Haiti, plunged into economic turmoil for six years, faces a new blow with the withdrawal of Citibank after more than five decades of presence. This decision, announced on July 8, 2024, marks a major turning point, revealing the decline in foreign investment and demand for banking services.
The Haitian banking sector, already weakened by a tumultuous socio-political situation and recurring natural disasters, is thus losing a key player. The Bank of the Republic of Haiti (BRH) had already warned of a contraction in the credit portfolio and a deterioration in the quality of loans, highlighting an economy in decline.
The situation in microfinance is equally worrying. In February 2024, FINCA requested the termination of its agreement with the BRH, unable to maintain its operations in the face of massive losses and growing insecurity. Economic data show plummeting profitability for microfinance institutions, illustrating the deep distress of the sector.
The BRH report between September 2022 and September 2023 describes a disastrous economic situation, aggravated by galloping inflation and a dramatic decline in credits. These challenges, combined with pervasive violence and political instability, are plunging the country into an unprecedented economic crisis.
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