Via IMF (Den Internationale Valutafond)

IMF Completes First Reviews Under SBA and SCF Arrangements with Honduras

December 18, 2019

On December 18, 2019, the Executive Board of the
International Monetary Fund (IMF) completed first reviews of Honduras’
performance under an economic program supported by a two-year Stand-By
Arrangement (SBA) and a two-year arrangement under the Standby Credit
Facility (SCF). This program was approved on July 15 th, 2019 in the amount of about US$ 309.2 million (SDR 224.8
million), the equivalent of 90 percent of Honduras quota in the IMF (see

Press Release 19/285


The completion of the reviews enables the authorities to access resources
in the total amount of about US$144.7 million (SDR 105 million). The
authorities have expressed their intention to continue to treat the
arrangements as precautionary.

Following the Executive Board’s discussion on Honduras, Mr. Mitsuhiro
Furusawa, Deputy Managing Director and Acting Chair, made the following

“Despite headwinds to growth and a challenging external environment, the
Honduran authorities remain fully committed to the economic program
supported by the IMF. They have maintained prudent macroeconomic
policies—the fiscal position is in line with the Fiscal Responsibility Law,
inflation is within the central bank’s target band, and the current account
deficit has narrowed despite adverse terms of trade—and have taken initial
steps on structural reforms to promote sustained, inclusive growth.

“The authorities have made progress on electricity sector reforms,
improving the institutional framework by strengthening the regulatory
agency, creating an independent system operator, and issuing regulations
that will facilitate an open, transparent, and competitive electricity
market. They have also taken important steps to improve operations and
governance in the public electricity company, and to implement the plan to
reduce electricity losses, notably by creating a task force to address the

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“Important measures to strengthen the governance and anti-corruption
frameworks have been incorporated into the program, adding to the ongoing
efforts to strengthen the institutional framework in the central bank and
in public finances, and to improve the business environment. The measures
focus on reforms in the framework to manage public-private partnerships,
the registry of beneficial ownership, the public officials’ asset
declaration system, and public procurement.

“The authorities will protect the revenue mobilization efforts made over
the past years in order to reduce the infrastructure gap and increase
social spending. These efforts
will be critical to reduce poverty and inequality, while maintaining a
prudent fiscal position
that secures debt sustainability over the medium term.

“These policies and reforms should help improve the medium-term outlook,
paving the way to gradually boost productivity, growth and employment, and
ultimately foster inclusive growth.”

IMF Communications Department

PRESS OFFICER: Maria Candia Romano

Phone: +1 202 623-7100Email: