A "stand by" precautionary agreement and the $700 million credit line are being negotiated.
The agreement is for one year, the $700 million being contingency funds to be used only in the face if serious problems in the national economy.
LaPrensahn.com reported statements by the president of the Honduran College of Economists, CHE, Manuel Bautista: "The Government should seize the opportunities to access resources for contingency cases. The precautionary agreement involves a series of commitments that the country must meet, e.g. control of current spending, which has grown in recent years."
For the first time this decade, the government adjusted tax revenue collection downwards from $2.43 billion to $2.27 billion.
Luis Rodrigéz, wrote in El Heraldo of Honduras: "The Ministry of Finance (SEFIN) planned to raise $2.430 million, however, that figure was reduced to $2.270 million after learning that customs revenues experienced a decline due to the reduction in the import of goods. Tax collection experienced an increase in the last three years. From 2006 to 2007, the increase was $362 million and from 2007 to 2008, tax revenues increased by $204 million."
They are calling out for an agreement to be signed with the IMF and for adjustments in the application of the new minimum wage rate and in the anti-crisis plan announced by the government.
The Honduran Council of Private Enterprise (COHEP) requested the government to confront the crisis that is already affecting Honduras, and to stand a the forefront of a joint effort among all the national sectors, stressing the need to reach a stand-by agreement with the International Monetary Fund. This would allow Honduras access to credit lines for countries in a precarious condition.
The government will sign a loan for $30 million with Venezuela this week; the funds will be used to finance loans to small farmers.
The letter of intent will be signed by the Ministers of Finance, Rebeca Santos from Honduras, and Alí Rodriguez, from Venezuela, according to the president of hte Central Bank of Honduras (BCH), Edwin Araque.
The credit agreement is to help small agricultural producers through the Rural Competitiveness Project.
Minister of Finance, Rebeca Santos, stated that the resources from the agreement will be used to help the small agricultural producers associations and to create alliances with commercial partners and to implement joint business plans to expand access to the market and increase the income of the producers.
A mission of the International Monetary Fund (IMF) began reviewing the Government of Honduras' economic program yesterday in Tegucigalpa.
Rebeca Santos, Minister of Finance, told the press that the mission will evaluate the fulfillment of goals of the program and the different macroeconomic variables such as growth, inflation and public investment. The emissaries of the international financial organization will meet throughout the week with officials from the economic cabinet of the Government of Honduras.
Honduras will be unable to meet targets set by the International Monetary Fund as a result of a soaring bill for fuel imports, finance Secretary Rebeca Santos said.
Santos said that Fund officials were aware that Honduras would be unable to meet the targets for inflation and international reserves. Between January and April of this year, the nation's monthly fuel-imports bill more than doubled to US$456 million.
To offset the effects of a recession in the U.S., Finance Minister Rebeca Santos said Honduras is creating internal conditions for job creation through public investment and a 900 million dollar private project.
Santos said this year's budget includes public investment programs in highways, production, micro-credits, and social assistance. "We are creating conditions for public investment that will be an important element for stimulating the national economy," she said.
As part of the Agritrade Platform, Guatemala will participate for the 27th time in PMA Fresh Summit, the most important international trade show and convention of fruits and vegetables in the United States, which will take place at Anaheim Convention Center, California from October 17th to 19th.