During February, the country will receive an IMF mission to assess the agreement signed in 2010.
The president of the Central Bank of Honduras told the press that members expect 'good reviews' because they have been fulfilling the goals set by the Government.
"Indicators show that goals were reached, in some cases exceeded, such as international reserves," said Mondragon," Laprensa.hn reported.
The coming Tuesday Honduras will receive an IMF technical mission to negotiate the new economic program.
The team will be headed up by Przemek Gajdeczka, who also led the group that came in March for the Article IV consultation. Polish Gajdeczka will come with five subject area experts, especially in fiscal policy, which is what the Porfirio Lobo Sosa government is particularly struggling with.
The Executive Board of the International Monetary Fund will decide no earlier than July.
An IMF mission conducted discussions on the 2010 Article IV consultation with Honduras during May 17-27. The mission met with President Porfirio Lobo, the government’s economic team, as well as private sector and civil society representatives.
Discussions focused on the economic outlook for 2010 and the macroeconomic policy response of the government.
The Central American Bank for Economic Integration announced it will start disbursing money to Honduras in the upcoming days.
The entity explained it had decided to do so in its first directive meeting, in early 2010.
“However, in order to disburse money to the Honduran public and private sector, several items had to be in place. For example, the country had to be up to date with its obligations to the bank”.
The board of directors of the IDB has decided to resume relations with Honduras.
In a few days, the Inter-American Development Bank will send a mission to Honduras, which could announce the portfolio of joint projects for 2010.
"Most multilateral financial institutions such as IDB, the World Bank and the IMF suspended relations with Honduras after the political crisis", reported Laprensagrafica.com.
From March 15 to 25, the International Monetary Fund (IMF), will evaluate the country’s economy in the wake of 2009’s political crisis.
After this assessment, the IMF may reach an agreement with the Government for a loan or some sort of cooperation, explained María Elena Mondragón, president of the Central Bank.
“The official remarked that a new agreement with the IMF would be in line with the Government Plan proposed by President Porfirio Lobo, with ‘coherent’ proposals”.
The IMF has recognized the government led by Porfirio Lobo Sosa, assured María Elena Mondragón, president of the Central Bank of Honduras.
Mondragón explained she received an official communication on behalf of the IMF, naming her the representative before the institution, and Finance Minister William Chong Wong as alternate representative.
“Honduras negotiated its last ‘stand by’ program in February 2008, which lasted for one year (it expired on March 2009). However, the Honduran economic and political crisis caused the IMF to suspend $120 million in cooperation”, reported Laprensa.hn.
After the political agreement, the country hopes to restore international loans and cooperation estimated at $739 million.
The financial blockage was imposed by the United States, the European Union and Venezuela, together with financial institutions such as IMF, WB, IDB and CABEI, after the political events of June 28th.
Amílcar Bulnes, president of the Honduran Council for the Private Enterprise (Cohep), argued about the "need to not mix political conflicts with economic matters. Bulnes declared that, if so is decided, Honduras could remain a member of Petrocaribe. Its participation was suspended by Venezuela on June 28".
$684 million in projects are on hold in Honduras, due to IDB and WB freezing financial cooperation with the country.
38 projects are awaiting $456.7 million in funding from the Inter-American Development Bank. Likewise, the World Bank has 17 active projects, with $227.4 million to be disbursed.
An article in Laprensahn.com discusses the measures taken by these international organizations: "These decisions impact negatively in the public investment program. 360 projects were approved for 2009, requiring $12.6 billion in investment. Out of this, 32.4% ($4.1 billion) was to be funded with external resources. All external cooperation was paralyzed after the second semester".