Haiti: The IMF disburses $105 million to provide food aid

The International Monetary Fund (IMF) approved yesterday Monday the granting of an emergency loan amounting to 105 million dollars to Haiti, a country immersed in a humanitarian crisis aggravated by inflation.

These funds are expected to allow the impoverished Caribbean nation to “support those most affected by rising food prices, with food distributions and subsidies to the most vulnerable households,” explained Antoinette Sajeh, deputy director general of the international financial institution. , according to a press release issued in Washington.

The funding will come from the IMF’s special fund to deal with “food crises”, which was set up at the end of September and is expected to have a lifetime of one year.

This financial instrument is intended to provide rapid access to funds urgently needed by countries facing food insecurity, especially in cases of unexpected shocks, problems in cereal imports or sharp price increases.

“More than half of Haiti’s population already lives below the poverty line”, reminds the IMF, while the country is facing a “health crisis” (including a new cholera epidemic) and “serious security problems” (including p. the murderous activity of gangs).

Haiti has been “hard hit by the economic impact of Russia’s invasion of Ukraine,” particularly by “record inflation,” Ms. Sajeh said in the press release.

The funding will be made available through the Rapid Credit Facility (RCF), which allows low-income countries to borrow at zero interest when they face emergencies.

The amount of $105 million is roughly equal to 0.5% of Haiti’s GDP.

RES-EMP

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