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P 031636Z APR 09
FM AMEMBASSY PORT AU PRINCE
TO SECSTATE WASHDC PRIORITY 9812
INFO HAITI COLLECTIVE PRIORITY
AMEMBASSY SANTO DOMINGO

UNCLAS PORT AU PRINCE 000370 
 
 
STATE FOR WHA/EX AND WHA/CAR 
S/CRS 
SOUTHCOM ALSO FOR POLAD 
STATE PASS AID FOR LAC/CAR 
INR/IAA 
WHA/EX PLEASE PASS USOAS 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EAID EAGR EINV ETRD BEXP HA
SUBJECT: HAITI ECONOMIC MONTHLY UPDATE FOR MARCH 2009 
 
¶1. (U) Summary:  This is a monthly report on a variety of topics of 
interest which do not merit full reporting cables.  End summary. 
 
¶2. (U) Joint Bilateral Commission between DR and Haiti.  Haiti and 
the Dominican Republic re-established a joint Dominican/Haitian 
Commission on March 5, 2009, in Santo Domingo.  The commission will 
focus on areas such as trade, agriculture, tourism, development, 
immigration, education, culture, health, sports, public safety, and 
human rights. 
 
¶3. (U) Haiti/DR Trade Increase.  According to official Dominican 
Republic estimates, trade between Haiti and the DR increased 
dramatically over the past four years.  Trade between the two 
countries grew from USD 120 million in 2004 to over USD 500 million 
in 2008.  In 2008, trade volume increased by 30 percent over 2007. 
 
¶4. (U) Tax Collection.  The Haitian Tax Authority (DGI) collected 
HTG 12.3 billion (USD 303.4 million) in taxes through mid-February, 
a 4 percent increase over the same period in FY 08.  Current 
revenues represent nearly 45 percent of last year's total fiscal 
revenues, signifying a great improvement in DGI and the Customs 
collection system.  The GoH is improving tax collection efficiency 
to support current expenditures, which total HTG 14.3 billion (USD 
354.2 million) so far in FY 09, a 19 percent increase over last 
year. 
 
¶5. (U) Decrease in Bank Loans.  Haitian commercial bank credit 
declined during the first 5 months of FY 09, which could compromise 
the projected annual GDP growth of 2.5 percent.  From October 2008 
to February 2009, the value of loans in Haitian Gourdes declined 0.7 
percent, compared to an increase of 2.7 percent over the same period 
last year.  The decrease in dollar loans was 0.4 percent compared to 
a 0.5 percent decrease last year.  According to an official of the 
Haitian Central Bank (BRH), the reduction of bank credit during the 
first half of FY 09 indicated a decreasing demand for credit by 
local importers, in response to falling world commodity prices, not 
to a lack of willingness to grant credit by the commercial banks. 
(Note: Haitian commercial banks are currently lending to their best 
customers at between 13 and 14 percent interest for local currency 
loans and at 8-9 percent for loans in USD.  End note.) 
 
¶6. (U) Decrease in February Remittances:  February 2009 remittances 
totaled USD 84.2 million, a 22 percent increase compared to January 
2009 and a 6  percent decrease compared to February 2008.  Total 
remittances from October 2008 to February 2009 were USD 411.3 
million, USD 3 million more than the same period last year.  (Note: 
preliminary indications are that this rate of decline could get even 
worse in the coming months.  End note.) 
 
¶7. (U) Parliament Ratification.  Parliament ratified the following 
international agreements on March 12, 2009:  The Inter-American 
Convention (OAS) for the Elimination of All Forms of Discrimination 
Against Disabled People; The United Nations Convention on Disabled 
People's Rights; and The United Nations International Convention 
Against Transnational Organized Crime and its three protocols, 
including two on human trafficking. 
 
¶8. (U) Ministry of Tourism Report.  The number of tourists to Haiti 
increased from 450,000 in 2002 to 868,000 in 2007, accounting for 
4.5 percent of the tourists in the Caribbean region.  In 2007, 
tourism generated approximately USD 14.5 million in Haiti.  The GoH 
receives USD 30 for each tourist staying in country and USD 6 for 
each cruise ship passenger that comes ashore.  (Note: Tourism 
figures for 2002 were low due to the security situation at that 
time.  End note.) 
 
¶9. (U) Agriculture Program.  The International Fund for Agricultural 
Development (IFAD) and the Organization of Oil Exporters (OPEC) are 
financing a USD 26.9 million project in Fort Liberte (northeastern 
Haiti, near the northernmost border with the DR) providing support 
to small farmers, increasing food production, and reducing food 
insecurity.  This project focuses on small-scale irrigation.  A 
similar project is slated for the Central Plateau. 
 
¶10. (U) National Budget Reduced.  The GoH draft National Budget, as 
submitted to Parliament, was decreased from HTG 100 billion (USD 2.5 
billion) to HTG 96.5 billion (nearly USD 2.4 billion) and finally to 
HTG 80 billion (USD 2.0 million) during the course of March.  Six 
months into the fiscal year, the draft finance law has still not 
been passed.  The GoH's spending priorities for 2009 were changed 
from infrastructure and agriculture to energy and education.