(MENAFN – Caribbean News Global)
- The IMF and Honduran authorities agreed on policies for reviewing Honduras’ IMF-supported program.
- Honduras has made significant progress, maintaining prudent fiscal policy, increasing public investment, and starting to normalize monetary and exchange rate policies.
- Key steps for economic stability include improving budget execution, reforming the energy sector, and making further adjustments to monetary and exchange rate policies.
TEGUCIGALPA, Honduras: An IMF team led by Ricardo Llaudes visited from October 7-18, 2024.
Llaudes stated:
“The IMF and Honduran authorities have a staff-level agreement on necessary policies to review the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements. The IMF board will consider this soon.
“Honduras’ economy shows resilience despite global challenges and El Niño. Growth is near 4%, and inflation is stable at 4.5-5%. However, international reserves have declined due to drought affecting exports and energy imports.
“Authorities are committed to a prudent macroeconomic policy to ensure stability and meet program goals, focusing on five areas:
1. **Budget Discipline:** Maintain debt sustainability with solid tax revenues and improved financial management.
2. **Social Spending:** Enhance support for vulnerable populations by accelerating cash transfers and improving transparency.
3. **Monetary Policies:** Implement measures to control inflation and protect reserves, including adjusting reserve requirements and interest rates.
4. **Energy Sector Reforms:** Reduce arrears, attract investment, and integrate distribution units for better financial health of the public power company ENEE.
5. **Anti-Corruption Efforts:** Strengthen transparency through asset declarations and improve the framework for assessing anti-money laundering efforts.
“The IMF team thanks the authorities and civil society for their cooperation.”
IMF Communications Department
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