Finance - Haiti Observer Blog

In 2016, Haiti's public debt at $ 2,771 million reached 33.5% of Haitian GDP and that translates to $255 per individual citizen. As per recent reports (dated May 27, 2017), the national and international debt of the Republic of Haiti hovers around US$3 billion out of which $1 billion represents internal debt and $2 billion of external one.

An 'External Debt' (or foreign debt) is the total debt of a country due to the foreign creditors while an 'Internal Debt' (or domestic debt) is the part of the total government debt in a country that is owed to lenders within the country.

If we compare this debt amount with other neighboring Caribbean countries, we might understand the relative soundness and solvency of the Haitian economy.

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In Haiti's 2015 presidential elections, the United States, along with other international bodies, provided a total of US$38 million to Haiti's Conseil Electoral Provisoire (Provisional Electoral Council, CEP). The U.S. spent $33 million on the 2015 elections and in last July, has threatened to withhold further funds, because during the last elections, political turmoil resulted massive frauds and unacceptable election results, and following that President Privert announced his decision to re-run the presidential race. Later, President Privert assured the public that the elections of October 9, 2016, will be funded nationally. He has affirmed that the $55 million needed for the elections is available in the public treasury. As per Finance Minister Yves Romain Bastien, the election money received for the last election was never in the hands of the Haitian authorities. He has also said that the upcoming polls would be largely paid for through funds collected from a port, the central bank and Haiti's National Credit Bank. Funding of other government programs would be largely excluded because the port and two banks are good profit making concerns which they ordinarily do not share with the state, he added.

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Senator Jean Baptiste Bien-Aime is crying out for vigilance following some huge financial transactions ordered by government officials who were only supposed to be liquidating current affairs. According to the Senator, he has in his possession several financial transactions made by the Minister of Finance, Wilson Laleau, that raise lots of questions. Here are some of the transactions:

On February 18, ONA Director requested to transfer 500 million of gourdes from BRH to account number: 1021011301898 in Unibank.

Also on February 18, ONA ordered the transfer of One Billion of gourdes from BRH to account number 131669799 belonging to ONA

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I am definitely working at the wrong place. Just to receive a three to five percent cost of living increase, it takes me years. This is not the case for the members of the CEP in Haiti. They just received an adjustment in their salaries from 124.000 gourdes to 240.000 gourdes. This is an increase of One hundred percent. The minister of Finance Wilson Laleau, has instructed the Treasury Department to take the appropriate measures to make the adjustment retroactive back in October, 2015. By the way these salaries do not include other fringe benefits usually associated with the position such as free vehicles, gas securities, and others

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President Michel Martelly just nominated Mr. Jean Baden Dubois to head Haiti Central Bank (BRH). He replaced Charles Castel. With over 25 years of experience in Haitian banking, Mr. Jean Baden Dubois is very respected in the financial field in Haiti. He has developed many strategies to improve services to the public and increase employee productivity. His special skills are in his capacity to identify needs and bring effective solutions.

Haitian Kreyol:

Jean Baden Dubois , nouvo gouvènè BRH, ranplase Charles Castel

Prezidan Michel Martelly jis nomine Mesye Jean Baden Dubois nan tèt Ayiti Central Bank (BRH). Li ranplase Charles Castel. Avèk plis pase 25 ane eksperyans nan bank ayisyen, Mesye Jean Baden Dubois se yon moun ki respekte nan zòn finansye an Ayiti. Li te devlope anpil estrateji ki te kapab amelyore sèvis pou piblik la ak ogmantasyon pwodiktivite sou kote anplwaye yo. Konpetans espesyal l 'yo se nan kapasite l' pou idantifye bezwen ak pote solisyon efikas.

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On December 17, 2015, by the virtue of a Presidential Order dated 23 November 2015, Jean Baden Dubois, the CEO of the Bank of the Republic of Haiti (BRH) has been appointed as the new Governor of the bank, replacing Charles Castel. As the new Governor of the bank, Jean Dubois has said, among other measures, his primary task would be to establish a base for the national currency and maintain a commendable internal and external value of the Haitian Gourde. To achieve this, he has stressed on the control of inflation through wealth creation and effective, innovative banking assistance services.

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Woy! Lavi vini pi chè. Malgre anons yo miltip nan men otorite ayisyen an ki ape fè fas ak pwoblèm goud ayisyen an ki pa sispann diminye nan valè nan relasyon ak dola Ameriken an, emoraji nan goud ayisyen an ap kontinye. Koulye a, ou bezwen ant 57 ak 60 goud ayisyen pou yon dola Ameriken nan mache echanj. Dapre kèk ekspè nan sektè finansye a, gen plizyè rezon pou bès nan la kounye a ki gen ladan politik, nan fen jou ferye ane yo, majorite nan popilasyon an pap travay ak lòt bagay. Entre-temps, Ayiti Central Bank gen entansyon pou mete 50 milyon dola nan ekonomi an nan yon tantativ pou soulaje sitiyasyon an.

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There is a new project to help all public servants in Haiti to obtain their own home. With this plan, anyone working for the government either as Civil servant or Agents of Public Service will be able to borrow money from the bank guaranteed by the government. The loan will be for up to 15 years at an annual rate of 6 percent.

This project is a proposition by the Ministry of Finance. The loans can only be used for home construction or home renovation. To make repayment easy, it will be taking directly from the employee's salary.

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Haitian Monetary Authorities ignoring Economic Panic engulfing the Country

Haitian monetary authorities are remaining mum as the devaluation of the gourde has helped contribute to an economic crisis within the country. The devaluation is connected to neo-liberal policies promoted by U.S. democratic institutions.

Platform Advocating for Alternative Development in Haiti (PAPDA) Director, Camille Chalmers says the neo-liberal economic development model is a two-edged sword. The upside is it increases Haiti's competitiveness in the global marketplace. The downside is it lessens the purchasing power of Haitian workers, paid in gourdes.

Adding to the crisis, according to Chalmers, are impending fall elections for state and local offices and the presidency. Rumors have been circulating elections won't be held, leading to more government instability. As a result of such predicted developments, people are uncertain, closing their accounts at Haitian banks and sending their money overseas. Chalmers warns, "These issues could cause a social explosion of unrest" He is referring to the 2008 food shortage violent demonstrations.

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There are many good news for the Haitian sorghum producers. Two companies, the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) and Papyrus, a project management firm with experience in agribusiness have come forward to their assistance. MIF has recently approved $2.4 million grant to help the small-scale sorghum farmers under a 4-year project named "Smallholder Alliance for Sorghum in Haiti (SMASH)" which would be implemented under supervision of 'Papyrus'. The objective of the project is to enhance the skills for about the 18,000 sorghum farmers in five Haitian departments (North and North East, West, South, Artibonite, and Plateau Central) and support their marketability. SMASH also addresses issues like poor soil quality and efficient harvest yields.

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