Finance - Haiti Observer Blog

Many of us would agree that the previous legislative body in Haiti did not do much in term of passing new laws. Some people may also say that many of them use their position to enrich themselves. However, many people would be shocked to hear me saying that:. The President of the Senate, Simon Dieuseul Desras, however managed to accomplish one single action that may be considered the biggest revolution in Haiti since our struggle for independence.

So what is it?

During a negotiation process between the Government of Michel Martelly and several political parties, Mr. Simon Dieuseul Desras managed to strip away from the executive branch, its biggest hold, control or power which is none other than the power to use public funds as it pleases them land without any accountability or explanation to give to anyone.

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The Haitian gourdes has been losing its value fast for the past few Months.At the beginning of the Month, the exchange rate was 46 gourdes for a US dollar. Today, you need 47 Gourdes for a dollar.

With the current level of political instability in the country will Haitians need 50 gourdes to buy one one US dollar by the end of the year?

Central Bank Governor Calms Fears about Gourde Devaluation

Governor of Haiti's Central Bank, Charles Castel, addressed a growing alarm the gourde might depreciate too quickly before the end of the year. It is now trading at 47 gourdes for each U.S. dollar and worries are depreciation of Haiti's currency may reach 50 gourdes by years' end.

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Once the text sanctioning Money Laundering and terrorist financing is promulgated by the President Michel Martelly in the official gazette, all financial institutions, companies, economic enterprises, non-financial, social, professional, religious, humanitarian, international organizations, will be required to report all transactions in cash.

Do you remember all the commotions over this bill?

Some of our beloved Senators and Deputies were totally against it.

Several desks were broken by Deputy Arnel Belizaire to show his frustration over this bill.

The bottom line is that Haiti is no longer running the risk of trade sanction for not having a law on Money Laundering and terrorist financing. The law sanctioning money laundering and terrorist financing was on Monday, November 11, 2013 was passed in identical terms by the two branches of parliament. The vote was as follows: 9 voted in favor, 3 against, 3 abstained

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Here is something that might be of value to people interested in accessing funding for a Haiti project. The businesses can have access to loans from various financial institutions in Haiti, thanks to a USD 26-million housing finance under the name "REBATI Fund".

My job is to bring these information to you. However, if you are interested, you need to make the proper connections to learn more about it.

According to information received, three major organizations got together to offer this opportunity: The Overseas Private Investment Corporation, the U.S. Agency for International Development and the Clinton Bush Haiti Fund

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The government of Haiti (GOH) has allocated funding to General Administration of Customs (AGD) for recruitment of patrol agents. The first class of 125 graduated in June 2013. The graduation ceremony was held at Royal Oasis Hotel with Prime Minister Lamothe; Economy and Finance Minister Laleau, and AGD Director Jean-Baptiste present. Lamothe encouraged the graduates to represent GOH with ". . . patriotism and professionalism" as they carry out their duties.

GOH recognizes they must provide support to the AGD to defeat smuggling and bring in more customs revenue. Lamothe said the patrol agents are to serve two purposes: one, protect the borders from smuggling activities, and, two, reassert the sovereignty of GOH.

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Marie Carmelle Jean Marie has been assigned as the new Business Economic and Financial Advisor of the Presidency. According to well-informed source, Jean Marie was put into this post by and international community. The resignation of Jean Marie from the Lamothe administration goes on to show that Prime Minister Laurent Lamothe not President Martelly was the primary cause of resignation of the flamboyant Finance Minister.

After several discussions with President Joseph Michel Martelly and her wife Sophia Saint-Remy Martelly agreed to take up the post of Advisor to Financial and Economic affairs of Presidency. According to some well-informed sources, both President Martelly and First Lady Sophia had deep appreciations for the former Finance Minister Marie Carmelle Jean Marie, who is popular by the moniker Iron Lady.

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The government of Haiti's (GOH) latest corruption scandal has erupted over state-worker pensions (ONA) being moved from Central Bank (CB) to individual accounts at National Credit Bank (NCB).

Testifying before senators, Director Bernard Degraff, who runs the National Office of Pensions (NOP), evaded inquiries on how pension funds ended up being diverted to NCB. The transfer happened without state workers' foreknowledge, and in violation of Haiti's Constitution. It states no pension funds are to be moved from CB to any other financial institution.

Bernard Degraff, President Martelly's appointee to ONA, had been under investigation even before the pension-fund scheme was uncovered. Reports from inside GOH have alleged other instances of mis-management Degraff has been involved in. He is reputed to have fired scores of government administrators for no apparent reason, and given himself a whopping salary increase. GOH investigators have been combing through documents and interviewing NOP agency workers to compile a list of charges they will indict him with.

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A May 21st press release by the IDA (International Development Association) reveals that Haiti is about to benefit from $90 million in grants. The much needed funding will be used mainly for health services, with $70 million designated towards improving the accessibility of health care to new mothers and children. The remaining $20 million will be used to stimulate the economy by making favorable changes to the business arena aimed at ramping up the interest of private investors.

All in the aim of stimulating Haiti's still-struggling economy and bringing a better standard of living to its citizens, the grant is set to benefit nearly two million people directly from one of its two segments, health services. Via the Integrated Social Services Project, $90 million, an additional subsidized $20 million to be given by the Multi-donor Trust Fund for Health Results Innovation, will improve the health of expectant and new mothers in the West, Northwest and Northeast departments. The gains to be counted from the boost to the economy to improve foreign investment cannot yet be quantified.

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To help Haiti rebuild its infrastructure, the World Bank (WB) is working with the government of Haiti (GOH) to draft a proposal to modernize its mining law. Haiti's mining industry is a well-kept secret. Foreign mining companies have been quietly doing exploratory drilling in northern ranges close to the Dominican Republic border, having invested $30-plus million dollars. What they have uncovered is a mother lode of copper, silver, and gold ore, estimated at $20 billion.

For Haiti to benefit from this potential windfall, royalty rates need to be raised from two percent per ounce to at least nine to 12 percent. It's going to be a tough sell for WB and GOH to persuade Parliament for two reasons. First, Parliament cannot hold sessions unless all 30 senators are present. Some senators are absent because they are campaigning for re-election, although elections have yet to be announced. Second, the opposition party, holding a majority of seats, is against cooperating with the current administration.

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Haiti's ruling power suddenly faced a void because of two consecutive resignations. This forced Laurent Lamothe, Prime Minister of Haiti, to appoint a new Communication minister and new Finance minister. Marie Carmelle Jean-Marie resigned from the post of Economy & Finance Minister. Wilson Laleau was appointed in this position who previously served as Trade and Industry minister.

On the other hand, Regine Godefroy who resigned from the post of Communication minister will be replaced by Josette Darguste, the current Culture Minister for Haiti. Both these appointments made by Prime Minister Laurent Lamothe were approved by Haitian President Michel Martelly. The statement about this confirmation was issued from the office of Prime Minister.

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