HAITI-ECONOMY-Haiti seeks IMF assistance

PORT AU PRINCE, Haiti, CMC - Haiti is seeking millions of dollars in assistance from the International Monetary Fund (IMF) to help it build on macroeconomic policies that have contributed to stabilising the economy of the impoverished Caribbean Community (CARICOM) country.

In a letter of intent sent to the IMF, the Haitian government said it had made significant progress under the three-year Poverty Reduction and Growth Facility (PRGF) arrangement approved in 2006, and was now requesting the fourth disbursement under the arrangement, in the amount of US12.3m dollars, following the completion of the third review.

"In light of the severe external shock that Haiti has recently experienced, we are requesting an augmentation of access under the arrangement (by US26.5m dollars), also to be made available following the completion of the third review," it said.

"We also request an increase in HIPC (Heavily Indebted Poor Countries Initiative) interim assistance (by US53,474 dollars) to fully cover interest obligations on eligible debt falling due to the Fund in June 2008."

Finance Minister Daniel Dorsainvil said that over the past years, Haiti has implemented macroeconomic policies that have contributed to stabilising the economy and that the country has made significant strides in strengthening security.

"We are working to build on these gains and bring about strong and sustained economic growth that can substantially improve the living conditions of our population and reduce poverty in our country. However, as a large net importer of food and fuel, Haiti has been severely hit by rising commodity prices and the agricultural sector has suffered from the impact of hurricanes and flooding," he said in the letter of intent to the IMF.

But he added that despite these unexpected shocks, the government remains committed to preserving the stabilisation gains achieved so far.

"We are responding to the difficult situation with policies that balance adjustment and financing and safeguard macroeconomic stability. In particular, our programme provides room for additional emergency spending to support the most vulnerable population from the effects of higher food and fuel prices, while ensuring that these expenditures are financed in an orderly way.

"The requested augmentation of access will help smooth the large balance of payments pressures created by the sharp rise in our import bill," the Finance Minister said.

Originally published by Caribbean Media Corporation news agency website, Bridgetown, in English 1620 30 Jul 08.

(c) 2008 BBC Monitoring Americas. Provided by ProQuest Information and Learning. All rights Reserved.

Story Source: BBC Monitoring Americas