Through its social media account X, the Ministry of Finance of the Central American nation confirmed the arrival of the international organization’s delegation and the start of discussions, which will continue until next week.
“The fiscal, monetary, public investment figures, and the reform agenda will be reviewed at the end of 2024,” the aforementioned ministry stated in a brief message.
According to experts, Honduras could receive a disbursement of $125 million, provided the IMF technical mission approves the new review, corresponding to the second half of 2024.
To date, the Washington-based organization has disbursed $190 million of the $315 million authorized under the 2023-2026 agreement, which provides for total financial assistance of $823 million, distributed in six tranches subject to the approval of the evaluations.
Economists agree that Tegucigalpa will be eligible for disbursements from the Fund upon verification that the criteria were met in the last six months of the previous fiscal year.
Last December, the completion of the first and second reviews of the agreements, under the Extended Loan Facility and the Extended Credit Facility, gave Honduras immediate access to disbursements totaling approximately $198 million.
The Honduran government implemented various measures to comply with IMF recommendations, such as increasing the monetary policy rate from 3.0 to 5.75 percent, devaluing the exchange rate, and reducing losses at the National Electric Energy Company (ENEE).
Specifically, the entity’s technicians are expected to evaluate the performance of the ENEE, which faces significant challenges due to its fiscal deficit, inherited from previous neoliberal administrations.
According to experts, the success of this review will depend on the executive branch’s ability to demonstrate progress in key areas, such as fiscal discipline, public investment, and containing inflation, which closed 2024 at 3.88 percent, below the projected 5.0 percent.
The IMF’s approval not only represents financial relief but also endorsement of President Castro’s economic policies, who during her three years in office prioritized public investment in key areas such as education, health, and poverty reduction.
The country’s macroeconomic conditions remain stable, with a low fiscal deficit projected and inflation under control, said Hugo Noé Pino, Vice President of the National Congress (Parliament), on Monday.
Noé Pino confirmed a meeting between the IMF mission and the Honduran legislature to discuss pending legislation such as the Tax Justice Law.
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