Honduras Could Seek International Bailout

The sum of the external public and private debt reached a balance of $5.456 billion, 12.7% higher than that recorded at the end of December 2012.

Tuesday, June 25, 2013

The country is facing a severe financial crisis fueled by a runaway fiscal deficit and runaway government spending.

In the last few days, Mauricio Diaz Burdett, coordinator of the Social Forum of External Debt and Development of Honduras (Fosdeh) noted that the Honduran state institutions can not recover in financial terms, therefore he advocated the formulation of an international financial rescue plan.

According to an article in the Elheraldo.hn, "the Minister of the Presidency, María Antonieta Guillén said that an internal review has to be conducted to see under what conditions the government closes in 2013, before advocating foreign cooperation."

The coordinator of Fosdeh, Mauricio Diaz said he "recently talked with Cardinal Oscar Andres Rodriguez about the need to ask the international community to bail Honduras out. In the view of Diaz, the country's financial situation is going through a critical time which requires the contribution of the international community, which to date has assisted several first world nations. "

More on this topic

Bailout Plan for Honduras

April 2013

Just as several European countries have done, Honduras must prepare itself to ask for a bailout.

This was the suggestion made by the Social Forum of Honduran External Debt (Fosdeh) during the spring meetings of the International Monetary Fund (IMF) and World Bank (WB). According to Mauricio Diaz, Fosdeh coordinator, "we are still making recommendations, and we have just done so to the IMF and the WB, the general idea is that we have to prepare a rescue plan."

Hondurans must tighten their belt

March 2010

IMF advices: contain current spending, especially the wage bill, and strengthen the finances of public enterprises, public pension funds, and municipalities.

March 25, 2010

Mario Garza, resident representative of the International Monetary Fund (IMF) in Tegucigalpa, issued the following statement today:

IMF Recognizes New Honduran Government

March 2010

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.

U.S Will Resume Aid To Honduras

February 2010

The announcement was made by Hugo Llorens, U.S. ambassador in Honduras.

’It is not fair to isolate Honduras. In Washington, we are beginning the process to unfreeze economic aid for the country’, said Llorens, at a press conference with President Porfirio Lobo.

Economic assistance to Honduras was suspended seven months ago, as a way of forcing the de facto government to reinstate President Manuel Zelaya.

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