15201: (Chamberlain) IMF Criticizes Haiti For Poor Economic Policies (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Greg Chamberlain <GregChamberlain@compuserve.com>

WASHINGTON (Dow Jones), March 3 - Haiti, the poorest nation in the Western
Hemisphere, must dramatically improve management of its economy, the
International Monetary Fund said Monday.
        The IMF "expressed deep concern about Haiti's worsening economic
and social conditions, and in particular, the widening of the fiscal
deficit, the accumulation of external arrears, and further increases in
poverty," the IMF said in a press summary of its annual "Article IV" review
of the economy.
        Haiti's economy has worsened during the last two years, with rising
deficits financed mainly by the central bank and through accumulation of
arrears. International reserves held by the central bank have declined from
efforts to support the currency, the gourde ($1=HTG41.00), which has also
fallen in value.
        "Political difficulties have deterred the authorities from taking
corrective measures aimed at stemming the loss in international reserves,
containing inflation, and promoting growth," the IMF said. Top priorities
for 2003 should be rebuilding central bank reserves, now at $45 million or
two weeks of imports, and containing inflation.
        The government needs to improve transparency and accountability of
its spending, the IMF said. The IMF "emphasized the importance of
strengthening cash management by restricting the use of discretionary
ministerial accounts."
        The IMF also recommended enhanced banking and credit supervision,
and action to privatize state-owned firms in the energy, telecommunications
and transportation sectors.