P 051640Z JUN 09
FM AMEMBASSY PORT AU PRINCE
TO SECSTATE WASHDC PRIORITY 9992
INFO HAITI COLLECTIVE PRIORITY
AMEMBASSY SANTO DOMINGO

UNCLAS PORT AU PRINCE 000533 

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 MAY 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) REMITTANCES CONTINUE SLOWDOWN.  April remittances amounted to 
USD 81.8 million, down 16 percent compared to March.  Year-to-date 
remittances total USD 590 million, USD 3.8 million (0.6 percent) 
less than last year for the same period. 
 
¶3. (U) IMF FORECASTS IMPROVEMENT IN HAITI'S INFLATION.  The IMF 
revised Haiti's FY 09 year-end inflation forecast from 9 percent to 
1 percent.  Primary factors for the change were the continuing 
decrease of world commodity prices and the Haitian Central Bank 
(BRH) regulation of the money supply. 
 
¶4. (U) SLIGHT RISE IN MONTHLY INFLATION.  The CPI index for April 
indicated a slight increase of 0.1 percent, up from 159.8 to 160.0. 
The positive change in the CPI is attributed to higher 
transportation and clothing prices during the month of April. 
 
¶5. (U) CENTRAL BANK RELAXES MONETARY POLICY.  The BRH decreased its 
interest rates again in May: the 7-day bond interest rate went from 
4.7 to 3.9 percent (it was 5 percent in March), and the 90-day bond 
interest rate went from 7 to 6 percent (down from 8 percent in 
March). 
 
¶6. (U) CARICOM CENTRAL BANK GOVERNORS MEET IN HAITI.  CARICOM 
Central Bank Governors convened in Port-au-Prince and renewed their 
commitment to strengthen financial control measures and make 
concrete proposals to their governments in order to stimulate their 
economies and deal more effectively with the global crisis.  The 
committee of governors will meet again in Port-au-Prince in 
November. 
 
¶7. (U) THE NATIONAL BUDGET.  The national budget was passed by the 
Lower House, with some revisions, on May 5.  It is now waiting for 
final approval from the Senate.  The Senate's vote is stalled on the 
issue of a HTG 40 million (USD 1 million) compensation fund for 
former employees of Teleco (the telecom parastatal).  The fund was 
rejected by the Lower House.  This dispute between representatives 
and senators has delayed salary payments to civil servants, 
particularly public school teachers and police officers. 
 
¶8. (U) PANAMA TRADE INITATIVES.  The GoH announced new measures to 
regulate trade with Panama and facilitate greater transparency 
between Haitian merchants and GoH tax and customs authorities. 
 
¶9. (U) H1N1 VIRUS.  The GoH refused receipt of a bulk food shipment 
from Mexico, fearing the entry of the H1N1 virus.  The humanitarian 
aid cargo was part of the USD 243 million in Inter American 
Development Bank (IDB) support pledged at the Washington Donor's 
Conference in April. 
 
¶10. (U) H1N1 VIRUS (cont.).  The GoH announced the availability of 
Tamiflu in preparation for the H1N1 Virus.  The Ministry of Health 
has 20,000 courses of the drug available and more will be provided 
by USG if necessary.  The Tamiflu is not for sale and will be 
dispensed free of charge only to those who test positive for the 
virus. 
 
¶11. (U) NEW CANADIAN AIRLINE.  Sunwing Airlines, from the Canadian 
Sunwing Vacation Group, will begin flying between Haiti and Canada 
on June 17.  The airline will feature one direct flight between 
Port-au-Prince and Montreal per week. 
 
¶12. (U) TORTUGAIR FLIGHTS TO THE DR.  Dominican Civil Aviation 
authorities announced limited resumption of TortugAir Flights from 
Port-au-Prince to Santo Domingo.  Three flights per week have been 
authorized between Haiti and the Dominican Republic.  Restoration of 
the additional 59 authorized charter flights will be re-discussed at 
a later date 
 
¶13. (U) DOMESTIC WORK LAW.  Parliament passed a new law regulating 
domestic work.  The law, granting domestic workers the same rights 
as employees working in the formal sector, was passed unanimously. 
Domestic workers will have the right to rest (one and a half days 
per week), 15 days of annual leave, and salary bonuses.  The 
employer must allow domestic workers to attend training courses, 
without reducing his/her salary.  (Note: Domestic employees are 
not/not covered by the recent minimum wage increase from HTG 70 to 
HTG 200/day, and generally earn much less than employees in the 
industrial/commercial sector.  End note.) 
 
¶14. (U) DOMINICAN REPUBLIC BANS CATTLE/SWINE IMPORTS.  The DR has 
banned imports of cattle and swine, livestock and products, from 
Haiti due to the discovery of an as-yet unidentified illness in 
Haitian pigs. 
 
¶15. (U) DR/HAITIAN CHAMBER OF COMMERCE.  The Dominican and Haitian 
Chamber of Commerce held a 2-day meeting to discuss investment 
opportunities, strategic alliances, and technological exchanges 
between Dominican and Haitian entrepreneurs on May 20-21. 
 
¶16. (U) PROTESTS AT HAITIAN/DR BORDER.  Intermittent protests by 
both Haitian and Dominican truckers unions at the border through May 
have interfered with transportation across the border, occasionally 
blocking it completely.  Haitian transportation workers initiated 
the actions in protest against Dominican treatment of Haitians.  The 
Dominican trade unions reciprocated. 
 
¶17. (U) DESTRUCTIVE WEATHER CONDITIONS.  Two weeks of heavy rains at 
the end of May resulted in serious flooding in many parts of Haiti. 
11 deaths were attributed to the floods.  Approximately 3,000 people 
were evacuated and 1,200 people are in temporary shelters in the 
Southern region.  In some parts of the South, Grande Anse, and 
Artibonite areas fields were devastated and livestock swept away.