(San Francisco) The International Monetary Fund (IMF) on Monday approved emergency aid of $105 million for Haiti, which is plunged into a humanitarian crisis aggravated by inflation.
The funds should enable the Caribbean country to “support those most affected by rising food prices through food distributions and payments to the most vulnerable households”, said Antoinette Sayeh, Deputy Director General, quoted in a press release from the organization.
The financing was released thanks to the IMF’s “food shocks” window, opened at the end of September for one year.
The instrument is used to provide rapid access to emergency funds to States facing food insecurity, particularly in the event of unexpected shocks in cereal imports or sudden price increases.
“More than half of the population of Haiti already lives below the poverty line”, recalled the IMF, and the country is undergoing a “health crisis” (cholera epidemic) and “serious security problems”.
“Haiti has been hard hit by the economic consequences of Russia’s invasion of Ukraine, including record inflation,” said Antoinette Sayeh.
The financing will be via the Rapid Credit Facility (RCF) – which allows zero-interest loans to low-income states facing an emergency situation – and the IMF’s Rapid Financing Instrument (RFI), which provides financial assistance to help restore the balance of payments.