haiti's fragility and capacity constraints record of policy implementation,. Washington, DC - June 15, 2023: approved on May 30, 2023 the Second Management of the International Monetary Fund (SMP) which started in June and Final review of the Staff-Monitored (IMF) economic 2022. The SMP was designed to Program policy objectives and build a track record of reform support the authorities' Fund's Strategy for Fragile and Conflict-Affected implementation. In line with the Haiti's main development partners. States, staff also coordinated closely with Haiti faces a challenging macroeconomic been hit hard by economic outlook amid a humanitarian crisis. The inflation spillovers from Russia's invasion of country has triggering a hunger crisis. This global shock has Ukraine, with food price situation, which has heightened the economy's been compounded by a dire security supply-side bottlenecks which have further fueled fragility, hampered activity, and generated the security situation have resulted in a inflation. External shocks and the volatility of than had been envisaged at the time of macroeconomic the environment that has been worse 2022. program's approval by IMF management in June Despite the more challenging domestic and external adopted important policy reforms, anchored environment, the authorities have throughout. The reforms cover by the SMP, and displayed a firm commitment administration, public finance governance and anti-corruption, tax and revenue central bank management (including budget autonomy and governance, and preparation and execution), improved during the course of the program. All anti-money laundering. Data provision has also these reforms have enhanced transparency 700 19th Street NW Washington, DC 20431 USA IMForg . program's approval by IMF management in June Despite the more challenging domestic and external adopted important policy reforms, anchored environment, the authorities have throughout. The reforms cover by the SMP, and displayed a firm commitment administration, public finance governance and anti-corruption, tax and revenue central bank management (including budget autonomy and governance, and preparation and execution), improved during the course of the program. All anti-money laundering. Data provision has also these reforms have enhanced transparency 700 19th Street NW Washington, DC 20431 USA IMForg --- Page 3 --- sector and helped maintain macroeconomic stability. in public spending and in the financial inclusive consultative process, the the delicate political situation, thanks to a highly support for the SMP Despite ownership and earned public authorities have taken the necessary Committee. through the high-level Program Monitoring for FY2023 that is consistent with agreed targets authorities had adopted a budget of the The Haitian fiscal framework. Implementation under the SMP and in the context of a medium-term of the SMP of reducing monetary has been to date consistent with the objective The budget deficit to levels that staff assesses to be non-inflationary. the financing of the budget budget allocation is used to protect authorities are striving to ensure that a meaningful systems to monitor the public financial management most vulnerable and are implementing use of public funds. aimed at reforms under the SMP, the authorities also took measures time. These In line with the and boosting revenue mobilization over strengthening revenue administration code, publication of all codes and the of a new tax code and tax procedures of include approval Tax Identification Numbers (TINS), publication tariffs related to customs, adoption of unique and stronger oversight of the revenue the TIN database and of the file of active taxpayers, code a primer in the country's historysince August 2022. Notably, the new tax tax and corporate income agency and simplification of the personal income entails the rationalization of the tax base and elimination of many exemptions. a tax, including through the broadening administration, customs revenue has reached Thanks mainly to an improvement of revenue base. historic high in recent months, although from a low issues, and corruption and broader There has been significant progress on governance addressed. The authorities have financial integrity risks need to continue to be effectively of resources and have boosted accountability in the use public of taken measures to strengthen resources. The recent finalization the transparency of public procurement for emergency frameworks are also critical for revisions to the Central Bank and to the AMLICFT legal made a formal request for a They have also recently improving governance and transparency. development. Governance Diagnostic, which is a very welcome Fund in another SMP, which should help maintain The Haitian authorities have expressed interest reforms to further enhance stability and lock in and sustain recent approved macroeconomic economic resilience and governance. resources and have boosted accountability in the use public of taken measures to strengthen resources. The recent finalization the transparency of public procurement for emergency frameworks are also critical for revisions to the Central Bank and to the AMLICFT legal made a formal request for a They have also recently improving governance and transparency. development. Governance Diagnostic, which is a very welcome Fund in another SMP, which should help maintain The Haitian authorities have expressed interest reforms to further enhance stability and lock in and sustain recent approved macroeconomic economic resilience and governance. --- Page 4 --- MONETARY FUND INTERNATIONAL HAITI REVIEW UNDER THE STAFF-MONITORED SECOND PROGRAM May 31, 2023 EXECUTIVE SUMMARY macroeconomic outlook amid a humanitarian crisis. Context. Haiti faces a challenging from Russia's invasion of Ukraine, The country has been hit hard by economic spillovers shock has been inflation triggering a hunger crisis. This global with food price which has heightened the economy's fragility, compounded by a dire security situation, bottlenecks which have further fueled hampered activity, and generated supply-side inflation. Risks to the outlook are tilted to the downside. has been broadly The implementation under the SMP Program implementation. difficulties, the authorities have adopted satisfactory. Despite domestic and global a firm commitment reforms, anchored by the SMP, and displayed important policy and anti-corruption, tax and revenue throughout. The reforms cover governance budget preparation and administration, public finance management, including All these have Data has also improved. execution, and central bank independence. and in the financial sector and much-needed transparency in public spending and enhanced stability. Despite the delicate political landscape, helped maintain macroeconomic the authorities have taken the thanks to a highly inclusive consultative process, for the SMP through the high-level necessary ownership and earned public support met three of the four Committee (Comité de Suivi). The authorities for Program Monitoring targets (QTs) and the indicative targets (IT) end-December 2022 periodic quantitative QT floor on budget allocation to the end-December. They missed the end-December The authorities also of Social Affairs and Labor (MAST) for social expenditure. the IT floor Ministry end-March 2023 and missed by a narrow margin met four of the five ITs for at the time of the first review. revenues, which was revised up on central government of both domestic also met the three continuous Gs-non-accumulation of The authorities or guaranteeing by the public sector and external arrears and no new contracting all structural benchmarks were external debt. Despite some delays, non-concessional structural benchmarks were not met but achieved. The two end-March 2023 2023 structural benchmark and the implemented with delay in April. The end-April structural benchmarks were all met. monthly and quarterly interest in another SMP, which should help Next steps. The authorities have expressed further enhance economic resilience and lock in and sustain recent approved reforms to Fund capacity development The new SMP will continue to be supported by States, staff governance. the Fund Strategy for Fragile and Conflict-Affected assistance. In line with with Haiti's main development partners. will also continue to coordinate closely met but achieved. The two end-March 2023 2023 structural benchmark and the implemented with delay in April. The end-April structural benchmarks were all met. monthly and quarterly interest in another SMP, which should help Next steps. The authorities have expressed further enhance economic resilience and lock in and sustain recent approved reforms to Fund capacity development The new SMP will continue to be supported by States, staff governance. the Fund Strategy for Fragile and Conflict-Affected assistance. In line with with Haiti's main development partners. will also continue to coordinate closely --- Page 5 --- HAITI Approved By Discussions took place Patricia Alonso-Gamo and in Washington remotely during April 4-6 and in person Peter Dohlman 10-17), during the week of the spring meetings continued remotely thereafter, and were (April April 28. The team comprised Ms. concluded on Ndela, Ms. Tumbarello (Head), Mr. Noah Bhattacharya (all WHD), Ms. and Mr. Shenai (SPR) and Messrs. Osorio-Buitron (FAD) au-Prince office). Ms. Duvalsaint and Wata (PortOjo (WHD) provided valuable research assistance and Ms. Coquillat (WHD) assisted with document preparations. Mr. Saraiva and Ms. logistics and joined the discussions. The team met with Florestal (OED) Boisvert (Minister of Economy Mr. Michel Patrick Dubois and Finance), Mr. Jean Baden (Governor of the Bank of the Republic of Pierre Ricot Odney (Minister of Social Affairs Haiti), Mr. senior officials, the private sector and Labor), other industries, and banking (civil society, association of association), and the international community through the process (WB, IADB, EU, UN, WFP) to coordinate technical USAID, and assistance and donor support. CONTENTS CONTEXT AND RECENT DEVELOPMENTS PROGRAM IMPLEMENTATION UNDER THE SMP OUTLOOK AND RISKS POLICY DISCUSSIONS A. Fiscal Policy B. Monetary and Exchange Rate Policy C. Financial Sector D. Governance STAFF APPRAISAL FIGURES 1. Real Sector Developments, 2016-23 2. Fiscal Sector Developments, 2016-23 3. Monetary and Financial Sectors 4. Financial Sector Indicators, Developments, 2016-23 2016-22 5. External Sector Developments, 2016-23 6. Social Indicators 2 INTERNATIONAL MONETARY FUND --- Page 6 --- HAITI TABLES 1. Selected Economic and Financial Indicators, 2020-28 2a. Non-Financial Public Sector Operations, 2020-28 (In millions of gourdes) 2b. Non-Financial Public Sector Operations, 2020-28 (In percent of GDP) 3a. Balance of Payments, 2020-28 (In millions of US$) 3b. Balance of Payments, 2020-28 (In percent of GDP) 4. Summary Accounts of the Banking System, 2020-28 5. External Financing Requirements and Sources, 2020-28 6. Financial Soundness Indicators, June 2020-December 2022 APPENDIX I Letter of Intent Attachment I. Technical Memorandum of Understanding INTERNATIONAL MONETARY FUND 3 inancial Public Sector Operations, 2020-28 (In percent of GDP) 3a. Balance of Payments, 2020-28 (In millions of US$) 3b. Balance of Payments, 2020-28 (In percent of GDP) 4. Summary Accounts of the Banking System, 2020-28 5. External Financing Requirements and Sources, 2020-28 6. Financial Soundness Indicators, June 2020-December 2022 APPENDIX I Letter of Intent Attachment I. Technical Memorandum of Understanding INTERNATIONAL MONETARY FUND 3 --- Page 7 --- HAITI AND RECENT DEVELOPMENTS CONTEXT crises. The country has been hit continues to face dire humanitarian and security 1. Haiti Russia's invasion of Ukraine, with food price inflation hard by the economic spillovers from To address Haiti's balance of hunger crisis affecting over 50 percent of the population. Food Shock triggering a 2023 US$110.6 million under the payments needs, the Fund approved in January situation remains very difficult, with of the Rapid Credit Facility (RCF). The security fuel Window (FSW) and key infrastructure, worsening widespread controlling large parts of the capital the gangs cholera outbreak has further aggravated emergency. shortages. The recent Prime Minister Henry persists, albeit with one notable achievement. the 2. Political uncertainty with representatives of all political parties, signed on December 21, 2022, a new agreement Consensus for an Inclusive Transition and private sector, and NGOS. The agreement, "National elected by February 2024; an government Elections, II includes a timetable for installing and soon of a Body for the Transparent Council for the Transition (set up in February), the establishment of a High accountability (including through action to enhance the current government's control of government and measures to fight corruption. the oversight of the budget process); In fiscal year 2022 (FY2022)' I real GDP Macroeconomic conditions remain challenging. 3. consecutive year, by Inflation contracted for the fourth (Percent) 1.7 percent (Table 1). Year-on-year inflation 60 -Overall CPI (year on year) Food CPI (year on year) reached 48.3 percent in March 2023 as food 50 prices surged 48 percent (year-on-year), commodity and supply-side 30 driven by global disruptions (security and drought). Month20 on-month inflation, however, has declined sharply, from near 11 percent in October to U I 10 o R 8 2 N S a in March, suggesting that e 0 $ S & 3 1.7 percent The deficit of the of Statistics andl Informatics (HSI), and Bank of thel Republic of Haiti. inflation is decelerating. Sources: Haitian Institute non-financial public sector (NFPS) narrowed by 0.4 of a percentage point to 2.1 percent of point above the level expected 2a and Table 2b). Still, this was 0.6 percentage fuel GDP in FY2022 (Table 2022 and was attributable mainly to higher-than-expected when the SMP was approved in June account balance shifted to a deficit of 2.3 percent subsidies (until mid-September 2022). The current in FY2021, owing mostly to a negative 3a and Table 3b), from a surplus of V2 percent vis-à-vis US of GDP (Table fuel and food import costs). The exchange rate (gourde terms-of-trade shock (higher 154 at the end of March 2023, a 30V2 percent depreciation dollar) continued to depreciate, reaching issues continue to undermine economic from September 30, 2022. Fuel shortages and security (year-on-year) in the first quarter of 2023. decelerating to 2.5 percent activity, with credit growth 1 The fiscal year runs from October 1 to September 30. MONETARY FUND 4 INTERNATIONAL US of GDP (Table fuel and food import costs). The exchange rate (gourde terms-of-trade shock (higher 154 at the end of March 2023, a 30V2 percent depreciation dollar) continued to depreciate, reaching issues continue to undermine economic from September 30, 2022. Fuel shortages and security (year-on-year) in the first quarter of 2023. decelerating to 2.5 percent activity, with credit growth 1 The fiscal year runs from October 1 to September 30. MONETARY FUND 4 INTERNATIONAL --- Page 8 --- HAITI rebuilt, although from a low resilience have emerged, and buffers have been the 4. Signs of Program (SMP), have helped suggesting that policies, aligned with Staff-Monitored reaching almost base, reserves (NIR) have picked up in recent months, economy. Net international Rate US$396 million in mid-April 2023 (US$110.6 Reserves Accumulation and Bilateral Exchange 1,000 related to the FSW disbursement), up 0.018 NIR (millions of US dollar, right scale) million 2022. US dollar per gourde from just US$114 million at end-October 0.015 This increase reflects recent FX purchases to 0.012 DE rebuild external buffers, as well as valuation o 0.009 effects in the central bank's FX portfolio. remained resilient in 2022 after 0.006 Remittances in 2020-21 and were still higher than 0.003 surging in the pre-Covid period (as a share of imports). 0.000 10 do o 8 8 R 2a a a N N Q 8 2 boost fiscal revenue by e % a $ & 2 S & 2 3 & Custom duties helped $ I 50 percent in the first six months of FY2023, Sources: Bank of the Republic of Haiti and IMF staff estimates. which also reflected improved revenue collect taxes on fuel imports at the new regulated administration and the government's ability to during October 2022-March 2023 Monetary financing of the budget decreased considerably of 212 of GDP to 1 price. from an annual rate percent (year-on-year)-in line with the SMP objectives percent. Monetary Financing of the Budget (Ins percent of GDP) Remittances, aing percent of imports 2018-22 o In percent of GDP (right scale) 25 12 20 10 a a E a a E a a 2 a E a a 2 a a a 2 2 a BRRRR OOSAN 2020 (Tableau des 2021 Operations Financières 2022 del TEtat-TOFE) 20231/ Dom. Rep. Haiti Sources: Ministry of Finance Guatemala Honduras Nicaragua authorities, and IMF staff calculations. andl 1/ October IMF staff 2022- estimates. March 2023 data (first semester of FY2023), annualized. Sources: Bank of the Republic of Haiti, national demonstrated a firm commitment under multiple challenges, the authorities have stayed 5. Despite anchor for enhancing policymaking and the SMP which provided a credible additional support. Since the disbursement with Fund staff, which has spurred has actively engaged Credit Facility, the authorities' engagement million under the FSW of the Rapid de of US$110.6 Monitoring Committee (Comité Suivi-which strengthened through the high-level Program the Fund has also continued actively supporting meets with IMF staff biweekly. Since the last review, conducted a CD mission on AML/CFT development. The IMF Legal Department (LEG) the IMF Fiscal Haiti's capacity revision of the Central Bank law; and advised the authorities on the mechanism reform in late January delivered assistance on the consumer-pricing Affairs Department (FAD) and LEG will allow changes in international fuel completed in April. The latter of the fuel subsidy regime INTERNATIONAL MONETARY FUND 5 through the high-level Program the Fund has also continued actively supporting meets with IMF staff biweekly. Since the last review, conducted a CD mission on AML/CFT development. The IMF Legal Department (LEG) the IMF Fiscal Haiti's capacity revision of the Central Bank law; and advised the authorities on the mechanism reform in late January delivered assistance on the consumer-pricing Affairs Department (FAD) and LEG will allow changes in international fuel completed in April. The latter of the fuel subsidy regime INTERNATIONAL MONETARY FUND 5 --- Page 9 --- HAITI also features a smoothing mechanism to passed on to consumers. 2 This reform of the prices to be regularly variation of prices at the pump (through revisions protect consumers by limiting the monthly Technical Assistance Centre (CARTAC) provided current 1995 law).3 FAD and the Caribbean Regional PFM systems; FAD also delivered TA on technical assistance (TA) on cash management to improve the IMF Statistics the tax base and improve tax compliance; revenue administration to broaden of quarterly GDP data; and the worked with the authorities to support the production Central Bank Banking Chart Department (MCM) delivered TA on the Monetary and Capital Markets Department Finally, the SMP has helped facilitate the of Accounts to align them with IFRS Standards. the European Union, which was conditional, forthcoming budget support (€19.5 million) from first and second reviews of the SMP. successful completion of the among other things, on the UNDER THE SMP IMPLEMENTTION PROGRAM satisfactory. It has helped the overall SMP has been broadly This 6. The implementation and move ahead with key structural reforms. authorities stabilize the macroeconomic situation global food and fuel prices, a cholera global economic environment, elevated despite a worsening situation. epidemic, and a highly volatile security The authorities met three of the four and indicative targets (Appendix 1. Table 1). NIR of the central Quantitative targets (QTs)-the floor on the end-December 2022 periodic quantitative NFPS; and the ceiling on the net central bank balance of the bank; the floor on the preliminary But they missed the QT on the NFPS- the indicative targets (IT) for end-December. this credit to Affairs and Labor (MAST). However, missing budget allocation to the Ministry of Social social but rather the in targeted spending, target does not imply underperformance slowed budget execution by MAST implementation of additional safeguards that somewhat four of the five ITs for March detailed tracking system). They also met (which included a more missed by a narrow margin, however, the 2023, including the budget allocation to MAST. They at the time of the first review. The revenues, which was revised up floor on central government of both domestic and authorities also met the three continuous GTs-non-accumulation by the public sector of nonexternal arrears and no new contracting or guaranteeing concessional external debt. development (Appendix 1. Table 2). Despite Structural benchmarks supported by capacity The two end-March 2023 structural delays, all structural benchmarks were achieved. 2023 structural some with delay in April. The end-April benchmarks were not met but implemented benchmarks were all met. In spite of the benchmark and the monthly and quarterly structural the structural reform agenda, the authorities have continued implementing multiple challenges, supported by Fund CD, in the following areas: 2022 and passed on to consumers at the pump 2 The one-time increases in fuel prices were announced 1, in and September 19). 2022 (First Review of the SMP, footnote law and the excise chapter of the new tax code. in November consistency between the amendment 3 The next steps entail ensuring 6 INTERNATIONAL MONETARY FUND benchmarks were not met but implemented benchmarks were all met. In spite of the benchmark and the monthly and quarterly structural the structural reform agenda, the authorities have continued implementing multiple challenges, supported by Fund CD, in the following areas: 2022 and passed on to consumers at the pump 2 The one-time increases in fuel prices were announced 1, in and September 19). 2022 (First Review of the SMP, footnote law and the excise chapter of the new tax code. in November consistency between the amendment 3 The next steps entail ensuring 6 INTERNATIONAL MONETARY FUND --- Page 10 --- HAITI Transparency of operations at the agency Governance and Public Financial Management The authorities re-convened the Assistance Fund FAES has improved. Economic and Social report on its operations through March governing board of FAES and prepared the quarterly to on a regular basis, all structural benchmark). They also continue publish, 2023 (quarterly information on the successful bidders (monthly public procurement contracts, including the Treasury Single account (TSA) and structural benchmark). They have also expanded NFPS deficit as the main anchor. budget framework with the adopted a medium-term in late December making compulsory the The authorities issued a decree with Tax administration. Number (TIN) for all finance departments, sanctions use of the Taxpayer Identification publication at the end of April 2023 of the for fraudulent or non-use. This was followed by 2023 structural benchmark). TIN database and the file of active taxpayers (end-March the benchmark on finalizing amendments Central bank law. The authorities have completed Board of Directors of the BRH at the end central bank Law, which were ratified by the this to the 2023 structural benchmark). Achieving of April 2023 in line with Fund's TA (end-March the recommendations of the 2019 benchmark also marks a key milestone in implementing Safeguards Assessment. Decree that is in The authorities have drafted a new AML/CFT than the Anti-money laundering. Action Task Force (FATF) international standards greater alignment with Financial the Council of Ministers (end-April AML/CFT law and that was endorsed by previous structural benchmark). has adopted of a new tax code, a Tax Policy and Custom Administration. The government and it is publishing all the tax system and eliminates many exemptions, primer that simplifies codes and tariffs related to customs. audit of the BRH has been completed and its audited Safeguards. The FY2021 financial financial statements published. OUTLOOK AND RISKS Growth is expected to outlook for Haiti remains very challenging. time of 7. The macroeconomic lower than 0.3 percent projected at the be almost muted at 0.1 percent in FY2023 (slightly owing mainly to the security crisis. It in line with the deceleration in credit growth, of the First Review), medium term, depending on continued implementation is expected to reach 172 percent over the Inflation is expected to moderate gradually-to structural reforms and an improved security situation. of lower monetary financing of the at the end of this fiscal year-as the impact Inflation is then forecast about percent world market for food and fuel stabilize. fiscal deficit takes effect and prices macroeconomic policies. The fiscal deficit further over the medium term, assuming adequate below that to ease of GDP in FY2023- 0.3 percentage points of the NFPS is projected at 1.8 percent of lower fuel subsidies and higher customs envisaged at the time of the SMP approval--because INTERNATIONAL MONETARY FUND 7 --- Page 11 --- HAITI about 2.2-2V2 percent of GDP over the medium The fiscal deficit would expand slightly to to declined relative to revenues. External debt indicators are expected term, led primarily by capital spending. at the time of the First Review, resulting First Review as fiscal deficits are lower than envisaged to narrow to the the deficit. The current account deficit is expected also in a lower monetary financing of over the medium term, assuming imports of GDP in FY2023, and further to 0.6 percent 0.8 percent compression and as import prices stabilize. about 2.2-2V2 percent of GDP over the medium The fiscal deficit would expand slightly to to declined relative to revenues. External debt indicators are expected term, led primarily by capital spending. at the time of the First Review, resulting First Review as fiscal deficits are lower than envisaged to narrow to the the deficit. The current account deficit is expected also in a lower monetary financing of over the medium term, assuming imports of GDP in FY2023, and further to 0.6 percent 0.8 percent compression and as import prices stabilize. security, and it is tilted mainly to the The outlook is subject to multiple risks, including to 8. intensified political instability, gang-related disruptions downside. Domestic risks include of the hunger crisis, and extreme natural of cholera, a worsening economic activity, a further spread remittance flows, lower-than-expected external disasters. Externally, Haiti is vulnerable to volatile Normalization of the security surges in global food and energy prices. The financing, and renewed improve the medium-term outlook. situation (not envisaged in our baseline) would greatly consistent with a high risk of debt distress and projected path of public debt is sustainable, although in the most recent DSA (see capacity is assessed as medium, as ascertained the debt-carrying EBS/23/4). POLICY DISCUSSIONS A. Fiscal Policy domestic revenue was much stronger than in During the first half of FY2023, strong 9. Background. mainly to custom duties and reflecting previous years, rising by 48 percent, owing S ability to collect taxes on fuel imports administration and the government's improvement in revenue Haiti: Execution of Social Spending at the new regulated Oct- Dec 2022 Jan- -Mar 2023 Oct 2022 Mar 2023 Domestic FY2022 1/ Inmillions In percent In millions In percent In millions In percent price. Ministry In millions In percent of GDP of gourdes of GDP of gourdes of GDP revenue had a weak of gourdes ofGDP of gourdes 0.01 396 0.01 740 0.02 start, as a result of the Agriculture 1,953 0.09 6,026 344 0.19 4,430 0.14 10,456 0.33 Education 20,767 0.96 1,879 0.06 1,078 0.03 2,957 0.09 paralysis of the Public health 6,433 0.30 391 0.01 5,811 0.19 6,202 0.20 economy in Social affairs and labor 2/ 3,964 0.18 1.53 8,639 0.28 11,715 0.38 20,354 0.65 September/October, Total of Economy and 33,117 Finance (MEF) and IMF staff calculations. attributable to the Sources: 1/ Fiscal Ministry year 2022 ends in September 2022. temporary loss of 2/ MAST. access to the main fuel terminal (Varreux), nominal term, revenue recovered to its historical which reduced tax collection in October 2022. In 17 billion gourdes in the second resumed. Average monthly revenue exceeded high as activity of 11 billion gourdes during the year-earlier quarter of FY2023, relative to a monthly average in the first semester of FY2023, led Nominal spending grew 18 percent (year-on-year) national police. The increase in quarter. spending (25 percent), including to strengthen fuel and mainly by capital with energy transfers (including was more subdued (13 percent), current spending INTERNATIONAL MONETARY FUND --- Page 12 --- HAITI has cut fuel subsidies to zero. During the first electricity) cut in half, 4 as the fuel price adjustment of GDP, slightly higher than the yearsemester of FY2023, social spending totaled 0.65 percent total social spending surged 50 percent year- (0.62 percent of GDP). In nominal terms, earlier period The higher level of spending is primarily domestically on-year, reaching 20.3 billion gourdes. with energy transfers (including was more subdued (13 percent), current spending INTERNATIONAL MONETARY FUND --- Page 12 --- HAITI has cut fuel subsidies to zero. During the first electricity) cut in half, 4 as the fuel price adjustment of GDP, slightly higher than the yearsemester of FY2023, social spending totaled 0.65 percent total social spending surged 50 percent year- (0.62 percent of GDP). In nominal terms, earlier period The higher level of spending is primarily domestically on-year, reaching 20.3 billion gourdes. stood at 1 percent of GDP, based on annualized data financed. Monetary financing of the budget using the outturn for the first semester. related to the FSW had not been spent as of April related to the FSW. Resources commitment to 10. Spending central bank. This reflected the authorities' 30, 2023 and were kept as reserves at the need to respect the safeguards agreed under procurement processes as well as the of forthcoming following proper the authorities a template to facilitate the reporting and the RCF. Staff has given best practice, to enhance transparency spending under the FSW, in line with FAD-suggested accountability in the use of public spending. is consistent with the SMP goals of reducing of the 2023 budget The overall 11. Implementation the deficit and in-line with staff's earlier projections. First monetary financing of of GDP in FY2023 (2 percent at the time of the balance is projected at 1.9 percent of GDP at the end of the fiscal year, government financing is expected to reach 1.4 percent tax revenue is Review). Monetary far below the 2.3 percent in FY2022. Total domestic the given seasonality in spending, percent of GDP in 2022, broadly in line with expected to climb to 6.4 percent in 2023, from 5.3 revenue, given the recent revenue The higher tax revenue owes to higher customs of GDP from first Review. -projected to yield 0.9 percent administration reforms, and the fuel price adjustment financed capital current spending and domestically taxes on fuel imports. As for expenditures, of GDP relative to 2022.5 With global oil to rise by 1.2 percentage point to spending are projected remain at zero for the rest of the fiscal year, and transfers prices moderating, fuel subsidies will consistent with historical patterns. The company will total 0.4 percent of GDP, of GDP, driven the electricity to slightly widen to an average of 2.1 percent medium-term fiscal deficit is projected infrastructure needs. increase in capital spending to support by a slight successful and collection should be sustained. 12. Efforts to boost revenue have been of the SMP at end-June 2022 prompted the Wesker-than-expected revenue collection at the start strengthening the control of administrative measures in August. These included implementation of the of the revenue agency. submitted for imported goods and replacing management of central invoices meet the indicative target on the floor government These measures helped the authorities and encouraged the authorities to for December. Staff welcomed this development and finance fiscal revenue mobilization--to help anchor monetary financing sustain efforts to strengthen revenue the of the tax code of needs and work toward implementation large social and infrastructure in December 2022 as part of the SMP's reforms (approved by the Council of Ministries have TA from the customs To this end, the authorities requested structural agenda) and of tax administration. of central invoices meet the indicative target on the floor government These measures helped the authorities and encouraged the authorities to for December. Staff welcomed this development and finance fiscal revenue mobilization--to help anchor monetary financing sustain efforts to strengthen revenue the of the tax code of needs and work toward implementation large social and infrastructure in December 2022 as part of the SMP's reforms (approved by the Council of Ministries have TA from the customs To this end, the authorities requested structural agenda) and of tax administration. for FY2023 and clearly indicate electricity subsidies. 4 Budget presentation and reporting improved substantially revenues. 5 Foreign financed capital spending is fully financed by grant INTERNATIONAL MONETARY FUND 9 --- Page 13 --- HAITI in October 2024 as well as TA implement the tax code, which will become operational Fund to help on custom administration." been achieved on PFM, with respect to enhancing the 13. Meaningful progress has and accountability, and efforts transparency of public spending and public finance reporting far more detailed monthly data continue. Since March 2023, the authorities have provided investment by should and services, and capital execution (including spending on wages, goods on budget (on ministry and by project) and published Contribution of Energy Subsidies to the Fiscal Balance the web site of the Direction General du (Percent of GDP) Budget MEF) detailed budget execution by line ministries. They are also committed to sharing more detailed quarterly financial statements for the FAES, following PFM best practices provided by the FAD. The authorities have made progress in seeking to 4 2015 2016 2017 2018 2019 2020 2021 2022 2023 (P) consolidate the Treasury Single Account (TSA) mFiscal balance subsidies excluding energy subsidies mEnergys (structural benchmark). They have also * -Global Fiscal balance oil prices, US dollar per gallon (right scale) a medium-term budget framework Sources: World economic outlook (WEO) and IMF staff projections. prepared NFPS deficit as the main Figurest for 2023.correspondt to projections. (MTBF), with the anchor, adopted together with the FY2023 to set forward, the MTBF should be prepared using a top-down approach level. on this budget. Going preparation at the line ministry Building expenditure ceilings that will guide budget expenditure framework (MTEF), using reform, each key line ministry should prepare a medium-term that the budget of line ministries ceilings. This reform would help ensure of line its defined expenditure of finance, thus fostering also accountability conforms with the one reported by the ministry execution and the budget document. ministries and consistency between data on budget the social safety net and efforts The authorities are working towards strengthening Given 14. reform is essential to ensure medium-term fiscal sustainability. should continue. Fuel subsidy the lead both in terms of the the authorities are taking the political and social implications, authorities started reviewing the retail price-setting modalities and timing of the reform. The eliminated fuel subsidies only temporarily, the fuel price increases have to be mechanism, as September framework for future price adjustments needs and transparent policy to protect the and a comprehensive reforms should include mitigating measures implemented. The forthcoming fuel price approach. Staff and the vulnerable in conjunction with a gradual and well-communicated the authorities' most communication policy would greatly help authorities agreed that an elaborated framework for the petroleum products sector and reform strategy. Establishing a regulatory should remain amongst the authorities' reform strengthening related regulatory institutions cushion the impact of the shocks on the population. priorities. The authorities are taking steps to which entails a stock-taking exercise of support from the World Bank on customs, under the Advisory 6 The authorities are also receiving with customs administration and sector stakeholders, the two customs procedures and practices, working Staff is closely coordinating to ensure synergies between Services and Analytics umbrella activities. institutions. 10 INTERNATIONAL MONETARY FUND authorities agreed that an elaborated framework for the petroleum products sector and reform strategy. Establishing a regulatory should remain amongst the authorities' reform strengthening related regulatory institutions cushion the impact of the shocks on the population. priorities. The authorities are taking steps to which entails a stock-taking exercise of support from the World Bank on customs, under the Advisory 6 The authorities are also receiving with customs administration and sector stakeholders, the two customs procedures and practices, working Staff is closely coordinating to ensure synergies between Services and Analytics umbrella activities. institutions. 10 INTERNATIONAL MONETARY FUND --- Page 14 --- HAITI to tackle food insecurity and strengthen the social have prepared a detailed strategy Report No. The authorities Report No. 23/48 and 18 of IMF Country safety (see text Table1 and 115 of IMF Country that improve living programs. The plan aims to expand programs 23/80), also leveraging ongoing on the most vulnerable groups (children, women, conditions and enhance social inclusion, focusing and old-age group). and Exchange Rate Policy B. Monetary since the start of the SMP Monetary financing of the budget has decreased On the exchange 15. Background. of the monetary policy framework. (text chart in 14), which enhances the credibility interventions in the foreign exchange (FX) market rate front, recent data suggest that the authorities' unwind some FX surrender requirements to rebuild NIR. The authorities also began to have requested are mainly in line with staff recommendations. And they (per Circular 114.3), a positive step at eliminating the foreign exchange parallel technical assistance on FX market operations, aiming market? rate frameworks, staff continued to 16. To strengthen the monetary and exchange recommend: (i) greater exchange rate flexibility, financing of the credit to the NFPS as the main anchor to limit monetary (ii) a ceiling on deficit to 1V2 percent of GDP, and operations at a fixed rate (policy rate) and full (ii) short-term liquidity-absorbing allotment. interest rates to initiate disinflation, given the a further increase in short-term to inflation is weak, Staff recommended While the interest rate transmission large negative real rate of about 15 percent. are already at 50 direct instruments further as reserve requirements there is little room to tighten percent. interventions in the FX market to smoothing 17. The BRH should continue to limit its that the BRH: excessive exchange rate volatility. Staff recommended mechanism for FX interventions, such as well-designed (i) put in place an appropriate system; weekly FX auctions, in lieu of the FX allocation work on an FX market intervention rule; and (ii) advance its ongoing the revision of banks' net open position (NOP) limits. (ii) complete rate (taux de référence), a weighted average between the addition to 7The BRH published the daily reference exchange and the informal rate or marche informel (40 percent). In interbank rate or marche bancaire (60 percent), market rate is obtained from informal surveys data. the informal rate reported by the BRH, a parallel INTERNATIONAL MONETARY FUND 11 --- Page 15 --- HAITI These reforms will deepen the foreign market as well. Staff also exchange market and help the government urged the authorities to maintain their formalize the FX exchange restrictions or multiple commitments not to introduce unwinding of FX surrender currency practices. Staff received requested information requirement measures (under Circular on the 114.3). Exchange Rate and Foreign Exchange Intervention Net Foreign Assets and Net Central Bank International Reserves of the 80 mNet (Millions of US dollars) 60 - BRHr centralbanki referencer erate FXi (rightscale) intervention, US$ milion(+ aref FX (sales areFXpurchases) 180 2,500 40 Interbank Paraliele lexchanger market rate (rights scale) 2,000 mNet foreigna assets (NFA) exchange rate e(nghtscale) --Net international reserves (NIR) L I 1,500 -20 I -40 1,000 866 931 938 E74 International Reserves of the 80 mNet (Millions of US dollars) 60 - BRHr centralbanki referencer erate FXi (rightscale) intervention, US$ milion(+ aref FX (sales areFXpurchases) 180 2,500 40 Interbank Paraliele lexchanger market rate (rights scale) 2,000 mNet foreigna assets (NFA) exchange rate e(nghtscale) --Net international reserves (NIR) L I 1,500 -20 I -40 1,000 866 931 938 E74 677 452 a N N I e 2 8 E e 8 7 a Sources: Bank of the Republic of Haiti and IMF staff estimates. a Sources: Bank 2015 of the 2016 Republic 2017 of Haiti 2018 and Funds 2019 2020 2021 2022 2023 1/ 1/For 2023, NFAI refers to February 2023 and NIR staff refers estimates. to mid- -April 2023 3data C. Financial Sector 18. Background. The BRH is growth. lt has been advancing reforms to increase financial inclusion and regulatory strengthening banking supervision, with Fund support framework and move to risk-based assistance, to upgrade the fledged assessment of risks faced by the supervision. More information is needed for a fullinstitutions that have been financial sector, including for small non-bank growing fast. financial 19. Reform efforts will need focus on: Banking supervision. The BRH has reinforced human training of supervisors. It finalized the capital through external hiring and financial pre-draft of risk assessment institutions, an important step toward grids and the rating matrix for risk-based regulations on risk concentration, supervision. The adoption of accounts for financial institutions-are classification, and provisioning of credits-and a new chart of urges the BRH to finalize being finalized. Staff commends recent and pending regulation and to continue progress supervision, supported by TA. working to establish risk- -based Digital money. BRH has benefited from the Fund's related to a central bank digital technical assistance in analyzing key issues implement the CBDC at the currency. The BRH conveyed that it does not intend to the central bank moment, but stressed the importance of framework, in anticipation of future putting a placeholder in not frequently revised in Haiti. Staff implementation, as legal frameworks are the project's desirability and strongly recommended that the BRH considers all feasibility, including a robust aspects of proceeding. Haiti still needs to improve the evaluation of costs and risks, before payment system to facilitate mobile regulatory framework and/or update the national payments and operators. Modernization efforts should 12 INTERNATIONAL MONETARY FUND conveyed that it does not intend to the central bank moment, but stressed the importance of framework, in anticipation of future putting a placeholder in not frequently revised in Haiti. Staff implementation, as legal frameworks are the project's desirability and strongly recommended that the BRH considers all feasibility, including a robust aspects of proceeding. Haiti still needs to improve the evaluation of costs and risks, before payment system to facilitate mobile regulatory framework and/or update the national payments and operators. Modernization efforts should 12 INTERNATIONAL MONETARY FUND --- Page 16 --- HAITI messaging standards that support interoperability include migration toward new international and financial integrity. the AML/CFT framework with the laundering. The authorities have upgraded with the Anti-money to ensure greater alignment technical support of the IMF Legal Department Force (FATF); and they approved in April the international standards of the Financial Action Task should allow Haiti to address a key item AML/CFT Decree. The revised AML/CFT framework other steps necessary new The authorities are working with staff to address on the FATF action plan. on correspondent banking relationships, to exit FATF grey list and ease potential pressures implementing a risk based supervision regime including completing sectoral risk assessments, businesses and professions, and ensuring for financial institutions and designated non-financial The authorities beneficial ownership information on legal persons. transparency of basic and by the BRH to ensure consistency with the should also review regulations recently published in amending the Financial decree. In addition, the authorities are making progress to new AML/CFT including de Centrale Renseignements Financiers-UCREF)" Intelligence Unit (FIU) law (Unité also provided TA in this area. The IMF Legal autonomy. LEG has ensure UCREF's operational the authorities on this endeavor. Department stands ready to support use of Haiti's SDR holdings and to The authorities are committed to the prudent about half the SDR 20. Haiti's use of its SDR allocation. Haiti converted transparent reporting on allocation to freely usable currencies, which it subsequently holdings it received from the 2021 SDR the importance of maintaining institutional for fiscal spending. Staff emphasized terms used to pay priority SDR on the repayment frameworks governing the fiscal use of the allocation-including measures for SDR-related between the finance ministry and central bank-and on transparency on the BRH or MEF websites any spending. The authorities also agreed to communicate publicly currencies and to engage staff on future conversion of their SDR allocation into freely usable future SDR conversions. D. Governance and further efforts are have made solid progress on governance of 21. The authorities contracts, including the publication needed. The authorities have published public procurement bidders (monthly SB). To monitor the contracts, and the beneficial owners of successful PFM practices, in tenders, the authorities are committed to follow good the implementation of social programs, introduced all social expenditure into line with recent technical assistance from the IMF. They Account at the central bank, in and all associated financing in the Single Treasury The authorities have budget execution, and expenditure control procedures. for compliance with procurement, which should help them identify the next priorities requested an IMF Governance Diagnostic CD suspicious transaction reports from both financial units globally are tasked with receiving are dealing with proceeds of 8The financial intelligence institutions in cases where these institutions suspect they reports that are institutions and non-financial and together with other data sources produces intelligence sector and the crimes. The FIU analyzes the information They are effectively the bridge between the financial sent to law enforcement to launch investigations. law enforcement community. INTERNATIONAL MONETARY FUND 13 execution, and expenditure control procedures. for compliance with procurement, which should help them identify the next priorities requested an IMF Governance Diagnostic CD suspicious transaction reports from both financial units globally are tasked with receiving are dealing with proceeds of 8The financial intelligence institutions in cases where these institutions suspect they reports that are institutions and non-financial and together with other data sources produces intelligence sector and the crimes. The FIU analyzes the information They are effectively the bridge between the financial sent to law enforcement to launch investigations. law enforcement community. INTERNATIONAL MONETARY FUND 13 --- Page 17 --- HAITI of to the AML/CFT legal framework is also an reforms. The revision governance and anti-corruption and fight corruption. forward to address the FATF recommendations important step and audit committed in January 2023 to strengthen transparency to 22. The authorities resources for the most vulnerable households capacity in the spending of emergency budgetary mechanisms to carefully monitor, To this end, they have activated started ensure accountability. response and publishing record, and publish all expenditure related to the emergency the Direction General du Budget, monthly reports on the execution of the budget (on internal audits of comprehensive after the end of each month, while carrying out MEF), no later than 45 days with the requested use of the emergency resources expenditure by all the ministries concerned Window. Staff welcomed these measures and provided in the framework of the IMF Food Shock how these resources are spent is important stressed that an accurate and transparent recording of with the authorities to monitor the further donor support. Staff will work closely for catalyzing implementation of these safeguards. the BRH had made further its and operations, 23. With a view to strengthen governance recommendations and staff urges some of the overdue 2019 safeguards to amendments efforts implement ones. The BRH recently approved drafting the authorities to implement the pending which, once passed, will strengthen its 2023 structural benchmark) to its organic act (end-March well as its mandate. The other priority arrangements and autonomy as clarify Reporting Standards and governance of International Financial recommendations, such as the adoption involvement in development activities, as of a medium-term plan to phase-out BRH's remain in progress. development investment strategy with best practices, well as the alignment of the foreign of these recommendations. Staff will continue to monitor the implementation STAFF APPRAISAL macroeconomic humanitarian and security crises, with a challenging 24. Haiti faces The country has been hit hard by the economic outlook and risks tilted to the downside. inflation triggering a hunger crisis. This from Russia's invasion of Ukraine, with food price situation, which has spillovers by political instability and a dire security global shock has been compounded fueled inflation. Risks to the outlook include heightened the economy's fragility and further conditions constraining further business political instability, a worsening of the security intensified of cholera, and natural disasters. activity, further spread difficulties, the authorities have adopted important 25. Despite domestic and global the SMP, and displayed a firm commitment policy reforms over the last year, anchored by tax and revenue These include reforms on governance and anti-corruption, Data and throughout. and execution, and central bank independence. administration, budget preparation enhanced much-needed transparency in public statistics have also greatly improved. All these have macroeconomic stability. Still, the paralysis spending and in the financial sector and helped maintain escalation of gang violence, has led to owing to the of economic activity in September/October, landscape, and thanks to a highly inclusive Despite the delicate political temporary macro slippages. 14 INTERNATIONAL MONETARY FUND reforms over the last year, anchored by tax and revenue These include reforms on governance and anti-corruption, Data and throughout. and execution, and central bank independence. administration, budget preparation enhanced much-needed transparency in public statistics have also greatly improved. All these have macroeconomic stability. Still, the paralysis spending and in the financial sector and helped maintain escalation of gang violence, has led to owing to the of economic activity in September/October, landscape, and thanks to a highly inclusive Despite the delicate political temporary macro slippages. 14 INTERNATIONAL MONETARY FUND --- Page 18 --- HAITI ownership and public support for the SMP the authorities built the necessary consultative process, when warranted) through the high-level Program (including through public consultations Monitoring Committee (Comité de Suivi). and should continue to allow Haiti to 26. The recent fiscal reforms are encouraging have taken crucial measures to strengthen needs. The authorities of a finance its large development mobilization over time. These include the approval revenue administration and boost revenue of all codes and tariffs related to customs, new tax code and tax procedures code, publication of the TIN database and of the file Tax Identification Numbers (TINS), publication adoption of unique revenue agency since August 2022. Thanks mainly and stronger oversight of the in recent of active taxpayers, customs revenue has reached a historic high of revenue administration, to an improvement months, although from a low base. vulnerabilities, but welcomes the recent progress made in reducing governance 27. Staff risks need to continue to be effectively addressed. corruption and broader financial integrity of reforms under the SMP. The and anti-corruption measures were key components and have boosted Governance accountability in the use of public resources authorities have acted to strengthen resources. The recent finalization of revisions of public procurement for emergency for the transparency AML/CFT legal framework are also critical improving to the Central Bank Law and to the reforms to strengthen governance is governance and transparency. Sustaining progress on the trust of the private sector and of for ensuring inclusive growth and building Governance Diagnostic is a paramount recent formal request of a Fund development partners. The authorities' welcome development. are needed under the SMP to strengthen public financial management 28. Measures taken and should continue. The authorities have fiscal and macroeconomic stability Account and to promote accounts into one Treasury Single successfully consolidated the main central budgetary for the first time. Their improved budget medium-term budget framework finances adopted a three-year accountability and transparency in public presentation and execution will ensure greater commitment to limit central bank reduce fiscal dominance, as will the government's budget and help of GDP. Going forward, the medium-term financing of the NFPS deficit to 1V2 percent The completed FY2021 financial audit of the framework should be prepared at the line ministry level. step in implementing the of its audited financial statements was an important to BRH and publication Assessment, which staff urges the authorities recommendations of the 2019 Safeguards complete. for cushioning the of the social safety net will be essential 29. Continued strengthening widespread poverty. Staff thus impact of the shocks on the population and alleviating and looks forward to assessing authorities' detailed strategy to tackle food insecurity welcomed the FSW resources. The authorities are taking meaningful the implementation of spending related to technical assistance from the Fund on the the fuel reform strategy. The in steps toward implementing took place in January 2023- should allow changes consumer-pricing mechanism of fuel-which instead of ad hoc price/sudden international fuel prices to be regularly passed on to consumers with the implementation of recommends that the authorities follow through price adjustments. Staff INTERNATIONAL MONETARY FUND 15 iating and looks forward to assessing authorities' detailed strategy to tackle food insecurity welcomed the FSW resources. The authorities are taking meaningful the implementation of spending related to technical assistance from the Fund on the the fuel reform strategy. The in steps toward implementing took place in January 2023- should allow changes consumer-pricing mechanism of fuel-which instead of ad hoc price/sudden international fuel prices to be regularly passed on to consumers with the implementation of recommends that the authorities follow through price adjustments. Staff INTERNATIONAL MONETARY FUND 15 --- Page 19 --- HAITI FAD. The reform should be accompanied by mitigating this reform, following recent TA provided by to protect the most vulnerable. together with an effective communication strategy, measures policy and exchange rate frameworks The authorities have strengthened the monetary rate flexibility, 30. moved toward greater exchange and should continue to do so. The authorities financing of the deficit to less has rebuild reserves. They have also limited monetary the BRH to focus on its which helped bank law should allow 1V2 of GDP. The revisions to the central financial stability to than percent while maintaining adequate liquidity and core policy goals of stabilizing prices support growth. under has improved to the Fund for program and surveillance purposes to the 31. Data provision The timeliness and periodicity of data provided the SMP and data gaps are being closed. capacity under the Enhanced General Fund exceed the commitments of countries of comparable which the authorities are Dissemination System (e-GDDS), for publication purposesData implementing in the future. considering the completion of the under the SMP, staff supports 32. Based on Haiti's performance interest in another SMP, which should help lock in Second Review. The authorities have expressed economic resilience. The new SMP reforms and sustain them to further enhance line with the Fund recent approved development assistance. In will continue to be supported with Fund capacity will also coordinate closely with Haiti's main Strategy for Fragile and Conflict-Affected States, staff Engagement Strategy as part of the partners and produce an updated Country development scheduled for fall 2023. upcoming Article IV Consultation, 16 INTERNATIONAL MONETARY FUND --- Page 20 --- HAITI Figure 1. Haiti: Real Sector Developments, 2016-23 Real GDP has contracted for the fourth consecutive year in reflecting mostly a sharp decline in private consumption, FY2022' by 1.7 percent... investment, and net exports'.. Contribution to GDP Growth (Supply-side) Contribution to GDP Growth (Demand-side) (Percent) (Percent) Agricultare -3 Manufacturing -2 LConstruction Services -8 Investment exports -4 D Other Private consumption D Public consumption 2016 2017 2018 2019 2020 2021 2022 -13 Real GDP growth 2016 2017 2018 2019 2020 2021 2022 .and negative growth in all key sectors, particularly in and construction. agriculture, services... Contribution to the Conjucturall Economic Economic Activity Indicator Activity Indicator (ICAE) Growth (Percent, y/y) (Percent, y/y) -2 -4 Primary sector -6 Secondary sector -8 Construction -8 Tertiary sector -12 Overall ICAE y/y growth Agriculture E Inflation rose sharply, reaching almost 50 percent y/y in March. The output gap also widened, and unemployment increased. Inflation Potential Growth and Unemployment (Percent) 20 (Percent) Overall CPI (year- on- year) Overall CPI (month- on- month, right scale) Output gap (percent of potential) Potential real GDP growth Unemployment rate -5 2015 2016 2017 2018 2019 2020 2021 2022 Sources: Haitian Institute of Statistics and Informatics (IHSI), Bank of the Republic of Haiti, and Fund staff estimates. 1/ On a fiscal-year basis, ending on September 30. INTERNATIONAL MONETARY FUND 17 flation Potential Growth and Unemployment (Percent) 20 (Percent) Overall CPI (year- on- year) Overall CPI (month- on- month, right scale) Output gap (percent of potential) Potential real GDP growth Unemployment rate -5 2015 2016 2017 2018 2019 2020 2021 2022 Sources: Haitian Institute of Statistics and Informatics (IHSI), Bank of the Republic of Haiti, and Fund staff estimates. 1/ On a fiscal-year basis, ending on September 30. INTERNATIONAL MONETARY FUND 17 --- Page 21 --- HAITI Figure 2. Haiti: Fiscal Sector Developments, 2016-23 Tax revenue has fallen since 2019.. while expenditure has remained stable. Taxes Total Expenditure (Percent of GDP) (Percent of GDP) DTaxes on income & profits DExcises 10 OCustoms duties Sales tax (TCA) Wages and salaries Goods and services DLocal taxes EOther/Unclasified: taxes IInterest payments D Transfers and subsidies Capital domestic I Capital foreign Total expenditur - I I F E E E 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 The fiscal deficit has been driven by fuel subsidies until September 2022... and had been largely monetized until then.. Central Government Deficit With and Financing by Source Without Energy Subsidies (Billions of gourdes) 4 (Percent of GDP) DPetrocaribe 60 DExternal financing DCentral bank 50 Commercial banks 40 ONonbank financing Subsidies tot the energy sector -2 Deficit excl. subsidy to the energy sector -3 Central government deficit 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 raising also domestic debt. A fuel price adjustment took place in September 2022, mitigating the pressure on public finances thereafter. Central Government Debt (Percent of GDP) Fuel Prices and Net Revenues Domestic 8,000 - External 6,000 Total debt 4,000 2,000 -2,000 4,000 Netf fuel revenue (millions of gourdes) -6,000 Price differential= cost price regulated price -8,000 (gourde per gallon) (right scale) -600 15 16 - L a 9 0 2 - mm 8 2 2 2016 2017 2018 2019 2020 2021 2022 e O a E Sources: National authorities and Fund staff calculations. 18 INTERNATIONAL MONETARY FUND --- Page 22 --- HAITI Figure 3. Haiti: Monetary and Financial Sectors Developments, 2016-23 Bank of Republic of Haiti's financing of the fiscal deficit increased BRH net credit to the government. Net Domestic Assets (NDA) of the Central Bank Central Bank Financing to Government (Billions of gourdes) BRH financing (cumul. since Oct.1), Liabilities to commercial banks billions of gourdes (right scale) 160 - - Net credit to the government Inflation (yly), percent changej NDA -20 -80 -140 10 mit hm Il -200 -260 -10 o 1E 3 A A o 3 S .as were the lending rates which periodically decoupled from Private sector credit has been volatile.. the BRH policy rate. Nominal Interest Rates Private Sector Credit (Percent) - Gourdes (percent of GDP) FX (percent of GDP) Total (percent of GDP) Total growth (y/y, right scale) Total growth Yly: end- -Aug: 20 gourdes/US dollar; right wwwl M Short- term interest rates (91 -day central bank bonds) ending rate 16 E - 10 9 o & a a - 88 d9 1o 8 3 e 2 a N - A E E $ FX deposits and loans have been stable since August 2020, .while excess structural liquidity' is rising in the banking after the central bank revalued the gourde... system. Structural Liquidity Excess of Banking System Dollarization (Billions of gourdes) 0.6 Excess reserves des/US dollar; right wwwl M Short- term interest rates (91 -day central bank bonds) ending rate 16 E - 10 9 o & a a - 88 d9 1o 8 3 e 2 a N - A E E $ FX deposits and loans have been stable since August 2020, .while excess structural liquidity' is rising in the banking after the central bank revalued the gourde... system. Structural Liquidity Excess of Banking System Dollarization (Billions of gourdes) 0.6 Excess reserves Reserve requirements - Change in reserve req. ratio Structural excess reserves 0.4 Bond holdings FX deposits FX credits 0.2 FX deposits (end Aug- 20 gourdes/US dollar) FX credits (end Aug- 20 gourdes/US dollar) Loan to deposit ratio (right scale) 0.0 -50 e E E 10 16 10 0 # a 2 2 E 5 Sources: Bank of the Republic of Haiti and Fund staff calculations. above ratios on deposits; structural excess reserves include excess reserves plus other 1/ Excess reserves are reserves requirement bank deposits at the BRH minus reserves banks obtain under BRH facilities. INTERNATIONAL MONETARY FUND 19 --- Page 23 --- HAITI Figure 4. Haiti: Financial Sector Indicators, 2016-22 but relatively high non- performing loans and related The banking system has adequate reported capital buffers... provisions. Capital Adequacy Ratio (CAR) (Percent) NPLS and Provisions (Percent) a Provisions/gross NPL (right scale) NPL/gross loans CAR minimun CAR 16 0 R R a 2 N 16 iE E 0 9 9 0 8 a a 8 N S 5 S S S 5 E % 6 5 S S & S E & % & 0 & & & & X & & Profitability has recovered since the exchange rate shock of while liquidity conditions remain favorable. August 2020 and has been stable since.. Profitability Liquid Assets to Total Assets Ratio (Percent) (Percent) Return on equity (ROE) Return on assets (ROA) (right scale) 16 - R 8 a a N N o - X 5 g S & a a Sources: National authorities and Fund staff calculations. 20 INTERNATIONAL MONETARY FUND --- Page 24 --- HAITI Figure 5. Haiti: External Sector Developments, 2016-23 The current account swung into a deficit in 2022 after while remittances (in dollar terms) are above preregistering surpluses in 2020-21... trend. pandemic Exports and Imports Remittances (net) (Percent of GDP) 4,000 IIn percent of GDP In millions of US dollars (right Scafe 3,500 3,000 2,500 -10 2,000 -20 1,500 -30 Exports of goods 1,000 2 Imports of goods Trade balance -40 Current account balance 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 0 FDI has declined in recent years... while donor flows increased following the August 2021 earthquake. Composition of Capital and Financial Account Official Assistance (Percent of GDP) Petrocaribe 600 Project loans Grants ê I percent of GDP (rights scale, rebased) of S 400 of 1E Other ite 2 in -2 D - Net FDr U Rubne sector capital flows (net) S Currenta account balance Capital and financial account balance 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 The REER has remained stable after its sharp appreciation in August 2020... .and external buffers have been rebuilt since November 2022. Real Effective Exchange Rate (REER) and International Reserves Nominal Effective Exchange Rate (NEER) (Millions of US dollars) (Index) 3,500 Dr U Rubne sector capital flows (net) S Currenta account balance Capital and financial account balance 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 The REER has remained stable after its sharp appreciation in August 2020... .and external buffers have been rebuilt since November 2022. Real Effective Exchange Rate (REER) and International Reserves Nominal Effective Exchange Rate (NEER) (Millions of US dollars) (Index) 3,500 GIR, months of imports (right scale) 3,000 NIR 2,500 2,000 - 1,500 NEER REER 1,000 LE A 88 8 9 88 8 00 9 9 R 00 s 1 Sources: National authorities and staff calculations. INTERNATIONAL MONETARY FUND 21 --- Page 25 --- HAITI Figure 6. Haiti: Social Indicators Political instability and security problems have taken a heavy and have reversed the small progress made in reducing toll on Haitian society... poverty. Total Displaced Persons by Violence Poverty Rates (Number of people) 100 (Percent) 40,000 Haiti 150,000 Liberia - Kosovo 125,000 Papua New Guinea 30,000 - Burundi (right scale) Lebanon (right scale) 100,000 20,000 75,000 50,000 10,000 International poverty rate (51.9in2 2011 PPP) 25,000 Lower middle -income poverty rate ($3.2i in 2011 PPP) Upper middle -income poverty rate ($5.5 in 2011 PPP) 2011 2013 2015 2017 2019 2021 2012 2014 2016 2018 2020 2022 The absolute number of people undernourished has resumed although the undernourished as a percent of the population its upward trend... have been relatively steady since 2010. Number of People Undernourished Prevalence of Undernourishment (Millions, 3-year average) (Percent, 3-year average) 5.6 5.4 5.2 5.3 million people (2018-20) 4.8 4.6 4.4 those and Conflictalthough literacy is significantly above the FCS average Sanitation rates are well below in Fragile youth Affected states (FCS and close to the world average. People Using at Least Basic Sanitation Literacy rate Services and Basic Drinking Water (Percent of people aged 15-24) (Percent of population) 8 100 Haiti Burundi - Lebanon Liberia Venezuela Sanitation Haiti Sanitation FCS 20 0 Zimbabwe World (right scale) Sanitation World Water Haiti Fragile and conflict affected situations (right scale) Water FCS Water, - World 2012 2016 2020 2011 2013 2015 2017 2019 2021 2000 2004 2008 Sources: International Organization for Migration (IOM), Fed, World Bank, and Fund staff estimates. 22 INTERNATIONAL MONETARY FUND --- Page 26 --- HAITI Table 1. Haiti: Selected Economic and Financial Indicators, 2020-28 (Fiscal year ending September 30) Nominal GDP (2022): US$21. 5 billion Population (2021): 11.9r million GDP per capita (2021): US$1,765 Percent of population below poverty line (2021): 52.3 FY2020 FY2021 FY2022 FY2023 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Est. 1str review Proj. Proj. Proj. Proj. Proj. 1. Haiti: Selected Economic and Financial Indicators, 2020-28 (Fiscal year ending September 30) Nominal GDP (2022): US$21. 5 billion Population (2021): 11.9r million GDP per capita (2021): US$1,765 Percent of population below poverty line (2021): 52.3 FY2020 FY2021 FY2022 FY2023 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Est. 1str review Proj. Proj. Proj. Proj. Proj. Proj. (Change over previous year; unless otherwise indicated) National income and prices GDP at constant prices 3.3 -1.8 -1.7 0.3 0.1 1.2 1.5 GDP deflator 1.5 1.5 1.5 20.6 19.3 29.8 33.4 43.9 18.4 16.4 Consumer prices (period average) 22.9 15.9 27.6 33.4 14.9 12.8 11.3 Consumer prices (end- -of period) 43.6 13.4 12.6 11.5 9.7 9.7 25.2 13.1 38.7 21.0 30.1 12.7 12.4 10.7 9.1 8.0 External Sector Exports (goods, valued in U.S. dollars, f.o.b.) 26.3 27.7 13.6 4.8 5.2 6.6 6.5 6.7 Imports (goods, valued in U.S. dollars, f.o.b.) -16.7 22.3 8.3 7.6 7.6 5.4 6.7 7.2 Remittances (valued in U.S. dollars) 6.0 21.1 4.8 3.8 4.0 4.2 Real effective -8.6 0.0 0.0 5.2 5.7 5.7 5.6 5.6 exchange rate (eop; + appreciation) 34.1 -5.2 7.3 Money and credit (valued in gourdes) Credit to private sector (in U.S. .6 5.4 6.7 7.2 Remittances (valued in U.S. dollars) 6.0 21.1 4.8 3.8 4.0 4.2 Real effective -8.6 0.0 0.0 5.2 5.7 5.7 5.6 5.6 exchange rate (eop; + appreciation) 34.1 -5.2 7.3 Money and credit (valued in gourdes) Credit to private sector (in U.S. dollars and gourdes) -11.2 15.2 17.4 9.4 11.0 11.6 Base money (currency in circulation and gourde deposits) 22.4 21.5 23.1 13.8 14.0 12.5 13.1 13.6 14.2 Broad money (excl. foreign currency deposits) -0.3 38.2 21.1 12.8 11.4 11.2 10.4 10.1 13.0 14.4 12.0 11.4 10.6 10.4 10.1 (In percent of GDP; unless otherwise indicated) Central government Overall balance (including grants) -2.4 -2.6 -2.1 -2.0 -1.9 -1.8 -1.8 Domestic revenue -2.1 -2.2 -2.4 6.2 5.9 5.3 6.6 6.4 6.7 Grants 7.3 7.6 7.7 7.8 1.3 2.3 2.7 2.5 2.3 2.0 1.8 Expenditures 9.9 10.8 10.2 1.9 1.9 1.9 Current expenditures 11.1 10.6 10.6 11.0 11.6 11.8 12.2 8.1 7.4 6.8 7.6 7.4 7.0 7.2 7.3 Capital expenditures 1.8 3.4 3.4 3.5 3.2 3.5 3.7 7.3 7.8 Overall balance of ther nonfinancial public sector 1/ -3.2 -2.5 -2.1 2.0 -1.9 4.3 4.5 4.4 -1.8 -1.8 -2.1 -2.2 -2.4 Savings and investment Gross investment 17.7 18.0 15.9 15.3 11.5 14.6 17.8 19.5 Ofv which: public investment 1.8 3.4 3.4 3.5 21.0 21.9 3.2 3.5 3.7 Gross national savings 4.3 4.5 4.4 18.8 18.5 13.5 14.5 10.7 14.1 17.2 18.8 20.2 External current account balance (incl. 15.9 15.3 11.5 14.6 17.8 19.5 Ofv which: public investment 1.8 3.4 3.4 3.5 21.0 21.9 3.2 3.5 3.7 Gross national savings 4.3 4.5 4.4 18.8 18.5 13.5 14.5 10.7 14.1 17.2 18.8 20.2 External current account balance (incl. official grants) 1.1 0.5 -2.3 -0.8 -0.8 -0.5 -0.6 20.9 Net fuel exports 5.0 -3.1 -4.9 -0.7 -0.8 -1.0 -4.2 -3.8 -3.2 -2.8 -2.6 -2.4 -2.2 Public debt External public debt (medium and long- term, eop) 10.5 12.9 12.9 11.1 9,9 9.1 8.5 Total public sector debt (end- of- period) 23.3 28.5 30.1 25.3 24.0 8.1 7.7 7.9 External public debt service 2/ 12.5 9.5 22.8 21.8 21.2 21.1 21.4 8.0 8.6 8.7 8.1 8.2 8.3 7.5 7.8 Memorandum items: (Inn millions of dollars, unless otherwise indicated) Neti international reserves (program definition) 677 452 90 203 250 260 Gross international reserves 2,501 2,534 311 378 447 587 In months of imports of the following year 5.8 5.4 2,067 2,348 2,217 2,242 2,267 2,292 2,367 2,517 Nominal GDP (millions of 4.1 4.5 4.3 4.1 4.0 3.9 3.9 3.7 gourdes) 1,449,888 1,699,208 2,168,223 2,857,327 3,122,964 Nominal GDP (millions of US. dollars) 14,508 3,741,391 4,421,231 5,155,565 5,904,558 6,673,342 21,017 20,535 24,236 26,409 28,576 30,564 32,681 34,769 36,922 Sources: Ministry of Economy and Finance; Bank of the Republic of Haiti World Bank; Fund staff estimates and projections. 1/Includes transfers to the state- owned electricity company (EDH), and unsettled payment obligations. 2/Inp percent of exports of goods and nonfactor services. Includes debt relief INTERNATIONAL MONETARY FUND 23 --- Page 27 --- HAITI Table 2a. Haiti: Non-Financial Public Sector Operations, 2020-28 (Fiscal year ending September 30; in millions of gourdes) FY2020 FY2021 FY2022 FY2023 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Est. 1streview Proj. Total revenue and grants Proj Proj. Proj. Proj. Proj. 108,524 139,852 173,690 259,708 271,510 326,505 Domestic revenue 406,154 489,238 568,561 647,949 90,046 100,635 114,919 187,736 199,320 250,912 324,667 390,759 Domestic taxes 456, 6,149 518,610 Customs 52,378 74,012 82,525 115,961 126,521 155,354 203,036 243,462 281,193 320,474 duties 21,127 22,613 27,341 64,842 65,333 86,389 Of which: fuelt taxes 110,531 134,045 159,423 180,180 187,736 199,320 250,912 324,667 390,759 Domestic taxes 456, 6,149 518,610 Customs 52,378 74,012 82,525 115,961 126,521 155,354 203,036 243,462 281,193 320,474 duties 21,127 22,613 27,341 64,842 65,333 86,389 Of which: fuelt taxes 110,531 134,045 159,423 180,180 0 30,554 27,858 34,010 35,056 40,879 Other current revenue 16,541 4,009 5,053 6,933 7,466 46,818 52,913 Grants 9,169 11,100 13,253 15,532 17,955 18,478 39,217 58,771 71,972 72,190 75,593 81,487 98,479 129,339 Budget support 1/ 3,868 1,321 446 9,432 9,460 5,892 6,509 7,099 112,412 Project grants 14,610 37,897 58,325 62,540 62,730 7,757 11,057 69,702 74,977 91,380 104,656 118,282 Total expenditure 2/ 143,265 184,164 220,167 317,276 330,791 484,871 Current expenditure 395,653 596,297 697,121 811,324 117,479 126,058 146,602 216,159 229,707 263,274 320,411 429,985 Wages and salaries 374,080 520,542 45,333 55,130 63,030 94,292 103,058 127,207 Goods and services 154,743 180,445 206,660 233,567 32,119 35,472 32,504 57,147 62,459 74,828 88,425 Interest payments 3,604 103,111 118,091 133,467 Transfers and subsidies 6,014 6,596 6,181 6,181 6,981 8,705 10,602 13,110 16,690 Ofv which: Transfers to EDH 27,984 28,842 44,473 58,540 58,008 54,258 68,539 79,922 92,124 136,818 Ofv which: Fuel direct subsidies 11,838 9,111 7,411 10,506 10,937 13,103 15,484 18,056 20,679 23,371 to oil companies 8,844 10,682 31,242 Exceptional expenditures 3/ 8,439 600 Capital expenditure 25,786 58,107 73,564 101,117 101,084 132,379 164,459 222,216 Domestically financed 12,334 15,359 11,789 38,577 38,078 267,136 290,782 Foreign- financed 49,585 72,123 110,190 138,361 143,430 13,452 42,748 61,775 62,540 63,006 82,794 92,336 112,027 128,775 147,352 Central government balance including grants 34,741 -44,312 -46,477 -57,568 -59,280 Excluding grants and externally financed -69,148 -78,717 -107,059 128,560 -163,375 projects 39,767 -40,782 -43,473 67,000 68,465 61,946 67,867 93,511 Primary balance of NFPS, incl. grants and other transfers to EDH -31,137 -38,298 -39,881 -51,387 -112,198 -145,362 Adjustment (unsettled payment obligations) -53,099 -62,167 -70,012 -96,457 115,450 -146,685 11,059 2,031 -256 059 128,560 -163,375 projects 39,767 -40,782 -43,473 67,000 68,465 61,946 67,867 93,511 Primary balance of NFPS, incl. grants and other transfers to EDH -31,137 -38,298 -39,881 -51,387 -112,198 -145,362 Adjustment (unsettled payment obligations) -53,099 -62,167 -70,012 -96,457 115,450 -146,685 11,059 2,031 -256 Overall balance of NFPS, including grants 5,800 -42,282 46,220 -57,568 -59,280 69,148 -78,717 -107,059 -128,560 -163,375 Financing, NFPS 45,800 42,282 46,220 57,568 59,280 69,148 78,717 128,560 External net financing 107,059 163,375 6,728 5,865 1,468 11,110 10,868 3,661 Loans (net) 5,647 7,884 11,249 -6,728 2,640 -5,822 11,110 10,868 649 3,661 5,647 7,884 Disbursements 2,281 4,851 3,450 0 276 13,093 17,359 20,647 11,249 Amortization 24,119 29,070 9,009 -7,491 9,272 -11,110 11,144 12,444 -13,697 Arrears (net) 14,999 16,235 -17,820 -3,225 4,354 Internal net financing 52,527 48,147 47,689 68,678 70,148 68,499 75,055 101,411 Banking system 50,584 54,916 60,877 68,678 70,148 68,499 120,676 152,126 BRH (includes thel FSW) 4/ 75,055 101,411 120,676 152,126 41,255 51,165 49,714 58,182 44,920 54,250 64,108 74,756 Commercial banks 85,616 96,763 9,329 3,751 11,163 10,496 25,229 14,249 10,948 Nonbank financing 5/ 1,943 26,656 35,060 55,362 6,769 -13,188 Memorandi dum items Forgone fuel taxes and fuel direct subsidies 29,332 31,984 62,553 2,021 -1,473 9,694 o/w Forgone fuel taxes 20,488 8,892 10,368 11,875 -13,421 21,302 31,311 2,021 1,473 9,694 8,892 o/w Fuel direct subsidies to oil companies 8,844 10,682 10,368 11,875 -13,421 Health, education: and agriculture 31,242 Memorandi dum items Forgone fuel taxes and fuel direct subsidies 29,332 31,984 62,553 2,021 -1,473 9,694 o/w Forgone fuel taxes 20,488 8,892 10,368 11,875 -13,421 21,302 31,311 2,021 1,473 9,694 8,892 o/w Fuel direct subsidies to oil companies 8,844 10,682 10,368 11,875 -13,421 Health, education: and agriculture 31,242 spending 29,050 28,173 36,860 50,003 54,652 67,345 81,793 97,956 Nominal GDP 112,187 126,794 1,449,888 1,699,208 2,168,223 2,857,327 3,122,964 3,741,391 4,421,231 5,155,565 5,904,558 6,673,342 Sources: Ministry of Financea and Economy: and Fund staff estimates and projections. 1/ Includes previously- programmed multilateral budget support that could be delayed, as well as CCRT debt relief. 2/ Commitment basis, except for domestically financed spending, which IS reported on the basis ofp project account replenishments. 3/1 Includes all COVID- related expenditure res for FY2020 and FY2021. 4/ Amounts include RCF financing for FY2020, the fullt two- year debt- relief under the CCRT for FY2021, and theFSW sement for FY2023. Additional 5/1 Includes the net changei in the stock of government securities held by non- banks, of checks that are not yet cashed, of supplier credits and of lomestic arrear rs consolidation ofs social expenditures expected details yet to bep provided of the 2022 budget. 24 INTERNATIONAL MONETARY FUND Includes all COVID- related expenditure res for FY2020 and FY2021. 4/ Amounts include RCF financing for FY2020, the fullt two- year debt- relief under the CCRT for FY2021, and theFSW sement for FY2023. Additional 5/1 Includes the net changei in the stock of government securities held by non- banks, of checks that are not yet cashed, of supplier credits and of lomestic arrear rs consolidation ofs social expenditures expected details yet to bep provided of the 2022 budget. 24 INTERNATIONAL MONETARY FUND --- Page 28 --- HAITI Table 2b. Haiti: Non-Financial Public Sector Operations, 2020-28 (Fiscal year ending September 30; in percent of GDP) FY2020 FY2021 FY2022 FY2023 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Est. 1str review Proj. Proj. Proj. Proj. Proj. Proj. 7.5 8.2 8.0 9.1 8.7 8.7 9.2 9.5 9.6 9.7 Total revenue and grants 6.2 5.9 5.3 6.6 6.4 6.7 7.3 7.6 7.7 7.8 Domestic revenue 3.6 4.4 3.8 4.1 4.1 4.2 4.6 4.7 4.8 4.8 Domestic taxes 1.5 1.3 1.3 2.3 2.1 2.3 2.5 2.6 2.7 2.7 Custo oms duties 0.0 0.0 0.0 1.1 0.9 0.9 0.8 0.8 0.8 0.8 Ofwhich: fuelt taxes 1.1 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 Other current revenue 1.3 2.3 2.7 2.5 2.3 2.0 1.8 1.9 1.9 19 Grants 0.3 0.1 0.0 0.3 0.3 0.2 0.1 0.1 0.1 0.2 Budget support 1/ 1.0 2.2 2.7 2.2 2.0 1.9 1.7 1.8 1.8 1.8 Project grants 9.9 10.8 10.2 11.1 10.6 10.6 11.0 11.6 11.8 12.2 Total expenditure: 2/ 8.1 7.4 6.8 7.6 7.4 7.0 7.2 7.3 7.3 7.8 Current expenditure 3.1 3.2 2.9 3.3 3.3 3.4 3.5 3.5 3.5 3.5 Wages and salaries 2.2 2.1 1.5 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Goods and services 0.2 0.4 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.3 Interest payments 1.9 1.7 2.1 2.0 1.9 1.5 1.6 1.6 1.6 2.1 Transfers and subsidies 0.8 0.5 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4 Ofv which: Transfers to EDH 0.6 1.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Ofv which: Fuel direct subsidies to oil companies 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Exceptional expenditures 3/ 0.6 0.0 0.0 1.8 3.4 3.4 3.5 3.2 3.5 3.7 4.3 4.5 4.4 Capital expenditure 0.9 0.9 0.5 1.4 1.2 1.3 1.6 2.1 2.3 2.1 Domestically financed 0.9 2.5 2.8 2.2 2.0 2.2 2.1 2.2 2.2 2.2 Foreign- -financed -2.4 -2.6 -2.1 -2.0 -1.9 -1.8 -1.8 -2.1 -2.2 -2.4 Central government balance including grants -2.7 2.4 -2.0 -2.3 -2.2 -1.7 -1.5 -1. estically financed 0.9 2.5 2.8 2.2 2.0 2.2 2.1 2.2 2.2 2.2 Foreign- -financed -2.4 -2.6 -2.1 -2.0 -1.9 -1.8 -1.8 -2.1 -2.2 -2.4 Central government balance including grants -2.7 2.4 -2.0 -2.3 -2.2 -1.7 -1.5 -1. 8 -1.9 -2.2 Excluding grants and externally financed projects -2.3 -1.8 -1.8 -1.7 -1.7 -1.6 -1.9 -2.0 -2.2 Primary balance of NFPS, incl. grants and other transfers to EDH -2.1 0.0 0.0 0.0 0.0 0.0 Adjustment (unsettled payment obligations) 0.8 -0.1 0.0 0.0 0.0 -1.8 -2.1 -2.2 -2.4 -3.2 -2.5 -2.1 -2.0 -1.9 -1.8 Overall balanc ce of NFPS, including grants 3.2 2.5 2.1 2.0 1.9 1.8 1.8 2.1 2.2 2.4 Financing, NFPS -0.5 -0.3 -0.1 -0.4 -0.3 0.0 0.1 0.1 0.1 0.2 External net financing -0.5 -0.2 -0.3 -0.4 -0.3 0.0 0.1 0.1 0.1 0.2 Loans (net) 0.2 0.3 0.2 0.0 0.0 0.3 0.4 0.4 0.4 0.4 Disbursements 0.6 -0.4 -0.4 -0.4 -0.4 -0.3 -0.3 -0.3 -0.3 -0.3 Amortization 0.0 -0.2 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Arrears (net) 3.6 2.8 2.2 2.4 2.2 1.8 1.7 2.0 2.0 2.3 Internal net financing 3.5 3.2 2.8 2.4 2.2 1.8 1.7 2.0 2.0 2.3 Banking system 3.0 2.3 2.0 1.4 1.5 1.5 1.5 1.5 1.5 BRH (includes the FSW) 4/ 2.8 0.2 0.5 0.4 0.8 0.4 0.2 0.5 0.6 0.8 Com nr mercial banks 0.6 0.1 -0.4 -0.6 0.0 0.0 0.0 0.0 0.0 00 0.0 Nonbank financing 5/ Memorandum items 2.0 1.9 2.9 0.1 0.0 -0.3 -0.2 -0.2 -0.2 0.2 Forgone fuel taxes and fuel direct subsidies 1.4 0.0 -0.3 -0.2 -0.2 -0.2 -0.2 o/w Forgone fuelt taxes 1.4 1.3 0.1 0.0 0.0 0.0 0.0 0.0 0.0 o/w Fuel direct subsidies to oil companies 0.6 0.6 1.4 0.0 1.9 1.9 1.9 1.9 2.0 1.7 1.7 1.8 1.8 1.8 Health, education and agriculture spending 1,449,888 1,699,208 2,168,223 2,857,327 3,122,964 3,741,391 4,421,231 5,155,565 5,904,558 6,673,342 Nominal GDP (millions of gourdes) Sources: Ministry of Finance andE Economy: and Fund staff estimates andp projections. 1.9 1.9 2.0 1.7 1.7 1.8 1.8 1.8 Health, education and agriculture spending 1,449,888 1,699,208 2,168,223 2,857,327 3,122,964 3,741,391 4,421,231 5,155,565 5,904,558 6,673,342 Nominal GDP (millions of gourdes) Sources: Ministry of Finance andE Economy: and Fund staff estimates andp projections. 1/Includes previously programmed multilateralt budget support that could be delayed, as well as CCRT debt relief. 2/Commitment basis, except for domestically financed spending, which reported on the basis of project account replenishments. 3/Includes all COVID- related expenditures for FY2020 and FY2021. 4/ Amounts include RCF financing for FY2020, the full two year debt- relief under the CCRT forFY2021, andt the FSW disbursement for FY2023. 5/Includes the net changei in thes stock of government securities held by non- -banks, of checks that are not yet cashed, of supplier credits and of domestic arrears. INTERNATIONAL MONETARY FUND 25 --- Page 29 --- HAITI Table 3a. Haiti: Balance of Payments, 2020-28 (In millions of U.S. dollars on a fiscal year basis; unless otherwise indicated) FY2020 FY2021 FY2022 FY2023 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Est 1st review Proj. Proj. Proj. Proj. Proj. Current Proj. account (including grants) 158 98 -481 -199 -207 -139 -184 -290 Current account (excluding grants) -229 -380 32 -36 -705 -810 -818 -717 -747 -274 -336 -441 Trade balance 2,879 3,474 -3,701 -4,030 4,012 4,215 4,395 4,521 -4,658 Exports of goods 885 1,130 1,284 1,339 1,351 1,441 4,801 Of which: Assembly industry 1,534 1,637 1,747 1,873 1,071 1,205 1,259 1,270 1,350 1,440 1,538 1,644 Imports of goods 3,764 4,604 4,985 5,369 5,364 5,656 5,930 1,768 Ofv which: Fossil fuels -720 6,158 6,404 6,673 -643 1,005 1,009 -1,003 -903 -868 -843 Services (net) -313 -464 -824 -814 -532 -493 -493 -416 -421 407 390 Receipts -500 129 124 118 150 150 156 158 171 184 199 Payments 441 -589 -650 643 -643 -573 579 578 574 699 Income (net) 61 66 87 113 127 139 148 Current transfers (net) 3,321 4,013 3,729 4,263 4,233 4,404 4,520 4,572 4,618 Official transfers (net) 126 135 224 610 610 577 563 4,774 Private transfers (net) 2,906 3,518 3,215 3,216 3,216 46 61 Other transfers (net) 3,383 3,574 3,776 3,989 4,214 290 360 290 437 406 444 382 750 583 499 Capital and financial accounts -104 -72 61 126 264 164 209 Capital transfers 254 365 530 ,618 Official transfers (net) 126 135 224 610 610 577 563 4,774 Private transfers (net) 2,906 3,518 3,215 3,216 3,216 46 61 Other transfers (net) 3,383 3,574 3,776 3,989 4,214 290 360 290 437 406 444 382 750 583 499 Capital and financial accounts -104 -72 61 126 264 164 209 Capital transfers 254 365 530 Public sector capital flows (net) -75 -35 20 106 -106 Loan disbursements 52 256 0 100 120 170 Amortization 170 355 -98 -95 -10 -106 106 -106 -115 -125 -118 -99 Foreign direct investment (net) 97 106 114 122 173 Banks (net) 1/ -76 -162 50 277 172 Other items (net) 2/ -35 18 -123 76 176 Errors and omissions 29 -26 -57 85 -29 -123 Overall balance -4 -543 -73 57 25 25 25 75 Financing -139 4 542 73 -57 -25 -25 -25 Changei in net foreign assets (+ is decrease) 350 -91 467 -20 150 -75 -150 o/w Changei in gross reserves (+ IS decrease) 350 -91 467 -25 -25 -25 -75 -150 -20 150 -25 -25 -25 Changei in IMF credit and loans (+ iS increase) -5 -10 -75 -150 Exceptional financing 93 93 o/w Changesi in arrears 3/ 104 101 o/wl Debt rescheduling and debt relief 4/ Memorandum items: Changei in US$ denom. reserve deposits at BRH(+ is decrease) -246 -164 68 116 Changei in NIR (program definition) (+ IS decrease) 55 225 362 -61 -23 -27 -43 Exports of goods, fo.b (percent change) -161 -9 -52 -67 -69 139 -26.3 27.7 13.6 4.8 5.2 6.6 6.5 6.7 Imports of goods, f.o.b (percent change) -16.7 22.3 8.3 7.6 7.6 5.4 4.8 7.2 Projected average oil price (U.S. dollars per barrel, APSP) 41.8 69.2 96.4 81.1 81.3 3.8 4 4.2 Debt service (in percent of exports of goods and services) 12.5 9.5 8.0 76.8 72.7 69.6 67.0 64.8 8.6 8.7 8.1 8.2 Gross international reserves (in millions of U.S. dollars) 2,501 2,534 2,067 2,348 8.3 7.5 7.8 (in months of next year's imports of goods and services) 5.8 5.4 2,217 2,242 2,267 2,292 2,367 2,517 Nominal GDP (millions ofU.S. dollars) 4.1 4.5 4.3 4.1 4.0 3.9 3.9 3.7 14,508 21,017 20,535 24,236 26,409 28,576 30,564 32,681 34,769 36,922 Sources: Bank of the Republic of Haiti; and Fund staff estimates and projections. 1/Changei in net foreign assets of commercial banks. 2/1 Includes arrears on oil imports. 3/1 Includes debt to Venezuela for oil shipments already paid by the GOH in local currency but not yet cleared in U.S. dollars. 4/1 Includes the CCRT debt relief. 26 INTERNATIONAL MONETARY FUND .7 14,508 21,017 20,535 24,236 26,409 28,576 30,564 32,681 34,769 36,922 Sources: Bank of the Republic of Haiti; and Fund staff estimates and projections. 1/Changei in net foreign assets of commercial banks. 2/1 Includes arrears on oil imports. 3/1 Includes debt to Venezuela for oil shipments already paid by the GOH in local currency but not yet cleared in U.S. dollars. 4/1 Includes the CCRT debt relief. 26 INTERNATIONAL MONETARY FUND --- Page 30 --- HAITI Table 3b. Haiti: Balance of Payments, 2020-28 (In percent of GDP on a fiscal year basis; unless otherwise indicated) FY2020 FY2021 FY2022 FY2023 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Est 1streview Proj. Proj. Proj. Proj. Proj. Proj. 1.1 0.5 -2.3 -0.8 -0.8 -0.5 -0.6 -0.7 -0.8 -1.0 Current accoun nt (including grants) -3.3 -2.5 -2.4 -0.8 -1.0 -1.2 Current account (excluding grants) 0.2 -0.2 -3.4 -3.1 -19.8 -16.5 18.0 -16.6 -15.2 14.8 -14.4 13.8 13.4 -13.0 Trade balance 6.1 5.4 6.3 5.5 5.1 5.0 5.0 5.0 5.0 5.1 Exports of goods 5.7 5.1 5.9 5.2 4.8 4.7 4.7 4.7 4.7 4.8 Of which: Assembly industry -25.9 21.9 -24.3 22.2 -20.3 19.8 19.4 -18.8 -18.4 -18.1 Imports of goods -3.1 -4.9 -4.2 -3.8 -3.2 -2.8 -2.6 -2.4 -2.2 Ofv which: Fossil fuels -5.0 -1.9 1.5 -1.4 -1.2 -1.1 -1.4 Services (net) -2.2 -2.2 -2.6 -2.0 0.9 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.5 0.5 Receipts -3.0 2.8 -3.2 -2.7 -2.4 -2.0 1.9 -1.8 -1.7 -1.9 Payments 0.2 0.1 0.1 0.3 0.3 0.3 0.4 0.4 0.4 0.4 Income (net) 22.9 19.1 18.2 17.6 16.0 15.4 14.8 14.0 13.3 12.9 Current transfers (net) 0.9 0.6 1.1 2.5 2.3 2.0 1.8 0.1 0.1 0.2 Official transfers (net) 15.7 12.2 11.8 11.7 11.6 11.5 11.4 Private transfers (net) 20.0 16.7 13.3 2.3 1.7 1.4 2.0 1.7 1.4 1.8 1.5 1.6 1.2 Other transfers (net) -0.7 -0.3 0.3 0.5 1.0 0.6 0.7 0.8 1.1 1.4 Capital and financial accounts 0.4 0.3 0.3 0.1 0.0 0.1 0.1 0.0 0.0 0.0 Capital transfers -0.5 -0.2 0.1 -0.4 -0.4 0.0 0.0 0.1 0.2 0.7 Public sector capital flows (net) 0.2 0.3 0.1 0.0 0.0 0.3 0.4 0.5 0.5 1.0 Loan disbursements -0.7 -0.5 0.0 -0.4 -0.4 -0.4 -0.4 -0.4 -0.3 -0.3 Amortization 0.2 0.2 0.3 0.4 0.4 0.4 0.4 0.5 0.8 0.5 Foreign direct investment (net) -0.5 -0.8 0.2 0.2 0.3 0.1 0.1 0.2 0.3 0.3 Banks (net) 1/ -0.2 0.1 -0.6 0.3 0.7 -0.3 -0.3 Amortization 0.2 0.2 0.3 0.4 0.4 0.4 0.4 0.5 0.8 0.5 Foreign direct investment (net) -0.5 -0.8 0.2 0.2 0.3 0.1 0.1 0.2 0.3 0.3 Banks (net) 1/ -0.2 0.1 -0.6 0.3 0.7 0.0 0.1 -0.1 -0.2 0.0 Other items (net) 2/ -0.1 -0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Errors and omissions 0.6 1.0 0.0 -2.6 -0.3 0.2 0.1 0.1 0.1 0.2 0.4 Overall balance -1.0 0.0 2.6 0.3 -0.2 -0.1 -0.1 -0.1 -0.2 -0.4 Financing -0.4 2.3 -0.1 -0.6 -0.1 -0.1 -0.1 -0.2 -0.4 Change in net foreign assets (+ iS decrease) -2.4 0.4 0.0 0.0 0.0 0.0 0.0 Change in IMF credit and loans (+ IS increase) 0.7 0.0 0.0 0.4 0.0 0.0 0.7 0.5 0.4 0.0 0.0 0.0 0.0 0.0 Exceptional financing 0.7 0.4 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 o/w Changes in arrears 3/ 0.0 0.0 0.0 0.0 0.0 0.0 0.0 o/w Debt rescheduling and debt relief 4/ 0.0 0.0 0.0 Memorandum items: -26.3 27.7 13.6 4.8 5.2 6.6 6.5 6.7 6.7 7.2 Exports of goods, f.o.b (percent change) 8.3 7.6 7.6 5.4 4.8 3.8 4.0 4.2 Imports of goods, fo.b (percent change) -16.7 22.3 76.8 72.7 69.6 67.0 64.8 Projected average oil price (U.S. dollars per barrel, APSP) 41.8 69.2 96.4 81.1 81.3 7.5 7.8 of of and services) 12.5 9.5 8.0 8.6 8.7 8.1 8.2 8.3 Debt service (in percent exports goods Nominal exchange rate 99.9 80.9 105.6 2,517 U.S. 2,534 2,067 2,348 2,217 2,242 2,267 2,292 2,367 Gross international reserves (in millions of dollars) 2,501 4.0 3.9 3.9 3.7 (in months of next year's imports of goods and services) 5.8 5.4 4.1 4.5 4.3 4.1 36,922 14,508 21,017 20,535 24,236 26,409 28,576 30,564 32,681 34,769 Nominal GDP (millions of U.S. 2,267 2,292 2,367 Gross international reserves (in millions of dollars) 2,501 4.0 3.9 3.9 3.7 (in months of next year's imports of goods and services) 5.8 5.4 4.1 4.5 4.3 4.1 36,922 14,508 21,017 20,535 24,236 26,409 28,576 30,564 32,681 34,769 Nominal GDP (millions of U.S. dollars) Sources: Bank of the Republic of Haiti; and Fund staff estimates and projections. 1/Change in net foreign assets of commercial banks. 2/1 Includes arrears on oili imports. 3/ Includes debt to Venezuela for oils shipments already paid by the GOH in local currency butr not yet clearedi lin U.S. dollars. 4/ Includes the CCRT debt relief. INTERNATIONAL MONETARY FUND 27 --- Page 31 --- HAITI Table 4. Haiti: Summary Accounts of the Banking System, 2020-28 FY2020 FY2021 FY2022 FY2023 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Est 1streview Proj Proj. Proj Proj Proj. Proj Centralb bank Net foreign assets 117,208 146,005 131,774 151,422 156,187 169,936 194,561 (In millions of U.S. dollars) 1,778 1,499 225,384 258,785 307,530 Of which: Net international reserves (in millions ofU.S. dollars) 1/ 1,120 1,237 1,274 1,249 1,299 1,388 1,484 1,666 Of which: Co mmercial bank forex deposits (in millions ofU.S. dollars) 452 90 203 250 260 311 378 447 587 1,160 1,324 1,255 1,331 1,255 1,221 1,219 1,242 1,269 1,312 Net domestic assets 37,550 42,096 99,713 94,475 127,831 Net credit to the nonfinancial public sector 109,964 159,923 107,785 137,066 143,415 148,472 140,942 Of which: Net credit to the central 215,025 255,441 259,945 314,195 378,303 453,058 538,674 635,438 government 112,194 162,197 219,409 257,714 264,328 Claims on central government 143,984 200,974 269,884 318,579 382,686 457,442 543,058 639,822 296,292 314,804 369,054 Central government deposits 31,791 38,777 50,475 433,162 507,917 593,534 690,297 Of which: IMF CCRT debt relief 38,577 50,475 50,475 50,475 50,475 50,475 50,475 Liabilities to commercial banks (excl. Claims on central government 143,984 200,974 269,884 318,579 382,686 457,442 543,058 639,822 296,292 314,804 369,054 Central government deposits 31,791 38,777 50,475 433,162 507,917 593,534 690,297 Of which: IMF CCRT debt relief 38,577 50,475 50,475 50,475 50,475 50,475 50,475 Liabilities to commercial banks (excl. 4,686 2,634 2,087 -4,119 -2,926 -3,766 4,605 -4,605 4,605 4,605 gourde deposits) 81,390 138,460 157,539 179,381 173,340 186,599 BRH bonds/Open market operations 841 3,525 204,075 224,061 244,819 265,633 Commercial bank forex deposits 2,630 10,453 12,283 13,283 14,283 15,283 16,283 16,283 Other 80,549 134,935 154,909 168,928 161,057 173,316 189,793 208,779 228,536 249,350 8,976 20,632 42,227 18,416 21,181 235 37,161 85,582 145,384 Base money -228,863 Currency in circulation 154,758 188,101 231,487 245,898 263,973 297,768 331,626 368,799 407,257 448,472 Commercial bank gourde deposits 96,234 108,670 133,411 134,590 151,199 171,161 193,019 216,586 241,770 269,622 58,524 79,431 98,077 111,307 112,774 126,607 138,607 152,214 165,487 178,850 II Consolidated banking system Net foreign assets 150,596 205,868 203,476 214,894 242,532 (In millions of U.S. 448,472 Commercial bank gourde deposits 96,234 108,670 133,411 134,590 151,199 171,161 193,019 216,586 241,770 269,622 58,524 79,431 98,077 111,307 112,774 126,607 138,607 152,214 165,487 178,850 II Consolidated banking system Net foreign assets 150,596 205,868 203,476 214,894 242,532 (In millions of U.S. dollars) 2,285 2,114 226,119 269,459 296,332 318,787 353,132 Ofv which: Commercial banks NFA (in millions of U.S. dollars) 1,729 1,756 1,844 1,782 1,799 1,825 1,828 1,913 615 609 519 533 496 463 400 307 210 Net domestic assets 219,132 305,095 415,158 444,112 Credit to the nonfinancial public sector 481,327 549,531 612,667 679,142 758,408 833,077 Of which: Net credit to the central government 130,870 199,795 273,762 321,758 343,910 412,409 487,465 588,876 709,552 861,678 130,870 195,957 271,085 317,921 341,233 409,732 Claims on central government 178,659 252,599 339,657 374,362 484,788 586,199 706,875 859,001 Central government deposits 409,805 478,304 553,359 592,874 713,550 865,676 Credit to the private sector 47,789 56,641 68,572 56,441 68,572 68,572 68,572 6,675 6,675 6,675 115,840 133,478 156,717 155,470 In gourdes 173,926 194,136 218,341 246,952 280,569 320,464 Inf foreign currency 70,344 72,552 77,196 84,093 86,031 96,028 108,001 122,153 138,781 158,515 45,495 60,926 79,521 71,376 87,895 Other 98,108 110,341 124,799 141,788 161,949 27,577 28,178 15,321 -33,116 36,510 57,014 93,139 156,686 -231,713 349,065 Broad money 369,728 510,963 618,634 659,006 707,447 882,126 975 74 Currency in circulation 85,390 98,150 123,511 124,070 792,062 47 1,077,195 1,186,209 Gourde deposits 141,299 161,261 183,119 206,686 231,870 259,722 Foreign currency deposits 114,581 134,373 157,617 158,548 172,023 200,398 226,589 256,205 289,461 326,443 (In millions of U.S. ,447 882,126 975 74 Currency in circulation 85,390 98,150 123,511 124,070 792,062 47 1,077,195 1,186,209 Gourde deposits 141,299 161,261 183,119 206,686 231,870 259,722 Foreign currency deposits 114,581 134,373 157,617 158,548 172,023 200,398 226,589 256,205 289,461 326,443 (In millions of U.S. dollars) 165,194 270,986 329,793 370,768 386,297 426,096 471,990 520,176 570,258 622,837 2,506 2,782 2,802 3,030 3,151 3,131 3,151 3,204 3,270 3,374 (12-month percentage change) Currency in circulation 40.6 14.9 25.8 12.2 14.4 Base money 14.1 13.6 12.9 12.2 12.0 Broad 22.4 21.5 23.1 13.8 14.0 money (M3) -0.3 12.8 11.4 11.2 10.4 10.1 38.2 21.1 13.0 14.4 12.0 11.4 10.6 10.4 10.1 Gourde deposits 26.4 17.3 17.3 13.5 9.1 16.5 13.1 Foreign currency deposits -23.4 64.0 21.7 14.9 13.1 13.0 12.8 17.1 10.3 10.8 10.2 9.6 9.2 Credit to the private sector -11.2 15.2 17.4 9.4 Credit in gourdes 11.0 11.6 12.5 13.1 13.6 14.2 Credit 16.8 3.1 6.4 9.4 11.4 in foreign currency 35.2 11.6 12.5 13.1 13.6 14.2 33.9 30.5 9.4 10.5 11.6 12.5 13.1 13.6 Mem morandum items: 14.2 Foreign currency deposits (% of total private deposits) 59.7 67.4 68.3 70.0 69.1 68.0 Foreign curr. credit to priv. sector (% of total) 39.2 45.5 67.6 67.0 66.4 65.7 50.5 45.9 50.5 50.5 50.5 Commercial banks' credit to private sector (% of GDP) 8.0 7.9 7.2 50.5 50.5 50.5 5.4 5.6 5.2 4.9 5.9 5.7 5.3 Sources: Bank of the Republic of Haiti; and Fund staff estimates and projections. 1/Program definition. Excludes commercialt bank forex deposits, letters of credit, guarantees, earmarked project accoun nts and USS denominated bank reserves. A portion of SDR alloca cation isin NIR 28 INTERNATIONAL MONETARY FUND --- Page 32 --- HAITI Table 5. Haiti: External Financing Requirements and Sources, 2020-28 (In millions of US$ on a fiscal year basis; unless otherwise indicated) 1/ FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Est. Proj. Proj. Proj. Proj. Proj. Proj. 66 131 715 924 823 862 400 454 539 Requirements -32 36 705 818 717 747 274 336 441 Current account deficit, excluding grants --- HAITI Table 5. Haiti: External Financing Requirements and Sources, 2020-28 (In millions of US$ on a fiscal year basis; unless otherwise indicated) 1/ FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Est. Proj. Proj. Proj. Proj. Proj. Proj. 66 131 715 924 823 862 400 454 539 Requirements -32 36 705 818 717 747 274 336 441 Current account deficit, excluding grants Debt amortization, excluding repayments to the IMF 98 95 10 106 106 115 -145 36 639 831 823 862 400 454 539 Sources official transfers 58 54 57 13 19 19 Capital transfers, excluding 25 51 57 106 114 122 173 277 172 Foreign direct investment 116 190 254 530 632 638 170 170 355 Official disbursements, excluding budget support 23 60 30 0 100 120 170 Of which: Project loans -173 159 37 62 37 36 102 Other flows, including commercial banks (net) -27 -196 2/ 0 80 45 45 46 61 Official budget support 350 91 467 -150 -25 -25 -25 -75 -150 Change in central bank's NFA (+ is decrease) 3/ 211 95 76 93 Additional Financing 0 0 0 IMF disbursement under RCF IMF debt relief under CCRT 6 11 Change in existing obligations to the IMF (+ is increase) -5 -5 -10 93 Debt rescheduling and debt relief, excluding thel Fund 3 -1 0 0 96 90 81 Changei in arrears 4/ Memorandum items: 2,517 2,534 2,067 2,217 2,242 2,267 2,292 2,367 Gross international reserves 5/ 2,501 3.9 3.7 (in months of next year's imports of goods and services) 5.8 5.4 4.1 4.3 4.1 4.0 3.9 0 224 relief, excluding thel Fund 3 -1 0 0 96 90 81 Changei in arrears 4/ Memorandum items: 2,517 2,534 2,067 2,217 2,242 2,267 2,292 2,367 Gross international reserves 5/ 2,501 3.9 3.7 (in months of next year's imports of goods and services) 5.8 5.4 4.1 4.3 4.1 4.0 3.9 0 224 SDR allocation Sources: Bank of the Republic of Haiti; and Fund staff estimates and projections. 1/ Components may not exactly match up to totals due to rounding. 2/1 Includes previously-p -programmed multilateral budget support that could be delayed. 3/1 Excluding exceptional financing. 4/ Includes debt to Venezuela for oil shipments already paid by the GOH in local currency but not yet cleared in U.S. dollars. 5/1 Includes gold. INTERNATIONAL MONETARY FUND 29 --- Page 33 --- HAITI Table 6. Haiti: Financial Soundness Indicators, June 2020-December (In percent; unless otherwise stated) Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Size and Sep-22 Dec-22 growth Asset volume (in US$ millions) 4332.7 4319.1 5754.2 5745.0 5340.4 5341.3 5320.3 Deposit volume (in USS millions) ) 3554.5 3382.5 4577.6 4613.0 5267.8 5216.4 5238.7 4770.9 Asset growth (in gourde terms), 4318.4 4351.5 4327.3 4275.6 4303.6 4294.2 3942.0 yly 23.5 -6.7 1.0 3.9 0.9 38.8 32.2 23.7 Credit growth (net, in gourde terms), yly 5.7 -13.7 -8.3 -5.0 20.6 17.3 28.2 -2.1 21.2 20.6 18.8 12.1 14.6 23.3 Capital adequacy Regulatory capital to risk- weighted assets 21.3 26.2 27.3 22.6 18.4 22.3 20.8 21.4 Regulatory capital to assets 7.4 9.2 9.3 8.1 20.7 18.2 20.3 7.0 7.9 7.6 7.5 7.2 6.5 7.0 Asset quality and composition Loans (net) to assets 26.8 28.7 27.1 25.8 26.0 25.1 24.8 NPLS to gross loans 8.0 5.0 5.4 24.8 24.2 24.5 23.8 7.1 5.9 5.6 Provisions to gross NPLS 63.0 105.4 107.5 6.3 7.8 8.7 6.7 10.9 81.8 101.6 103.1 96.5 77.8 71.3 89.5 57.2 Earnings and profitability Cumulative since beginning of calendar year Return on assets (ROA) 2.1 1.2 1.4 2.2 2.2 2.1 2.0 Return on equity (ROE) 24.1 12.4 14.4 1.9 2.4 1.7 2.6 21.4 23.0 23.2 21.5 21.2 26.1 21.2 30.5 Net interest income to gross income 50.1 57.1 55.0 52.6 50.2 51.1 Operating expenses to net profits 58.5 71.4 68.1 51.6 51.4 45.6 53.5 49.5 57.0 57.4 58.6 59.4 62.9 56.1 60.5 50.8 Efficiency Interest rate spread 1/ 8.6 9.7 8.6 9.9 9.3 9.4 9.1 9.0 8.8 9.9 9.1 Liquidity Liquid assets to total assets 2/ 49.2 45.3 47.3 48.6 48.1 50.3 Liquid assets to deposits 2/ 60.0 57.8 59.4 48.5 47.8 48.2 47.5 47.4 60.6 59.4 61.8 59.6 58.8 58.4 57.9 57.3 Dollarization Foreign currency loans to total loans (net) 57.0 40.0 42.8 45.5 43.5 44.9 47.2 47.7 Foreign currency deposits to total deposits 70.6 58.5 59.6 60.1 63.8 52.2 48.5 47.8 48.2 47.5 47.4 60.6 59.4 61.8 59.6 58.8 58.4 57.9 57.3 Dollarization Foreign currency loans to total loans (net) 57.0 40.0 42.8 45.5 43.5 44.9 47.2 47.7 Foreign currency deposits to total deposits 70.6 58.5 59.6 60.1 63.8 52.2 50.5 55.9 Foreign currency loans to foreign currency deposits 25.1 24.5 66.1 66.5 66.3 66.9 67.3 71.7 24.3 21.9 20.9 21.6 22.0 22.8 22.4 22.5 26.4 Source: BRH Banking System Financial Summary andIMF staff calculations. These indica ators reflect the results oft the licensed banks in operation in Haiti; thus figures in this table may not exactly match thei informat ation in Table aggregatedr 4, which reflect the eight 1/Defined as the differencet between averagel lending rate and average fixed deposit rate in the banking system. 9 67.3 71.7 24.3 21.9 20.9 21.6 22.0 22.8 22.4 22.5 26.4 Source: BRH Banking System Financial Summary andIMF staff calculations. These indica ators reflect the results oft the licensed banks in operation in Haiti; thus figures in this table may not exactly match thei informat ation in Table aggregatedr 4, which reflect the eight 1/Defined as the differencet between averagel lending rate and average fixed deposit rate in the banking system. 2/1 Liquid assets comprise cash and central bank bonds. 30 INTERNATIONAL MONETARY FUND --- Page 34 --- HAITI Appendix I. Letter of Intent Port-au-Prince May 26, 2023 Ms. Kristalina Georgieva Managing Director International Monetary Fund Washington, D.C., 20431, U.S.A. Madam Managing Director: in June 2022 has been a great help to us in 1. The Staff Monitored Program (SMP) approved reforms, despite the multiple challenges policies and our structural anchoring our macroeconomic invasion of Ukraine have increased our economic faces. The spillovers from the Russian our With the our country outbreak has compounded the suffering of people. fragility and the recent cholera structural weaknesses have grown more severe and global landscape deteriorating, our domestic for the SDR 81.9 million (50 percent of tested our resilience. We are also deeply grateful to you our country have Monetary Fund (IMF) has provided Haiti's quota) financial assistance the International (RCF), in January 2023. This Shock Window (FSW) of the Rapid Credit Facility from under the Food needs arising has been critical in enabling us to meet urgent balance-of-payments food in our assistance the impact on hunger and insecurity the war in Ukraine, and, in particular, to mitigate escalation of violence, macroeconomic prospects Owing to external shocks and the internal 2022-when you approved our country. relative to the outlook on June 17, have become more challenging SMP. the technical assistance provided us to the Fund for its support and for with 2. We are most grateful structural benchmark has been mapped our structural reform agenda. Every and the SMP, in implementing from the synergies between capacity development CD provision. We greatly benefitted for Strategy for Fragile and Conflict-Affected of the of the new IMF Strategy in the as part implementation development approach anchored fragility provides for a more tailored capacity States (which context). has continued to be weak, Macroeconomic conditions remain challenging. Economic growth 30, 2022, by 1.7 3. fourth consecutive year in the fiscal year ending September and it contracted for the inflation grew to 48.3 percent in March Growth will likely be muted this year. Year-on-year food Going forward, percent. largely reflecting the surge in global prices. end of from 38.7 percent in September, steadily to about 31 percent by the is expected to decelerate however, inflation (year-on-year) of food and fuel prices in world markets. FY2022-23, owing to the stabilization this fiscal year with an overall deficit for the nonfinancial 4. On fiscal policy, we expect to end projected at the time of the First of GDP, somewhat below the percent The public sector of 1.9 percent and reserved reached US$396 million in April 2023. Review of the SMP. Buffers have been rebuilt structural reforms in a number of key areas, first half of the 12-month SMP program saw progress on the FY2021 financial audit of the considerable challenges cited earlier. We completed despite the statements. We have been publishing all public BRH and published the audited financial INTERNATIONAL MONETARY FUND 31 we expect to end projected at the time of the First of GDP, somewhat below the percent The public sector of 1.9 percent and reserved reached US$396 million in April 2023. Review of the SMP. Buffers have been rebuilt structural reforms in a number of key areas, first half of the 12-month SMP program saw progress on the FY2021 financial audit of the considerable challenges cited earlier. We completed despite the statements. We have been publishing all public BRH and published the audited financial INTERNATIONAL MONETARY FUND 31 --- Page 35 --- HAITI of the November 9 2021 procurement decree contracts awarded since the publication bidders (monthly structural procurement information on the beneficial owners of successful the No. 52, including assistance from the IMF's Fiscal Affairs Department, benchmark). With the benefit of technical to include the main central Account (TSA) at the central bank has been expanded We Treasury Single fund (end-September 2022 structural benchmark). budgetary units, including the emergency Board of Directors of the Economic and Social have also restored the regular functioning of the the consolidated quarterly which now meets quarterly, and we are publishing Assistance Fund (FAES), structural benchmark). financial statements of the FAES (quarterly since the First Review has been satisfactory overall, given 5. Performance under the 2022 SMP transition we are undergoing. In domestic and international constraints and the political with Fund staff for the the of the indicative targets and benchmarks agreed particular, we have met most end of the SMP program: 1. Table 1). At the end of December 2022, we met Quantitative and indicative targets (Appendix floor for net international reserves of the central the quantitative targets on the credit to the by a large margin and the ceiling for the net central bank bank, the primary balance of the NFPS, allocation to the Ministry of Social NFPS. The end-December target on the minimum budget detailed strategy to tackle food Labor was missed as we were designing a We Affairs and (MAST) net, in light of the disbursement under the FSW. insecurity and strengthen the social safety or by the QTs on arrears and one on no new contracting guaranteeing met two continuous debt. We also met four of the five ITs for end-March public sector of non-concessional external IT on government tax revenue due to 2023 and missed by a narrow margin the end-March at the time of the first review. Overall lower-than-expected fuel revenues, which was revised up than expected at the time of SO far in the fiscal year, have been more buoyant nominal revenues, the approval of the SMP. the difficult security situation, we have benchmarks (Appendix 1. Table 2). Despite In Structural reform, capacity building, and governance. continued to make good progress on structural compulsory the use of a unique Taxpayer late December 2022, we issued a decree making with sanctions for fraudulent or non-use, Identification Number (TIN) for all finance departments, We have also the TIN database and the file of active taxpayers. and in April we published technical assistance of the Legal Department, amended the Central Bank Law, thanks to the of this benchmark was endorsed in April. The accomplishment which the BRH Board of Directors of the 2019 Safeguards Assessment. We in implementing the recommendations the also a key step framework, with the Council of Ministers approving have also revised the AML/CFT legal 2023 test date. revisions in late April, in time to meet the end-April under the 2022 SMP, we approved the On December 19, 2022, in line with our commitment deficit as the main 6. medium-term fiscal framework with the NFPS FY2022-23 budget and adopted a a fiscal deficit of less than 1.9 percent of anchor- the first in this country's history. The budget targets of the SMP program. And for the first well below the 2.3 percent of GDP projected at the start revenues and GDP, includes forward estimates of central government under time, the budget document deficit is expected despite additional spending through 2025. The smaller budget expenditures 32 INTERNATIONAL MONETARY FUND deficit as the main 6. medium-term fiscal framework with the NFPS FY2022-23 budget and adopted a a fiscal deficit of less than 1.9 percent of anchor- the first in this country's history. The budget targets of the SMP program. And for the first well below the 2.3 percent of GDP projected at the start revenues and GDP, includes forward estimates of central government under time, the budget document deficit is expected despite additional spending through 2025. The smaller budget expenditures 32 INTERNATIONAL MONETARY FUND --- Page 36 --- HAITI financing of the deficit is expected to to about 0.5 percent of GDP, and monetary from the FSW equal mostly reflecting significantly lower budgetary pressure decline markedly during the fiscal year, also a new Tax Code and Tax Along with the FY2022-23 budget, we adopted fuel subsidies. income taxes and eliminates many Procedures Code, which simplifies personal and corporate tariffs related to customs. These reforms are and we have published all the codes and exemptions, into force on October 1, 2024. expected to enter in public spending, we have committed 7. To promote greater transparency and accountability and will continue to do SO, no monthly reports on budget implementation internal audits to publish comprehensive of each month. We are also committed to conducting later than 45 days after the end of resources provided under the FSW. by all ministries involved in the use emergency us the next of expenditures which should help identify We have also requested of the IMF a Governance Diagnostic, for governance and anti-corruption reforms. priorities medium-term fiscal consider that a fuel subsidy reform is essential for ensuring not 8. We SMP although the SMP does [include at the time of the approval, sustainability, as discussed the lead both in terms of the of the reform. We are taking in conditions on the specific timing and social implications. The increases modalities and timing of the reform considering the political for now. For future price adjustments, 2022 have eliminated fuel subsidies and fuel prices in September policy framework with a predictable intend to implement a comprehensive and transparent Our reform will be we mechanism that reflects global market prices changes. regular automatic pricing the most vulnerable. accompanied by mitigating measures to protect of exchange and trade committed to avoiding the imposition or intensification to not 9. We are for current international transactions, and and transfers restrictions on making payments practices. And we are committed to limiting foreign introducing or modifying any multiple currency intervention only to smoothing excess volatility. exchange have to achieve the program's policies, we implemented 10. In view of the macroeconomic reform agenda, the government requests the objectives and our progress on the structural completion of the Second Review of the SMP. Director, this expression of our deepest gratitude. Please accept, Madam Managing /sl /s/ Jean Baden Dubois Michel Patrick Boisvert Governor of the Bank of the Republic of Haiti Minister for Economy and Finance INTERNATIONAL MONETARY FUND 33 --- Page 37 --- - Table 1. Haiti: Quantitative and Indicative Targets, June 2022-March 2023 1/ Appendix I. Cumulative Flows from September 2021 Cumulative Flows from September 2022 ActualStock Sept.2 2022 Actual Stock Dec2 2022 Mar 2023 atend- Sep. Dec 20211 June. atend- Sep. 20213 Quantitative Adjusted Indicative 2022" Quantitative Actu Adjusted Status Indicative Actual Adjusted Status Actual target Act Actual" Status target target Actual" target Actual' I.Periodic quantitative targets 413.92 27 30 133.75 134 Not met 40 186 10 303 303 Met 10 671 671 Met Net international reservesofc centralbank (in millions sofus. Actual Stock Dec2 2022 Mar 2023 atend- Sep. Dec 20211 June. atend- Sep. 20213 Quantitative Adjusted Indicative 2022" Quantitative Actu Adjusted Status Indicative Actual Adjusted Status Actual target Act Actual" Status target target Actual" target Actual' I.Periodic quantitative targets 413.92 27 30 133.75 134 Not met 40 186 10 303 303 Met 10 671 671 Met Net international reservesofc centralbank (in millions sofus. dollars) floor -8,813 -20,317 24,452 -24,452 Notmet 28,860 -14,2 244 -150 150 Met 27,988 9,410 9,410 Met Primary balance ofthe non- financial public sector- floor 172,352 34,564 36,096 41,263 29,022 Met 46,533 216,908 13,295 7,281 7,281 Met 26,090 6275 6,275 Met Net central bank credit to ther non- -financialp public sector ceiling 162,197 34,564 36,096 44,313 32,072 46,533 194,641 13,295 7,281 7,281 26,090 7,587 7,587 Central Government 4 -2,150 0 0 3,050 -3,050 0 -3,346 0 0 0 1,251 1,251 Met Other non- financial public sector entities 0 3,000 840 840 Notr met 3,300 1,500 782 782 Notr met 3,500 6,202 6,202 Budget allocationt to MAST for social expenditure- floor II. Continuous quantitative targets 0 0 0 4,200 4,200 Notr met 0 0 Met 0 0 Met Domestic arrears accumulationo ofthe central government 0 0 0 0 0 Met 0 0 0 Met Met Public sector external arrears accumulation (in millions ofU.S. dollars) Met Met Met New contra racting or guara anteeing by thep public sector ofn nonconcessional external debt millions ofU.S. dollars) ceiling III Indicative targets 27,632 93,731 87,747 Notmet 125,552 32,241 33,040 33,040 Met 85,977 83,275 83,275 Not Central government fiscalr revenue, excluding grants floor Memorandumi items 9.0 9.0 18.1 0.0 0.0 19 50 External budget support (in millions sofU.S. dollars) 2,547 2.067 2,067 2,325 2.332 Gross International Reserves (stock, in millions ofU.S. dollars) 8 2,534 2,562 4.1 4.1 4.6 4.6 5.4 5.6 5.5 (in months ofi imports ofg goods and services of the following year) Sources: Ministry offinance. Bank oft the Republic ofHaiti, andFunds staff estimates. support lower than the planned am unts. The BRH inar cing to the Treasury does not include an adjuster. The Quantitative and Indicative Targets (QTs. ITs). are set for end- month, Le 1/ The program includes an adjuster on the NFPS primary balance and NIR target for shortfalls external budget nd-J June and end- -December for QTs and end- September and end- March forITs, and in millions ofgourdes; unless otherwisei indicated. 2/ September 2021 refers to data atthe end of FY2021 and September 2022 refers to dataa at the end ofFY2022. of dated June 28, 2022, that recognized additionali interest accrued since 2020onr on- negotiables government debt 3/In alignment with the BRH adoption of Internationalf Financ cial Reporting Standards (IFRS). for shortfalls external budget nd-J June and end- -December for QTs and end- September and end- March forITs, and in millions ofgourdes; unless otherwisei indicated. 2/ September 2021 refers to data atthe end of FY2021 and September 2022 refers to dataa at the end ofFY2022. of dated June 28, 2022, that recognized additionali interest accrued since 2020onr on- negotiables government debt 3/In alignment with the BRH adoption of Internationalf Financ cial Reporting Standards (IFRS). the BRH and Ministry ofE Economy and Finance signed 2021 memorandum balance sheet understanding. Neto centralt bank credit ttothe centralgovemmenth has been adjusted downward by 12.241 billion gourde to offset thei impact securities held by theBRH. The recognition resulted an increase thes stock of the BRH net claims on central governments BRH starting with with the October and comm on of financial informati ion aligns itwith the best tinternational accounting gpractices. anda abetter understanding of how it ofthis recognition. becauseit itrepresentsi interest expenses for the 19/20 and 20/21 fiscaly years. Adoption ofl IFRS provides greater transparency financial position may impact tthei implementation ofr monetary policy orthe policy transmission mechanism. 4/ Excludes SDR allocationa and resources freed by IMF CCRT debt relief. to he sum ofboth budget alloca tion (or executed spending lower) on all social programs inthe MAST budget, including resources allocatedt to/and 5/Budget envelope allocatedt to theMinistry ofs Social Affairs andLa Labor (MAST), excluding transfers to the population. The floor corresponds MAST mp plementation. impler nented by thef FAES, the Programme dUrgence(2022). and Klere Chimen; does not preclude other govern ment entities froms supporting program 6/ Includes domestic taxes on.corporates personal lincome. ands sales, and customs duties. 71 Timing of disburse ements is uncertain; annual amount divided by quarter May 2022 to May 2023is HTG/USS 100.0123 (BRH reference ate on December 16, 2021). 8/ For program monitoring purposes, the program exchange rate for the period --- Page 38 --- HAITI Appendix I. Table 2. Haiti: Structural Benchmarks under the SMP Measure Timing Status Assessment Governance Publish all public procurement contracts awarded since the publication of the November 2021 procurement decree No. 52, including information on monthly Met Published on a regular basis on the website of the thel beneficial owners of successful bidders. National Procurement Commission. Approval by the BRH Board of Directors of draft amendments of thel BRH 2 law, prepared in consultation with IMF staff, which: (i) clarifies the end March objectives of the BRH, (i): strengthens its autonomy, (iii) enhances its 2023 Not met Completed in April. governance, and (iv) improves accountability and transparency. Approval by the Council of Ministers of revisions to the AML/CFT law 3 prepared with Fund TA to address technical deficiencies identified in Haiti's end- -April Met FATF Action Plan and bring iti into line with FATF international standards. Completed. Public Finance Management Governance 4 Expand the Treasury Single Account (TSA) at the central bank to include all end- Sept. the central budgetary units, including the emergency fund. 2022 Notr met Completed in December. Prepare and adopt a medium- term budget framework, for FY2023, end- Sept. FY2024, and FY2025 with the NFPS deficit as the main anchor. 2022 Not met Completed in December. Publish quarterly and annual reports on the operations and finances of Fonds d 'assistance économiques et sociale (FAES) and reactivate the Quarterly Met Completed. Governing Board of FAES again with quarterly meetings thereafter. Tax Policy and Tax/Customs Administration 7 Conclude public consultations on the tax code and tax procedure code end Sept. and finalize codes. 2022 Not met Completed in December. Publish all codes and tariffs relating to customs. end Sept. Not Met Completed in December. Issue decree making use of TIN compulsory for all finance departments, with sanctions for fraudulent or non-use, and publish TIN database and end March Not met Completed in April file of active taxpayers. Safeguards 10 Complete FY2021 financial audit of BRH and publish the audited financial end- June statements. Met Completed. INTERNATIONAL MONETARY FUND 35 s Administration 7 Conclude public consultations on the tax code and tax procedure code end Sept. and finalize codes. 2022 Not met Completed in December. Publish all codes and tariffs relating to customs. end Sept. Not Met Completed in December. Issue decree making use of TIN compulsory for all finance departments, with sanctions for fraudulent or non-use, and publish TIN database and end March Not met Completed in April file of active taxpayers. Safeguards 10 Complete FY2021 financial audit of BRH and publish the audited financial end- June statements. Met Completed. INTERNATIONAL MONETARY FUND 35 --- Page 39 --- HAITI Memorandum of Understanding Attachment I. Technical Staff-Monitored Program (SMP) ending May under the 12-month The 1. Haiti's performance targets (QTs) and structural benchmarks (SBs). 31, 2023, will be assessed based on quantitative text table). This Technical Memorandum of authorities implemented two prior actions (see MEFP authorities and the staff of the (TMU) defines the QTs established by the Haitian defines the arrangements for Understanding for monitoring the program. It also International Monetary Fund (IMF) implementation. transmission of data that will permit staff to monitor program the A. Definitions central government refers to the central Central Government. Unless otherwise indicated, central bank (BRH), 2. (municipalities), the administration of Haiti and excludes local administrations of an administrative, cultural, financial institutions, autonomous state organizations are financed and other public Central government expenditures by nature, and state-owned enterprises. foreign grants, or scientific levies and by foreign donors, through, inter alia, domestic taxes and other domestic domestic and foreign public debt. ministerial accounts (comptes courants), and include the Road Fund (Fonds d'entretien routier, FER) funds and programs. These Program 3. Special finance the Universal, Free, and Compulsory Schooling and the resources mobilized to transfers. Under the Staff-Monitored Program, the (PSUGO) for education, in addition to Treasury Education Fund, FNE) will be levied to finance FER and PSUGO (through the National resources recorded as central government revenues. state financial entity, Assistance Fund (FAES). FAES is an autonomous 4. Economic and Social and Finance. The mission of the FAES is under the supervision of the Ministry of Economy the conditions of poor people currently labor-intensive projects aimed at improving living to fund short-term, potential. It is responsible for implementing in urban and rural areas and increasing their productive donors. financed by the public Treasury and foreign social programs (BMPAD). The BMPAD is Monetization of Development Assistance Programs 5. Office for under the supervision of the Ministry of Economy state administrative organization loan concluded an autonomous of grant and/or agreements and Finance. The BMPAD ensures the implementation of the monetization of development and a donor or foreign lender, as part from between the government and monitors approved programs and projects aid programs in Haiti. In particular, it finances by the monetization of aid in kind. the funds generated and enterprise that produces, supplies, Electricité d'Haiti (EDH). EDH is a state-owned (i) CG transfers 6. EDH and the Central Government (CG) include distributes electricity. Flows between consumption and not devolved to the through sales taxes collected on electricity of to EDH (including (ii) the payment of letters of credit in favor CG, and the payment of fuel purchase bills); bills unpaid by EDH; (ii) the payment of independent power producers to settle power generation which are the counterpart of EDH arrears producers for the purchase of fuel, bills from independent 36 INTERNATIONAL MONETARY FUND state-owned (i) CG transfers 6. EDH and the Central Government (CG) include distributes electricity. Flows between consumption and not devolved to the through sales taxes collected on electricity of to EDH (including (ii) the payment of letters of credit in favor CG, and the payment of fuel purchase bills); bills unpaid by EDH; (ii) the payment of independent power producers to settle power generation which are the counterpart of EDH arrears producers for the purchase of fuel, bills from independent 36 INTERNATIONAL MONETARY FUND --- Page 40 --- HAITI Program, transfers from central government generation bills. Under the Staff-Monitored financial receivables are for unpaid "above the line I while letters of credit and are recorded under operations entered under the operations "below the line." The NFPS includes the central government, special 7. Non-financial public sector (NFPS). autonomous state organizations of an and (defined in paragraph 3), other 4 and 5), funds programs including the FAES and the BMPAD (paragraphs administrative, cultural, or scientific nature, National Old Age Insurance Office (ONA), 6), the Civil Service Pension Plan and the EDH (paragraph and local governments. the nonfinancial public sector, state-owned 8. Public sector (PS). The public sector comprises state-owned), and the BRH. nonbank financial SOES (enterprises over 50 percent banks, and received from Haiti's bilateral or multilateral grants. Budgetary grants are grants the World Bank, the 9. Budgetary Development Bank, partners (including the European Union, the Inter-American or sector budget support purposes. Bank, and bilateral donors) for general Caribbean Development Targets (QT) B. Quantitative the following indicators. Unless of the program will be monitored using date set at 10. The implementation in terms of cumulated flows from a reference otherwise indicated, all QTs will be assessed 2021-2022 the reference date is endthe end of the previous fiscal year (e.g., for fiscal year and Financial Policies. in Table 1 of the Memorandum on Economic September 2021), as specified all assets, liabilities, and flows Program exchange rates. For the purposes of the program, as defined below, 11. will be valued "at the program exchange rates, be denominated in foreign currency budgetary accounts, which will of elements that affect the government's to use the with the exception the of the program, it has been agreed evaluated at current exchange rates. For purposes reference rate as at December 16, 2021), following exchange rates: HTG 100.0123/USS (BRH 16, 2021 published by the IMF on and SDR 0.7154070/US$ (rates as at December US$1.133600/EUR rms mth.aspx). its website - r2araaae Bank Credit to the Nonfinancial Public Sector Net Central public sector is defined as the difference 12. Net central bank credit to the nonfinancial public sector (net claims on the public between BRH assets and liabilities vis-à-vis the nonfinancial by the BRH to the IMF. This Standardized Report Forms 1SR or 2SR reported sector) according to and net BRH credit vis-a-vis the rest of the includes the net BRH credit to central government BRH credit to the nonfinancial public sector is nonfinancial public sector. The calculation of the net shown below as of September 30, 2021. INTERNATIONAL MONETARY FUND 37 12. Net central bank credit to the nonfinancial public sector (net claims on the public between BRH assets and liabilities vis-à-vis the nonfinancial by the BRH to the IMF. This Standardized Report Forms 1SR or 2SR reported sector) according to and net BRH credit vis-a-vis the rest of the includes the net BRH credit to central government BRH credit to the nonfinancial public sector is nonfinancial public sector. The calculation of the net shown below as of September 30, 2021. INTERNATIONAL MONETARY FUND 37 --- Page 41 --- HAITI Appendix II. Table 1. Haiti: Components of Net Central Bank Credit to the NFPS (In millions of gourdes) September June September December March Net central bank credit to the nonfinancial public sector 160,047,059.23 202,143,310.10 216,907,796.47 229,435,028.69 223,182,962.36 Net credit on central government 162,196,977.99 181,732,827.46 202,230,795.64 194,641,384.26 207,903,639.72 Claims on central government 200,791,090.44 257,194,431.71 269,884,127.20 287,084,483.25 280,281,880.53 Deposits by government 38,777,196.75 75,461,604.26 75,242,742.94 79,180,843.54 78,051,084.89 Deposits in current accounts 26,730,369.21 36,813,575.11 31,796,307.42 37,204,239.38 35,505,990.16 Sight deposits (HTG) 7,073,003.48 11,406,902.81 10,720,115.47 8,660,112.36 8,097,527.55 Sight deposits (US$) 19,657,365.73 25,406,672.30 21,076,191.95 28,544,127.02 27,408,462.61 Securities seized UCREF 594.75 594,748.67 594,748.67 594,748.67 594,748.67 Sundry accounts payable 636,307.08 6,097.41 7,233.00 352.15 33,912.85 Certified checks 329,125.56 371,109.60 286,815.46 420,057.43 433,374.37 Certified bank checks 25,041.45 25,041,448.88 25,043,228.88 25,041,448.88 25,041,448.88 Foreign Debt Special Fund 55,669.97 194,883.78 117,742.54 87,072.38 157,727.34 Internal Public Debt Special Fund 3,037,241.08 1,923.08 Treasury special accounts 6,762,697.60 10,361,354.81 12,201,556.37 13,134,148.93 13,495,990.60 Civil pension investments 375,029.84 561,067.48 583,394.69 transaction 734,303.46 775,901.20 IMF debt relief after disaster 2,410,591.87 1,907,738.95 1,965,245.23 2,398,082.26 2,508,910.19 Minus: Deposits from 276,996.07 390,420.44 390,990.39 autonomous agencies (ONA) 435,533.09 496,919.37 Net credit to the rest of the nonfinancial public sector -2,149,918.76 5,200,078.71 -3,346, 147.14 -4,079,172.38 -4,597,008.35 Claims on the rest of the nonfinancial public sector 610,420.96 1,274,612.09 1,563,886.60 1,552,168.80 1,537,198.42 Deposits by the rest of the 2,760,339.72 6,474,690.80 4,910,033.74 nonfinancial public sector 5,631,341.18 6,134,206.77 Deposits by autonomous 276,996.07 390,420.44 390,990.39 435,533.09 agencies (ONA) (HTG and US$) 435,533.09 Local government deposits 489,202.33 967,138.58 747,632.79 702,627.07 (sight deposits and certified checks) 471,181.47 Deposits by state-owned enterprises (sight deposits 1,994,141.32 5,117,131.78 3,771,410.56 4,493,181.03 in gourdes and US$ and 5,227,492.22 certified checks) 38 INTERNATIONAL MONETARY FUND (HTG and US$) 435,533.09 Local government deposits 489,202.33 967,138.58 747,632.79 702,627.07 (sight deposits and certified checks) 471,181.47 Deposits by state-owned enterprises (sight deposits 1,994,141.32 5,117,131.78 3,771,410.56 4,493,181.03 in gourdes and US$ and 5,227,492.22 certified checks) 38 INTERNATIONAL MONETARY FUND --- Page 42 --- HAITI Net International Reserves 13. The gross international reserves of the central bank are those external assets that are readily available to and controlled by monetary authorities for meeting balance of payments financing needs, for intervention in exchange markets to affect the exchange rate, and for other related purposes such as maintaining confidence in the currency and the economy, and serving as a basis for foreign borrowing. Reserve assets must be foreign currency assets and assets that exist. actually All contingent assets are excluded. Underlying the concept of reserve assets are the notions of 'availability for use' and 'control' by the monetary authorities. 1 The gross international reserves reported by the BRH from Standardized Report Forms 1SR or 2SR must conform to this definition. They include monetary gold, liquid assets, including holdings of Special Drawing Rights (SDRs), and IMF reserve position. Swaps in foreign currency with domestic financial institutions and pledged or otherwise encumbered reserve assets are excluded from gross international reserves. 14. The net international reserves of the BRH are defined as the gross international reserve of the BRH, minus (i) gross external liabilities excluding allocations of special drawing rights and liabilities related to Haiti's participation in the capital of international financial institutions, (ii) foreign currency deposits of commercial banks at the BRH (sight deposits in US dollars and euro from BCM to BRH, and the CAM transfer), (iii) commitments related to foreign currency swap transactions, (iv) special foreign currency accounts, and (v) project accounts, all from Standardized Report Forms 1SR or 2SR with the exception of the balances of the IMF accounts (SDR holding, reserve position in the IMF, and liabilities to the IMF), which come from the IMF Finance Department. The calculation of BRH net international reserves is illustrated below. 1 See Balance of Payments Manual, Data Template hip/bwountforsedtenaitaubaut/bon.os7dhepnan207/bogmanshm and Guidelines for a Mtp/howsintogtaternadirgntacrtipcenveepdig-dc3pdt INTERNATIONAL MONETARY FUND 39 Forms 1SR or 2SR with the exception of the balances of the IMF accounts (SDR holding, reserve position in the IMF, and liabilities to the IMF), which come from the IMF Finance Department. The calculation of BRH net international reserves is illustrated below. 1 See Balance of Payments Manual, Data Template hip/bwountforsedtenaitaubaut/bon.os7dhepnan207/bogmanshm and Guidelines for a Mtp/howsintogtaternadirgntacrtipcenveepdig-dc3pdt INTERNATIONAL MONETARY FUND 39 --- Page 43 --- à Appendix II. Table 2. Haiti: Calculation of BRH Net International Reserves (In thousands) September 2021 September 2021 June 2022 June 2022 September 2022 September 2022 (gourdes) (US$)' (gourdes) (US$)' (gourdes) (US 2 243,268,752.78 243,268,752.78 BRH gross international reserves 119,720.38 11,412,086.84 112,977.20 9,880,753.71 98,795.39 11,973,510.09 Gold holdings 5,998,299.64 59,975.62 3,648,143.51 36,476.95 4,626,623.31 45,802.57 Foreign currency 24,302,710.70 242,997.22 19,972,438.93 199,699.83 16,450,821.02 162,859.58 Foreign sight deposits 1,897,738.18 196,580,981.41 1,965,568.05 193,091,082.97 1,911,560.11 Investments abroad 189,797,159.80 150,451.59 14,514,617.83 143,691.59 13,972,219.51 139,705.01 15,047,009.07 SDRS holdings (according to IMF books) 3,094,766.71 30,637.52 2,818,820.50 28,184.74 3,161,513.40 31,611.25 IMF reserve position (based on IMF books) 75,598,035.47 755,887.38 68,823,699.75 688,152.35 70,137,904.62 701,292.79 Minus: Foreign liabilities Of which: Foreign liabilities (excluding liabilities 1,645,925.76 16,457.23 1,652,381.92 16,358.22 8,518,510.82 85,174.63 related to Haiti's participation in the capital of international financial institutions) 425,536.21 53,576,083.08 535,694.94 47,334,516.73 473,286.953 Debt service payment to PDVSA 42,558,855.10 1,765,326.81 17,476.35 liabilities 1,460,675.36 14,604.96 1,738,342.54 17,381.29 Off- balance-sheet foreign currency 18,637,684.09 186,353.92 18,067,971.28 178,869.02 Liabilities to the IMF (based on IMF books) 17,599,863.34 175,976.99 148,557,706.71 1,470,689.28 129,098,781.43 1,290,829.04 139,537,396.50 1,395,202.36 Minus: Deposits in foreign currency 60,019.65 7,088,348.85 70,874.77 7,370,423.81 72,965.61 Minus: Foreign currency swap transactions 6,002,703.60 132,421.50 1,310.94 133,391.45 1,333.75 139,470.08 1,394.53 Minus: Special accounts in foreign currency 71.34 0.71 68.92 0,68 67.74 0.68 Minus: Project accounts 413,920.24 28,020,274.18 280,168.28 18,613,956.26 186,116.67 Net international reserves of the BRH 41,397,115.02 Exchange rate: HTG 100,0123/USS. Haiti has had difficulties processing to Venezuela for debts incurred under the Petrocaribe 2 Debt service payment to PDVSA equals the amount in escrow account. payments to international sanctions. Debt service payments to Venezuela are being placed in an escrow account in U.S. dollars held at the BRH. agreement owing .24 28,020,274.18 280,168.28 18,613,956.26 186,116.67 Net international reserves of the BRH 41,397,115.02 Exchange rate: HTG 100,0123/USS. Haiti has had difficulties processing to Venezuela for debts incurred under the Petrocaribe 2 Debt service payment to PDVSA equals the amount in escrow account. payments to international sanctions. Debt service payments to Venezuela are being placed in an escrow account in U.S. dollars held at the BRH. agreement owing --- Page 44 --- Appendix II. Table 2. Haiti: Calculation of BRH Net International Reserves (Concluded) (In thousands) December 2022 December 2022 March 2023 March 2023 (gourdes) (US$)"2 BRH gross international reserves (gourdes) (US 2 316,451,257.94 3,132,799.25 366,494,781.48 3,628,219.35 Gold holdings 15,348,726.46 151,949.08 17,430,730.50 172,560.48 Foreign currency 2,641,945.85 26,154.69 2,014,247.53 19,940.62 Foreign sight deposits 32,399,607.01 320,749.13 56,736,180.09 561,675.96 Investments abroad 244,288,639.59 2,418,404.88 267,302,901.83 2,646,241.12 SDRs holdings (according to IMF books) 17,800,956.34 176,225.63 18,758,031.55 185,700.47 IMF reserve position (based on IMF books) 3,971,382.69 39,315.83 4,252,689.98 42,100.71 Minus: Foreign liabilities 74,731,137.84 747,219.47 78,096,292.51 780,866.88 Of which: Foreign liabilities (excluding liabilities related to Haiti's participation in the capital of international financial institutions) 1,965,536.24 19,458.39 2,018, 145.14 19,979.20 Debt service payment to PDVSA 48,095,651.71 480,897.37 49,824,567.07 498,184.39 Off-balance-sheet foreign currency liabilities 2,177,658.89 21,558.35 2,303,604.88 22,805.19 Liabilities to the IMF (based on IMF books) 22,492,291.00 222,668.83 23,949,975.43 Minus: 237,099.60 Deposits in foreign currency 183,987,384.45 1,821,435.45 193,901,818.08 1,919,586.21 Minus: Foreign currency swap transactions 8,665,446.01 85,786.05 8,580,317.81 84,943.30 Minus: Special accounts in foreign currency 178,400.15 1,766. 12 189,537.18 1,876.38 Minus: Project accounts 77.47 0.77 79.66 0.79 Net international reserves of the BRH 48,888,812.01 488,827.99 85,726,736.23 857,161.93 I a Minus: Foreign currency swap transactions 8,665,446.01 85,786.05 8,580,317.81 84,943.30 Minus: Special accounts in foreign currency 178,400.15 1,766. 12 189,537.18 1,876.38 Minus: Project accounts 77.47 0.77 79.66 0.79 Net international reserves of the BRH 48,888,812.01 488,827.99 85,726,736.23 857,161.93 I a --- Page 45 --- HAITI exchange market are defined in the Interventions of the BRH in the foreign 15. and Financial Policies. Memorandum of Economic international reserves will be grants are lower than expected the floor on net will not be 16. If budgetary difference in question. Conversely, the floor adjusted downwards by the amount of the the expected levels mentioned in upwards by the amount of budgetary grants exceeding adjusted the table below. Budgetary Grants Appendix II. Table 3. Haiti: Projected (In millions of US dollars) Cumulative flows since end-September 2022 Cumulative flows since end-September 2021 March 2023 June 2023 Sept. 2023 March 2022 June 2022 Sept. 2022 Dec. 2022 Dec. 2021 45.7 60.9 24.7 49.5 15.2 15.2 Balance of the Nonfinancial Public Sector Primary accepted by the Treasury of the central government refer to expenditure 17. Domestic arrears goods and services. Domestic the delivery of the corresponding and unpaid after 90 days, despite off-budget government commitments. of central government do not include unpaid arrears incurred outside commitments refer to liabilities 18. Unpaid off-budget central government bodies), which may give rise to contingent process (from ministries or other public the budgetary claims against central government resources. corresponds to the sum financing of the nonfinancial public sector (NFPS) 19. Net domestic bank credit to the NFPS; (ii) net credit from domestic of the following elements: (i) net central Report Form 2SR), which includes commercial banks to the NFPS (as reported in the Standardized other NFPS securities to and the net issuance of Treasury bills and of changes in NFPS deposits credit to the NFPS, which includes the net issuance commercial banks; and (ii) net nonbank the change in the net position of the bills and other NFPS securities to nonbank institutions, and the net change in Treasury independent power producers), NFPS vis-à-vis the electricity sector (including credit and domestic arrears of central government. suppliers' corresponds to the sum financing of the nonfinancial public sector (NFPS) 20. Net external IMF loans) and (ii) the net change in external of (i) new external loan disbursements (excluding arrears minus external loan amortizations. balance of the nonfinancial public sector 21. For the purposes of the program, the primary financing of the NFPS and net corresponds to the sum of the following: net domestic debt. If budgetary grants (NFPS) NFPS, after deducting interest payments on public external financing of the balance of the NFPS includes an the expected levels, the floor on the primary the floors do not reach if the amounts of budgetary support are in deficit, asymmetric adjuster. More specifically, 42 INTERNATIONAL MONETARY FUND rears minus external loan amortizations. balance of the nonfinancial public sector 21. For the purposes of the program, the primary financing of the NFPS and net corresponds to the sum of the following: net domestic debt. If budgetary grants (NFPS) NFPS, after deducting interest payments on public external financing of the balance of the NFPS includes an the expected levels, the floor on the primary the floors do not reach if the amounts of budgetary support are in deficit, asymmetric adjuster. More specifically, 42 INTERNATIONAL MONETARY FUND --- Page 46 --- HAITI the amount of those deficits. Conversely, if external balance will be reduced by on the primary the floor on the primary balance will not change. budget support exceeds projections, the of Social Affairs and Labor Budget Allocation to Ministry of Social Affairs and Labor (MAST) for social 22. The budget allocation to the Ministry of the budget allocation (or transfers to the population) expenditure is defined as the sum (excluding of the MAST budget, including the implemented if lower) for all social programs (2022), Klere Chimen, expenditure by the FAES, the Emergency Program resources allocated and implemented Inclusion (BSEIPH). It should be activities of the Office of the State Secretary for Disability of and the entities from supporting the implementation noted that this does not prevent other government the sum of the allocations mentioned. The floor on the QT applies to MAST programs. External Debt by the Public Sector of Non-Concessional New Contracting or Guaranteeing 8 of the Guidelines on Public of debt. The definition of debt is set in paragraph of the Executive 23. Definition adopted by Decision No. 16919-(20/103) Debt Conditionality in Fund Arrangements, the term "debt" will be understood to 28, 2020). For the purpose of these guidelines, through the Board (October liability, created under a contractual arrangement mean a current, i.e., not contingent, currency) or services, and which requires the provision of value in the form of assets (including currency) or services, at some in the form of assets (including obligor to make one or more payments the principal and/or interest liabilities incurred future point(s) in time; these payments will discharge the primary ones being as follows: the contract. Debts can take a number of forms, under by the lender made on the basis of an i. loans, ie, advances of money to the obligor funds in the future (including deposits, bonds, undertaking that the obligor will repay the exchanges of assets that commercial loans and buyers' credits) and temporary to the debentures, loans under which the obligor is required repay are equivalent to fully collateralized the collateral from the buyer in the future funds, and usually pay interest, by repurchasing agreements and official swap arrangements); (such as repurchase permits the obligor to defer payments credits, i.e., contracts where the supplier are provided; and ii. suppliers' date on which the goods are delivered or services until some time after the which the lessee has the right to under which property is provided total ii. leases, i.e., arrangements of time that are usually shorter than the use for one or more specified period(s) retains the title to the property. For the expected service life of the property, while the lessor of the lease) of all lease the debt is the PV (at the inception purpose of these guidelines, the period of the agreement excluding those payments expected to be made during of the property. that cover the operation, repair, or maintenance payments Nonfinancial public sector and comprised the advances Gross debt is debt owned by Analysis). 24. public to the government (see Debt Sustainably by the Banque de la République d'Haiti (BRH) INTERNATIONAL MONETARY FUND 43 expected service life of the property, while the lessor of the lease) of all lease the debt is the PV (at the inception purpose of these guidelines, the period of the agreement excluding those payments expected to be made during of the property. that cover the operation, repair, or maintenance payments Nonfinancial public sector and comprised the advances Gross debt is debt owned by Analysis). 24. public to the government (see Debt Sustainably by the Banque de la République d'Haiti (BRH) INTERNATIONAL MONETARY FUND 43 --- Page 47 --- HAITI sector. For the purposes of the program, a debt guarantee 25. Debt guarantees by the public to service a debt in the event of non-payment by the public sector means an explicit legal obligation borrower (in return for payment in cash or in kind). by the element concessional if it includes a grant Concessional debt. An external debt is considered 26. of at least 35 percent. 10 visthe debt of the public sector which is contacted or serviced 27. External public debt. This is issued domestically by the government and It includes, where applicable, debt issued domestically à-vis non-residents. that non-residents do not hold debt This TMU assumes held by non-residents. external debt will be adjusted if new information becomes by the public sector. The stock of available. undertakes not to contract or guarantee any new non28. The central government also applies to domestic debt. It also applies to concessional external debt. This quantitative target that constitutes a contingent liability. any private debt guaranteed by the central government of less than one year) import-related Excluded from the ceiling are short-term (with a maturity non-resident purchases of treasury borrowing from the IMF, credits, rescheduling arrangements bills that are indexed to the exchange rate. This quantitative bills, and gourde-denominated BRH authorities and any non-observance will be immediately target will be monitored continuously by the report to the Fund. Public Sector External Arrears Accumulation sector. They include all debt-service obligations 29. Arrears on external debt of the public the public sector that are due to nonand interest) on loans contracted or guaranteed by exclude those arising (principal due date as set out in the loan contract; they residents but not paid on the creditors and (or) those that are litigious. For the being renegotiated with external debt arrears from obligations on the non-accumulation of new external purpose of assessing the quantitative target of debt service due to international by the public sector, arrears resulting from non-payment from the previous definition. This payments to the creditor are excluded will be sanctions preventing continuously by the authorities and any non-observance quantitative target will be monitored immediately report to the Fund. Accumulation of the Central Government Domestic Arrears They include all debt-service debt of the central government. 30. Arrears on domestic contracted or guaranteed by the central government obligations (principal and interest) on loans the due date set out in the loan contract. The that are due to residents but not paid 90 days after element of a wide range of financial packages is available at: 10 A tool to calculate the grant 4a1942r 44 INTERNATIONAL MONETARY FUND --- Page 48 --- HAITI quantitative target on domestic arrears accumulation, will be monitored continuously by the authorities and any non-observance will be immediately report to the Fund. C. Reporting of Data for the Monitoring of the Program 31. In order to facilitate monitoring of the program, the government will provide IMF staff with the information set out in the following summary table. Any data revisions will be promptly communicated to IMF staff. 32. The authorities will inform IMF staff in writing at least 10 working days (excluding public holidays in Haiti) before any change in economic and financial policies that may affect the outcome of the program. Such policies include, for example, changes in tax or customs legislation, wage policy, and support for public or private enterprises. With respect to continuous QTs, the authorities will report any non-observance to the IMF promptly. INTERNATIONAL MONETARY FUND 45 provide IMF staff with the information set out in the following summary table. Any data revisions will be promptly communicated to IMF staff. 32. The authorities will inform IMF staff in writing at least 10 working days (excluding public holidays in Haiti) before any change in economic and financial policies that may affect the outcome of the program. Such policies include, for example, changes in tax or customs legislation, wage policy, and support for public or private enterprises. With respect to continuous QTs, the authorities will report any non-observance to the IMF promptly. INTERNATIONAL MONETARY FUND 45 --- Page 49 --- HAITI Appendix II. Table 4. Haiti: Summary of Data to be Provided Sector Type of data Frequency Reporting deadline Real Sector National accounts Annual Year-end + 3 months Quarterly economic indicators (economic cycle) Quarterly Quarter-end + 2 months Consumer price index (including breakdowns) Monthly Month-end + 3 weeks Public Finances Fiscal revenues (internal, external, other) Monthly Month-end + 1 week (4 final weeks final data) Expenditures on Cash Basis (wages and salaries, Month-end + 1 week (4 goods and services, external debt, current accounts) Monthly final weeks final data) Table of government financial transactions (TOFE) Monthly Month-end + 2 weeks Balance on current accounts Month-end + one and operation of projects Monthly month Table Underlying TOFE, which enables the determination of checks in circulation and balance Monthly Month-end + one on investment project accounts month Table on budget implementation with breakdown by ministry and other bodies and by type of Monthly Month-end + one expenditure month Total monthly amount of expenditure executed by Month-end + one transfer letters Monthly month Report on Revenue Collection of DGI (progress Month-end + one report) Monthly month Tables of revenue collection of AGD (port activity indicators, analytical report of customs receipts on Monthly Month-end + one import) month Table of revenue collected and authorized Month-end + one expenditure (TEREDA) Monthly month Detailed revenue and expenditures of BMPAD Quarterly Quarter-end + one month Report on social protection expenditures Quarterly 30-day lag (final data) Table on the implementation of the PSUGO program Quarterly 30-day lag (final data) Dashboard of the state electricity utility EDH showing monthly information on the production of electricity, making explicit the composition of Monthly 30-day lag (final data) production by independent electricity producers, EDH, and by region. EDH commercial data allowing the calculation of EDH's billing and collection rates Monthly Month-end + one week EDH cash data including all revenues and all Month-end + one expenditures (operating, investment, and other) Monthly month Information on any off-budget claims presented for Month-end + one payment Monthly month 46 INTERNATIONAL MONETARY FUND electricity utility EDH showing monthly information on the production of electricity, making explicit the composition of Monthly 30-day lag (final data) production by independent electricity producers, EDH, and by region. EDH commercial data allowing the calculation of EDH's billing and collection rates Monthly Month-end + one week EDH cash data including all revenues and all Month-end + one expenditures (operating, investment, and other) Monthly month Information on any off-budget claims presented for Month-end + one payment Monthly month 46 INTERNATIONAL MONETARY FUND --- Page 50 --- HAITI Appendix II. Table 4. Haiti: Summary of Data to be Provided (Continued) Stock of unpaid off-budget central government Month-end + one liabilities Monthly month Data on all fuel shipments per product giving the CIF import price, the full price structure (including stabilization margin) and import and consumption Monthly Month-end + one week quantities. Data on actual collections for each month with a breakdown per product and tax type. Table of import prices of petroleum products, by Month-end + one arrival Monthly month Table of imported quantities of petroleum products Monthly Month-end + one month "Stabilization margin" table of the Directorate of the Month-end + one Tax Inspectorate Monthly month "Petroleum product tax" table of the Directorate of Month-end + one the Tax Inspectorate Monthly month Details of the stock of all government borrowing and debt securities (interest rate, maturity, creditor if Annual End of financial year known) + 3 months Full amortization table of domestic and external End of financial government debt Annual year + 3 months Statement of stocks and flows of repayment of suppliers' credits and payment arrears Monthly Month-end + one week Monetary and Financial Data Exchange rate Daily Day-end + one day Monetary base and sources thereof and currency in circulation. Weekly Week-end + one week Aide Memoire Table containing, inter alia: (i) stock of BRH bonds; (ii) deposits at commercial banks; (ii) credit to private sector (in gourdes and U.S. dollars); (iv) details of inflows and outflows of foreign exchange reserves, including budget support received; (v) volume of foreign exchange Weekly Week-end + one week transactions, including BRH sales and purchases; (vi) gross and net international reserves; (vii) net BRH credit to central government and the non-financial public sector; and stocks and interest rates of BRH bills. Tables of monetary statistics showing, inter alia, the balance sheet of the BRH (Table Standardized Month-end + one Report Form-1SR) and the consolidated banking Monthly month sector (Table Standardized Report Form -2SR) IMF Weekly Tables showing, inter alia, the average and weighted interest rates on gourde and U.S. Month-end + one dollar-denominated deposits and credit, and the Monthly month excess reserves in the banking system. INTERNATIONAL MONETARY FUND 47 and stocks and interest rates of BRH bills. Tables of monetary statistics showing, inter alia, the balance sheet of the BRH (Table Standardized Month-end + one Report Form-1SR) and the consolidated banking Monthly month sector (Table Standardized Report Form -2SR) IMF Weekly Tables showing, inter alia, the average and weighted interest rates on gourde and U.S. Month-end + one dollar-denominated deposits and credit, and the Monthly month excess reserves in the banking system. INTERNATIONAL MONETARY FUND 47 --- Page 51 --- HAITI Appendix II. Table 4. Haiti: Summary of Data to be Provided (Concluded) Monetary and financial statistics. Standardized reporting form, balance sheets of the Central Bank Monthly Month-end + one and other depository corporations. month Information on the composition of gross reserves. Monthly Month-end + one month Banking supervision statistics and commercial Quarter-end + one indicators on commercial banks. Quarterly month The calendar and planned placements of BRH gourde-denominated dollar-indexed bills, including Quarterly Quarter-end + one in banks and nonbanks. month Audited financial statements of the BRH Annual Year-end + 3 months Balance of Payments Balance of payments (first version) Quarterly Quarter-end + 6 weeks Revised balance of payments Quarterly 31 months after the first reporting BRH FX cash flow table; quarterly projections Quarter-end + one through end of fiscal year. Quarterly month External Debt External debt report prepared by the BRH showing monthly disbursements; debt service, debt Month-end + one forgiveness and rescheduling, arrears, and debt Monthly month stocks. Details of any external public debt and debt Month-end + one guaranteed by the State Monthly month Data on stocks, accumulation, and repayment of external arrears Monthly Month-end + 6 weeks Table of complete amortization of external debt Annual End of financial year + 3 months International Investment Position (IIP) Annual Year-end + 3 months 48 INTERNATIONAL MONETARY FUND