TEGUCIGALPA: Congress in Honduras has granted the Honduran government permission to make loans of $2 billion between 2022 and 2023.
On international and domestic debts under a fiscal and monetary emergency decree that aims to ease the financial imbalances of the public sector, the officials announced on Wednesday.
The decree will also permit the government to pay for the $166 million bonds due on March 15 through assistance funds through the International Monetary Fund (IMF), managed by the Central Bank of Honduras (BCH), according to the deputy minister of finance Elizabeth Rivera.
The plan was suggested by the newly elected president of the left, Xiomara Cruz, who, on her inauguration in January. 27, announced that she was in charge of the state of “bankruptcy” from the conservative president Juan Orlando Hernandez, president for eight years.
“Congress approved a decree allowing the government to issue loans, such as through the issue of sovereign bonds with a maximum of $2 billion this year, and next year to address financial and fiscal problems,” congressional vice president Hugo Noe told Reuters.
Noe and the ex-finance minister stated that there was a fiscal crisis and financial emergencies order approved on Tuesday, also allowing the government to make use of $335 million of Special Drawing Rights (SDRs) offered from the IMF held by the central bank to finance budget execution.
Elizabeth Rivera, the deputy finance minister, stated during the unicameral Congress the decree will permit Central Bank to move $335 million in SDRs that will serve to fund for the 166 million maturities of bonds that are scheduled for March, and the remainder to fund expenditures for the budget during the first quarter of the year.
Honduras was amid a budget deficit of $15.679 billion at the close of 2021. This was 59.3 percent of the country’s gross domestic products, as per Ministry of Finance figures.
