Juan Orlando Hernández has assumed the presidency of a country affected by a serious fiscal deterioration, criminal violence and lack of public and private investment.
The new president of Honduras, Juan Orlando Hernández, assumes command of the country in a very complex environment, where the lack of adequate infrastructure, high fiscal deficits and deteriorating social conditions seriously affect the country's competitiveness internationally.
Juan Orlando Hernández was officially declared the winner of elections in Honduras by the Tribunal Electoral.
The entity responsible for overseeing the election process today made official Hernández's triumph in the elections held last Sunday in Honduras.
With 81.54% of polling stations, Hernandez leads with 35.88% of the vote over the 29.14% gained by Castro, the candidate of the Libertad y Refundación (Libre) party and wife of ousted President Manuel Zelaya, reported Nacion.com.
The company reported government problems in the financing of hydroelectric projects Llanitos and Jicatuyo, which were to have been built by the Brazilian company.
The Honduran government never disbursed the $100 million it was to contribute towards building dams on the Ulua River in the department of Santa Barbara, said Brazilian Ambassador to Honduras, Zenic Krawctschuk.
A Spanish priest, residing in Honduras, questions the stances the Government of Spain has taken against Honduras, which are causing so much damage in the country.
Antonio Rieu, who lived in Congo, Rwanda, Cameroon and Ivory Coast, now runs a Marist high school in Honduras. He sent a letter to the Spanish Ambassador in Honduras, from which we translate an excerpt:
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”.
While the people of Honduras continue to suffer from international isolation, the political and diplomatic corporation of Latin America and the Caribbean will discuss its fate in Cancún.
The Rio Group (an OAS alternative), will become the next stage in which the representatives of the region’s governments will promote their own political and personal projects, as they discuss the future of a theoretically sovereign country.
The European Commission informed in a press release that they plan to resume the negotiation process on February 22.
Honduras will participate fully and Panama will take part as an observer.
“EU wants a ‘comprehensive association agreement’ with the region, which includes political dialogue in Human Rights, climate change and development cooperation, plus a free trade agreement”, reported Nacion.com.
Up to date, Honduras has resumes diplomatic relations with Guatemala, Colombia, Peru and Canada.
Chancellor Mario Canahuati explained they are working with the United States to unfreeze economic aid.
Canahuati added: “We have also welcomed the ambassadors of Italy and Germany, and the delegates from Spain and France are on their way. We also made progress with Finland, Turkey and Morocco”.
Honduras starts a new stage of political and economic reconstruction, based on national reconciliation.
The new president started this difficult assignment by ratifying a resolution by the National Assembly granting immunity for all those involved in the deposition of Manuel Zelaya.
Lobo remarked he is assuming leadership of the country in the midst of its "toughest economic situation ever", with "giant and almost unmanageable foreign debt of $3.5 billion, in addition to very large domestic debt", a situation made even more difficult due to the lack of funds from international institutions since June 2009.
The Economist analyzes the upcoming administration of Porfirio Lobo and how he will have to 'pick up the post-coup pieces'.
When he is sworn in on January 27th, Lobo will take over a country that is diplomatically isolated, economically battered and socially polarized.
He inherits an economic hole. "Because of the world recession, the aid cut and the collapse in confidence triggered by the coup, the economy shrank by 3-4% last year.
The Congress of Honduras ratified the withdrawal of the country from the Bolivarian Alternative to the Americas (ALBA).
Interim president Roberto Micheletti had sent the executive decree on December 2009.
"Rafael Pineda, presidential minister, had explained that the withdrawal from ALBA doesn't imply suspending commercial relations with the countries which compose the block", reported Proceso.hn.
The Honduran Treasury has outstanding debt for $300 million, but has only $8 million available.
In light of this situation, Finance Minister Gabriela Núñes warned that the upcoming administration, headed by Porfirio Lobo, must enforce "deep fiscal austerity" and restore relations with the international community, in order to resume external aid.
According to the article in Proceso.hn, this crisis has two main causes: a $158 million drop in tax collection, plus a $211 million increase in salaries.
The coup d'état and the international financial crisis are the main drivers of this drastic reduction in foreign direct investment.
According to data from the Central Bank of Honduras, the country received $485 million in Foreign Direct Investment, 44.7% less than in 2008, when it received $877 million.
"Honduras attracted $251.7 million in foreign investment in the first half of 2009 and $233.3 in the second, when the political crisis started", reported Prensalibre.com.
Brazil won for maximum hypocrisy, United States for indecision, and the OAS for lack of impartiality.
Andres Oppenheimer lists some of the top external players in the Honduras crisis, detailing their biggest political mistakes.
The feeling remains, however, that had not been for the mistakes of the international community (specially for its stubbornness in not listening to objective reasons), the price being paid by the people of Honduras would not be so high.
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