Reuters

Washington- The International Monetary Fund said on Tuesday it completed an initial review of Haiti's economic program, making about $11.7 million immediately available for disbursement to the Caribbean nation under a $113 million poverty-reduction program.

The IMF's executive board also approved Haiti's request for a waiver that allows for a delay in submission of a new banking law to the Caribbean country's parliament along with other modifications to performance criteria to be used in the next IMF review.

"Haiti has made commendable progress on its path of economic and social stabilization. Significant economic reforms have been implemented nad the security situation has improved markedly," said Murilo Portugal, IMF deputy managing director, in a statement

Portugal said Haiti's performance under the poverty reduction and growth facility arrangement has been strong and performance criteria were met, but growth had lagged slightly behind expectations. It will be important for Haiti to improve its rate of budget execution, he said.

"Over the medium term, Haiti's main challenge will be to secure a sustained increase in growth, while consolidating low inflation, in order to reduce poverty and promote social stability, he said, adding that authorities were taking steps to improve private-sector investment.

Domestic revenues need to be raised to allow for a sustainable increase in prority expenditures, which in turn would require enhancing and modernizing tax and customs administrations and a broadening of the tax base, he said.