13543: Casimir: Re: 13534: Lafleur: RE: 13465: 37 Gourdes for 1 US Dollar (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Jean-Claude CASIMIR <jccasimir@hotmail.com>

Our economists when the beast is wounded every one is attacking him. It is
too late for the economists ' advices.They wasted so much time talking about
globalization introduction of the internet before securing enough
electricity to the country. They spent too much time speculating like real
wall street business people instead of fighting to give the country the
economic and financial institutions it needs.What has been the contribution
of those economists as far convincing the capitalists of the country to sell
shares of their business so that our financial sector stopped being  a few
families monopolies controlling the dollars of the country. I have my
suggestions, I will submit them to a group of patriots not to any profiteers
who are enjoying their situation of "dans le royaume des aveugles les
borgnes sont rois." Patriotically.

jccasimi@hotmail.com





>From: Bob Corbett <corbetre@webster.edu>
>To: Haiti mailing list <haiti@lists.webster.edu>
>Subject: 13534:  Lafleur:  RE: 13465:  37 Gourdes for 1 US Dollar (fwd)
>Date: Sat, 2 Nov 2002 17:11:54 -0600 (CST)
>
>
>From: Lourdes Lafleur <lourdeslafleur@videotron.ca>
>
>By Yves Marie Chanel
>IPS
>11/31/02
>
>PORT-AU-PRINCE - Haitian economists are expressing extreme concern, bankers
>are trying to curb the panic, and officials talk of ''invisible hands
>plotting against the government'' as rumours circulate that the government
>plans to seize all U..S. dollars in the country.
>Fearing imminent plans to nationalise their dollar bank accounts, small
>account holders earlier this month withdrew a total of 25 million dollars
>from banks over a period of less than five days.
>Authorities are denying reports that they plan to ban dollar accounts. On
>Monday, President Jean-Bertrand Aristide told the nation that such a plan
>''has never been and never will be put in place''.
>But sources in the banking sector told IPS that ''highly-placed officials
>in
>the government plan to nationalise dollar accounts and pay the holders only
>half the actual Haitian market value of the American dollar in local
>currency''.
>''There are a few government officials who have advised people of this
>possibility. They're planning to use this money to pay arrears so they can
>unblock the flow of new foreign aid loans'', the source affirmed.
>The country's import reserves have dropped from 113 million dollars a year
>ago to 50 million today. The government needs to either borrow or
>nationalise accounts to have enough dollars to pay arrears on foreign debt.
>Payment of arrears was one of the conditions laid down by the International
>Monetary Fund (IMF) for the country to receive loans. Debt arrears totalled
>about 43.9 million dollars in June 2002, while outstanding discounted bills
>were estimated at that time to be 1.2 billion dollars.
>Haitian officials, facing serious financial difficulties, may have already
>used half the banks' legal dollar reserves on deposit with the Central
>Bank,
>one banking source maintained.
>More than 30 percent of the country's monetary mass is in dollars. Last
>June, the Central Bank estimated that 457 million dollars were on deposit
>in
>Haitian banks.
>The continuing flight of capital is of concern to professionals and other
>middle class savers rather than to large entrepreneurs. Major businesses
>receive banking credit, but do not maintain bank accounts in Haiti. Their
>funds are invested abroad, a bank official told IPS.
>The panic that hit two weeks ago has accelerated a drop in the local
>currency, from 28.5 gourdes per dollar in September to 32.75. Aristide's
>declaration this week stopped the slide.
>The price of basic necessities has been skyrocketing on a daily basis. Most
>shops no longer even bother posting prices. The government has propped up
>the price of gasoline but experts say that strategy will only increase the
>budget deficit, driving inflation still higher.
>''The banking panic in Haiti is the result of very bad economic policy
>management by those who have been in charge over the past two years,'' says
>Kesner Pharel, a prominent Haitian economist who is currently a public
>policy and management fellow at Harvard University.
>''Despite the net reduction in international financial aid caused by the
>political crisis, financial authorities have maintained a very high level
>of
>expenditure,'' he added.
>''These expenditures, which are non-productive, contributed to a deepening
>of the budgetary deficit, which reached record levels in the past two
>years.
>The deficit was more than two billion gourdes during the 2001-2002
>budgetary
>year, and will break the three billion gourde mark during budgetary year
>2002-2003,'' according to Pharel.
>The economist says the Central Bank supported high levels of spending by
>continuously advancing the government money.
>''The effect of the most recent interventions by bank officials and the
>government will only be fleeting,'' he adds. ''What's necessary is to stop
>the monetary haemorrhaging caused by the unconditional financing of public
>expenditures by the central bank.''
>His predictions are grim. Net reserves, estimated at less than 50 million
>dollars, says Pharel, are not enough for the government to deal with
>attacks
>by speculators. That vulnerability could be fatal if the United States
>attacks Iraq and the price of the barrel of oil goes up substantially.
>The banking panic, he adds, could make private investors very leery of
>Haiti, which could encourage the flight of capital, deepening poverty in
>the
>poorest country in the Americas.


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