Central Bank of Honduras grants credit for ,000 million to the Government

Central Bank of Honduras grants credit for $1,000 million to the Government

The Central Bank of Honduras granted a loan for 1,000 million dollars to the Government to finance public investment projects and face external and internal debt service payments.

The financing, announced on Wednesday by the entity, was granted within the framework of a decree approved in February by Congress that authorizes the executive branch to contract loans, including sovereign bonds, in the local and international market between 2022 and 2023.

The Central Bank already granted in February a credit to the Government for 336 million dollars of Special Drawing Rights funds, provided by the International Monetary Fund (IMF) for budget support for external debt service payments.

Honduras, the second poorest nation in Latin America, faces an external and internal debt of 15,679.2 million dollars, which represents 56.7% of the Gross Domestic Product (GDP), to whose service it allocates 30% of the national budget, according to officials from the Ministry of Finance.

The granting of the credit was announced when an IMF mission is in the Central American nation, with which the administration of President Xiomara Castro intends to reach an agreement that will allow it to obtain new financing.

Melissa Galbraith
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