An official of International Monetary Fund (IMF) stated that fuel that is being subsidized by the Haitian government is benefiting for the most part, the rich and the powerful in Haiti. The international organization has reached an agreement with the government where they would make funding available to the government once their finance is in order. Haiti must strengthen its revenues by increasing tax collection and eliminating fuel subsidies.
Following the recent announce on July 6 by the Haitian government to increase the price to close to 50 percent which triggered protests throughout the country, the official from FMI suggested for the Haitian Government to withdrawn the subsidies gradually and also to assist the population with targeted aids in order to ease the effects.
As per a report dated May 20, 2015, the Executive Board of the International Monetary Fund (IMF) has approved a three-year SDR 49.14 million (about US$69.7 million, 60 percent of quota) arrangement under the Extended Credit Facility (ECF) for Haiti on Monday, May 18, 2015. The approval will enable an immediate disbursement facility of an amount equivalent to SDR 7.02 million (about US$10 million). The remaining approved amount will be phased over the duration of the arrangement, subject to semi-annual program reviews.
The ECF support program by the IMF has been designed to introduce sustainable growth potential, bringing macroeconomic stability and reducing the country's vulnerability to shocks and other disasters. It will help to improve the competitiveness to encourage comprehensive growth, and maintain buffers, through streamlined policies that have full country ownership. The SDR (Special Drawing Right) is an international reserve asset, created by the IMF in 1969 to supplement its member countries' official reserves. The value of the SDR is determined by a basket of four key international currencies, which can be exchanged for freely usable currencies.
And the, if not good then, hopeful news keeps on coming. Information coming from the Haitian Institute of Statistics and Informatics (IHSI) along with the Ministry of Economy and Finance shows there has been a registered increase of 6.4% of the index of industrial production. Baldly put, the Haitian gross domestic product has risen.
Detailed in the Q4 2012 to 2013 publication for July through to September, the results also showed a 2.5% increase of the quarter before. The increase is also backed by data from the International Monetary Fund (IMF), which is slightly up from the forecast made earlier in June of 2013 which put the growth percentage at only 3.4%.
After suffering from a devastating earthquake back in 2010, Haiti has been slowly recovering and has even surprisingly ensured economic growth in a short span of time for the past two years. This is due to the constant flow of financial aid given to the Caribbean country by developed countries through the International Monetary Fund (IMF). The IMF has already released about $300 million since 2010 to help Haiti out. But with the recent economic recession happening in several developed countries, chances of Haiti obtaining sufficient assistance from IMF and other nations for the next years to come is slim.
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