The Global Financial Fund stated on Friday it has reached a workers-stage agreement with Honduras for a 36-month credit facility for roughly $830 million to enhance the country’s financial reform policies.
In a assertion, the IMF stated the financial program makes a speciality of serving to address pressing social spending and investment needs, while anchoring macroeconomic steadiness. A credit facility is an agreement between a borrower and a lender that’s extra versatile than a old faculty loan.
The agreement follows an IMF physique of workers trot to to Honduras between June 5 and 16 and digital discussions in contemporary weeks, it added.
„The Honduran economy has remained remarkably resilient to loads of shocks, each home and external, including the pandemic, climate events (tropical storms and droughts), the affect of the battle in Ukraine, and the area financial slowdown,” the assertion confirmed.
Nonetheless, Honduras continues to face prolonged-standing social and structural challenges, it stated, and addressing these challenges will require „steadfast implementation (and) structural reforms that promote financial diversification and social inclusion.”
Honduras International Minister Enrique Reina welcomed the agreement on social media platform X, formerly known as Twitter, announcing in a submit the files demonstrated „the monetary, monetary and financial soundness of the country.”
The deal will fall below the IMF’s Prolonged Fund Facility (EFF) and Prolonged Credit score Facility (ECF), and has but to be licensed by the govt.board.
The Central American country’s economy expanded by 4% final year, in step with real files, and the govt.has forecast rotten home product development of between 3.5% and 4.0% this year.