IMF approves third review of Haiti staff-monitored program, extends reform path to 2027

The International Monetary Fund (IMF) has approved the third review of its Staff-Monitored Program (SMP) with Haiti and agreed to extend the program through June 19, 2027, as the country continues to grapple with deep security, economic, and political challenges.

The IMF said all program targets were met as of end-December 2025, noting continued progress on reforms despite delays in some areas linked to insecurity, limited institutional capacity, and political uncertainty.

The extension is intended to help anchor macroeconomic stability and sustain reform efforts during Haiti’s ongoing political transition. The IMF said the Haitian authorities continue to demonstrate ownership of the programme and remain engaged through a high-level monitoring committee.

Staff-monitored programs are informal arrangements between IMF staff and member countries that track economic policies without requiring approval by the IMF Executive Board. They are often used to build a track record of reforms that could eventually support access to formal IMF financial assistance.

Haiti remains in a prolonged crisis marked by persistent gang violence, political fragility, and worsening humanitarian conditions. The IMF said around 5.7 million people are facing food insecurity and about 1.45 million are internally displaced, while economic activity continues to be disrupted.

The Fund also pointed to additional external pressures, including higher global oil prices, which have increased import costs and strained fiscal balances, as well as damage from Hurricane Melissa in October 2025.

The UN-supported Gang Suppression Force began arriving in April 2026 and is expected to be fully deployed by October, which authorities hope will help improve security conditions and support recovery efforts.

Economically, Haiti’s real GDP contracted for a seventh consecutive year in FY2025, with another contraction expected in FY2026. Inflation has eased somewhat but remains elevated, while financial intermediation continues to weaken amid reduced bank lending and rising uncertainty.

Despite these challenges, the IMF said external buffers remain relatively stable. Remittance inflows have helped offset external pressures, and gross international reserves are projected at around US$3.4 billion by end-FY2026, equivalent to more than seven months of import cover. The exchange rate has also remained broadly stable.

On the fiscal side, the IMF highlighted weak revenue performance, constrained spending capacity, and pressure from rising fuel subsidy costs. It noted that recent domestic fuel price adjustments are expected to ease some fiscal strain, but warned that spending must remain tightly prioritised to protect vulnerable groups.

Risks to the outlook remain tilted to the downside, the Fund said, citing the potential for worsening security, sustained global oil price pressures, and weaker remittance flows if immigration policies shift in key destination countries.

Looking ahead, the IMF said the program will continue to focus on governance reforms, anti-corruption efforts, revenue mobilisation, improved budget execution, financial sector supervision, and strengthening central bank credibility.

It also stressed the importance of continued support from international partners, preferably in the form of grants rather than non-concessional borrowing, to avoid further weakening Haiti’s public finances.

The IMF said its staff will continue working closely with Haiti and development partners as part of broader efforts to stabilise the economy and strengthen institutions in fragile and conflict-affected settings.