The Honduran government has announced the auction of several state-owned properties to pay off the Executive’s debts.
The finance minister, William Chong Wong said in the council of ministers that they are working on an inventory of assets and two major auctions are planned for this year.
"He said that a number of state owned plots of land have been identified which will be given to the Security Department to build police stations.
The Cabinet has approved the creation of a special trust for the construction of a bulk cargo terminal at Puerto Cortez.
A press release from the President of Honduras reads:
The Council of Ministers approved on Tuesday (December 20, 2011) a contract for a special trust for the construction of a bulk cargo terminal at Puerto Cortes, as part of the expansion and modernization of the national port platform.
A new government procurement system will improve acquisition times, eliminate bureaucracy and save resources.
The system of "electronic catalog shopping", will also provide a solution to the problem of overpricing in government procurement and provide greater transparency to the process.
The Minister of Finance, William Chong Wong said that this year’s system includes six products and more will be added progressively.
The farms to be auctioned, property of the defunct Banco Corporativo SA, are located in Namasigue and Marcovia, Choluteca.
Included in the lot to be auctioned is a packing plant, located in San Lorenzo, Valle.
William Chong Wong, finance secretary, said he hopes the auction will be carried out early next year.
"In total it amounts to 919 hectares of farm land, and 29.82 hectares that make up the shrimp packing plant, which has a processing capacity of 80.000 pounds per day of this crustacean.
The World Bank has approved an interest free loan to expand access to formal land titling, cadastre surveyance and property registration.
A statement from World Bank (WB) reads:
This service is part of an improved integrated and decentralized land administration system .
The Honduran Land Administration Program, in its second phase, aims to continue the strengthening of property rights in the Central American country by modernizing the legal framework, strengthening the institutional system, and developing a land administration system .
The funding of $300 million for the construction of the Patuca III hydroelectric project has been approved by the bank Eximbank.
Financial Secretary, William Chong Wong said that negotiations of both the technical and political details with China have reached the final phase, which has led to the approval of funding by the bank.
Laprensa.hn on its website quoted Roberto Martínez Lozano, manager of the National Electricity Company (Enee), saying that "... the inauguration stone will be laid on the 16th of May, marking the beginning of construction of the Patuca III which is expected to be completed in 36 months. "
The 1% increase in the country's tax on income (ISR in Spanish) will apply from the beginning of the 2011 new tax year.
The reform to Honduran income tax law was approved by congress and only applies to companies with revenue above $529,000.
Finance Minister, William Chong, told LaPrensa.hn that, "the reforms do not affect salaried workers... and those that have suffered losses due to natural disasters may be exempt but will have to provide justification".
"There are people with annual expenditures over $ 150,000, but only declare $ 26,000 in income" stated the Executive Director of Revenue (DEI), José Oswaldo Guillén.
With regards to the tax evasion and fraud plan announced in December by the Secretary of Finance, William Chong Wong, starting the first day of January the method of alleged income to individuals in liberal professions will be applied.
The funds will be used in infrastructure projects such as the Patuca III hydro power plant.
William Chong Wong, finance minister, explained that the money comes from several international institutions such as the World Bank, the IDB, CABEI and the Governments of Taiwan and Europe.
Chong noted that “the government could create between 10,000 and 12,000 jobs via these projects, which include the Patuca III dam, roads and improving the facilities of Port Cortés”.
The loan will be used to finance the "programs to strengthen the financial safety net and improving access to financing."
The IDB representative in Honduras, Miguel Manzi, at the signing ceremony said the purpose of the Inter-American Development Bank is to support the government in a program for financial reforms and institutional changes in the sector.
Financial Secretary, William Chong Wong, has listed the companies that, whether due to exemption or evasion, do not pay tax.
According to the online publication Revistazo.biz, “the Financial Secretary has stated that the companies listed benefit from indemnities that other Honduran business do not”.
The secretary criticized companies that are exempt from taxes or that, “refuse to comply with the law”.
A number of U.S. investors are interested in a project to generate 50 MW of renewable energy in Honduras.
Marco Rodríguez, from Houston-based Minerco Resources Inc, commented that “the investment outlook is pretty attractive”, after holding a meeting with government authorities.
“He commented that these companies are currently interested in a project to generate 50MW of clean energy.
Finance Minister William Chong Wong affirmed they will be completely transparent when the International Monetary Fund reviews Honduras’ accounts.
The previous IMF visit to review national accounts, a compulsory process for all member states, was conducted in Honduras back in 2009, when Manuel Zelaya was still president. According to Proceso.hn, the mission “reviewed the numbers and found imbalances in public spending, mismanagement of state companies and noncompliance with the agreement signed with the Fund”.
Juan José Daboub, director of the World Bank, visited the country, making it the first official action of the financial entity.
William Chong, Honduras, finance minister, told journalists at a press conference that Daboub plans to meet with president Porfirio Lobo, the council of ministers and the economic cabinet.
Chong added: “In this visit, we hope to define the guidelines for a fast recognition of the new government of Honduras”.