Haiti and the International Financial Institutions

The United States supports normal relations between Haiti and the international financial institutions (IFIs). Organization of American States Resolution 822, adopted by the OAS Permanent Council on September 4, 2002, urged both sides to work toward this goal.

The IFIs are actively engaged in Haiti. The staff of the International Monetary Fund agreed with the Government of Haiti in June 2003 on a macroeconomic program to limit Haiti’s budget deficit, improve transparency, and curb inflation. With this agreement in place and Haiti’s clearance of its arrears to the Inter-American Development Bank on July 8, the bank’s board approved a $50 million Investment Sector Loan, of which the first $35 million tranche was released July 24.

As Haiti’s arrears to the Inter-American Development Bank have been cleared, the bank has made available four previously approved project loans totaling $146 million (ratified by the Haitian Parliament in December 2000). Each loan is disbursing in accordance with the project terms.

In November, the Inter-American Development Bank approved an additional $202 million in new loans that must now be approved by the Government of Haiti. The rate at which approved loans disburse depend on the Haitian Government’s execution of projects and its policy performance.

Successful performance by the Haitian Government under its International Monetary Fund Staff Monitored Program and clearance of World Bank arrears are also needed for future IMF and World Bank lending. Although the World Bank suspended its disbursement of loans in 2001 due to Haiti’s arrears, the Bank continued its donor coordination role, most recently holding a donor meeting on December 5, 2003. The Bank also assists Haiti through grants from the Post-Conflict Fund; in 2003, the World Bank disbursed part of the $5 million that it had planned for grants to Haiti. Renewed World Bank lending in Haiti depends on the Haitian Government’s arrears clearance and implementation of structural reforms, especially in the area of economic governance.

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